Warren Buffett Talks His Book While Defending Moody’s from Congress

Warren Buffett has been a big shield lately. First he was forced to defend Goldman Sachs (NYSE: GS) against charges of fraud. Now he must defend ratings agency Moody’s (NYSE: MCO) from Congress.

What’s the common denominator? Warren owns interests in both companies. In fact, Buffett’s investment firm Berkshire Hathaway (NYSE: BRK-A) is the largest shareholder in Moody’s.

I actually feel sorry for Warren. He is at his best when he’s a sword making keen investments others fail to see. Unfortunately, he seems to be spending more and more time acting as a shield for his book of investments.

However, even the Federal Reserve Bank of NY has proven a statistically significant variation in the performance of ratings agencies — Moody’s, S&P (NYSE: MHP), and Fitch — during the housing boom. So, Warren’s was incorrectly opining when he told Congress the ratings agencies simply “made the wrong call.”

Here are some opposing views on Buffet’s stance on Fox Business: