LAUSANNE, Switzerland (AFP) — Warren Buffett, the world's richest man, said Tuesday that few banking chief executives appeared willing to assume responsibility for the risks their institutions take.
"I think that the head of any bank or financial institution has to be the chief risk officer, you cannot delegate (the job) to someone who comes in once a week," said the famed investor, known widely as the "Sage of Omaha."
"You don't have a business running a great financial institution accepting funds from others unless you're responsible for the risk," he said.
He told a press conference here there were few institutions and people who "take that obligation seriously."
Asked if he would buy a bank, he replied: "I'd buy a bank but I'd wonder who the banker was."
Buffett, in Europe looking for family-owned businesses to invest in, said the fallout from the US subprime home loan crisis was the "consequence of people not understanding the (investment) vehicles they are setting up, the instruments they are selling."
On Monday in Frankfurt, Buffett predicted the US economy would continue to face headwinds from the credit squeeze sparked by the collapse of the subprime or higher risk lending market.
"I don't think the effects of the credit crunch are far from over at all. I think there will be plenty of rippling secondary, tertiary effects," he said.
Buffett is in Switzerland before proceeding to Spain and Italy.
The 77-year-old revealed that three people have been identified as candidates to succeed him at his investment firm Berkshire Hathaway but he noted that these names could still change in the coming years.
He did not identify the three.
Buffett also said he had not decided to turn to European acquisitions because he is disappointed with US businesses.
"I'm not disappointed at all in the United States. I hope we buy a US company tomorrow -- (but) we probably won't," said the billionaire.
He noted that his investment vehicle Berkshire Hathaway was focused more on the United States than Europe and "this trip is to move towards correcting that."
He would not cite specific targets in Europe but said he was seeking businesses where it was clear what the company would like in the coming years.
A company may "do wonders for society" but Buffett said he would not get into a game in which he could not see into the future.
He cited food giant Nestle as a business he could understand but stressed it was not a company on his list.
Buffett also pointed to another Swiss company, luxury watchmaker Rolex.
"Obviously a company like Rolex is a great company. They know my phone number but they haven't called," he said, concluding the press conference with his contact -- 402-346-1400.
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