Buffett backs out of bank insurance
September 10th, 2008
A small subsidiary of Berkshire Hathaway has decided that enough is enough in the bank insurance business. Kansas Bankers Surety Co. announced that it would no longer sell insurance on bank deposits over the FDIC limit of $100,000. In the days before the financial collapse, the insurance was extremely profitable as bank failures were few and far between. With a total of 11 fallen banks this year, insurers are worried that their clients may be in need of more protection from bank failure. Insuring deposits is no longer a profitable business considering the risks tied to the recent failures. Read more…
