Over the weekend, investor extraordinaire Warren Buffett came to the defense of embattled investment house Goldman Sachs. Goldman has been under fire for some time, for the role it played in the Wall Street meltdown and the recession. Buffet asserted that the fraud allegations and investigations are unwarranted. Ben Bernanke was also included in his defense, and claiming the Fed Chairman was right in the course the Federal Reserve took in its actions to provide short term loans to ailing Wall Street firms and banks.

Warren Buffett extends a supporting hand for Goldman Sachs

On the charges of fraud leveled in a Securities and Exchange Commission lawsuit, Warren Buffett defended Goldman Sacks. The purchases in question were a bundle of mortgages in collateralized debt obligations (CDOs) packages, sold as the product Abacus. Hedge fund Paulson and Co. bet on the securities losing money. The charge is that Goldman Sachs purchased the securities without notifying stockholders of the bet against Abacus. Warrant Buffett, in a recent Reuters post, said, “I don’t have a problem with the Abacus transaction at all… I think I understand it better than most.”

Buffet defending Bernanke

Ben Bernanke was also brought to the table of defense by Warren Buffett. Chairman of the Federal Reserve Ben Bernanke has taken a bit of a beating in the press for seeming too overly willing to drive money into Wall Street. According to Buffett, “There’s no one in the United States that I know of whom I would rather have running the Fed than Ben Bernanke.” Bernanke, also known as Helicopter Ben, organized the emergency infusion of cash into troubled Wall Street firms.

Berkshire-Hathaway owns a meaty-stake in Goldman

Warren Buffett has a wide variety of concerns and investments through his company Berkshire-Hathaway, including a hefty stake in Goldman Sachs. In his Goldman share, Buffett owns more than $ 5 billion. He would be in a unique position to see whether a transaction could be fraudulent or imprudent. He appears to be content with the actions of Goldman Sachs and executive Lloyd Blankfein. After all, an Investment Wizard is what Buffett is, so he wouldn’t back a company if he didn’t have a legitimate reason to do so.