“The bubble in America was caused by some combination of megalomania, insanity and evil in, I would say, investment banking, mortgage banking,” Munger, 87, said today at a conference in Pasadena, California.
Munger is hosting a “Morning With Charlie” to replace the annual shareholder meeting of Wesco Financial Corp., the Berkshire unit that he ran as chief executive officer. Wesco is no longer publicly traded after Berkshire, led by Chairman Warren Buffett, acquired its remaining stock last month.
Munger used the meeting to fault ex-Lehman Brothers Holdings Inc. CEO Richard Fuld and to call for effective financial regulation. Munger, a Republican, praised Elizabeth Warren, the adviser who was appointed by President Barack Obama to set up the Consumer Financial Protection Bureau, and said there was too little oversight under ex-Federal Reserve Chairman Alan Greenspan.