Warren Buffett thinks that the charges against Goldman don't hold water

Buffet isn't thrilled by the new financial regulations nor is he thrilled about Goldman being used as a justification.

Warren E. Buffett became the highest-profile defender of Goldman Sachs on Saturday, offering staunch support of the firm as it combats fraud charges from the Securities and Exchange Commission. . . .

what drew the most attention was Mr. Buffett’s full-throated support for Goldman. He drew upon some of the same points that Goldman has used in its own defense, including the sophistication of the investors the S.E.C. says were defrauded by Goldman’s lack of adequate disclosure in the deal. He said those investors should have conducted better due diligence. Of one investor, he said, “It’s hard for me to get terribly sympathetic when a bank makes a dumb credit bet.”

He also stood behind Mr. Blankfein. When asked whom he would select if Goldman needed to find a new leader, Mr. Buffett replied, “If Lloyd had a twin brother, I would vote for him.” . . .