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Berkshire tightens insurance for bank deposits: report
Investor Warren Buffett listens to a question during a news conference in Madrid May 21, 2008.
Credit: Reuters/Andrea Comas
(Reuters) - Billionaire investor Warren Buffett's Berkshire Hathaway Inc has told one of its units to stop insuring bank deposits above the amount guaranteed by the U.S. federal government, the Wall Street Journal reported.
The subsidiary, Kansas Bankers Surety Co, is notifying about 1,500 banks in more than 30 states that it will no longer offer a program called "bank deposit guaranty bonds."
The order was made on Monday by Buffett, Berkshire Hathaway's chief executive, two people briefed on the matter told the Journal.
KBS is an 18-employee subsidiary of Berkshire Hathaway, according to the parent firm's 2007 annual report. It is one of a handful of firms that offer such insurance, a big selling point for banks trying to attract wealthy customers.
No one was available at Berkshire Hathaway for comments.
(Reporting by Sweta Singh in Bangalore; Editing by Andrew Callus)
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