Buffett won't bid for RBS insurance arm
FRANKFURT (Reuters) - U.S. investor Warren Buffett is not interested in bidding for Royal Bank of Scotland's (RBS) (RBS.L) insurance arm and expects fallout from the credit crunch to keep roiling financial markets, he said on Monday.
"I have ruled out doing anything with the RBS group, which says nothing about the group; I just made that decision," he told a news conference in response to a question.
RBS shares in London were down 3.5 percent at 257.25 pence at 1417 GMT.
Buffett said he still liked the insurance business in the United States, even if some favourable trends in recent years, particularly in car insurance, had begun to reverse.
"There is no way we can do as well in profits in 2008 and 2009 as we did in 2006 and 2007, but it is still a decent business," he said.
Buffett said he thought the fallout from the global credit crisis was not over yet.
Speaking specifically of the U.S., he said he did not think the effects of the credit crunch were nearly over.
"I think there will be rippling secondary, tertiary effects ... It is really more an effect of the residential real estate bubble, which led to the credit crunch in some degree."
Buffett is visiting several European cities on a tour to promote his Berkshire Hathaway (BRKa.N) investment vehicle as a potential partner for mid-sized companies seeking a buyer.
He said there were many more companies in Europe that were of potential interest than in emerging markets.
(Reporting by Jonathan Gould and Michael Shields)
