Buffett: US banks are no longer systemic risks

Veteran investor Warren Buffett has said US banks have strengthened their capital positions to a level where they no longer pose a threat to the economy.

Billionaire Buffett, chairman and chief executive of Berkshire Hathaway, the US banking system is in the best shape it has been in recent memory. The country's largest banks are currently submitting to the Federal Reserve their plans to return capital to shareholders, as part of an annual test of their capital strength. Bank shares have rallied strongly over the past 12 months as investors grow more confident in their stability. Those previous seen as most precarious, such as Citigroup and Bank of America, have seen their shares gain between 40-80% over the period. "The banks will ...