Warren Buffett slams banks for hiding their losses - and reveals he sold some bank stocks after spotting red flags

• Warren Buffett slammed banks for engaging in misleading accounting to inflate their profits.
• The Berkshire Hathaway CEO said he sold stakes in banks after spotting red flags in their earnings.
• Buffett underscored the importance of public faith in the banking system.

Warren Buffett has finally weighed in on the banking fiasco. He slammed lenders for taking unnecessary risks and disguising their losses, and revealed that he sold his stakes in several banks because he spotted red flags in their financials.