NEW YORK (TheStreet) -- Billionaire investor Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) holds a large stake in Wells Fargo (WFC) and this afternoon he finally broke his silence about the bank's recent accounts scandal in a phone interview with CNBC's Becky Quick, which she discussed on Thursday afternoon's "Closing Bell."
Earlier today, a report came out that Buffett had expressed his anger about the scandal to the board, but Buffett denied those reports, Quick said. "That is dead wrong," he said, according to Quick.
Doing so would have been going behind Wells Fargo CEO John Stumpf's back, he told Quick.
At Stumpf's hearing before the House Financial Services Committee today, Stumpf said that he had spoken with Buffett, and Buffett confirmed that to Quick.
Buffett first spoke with Stumpf two weeks ago from tomorrow after watching Stumpf's interview with The Street's Jim Cramer on CNBC's "Mad Money," she said. The conversation was about five minutes, and he told Stumpf that the issue was probably bigger than Stumpf believed it to be.
The $185 million fine the company was hit with may seem small for the big bank, but the real issue was deeper, Buffett told Stumpf. The CEO agreed that he had initially underestimated the problem, but also claimed that he now understands its magnitude, Quick said.
Some rumors have said that Berkshire Hathaway is actually looking to buy up more of Wells Fargo's shares rather than sell them.
Buffett said that his firm can't buy more shares at this point as it would need the Federal Reserve's approval since it already owns over 10% of the company.