Buy American banks, says Warren Buffett

US banks are in the “best shape in recent memory” according to the world’s most famous investor. So should you buy in?

American banks, the epicentre of the financial crisis, are completely healed, says America's most famous investor, Warren Buffett. In a recent interview he told Bloomberg: "The banks will not get this country in trouble, I guarantee it. our banking system is in the best shape in recent memory."

Buffett's record as an investor may be legendary, but his views are at odds with many other investors who are still wary of battered banks. Despite a rally in 2012, major US banks such as Citigroup, Bank of America, Goldman Sachs and JPMorgan all trade at less than their book values.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.