The regulator filed a charge of fraud against the financial institution and vice-president Fabrice Tourre, which accused the bank and its employee of deliberately omitting information from investment products linked to subprime mortgages.
Mr Buffet, chief executive of Berkshire Hathaway, said that he did not âhold it against Goldman Sachs that they are subject of [SEC] allegationsâ.
He was quoted by the Financial Times as saying: âThere is no question that the allegation alone causes the company to lose reputation â¦ the last few weeks hurt the company and morale ... it is not remotely mortal but it hurts.â
However, Mr Buffet added that after having studied details of the supposedly illegal transaction, he did not believe that Goldman Sachs had committed fraud.
Berkshire Hathaway is thought to own $5 billion worth of shares in Goldman Sachs.
Meanwhile, Goldman Sachs has revealed that its shareholders have filed a number of law suits against the financial institution accusing it of mismanagement.
By Jim Ottewill