Buffett backs financial reform, says economy improving

Buffett, who has worked with Goldman for nearly half a century, abacked Blankfein, who underwent a grilling last week on Capitol Hill about his firm's actions leading up to the crisis. 

"I would be disappointed if he stepped down," he said. 

To stabilize Goldman, Buffett invested $5 billion into the firm during the 2008 financial crisis, an investment that pays at a 10 percent rate, totaling $500 million a year, making him the Goldman's largest shareholder.  

Whether Goldman did anything wrong, Buffett said "I have no knowledge of anything they've done." His purpose is to "do business with them."

In Buffett's experienced eyes, "in May and April, the economy's come on pretty strong." He predicted that within a year, the residential housing problems will be behind us.