At Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) recent shareholder meeting in Omaha, CEO Warren Buffett and Vice Chairman Charlie Munger had quite a bit to say about the state of the banking industry.

Specifically, Buffett said that the recent bank failures had created fear, and because fear can be contagious, he wasn't certain if the period of consumer and investor panic in the sector was over. And while Munger is generally a fan of banking, he said that bankers are starting to distort some of the lessons learned from the 1929 crash.

We also learned from Berkshire's first-quarter earnings report that the company was a net seller of financial sector stocks during that period to the tune of nearly $2 billion. Buffett specifically mentioned Bank of America (NYSE: BAC) at Berkshire's meeting as a bank he's sticking with, but investors largely expected to learn that Berkshire had otherwise bailed on the banking industry.

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Source Fool.com