Warren Buffett in contact with Biden officials on banking crisis as US small lenders seek wider deposit guarantee
Berkshire Hathaway’s Warren Buffett has been in touch with senior officials in President Joe Biden’s administration in recent days as the regional banking crisis unfolds.
The outreach between Buffett and the administration was described by people familiar with the matter, who asked not to be identified discussing private information. It wasn’t immediately clear what role, if any, the billionaire investor may play to contain the crisis after the failures of Silicon Valley Bank, Signature Bank and Silvergate Capital earlier this month.
Buffett has a long history of stepping in to aid banks in crisis, leveraging his cult investing status and financial heft to restore confidence in ailing firms. Bank of America won a capital injection from Buffett in 2011, after its stock plunged amid losses tied to subprime mortgages. Buffett also tossed a US$5 billion) lifeline to Goldman Sachs in 2008 to shore up the bank following Lehman Brothers’s collapse.
The outreach between Buffett and the administration was described by people familiar with the matter, who asked not to be identified discussing private information. It wasn’t immediately clear what role, if any, the billionaire investor may play to contain the crisis after the failures of Silicon Valley Bank, Signature Bank and Silvergate Capital earlier this month.
Buffett has a long history of stepping in to aid banks in crisis, leveraging his cult investing status and financial heft to restore confidence in ailing firms. Bank of America won a capital injection from Buffett in 2011, after its stock plunged amid losses tied to subprime mortgages. Buffett also tossed a US$5 billion) lifeline to Goldman Sachs in 2008 to shore up the bank following Lehman Brothers’s collapse.
Representatives for Berkshire and the White House did not immediately respond to requests for comment. Officials at the US Treasury Department declined to comment.
US regulators unveiled extraordinary measures to assuage customers last weekend, promising to fully pay out uninsured deposits in the failed banks. Shares in regional banks continued to fall this week on fears the pain would spread. $Berkshire Hathaway-A (BRK.A.US)$ $Berkshire Hathaway-B (BRK.B.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Bank of America (BAC.US)$ $First Republic Bank (FRC.US)$ $Credit Suisse (CS.US)$
US regulators unveiled extraordinary measures to assuage customers last weekend, promising to fully pay out uninsured deposits in the failed banks. Shares in regional banks continued to fall this week on fears the pain would spread. $Berkshire Hathaway-A (BRK.A.US)$ $Berkshire Hathaway-B (BRK.B.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Bank of America (BAC.US)$ $First Republic Bank (FRC.US)$ $Credit Suisse (CS.US)$
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