Warren Buffett spoke with President Joe Biden’s team in recent days. Both parties are concerned about the regional banking crisis, reports Bloomberg news agency.
Multiple conversations took place this week, with the Biden and Buffett team expressing concerns about the banking crisis, which is slowly unfolding. The break-up of Silicon Valley Bank and Signature Bank has seriously damaged confidence in the sector. Shares in regional banks continued to fall this week. The fear that the trend will continue is high among investors.
It is not the first time that the top investor and founder of investment fund Berkshire Hathaway has been involved in such conversations. The billionaire more often gives advice during the current turmoil in the financial market. It is not clear what exactly was discussed during these meetings, according to the Bloomberg news agency.
Credit crunch
Buffett has also helped companies out of the fire more often. For example, he came to the rescue of Goldman Sachs in 2008, after the collapse of the Lehman Brothers in the run-up to the credit crisis. Also in 2011, he invested eleven billion dollars in the ailing Bank of America. The fact that the industry itself is coming up with solutions is good for Biden. Fearing political backlash, he prefers not to let taxpayers pay for the problems within the financial sector, Bloomberg reports.
Earlier this week, 11 major banks stepped in to rescue the beleaguered First Republic Bank. USD 30 million was released for this. This move would also be good for confidence in the sector, Bloomberg reports.
