Warren Buffettexecutive director of Berkshire Hathaway, has contacted senior government officials of United States President Joe Biden, due to the turbulence that the country’s banks have suffered in recent days.
The outreach between Buffett and the Biden administration was described by people familiar with the matter as proprietary information. without making clear for the moment what role the billionaire investor can play in seeking to contain the general nervousness after the latest failures of Silicon Valley Bank, Signature Bank and Silvergate Capital.
Buffett has a long history of intervening to help banks in crisis, taking advantage of its cult investment status and financial weight to restore confidence in companies that enter into these protocols.
Bank of America Corp. won a capital injection from Buffett in 2011 after its shares plunged amid losses tied to subprime mortgages. Buffett also pitched $5 million to Goldman Sachs Group Inc. in 2008 to prop up the bank after the collapse of Lehman Brothers Holdings Inc.
What about US banks?
US regulators unveiled extraordinary measures to ease bank customers USA they came into conflict last weekend, promising to pay in full uninsured deposits in failed banks.
The team of Joe Biden, Wary of political pushback because of this, he has dedicated himself to orchestrating endorsements that do not require direct spending by taxpayers, including the Federal Reserve (FED, for its acronym in English).
Big US banks voluntarily deposited $30bn to stabilize First Republic Bank this week, a move described as “very welcome”. Any investment or intervention by Buffett or other figures would continue that same initiative, seeking to stop the crisis without direct bailouts.
