Famous investor Warren Buffett is involved in banking crisis

Berkshire Hathaway CEO Warren Buffett, the fifth richest person in the world, contacted US President Joe Biden after the regional banking crisis broke out. It was learned that the famous billionaire was in contact with his senior officials.

According to the Bloomberg story, which is based on sources who did not want to be identified, there were many meetings between Biden’s team and Buffett in the past week. The Biden administration asked Buffett to invest in the US regional banking sector.

On the other hand, the famous billionaire is believed to have advised on the current turmoil. However, representatives from Berkshire Hathaway and White House and US Treasury officials did not comment on the matter.

THE FALL CONTINUES

US regulators announced extraordinary measures last weekend to appease customers. The organizations promised to pay off uninsured deposits in failing banks in full. Shares of regional banks, however, continued to fall this week.

Major US banks have voluntarily invested $30 billion this week to help First Republic Bank stabilize again. Any intervention by Buffett or other investors seems important to management seeking to stop the crisis outright without bailouts.

SAVE BANKS BEFORE

Buffett also has a long history of helping banks in trouble. The celebrity investor had previously restored confidence in companies on his deathbed by taking advantage of his financial weight.

For example, Buffett injected significant capital into Bank of America in 2011 after its shares fell due to losses due to subprime mortgages. Buffett also invested $5 billion in Goldman Sachs after the Lehman Brothers collapse in 2008.