Many Wall Street were vocal about their opinions as the banking crisis in the U.S. unfolded, triggered fears of contagion and forced the government to step in. Warren Buffett, one of the biggest all-time investors, appeared to have been absent from the conversation.
The billionaire won't stop looking at the world's blind eye, now it seems that he won't be a blind eye.
What Happened to Buffett, the chairman and CEO of Berkshire Hathaway NYSE: BRK-A, had conversations with senior members of the Biden administration in the past week, according to people familiar with the matter. The two sides have explored ways in which the Oracle of Omaha can invest in the regional banking sector. The report added that Buffett hasn't given any broader advice or guidance on the recent turmoil.
When Bank of America's stock of BAC plunged in 2011 due to losses tied to subprime mortgages, Buffet injected capital into the bank. After Lehman Brother collapsed in 2008, Buffett also gave Goldman Sachs a $5 billion lifeline, according to Bloomberg.
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Why is it important that when the value of the Treasury holdings in Silicon Valley Bank eroded, the bank had to announce a capital raise. SVB collapsed when its clients consisted mostly of tech startups and venture capitalists. The Signature Bank suffered a similar predicament and collapsed.
The crisis caused a cascade of run-ins at several regional banks, though the federal government intervened to backstop deposits at both banks. Shares of the banks plummeted. A group of banks, led by JPMorgan Chase Co. JPM, agreed last week to park $30 billion in the First Republic Bank FRC.
When First Republic Bank began to face issues and its stock dropped, CNBC host Jim Cramer brought up Buffett's name. The Mad Money host has slammed big banks for reluctance to own any beaten-down small bank.
Why do people think Warren Buffett should buy a bunch? Cramer asked. That is how these declines often end! Elon Musk Spells Out Two-Step Solution For Banking Crisis, As Y Combinator's Co-founder, Y Combinator, Highlights 'Terrifyingly Fragile' Condition Of Banks,