Buffett in discussions with Biden officials about banking crisis

Buffett in discussions with Biden officials about banking crisis

Warren Buffett, Chairperson of Berkshire Hathaway, has been in discussions with senior officials of the Biden administration about the ongoing banking crisis. A source familiar with the matter revealed to Reuters on Saturday that Buffett had reached out to the officials to discuss the situation.

On Saturday, Bloomberg reported that Buffett had been in touch with administration officials in recent days to talk about the regional banking crisis. There isn't yet any more official information about the nature of the discussions.

The recent collapse of Silicon Valley Bank and Signature Bank has had a significant ramifications for the banking sector, leading to a decline in investor confidence and a sell-off in banking stocks. The situation has raised concerns about the stability of the banking system, prompting calls for swift action to address the crisis.

Buffett has a history of stepping in to help banks in crisis, using his financial strength and investing expertise to restore confidence in the banking system. In 2011 Bank of America Corp received a capital injection from Buffett after its stock plummeted due to losses linked to subprime mortgages. In 2008, he provided Goldman Sachs with a $5 billion lifeline to support the bank after the collapse of Lehman Brothers.

Before the collapse of Silicon Valley Bank and the subsequent fallout, Federal Reserve policymakers were poised to raise rates by up to 50 basis points, as a string of data indicated that the economy was much stronger than officials had anticipated at the beginning of the year.

Many Fed watchers think a quarter-point increase will be achieved after the two-day meeting scheduled for March 21 -- 22 due to the instability in the financial market.