Warren Buffett in talks with White House over US banking crisis: report
Billionaire investor Warren Buffett reportedly engaged in talks with top members of the Biden administration as turmoil engulfed the US banking system.
The Berkshire Hathaway chairman has had “multiple conversations” with President Biden’s team over the last week, on Saturday, citing people familiꦐar with the matter.
During the calls, Buffett and administration officials purportedly discussed the pꩵossibility of the billionaire helping to stabilize the situation by potentially investing in the regional banking system.
Regional banks faced a run from worried depositors after the collapse of Silicon Valley Bank and Signature Bank of New York.
Buffett — who is worth an estimated $102 billion, according to Bloomberg’s Billionaires Index — also provided White House officials with “advice and guidance” on how to respond to the banking crisis.
The Post has reached out to Buffett’s off🏅ice for com🐲ment.
Buffett has a history of bolstering US banks with timely investments during periods of economic stress — most notably with a $5 billion infusion for Goldman Sachs as it struggled through the 2008 financial crisis.
Theꦜ talks occurred as trouble at regional bank F⛄irst Republic and Zurich-based giant Credit Suisse fueled concern about global economic contagion.
First Republic’s stock has remained under intense pressure despite last week’s move by th💖e largest US banks to stage a $30 billion rescue of the troubled lender. Shares were down as much as 37% in premarket trading Monday, resuming their plunge from late last week.
The latest First Re𒈔public𓄧 slump occurred after S&P slashed its credit rating to B+ from BB+ on Sunday.
Elsewhe🌳re, investors appeared skeptical of UBS’s $3.2 billion deal to take over Credit Suisse, which has been in danger of collapse for days as a disclosure of “material weaknesses” in its financial reporting sparked a crisis of confidence. Shares of both banks were down in Monday trading.
Bank stocks have struggled despite a Biden-backed move by federal regulators to guar🌠antee all deposits at Silicon Valley Bank and Signature Bank following their collapse. Critics have argued th🌼at move was a bailout that will eventually lead to higher costs for bank customers.
Biden and other top administration officials have insisted that US taxpayers won’t be on th🧸e hook for the federal int🍷ervention.
