DProminent investor Warren Buffett appears to be in contact with senior officials in the Biden government in connection with banking troubles in America. This is reported by the financial service Bloomberg, citing several people familiar with the situation. However, according to the report, it’s not clear what form Buffett could play in containing the current situation. A number of mid-sized lenders in the United States have just run into trouble, including Silicon Valley Bank, Signature Bank and First Republic Bank.
Buffett has long used his iconic investor status and financial clout to restore confidence in troubled banks. Bank of America received a capital injection from Buffett in 2011 after its stock price plummeted due to losses associated with subprime mortgages. Buffett also provided investment bank Goldman Sachs with a $5 billion cash injection in 2008 as a result of the escalating financial crisis.
Representatives for the Buffett-led Berkshire Hathaway and the White House did not immediately respond to requests for comment, according to Bloomberg. Representatives of the Ministry of Finance declined to comment.
US regulators recently took emergency action to calm the bank’s nervous customers. Share prices of regional banks continued to fall this week. Major US financial institutions this week again pledged $30 billion to stabilize First Republic Bank, in what regulators called “highly welcome.”
Source: Frantfurter Allgemeine
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