by Keith Fitz-Gerald, director of the Fitz-Gerald Group, said the bank coalition has not kept the market afloat because many major traders believe it will be a bailout after the Dow reacted negatively to the bankruptcies of Signature Bank and SVB.
The Oracle of Omaha contacted Biden administration officials to lend him his help during the current banking crisis.
Billionaire investor Warren Buffett has had numerous conversations with President Biden’s team in recent days, according to Bloomberg.
The calls centered around Buffett possibly investing in the US regional banking sector in some way, but the billionaire
Buffett reportedly provided advice and guidance on the crisis.
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Billionaire investor Warren Buffett (Daniel Zuchnik/WireImage/Getty Images)
The chairman of Berkshire Hathaway has a long history of taking action to help banks in crisis.
Companies Buffett helped with on the task include Bank of America and Goldman Sachs.
Buffett gave Bank of America a cash injection in 2011 after shares of Bank of America fell due to losses due to subprime mortgages.
In 2008, Buffett gave Goldman a $5 billion lifeline to support the bank following the collapse of Lehman Brothers.
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FOX Business reached out to Berkshire Hathaway for comment.
Close-up of a front logo sign at the First Republic Bank branch in San Ramon, California. (Photo by Smith Collection/Gado/Getty Images) / Getty Images)
Last week, US regulators announced extraordinary measures to pacify customers and promised to pay off all uninsured deposits in bankrupt banks.
Biden’s team has created backstops that do not require direct government spending from taxpayers, including actions by the Federal Reserve.
Major US banks voluntarily invested $30 billion this week to stabilize First Republic Bank.
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Customers waiting in line outside Silicon Valley Bank’s headquarters in Santa Clara, California. (via Getty Images/David Paul Morris/Bloomberg)
The crisis began with the US closing of Silicon Valley Bank, the country’s 17th largest bank. A week ago as FDIC regulators It took action to protect its customers facing liquidity crunch after $2 billion in losses.
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It was the biggest bank failure since the financial crisis.
Last Sunday, federal regulators said New York-based Signature Bank was shutting down to protect consumers and consumers. financial system After the collapse of the SVB.
