Warren Buffett, the CEO of Berkshire Hathaway, one of the richest people in the world and considered ‘the greatest investor of all time’‘ has agreed with Bloomberg, in contact with senior officials in the administration of President Joe Biden to help in the banking crisis.
Although it is not yet known what role the millionaire plays, the idea is that the investor helps contain the crisis of the bankruptcies of Silicon Valley Bank, Signature Bank and Silvergate Capital Corp.
In 2008, Buffett threw a $5 billion lifeline to Goldman Sachs Group Inc. after the collapse of Lehman Brothers Holdings Inc.
In 2011, Bank of America Corp. received a capital injection from Buffett after its shares plunged amid losses related to subprime mortgages.
The decision to include Buffett adds to US regulators taking extraordinary measures to appease clients of banks like Silicon Valley Bank who have been promised full payment of uninsured deposits.
Silicon Valley Bank (SVB) closed headquarters in Santa Clara, California.
Another of the measures that the Biden team has taken has been to mobilize resources that do not require direct spending by taxpayers, including the measures of the Federal Reserve.
Besides the big American banks voluntarily deposited $30 billion to stabilize First Republic Bank this week, a move that regulators called «very welcome.»
It is estimated that an investment or intervention by Buffett or other figures would be part of the measures to curb the crisis without the need for direct bailouts.
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