- The multiple calls during the previous weeks are supposedly rooted in Buffett’s intention to invest in the US banking sector.
- It was also informed that Buffett has suggested the ways in which the financial turmoil could be mitigated.
Warren Edward Buffett, the American business magnate and CEO of the multinational conglomerate company Berkshire Hathaway, has reportedly been in correspondence with the senior officers in US President Joe Biden’s administration, possibly surrounding Buffett’s plan to invest in the US regional banking.
Notably, the people familiar with the matter informed that there had been a couple of conversations during the previous week, after the debacle of the three major banking companies, the Silvergate Bank, the Silicon Valley Bank (SVB), and Signature Bank.
Though the exact reason for the multiple calls that the businessman had with Biden’s officials is yet unclear, there are suppositions that Buffett is planning to invest in the American banking sector.
Interestingly, the people familiar with the matter, though reluctant to reveal their identities, considering the confidentiality of the matter, added that Buffett also conversed and suggested the ways in which the current turmoil that engulfed the whole financial sector could be confronted and controlled.
Significantly, the US government has been diligent in introducing new measures that would convince and satisfy the investors who were victimized by the banking failure.
In addition, huge banks in the country contributed an amount of $30 billion to mitigate the financial crux as well as to stabilize First Republic Bank this week. The action by the banks was acknowledged by the regulators as “most welcome”.
The suppositions about Buffett’s intention to support the US banking sectors are rooted in the similar history of the billionaire. In 2011, Buffett administered a capital amount to the Bank of America, when it sank amidst subprime mortgages. He has also lent his helping arms to the investment banking company Goldman Sachs in 2008.