Warren Buffett is having discussions with Biden administration officials about the banking crisis

An informed source told Reuters on Saturday: “Billionaire Warren Buffett held discussions with senior officials of President Joe Biden’s administration regarding the banking crisis.”

The White House and the US Treasury Department declined to comment.
And “Bloomberg” had reported earlier on Saturday that “Buffett has contacted administration officials in recent days about the banking crisis.”

The source refused to go into details of the discussions.
The collapse of “Silicon Valley” and “Signature” banks this month shook confidence in the banking system and led to a wave of selling of bank stocks.
Buffett has a long history of supporting American banks and troubled companies in times of crisis and financial instability, whether through advice and guidance or through direct intervention and benefiting from his strong investment position.
Minister’s advice

In October of 2008, at the height of the global financial crisis, the famous billionaire called late at night then US Treasury Secretary Henry Paulson to discuss how the US government could reverse the faltering economy. “It may make more sense to invest more capital in banks than to try to buy these assets,” Buffett told him.
At the time, the chief executives of the big banks, including John Mack of Morgan Stanley, Jamie Dimon of JPMorgan, and Lloyd Blankfein of Goldman Sachs, met at the Treasury Department to discuss Buffett’s proposal. At the end of the meeting, the ministry decided to pump $250 billion into the US banking system. Former US President George W. Bush commented, “I think the intervention saved us from recession.”

rescue packages

That same year, Buffett invested $5 billion in Goldman Sachs to boost the bank’s capitalization and liquidity following the collapse of Lehman Brothers. His decision at the time led to a revenue of about $3.1 billion for the giant group, Berkshire Hathaway.
And in 2011, Berkshire pumped an additional $5 billion into Bank of America through a preferred stock purchase, helping the massive lender, which at the time was suffering from huge losses related to mortgages, settle the bulk of its crisis-era litigation and raise its capital. and strengthening its balance sheet.