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Warren Buffett Discusses Banking Crisis with Biden Administration

Warren Buffett, CEO of Berkshire Hathaway, has recently communicated with high-ranking officials in President Joe Biden's administration concerning the ongoing regional banking crisis in the United States.

Warren Buffett
Warren Buffett

Buffett's Conversations with Biden's Team

Sources familiar with the situation reveal that Buffett has had multiple discussions with Biden's team over the past week, centering around possible investments in the US regional banking sector. Additionally, the billionaire investor has provided advice and guidance on the current financial turmoil.

Buffett's History of Supporting Banks in Crisis

Buffett is known for assisting banks during times of crisis, using his financial prowess and influential status to restore confidence in struggling institutions. Past examples included capital injections for Bank of America Corp. in 2011 and a $5 billion lifeline to Goldman Sachs Group Inc. in 2008.

Joe Biden
Joe Biden

Official Responses to Buffett's Involvement

Representatives from both Berkshire Hathaway and the White House have not yet responded to requests for comment on Buffett's involvement in the banking crisis discussions. US Treasury Department officials have also declined to comment.

US Regulators' Measures to Calm Customers

US regulators recently announced extraordinary measures to reassure customers in response to the banking crisis, including a promise to pay out uninsured deposits in failed banks fully. Despite this, regional bank shares continue to fall this week due to concerns that the crisis may worsen.

Biden Administration's Efforts to Minimize Political Blowback

To avoid political repercussions, the Biden administration has been working on solutions that don't involve direct taxpayer spending, including actions taken by the Federal Reserve. Major US banks have voluntarily deposited $30 billion to stabilize First Republic Bank, which regulators praised. Investments or interventions by figures like Buffett aim to address the crisis without resorting to direct bailouts.