The media reported that the US authorities turned to Warren Buffett for help amid the crisis in the financial sector.
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The billionaire, who is actively engaged in investing, offered Goldman Sachs assistance during the 2008 crisis 2008. He also provided financial support to Lehman Brothers and Bank of America in 2011, when these financial institutions collapsed.
The media, citing anonymous sources, report that Warren Buffett spoke with representatives of the White House as part of a discussion of the current state of affairs in the American banking sector. Insiders say that the billionaire has voiced several options for improving the current situation. Also during the conversation, the issue of providing investor funds to rescue banks was discussed.
Last week, the US authorities tried to reduce the level of pessimism and panic in society. After the collapse of Silicon Valley Bank and Signature Bank, Americans doubted the stable future of the financial system. US President Joe Biden said on March 13 that citizens can be confident in the security of the banking system and their deposits.
Also, politicians against the background of the collapse of large financial institutions have stated the need to tighten regulatory measures in this industry. Joe Biden called for a report on the causes of two sensitive bank failures.
Republicans and Democrats in the House Committee on Financial Services announced that a hearing will be held at the end of March, during which they will communicate with senior officials of the Federal Reserve System and the Federal Deposit Insurance Corporation.
Republican Patrick McHenry and Democrat Maxine Waters said that the House Committee on Financial Services intends to find out the reasons for the bankruptcy of the Silicon Valley bank. They also noted that the upcoming hearings will make it possible to understand which processes resulted in the current situation.
Last week, 11 major US banks united to provide the First Republic Bank with $30 billion to support this financial institution.
Charlie Yuakim, CEO of the payment startup Sezzle, announced an active discussion of the future prospects of the American banking sector and noted that customers are now approaching the issue of money storage more thoroughly. He also stressed that there is no longer the same trust in banks and the days when faith in reliability and security was the only factor in deciding on interaction with the financial ecosystem have passed.
