Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

American Billionaire Expects to Invest in US Banking Sector

Published 03/19/2023, 03:34 AM
Updated 03/19/2023, 04:00 AM
© Reuters.  American Billionaire Expects to Invest in US Banking Sector

© Reuters. American Billionaire Expects to Invest in US Banking Sector

  • Warren Buffett has been in correspondence with Biden’s officials.
  • 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 (NYSE:BRKa), 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 (NASDAQ:SBNY).

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 (NYSE:FRC) 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 (NYSE:BAC), when it sank amidst subprime mortgages. He has also lent his helping arms to the investment banking company Goldman Sachs (NYSE:GS) in 2008.

The post American Billionaire Expects to Invest in US Banking Sector appeared first on Coin Edition.

See original on CoinEdition

Latest comments

good for him. wonder if he'll pump some money into frc. fundamentally FRC is much better than SVB. however if I was him, I would bet on big banks at this point. they will emerge as big winners in a short time.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.