Report says Warren Buffett is talking to the White House about a possible investment in regional banks
- According to Bloomberg, Warren Buffett is talking to the Biden administration amid the banking crisis.
- The billionaire talked to officials about possible investments in regional banks.
- Buffett previously stepped in to help banks in crisis and also offered advice, according to the report.
Bloomberg reported that Warren Buffett is talking to the White House about a possible investment in regional banks.
The billionaire investor and CEO of Berkshire Hathaway held multiple talks with senior officials in the Biden administration last week following the collapse of Silicon Valley and Signature Banks and the problems facing the First Republic.
Buffett also offered advice and guidance on the situation, according to unnamed sources who spoke to Bloomberg.
The Silicon Valley bank was taken over by the Federal Deposit Insurance Corporation on March 10 and was the biggest failure since the 2008 financial crisis.
Shares of the regional bank tumbled last week after Biden told investors in SVB and Signature that they would not be bailed out.
Shares of First Republic plunged nearly 80% last week, despite saying that its liquidity remains “very strong.” A move by banks including JP Morgan, Bank of America, Citigroup, and Wells Fargo to collectively collect $30 billion in deposits failed to stabilize the stock.
Bloomberg reported that the investment by Buffett could help restore confidence without directly driving investors out.
Buffett took a $5 billion stake in Goldman Sachs in September 2008, when the financial crisis was at its peak, and a month later invested $3 billion in General Electric.
During the US debt-ceiling crisis in 2011, he invested $5 billion in Bank of America in exchange for shares and options.
Meanwhile, the North Carolina-based lender is considering an offer for First Citizen SVB, Bloomberg reported. The FDIC is expected to decide on Sunday whether it will pursue a full sale or breakup of the failed lender.
Berkshire Hathaway, First Citizens and the FDIC did not immediately respond to requests for comment from Insider, which were made outside normal business hours.