Warren Buffett, CEO of Berkshire Hathaway
Silicon Valley Bank, Signature Bank and First Republic Bank… these are some of the names that have become the poster boys of America’s banking crisis. But America’s banking crisis has increased much more than this, which is yet to be resolved completely. Now the world’s biggest investor has given an important statement regarding this.
Warren Buffett, CEO of Berkshire Hathaway, is one of the world’s largest venture capitalists. He has objected to the attitude of the US government on the regional banking crisis in America. Warren Buffett was addressing Berkshire’s annual general meeting on Saturday.
‘The management of the government is not good’
Regarding America’s banking crisis, Warren Buffett said that it should not have happened. Its message has gone very bad. The US government did not handle this crisis properly.
Warren Buffett said, ‘Many times politicians make the situation worse, because it is in their interest to keep things bad. But this time the situation was spoiled by the agencies of the country. Even more the press presented it in a bad way.
4 banks drowned in America
Recently 4 banks drowned in America. Of this, Silicon Valley Bank, Signature Bank and First Republic Bank were acquired by other financial institutions with the help of government agencies. But in the meantime, some decisions of the Federal Deposit Insurance Corporation (FDIC) of America were also criticized a lot.
In the US, the FDIC has a legal responsibility to insure bank deposits up to $2.5 million. But in the case of Silicon Valley Bank and Signature Bank, the FDIC made a controversial decision to guarantee uninsured deposits as well.
‘Clients still worried’
Warren Buffett said that the government and the agency took many unprecedented steps, but the customers of the banks are still worried. In the case of Silicon Valley Bank, the takeover done by the government, the feeling of increasing the deposit guarantee went among the people. That’s why there is confusion among the people.
At the same time, the way First Republic Bank has been acquired by JP Morgan in a sudden situation, it has further increased the confusion of customers about banks.