Billionaire Warren Buffett contacted senior officials in US President Joe Biden's administration in recent days as the regional banking crisis spreads, according to Bloomberg.
There have been multiple conversations between Biden team and Buffett in the past week, according to people familiar with the matter, who asked not to be identified because the information is private. Communication centered around the possibility that Buffett might invest in the US regional banking sector in some way, but the billionaire also offered tips and advice more broadly about the current turmoil.
Buffett has a long history of stepping in to help banks in crisis, and taking advantage of his investment and financial weight to restore confidence in troubled companies.
Bank of America won a capital infusion from Buffett in 2011 after the bank's shares plunged amid losses linked to subprime mortgages. Buffett also injected a $5 billion lifeline into Goldman Sachs Group in 2008 to shore up the bank in the wake of the collapse of Lehman Brothers.
Representatives for Berkshire Hathaway and the White House did not immediately respond to requests for comment. Treasury officials declined to comment.
US regulators unveiled extraordinary measures to calm customers at the end of the penultimate week, promising to pay uninsured deposits in failing banks in full. However, regional bank stocks continued to fall over the past week on fears of spreading pain.
The Biden team, wary of political setbacks, has moved to orchestrate stands that do not require direct government spending from taxpayers, including Fed actions.
Major US banks voluntarily deposited $30 billion to stabilize First Republic Bank over the past week, a move regulators described as "very welcome". Any investment or intervention from Buffett or any other figures is a boost to the banking sector and will stop the crisis without direct bailouts.
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