Warren Buffett in contact with Biden team on US banking crisis

By Saleha Mohsin, Sridhar Natarajan and Josh Wingrove

Berkshire Hathaway Inc.'s Warren Buffett has been in touch with senior officials in President Joe Biden's administration in recent days as the regional banking crisis unfolds.

There have been multiple conversations between Biden's 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. The calls have centered around Buffett possibly investing in the US regional banking sector in some way, but the billionaire has also given advice and guidance more broadly about the current turmoil.

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Representatives for Berkshire Hathaway and the White House didn't immediately respond to requests for comment. Officials at the US Treasury Department declined to comment.

US regulators unveiled extraordinary measures to assuage customers last weekend, promising to fully pay out uninsured deposits in the failed banks. Shares in regional banks continued to fall this week on fears the pain would spread. 

Biden's team, wary of political blowback, has moved to orchestrate backstops that don't require direct government spending from taxpayers, including the Federal Reserve's actions. Big US banks voluntarily deposited $30 billion to stabilize First Republic Bank this week, a move regulators described as "most welcome." Any investment or intervention from Buffett or other figures would continue that playbook, looking to stem the crisis without direct bailouts.

-With assistance from Max Reyes and Katherine Doherty.

© 2023 Bloomberg L.P.