US President Joe Biden’s administration staff consulted with American billionaire Warren Buffett about the country’s banking crisis. This was announced on March 18 by the agency Reuters.
According to agency sources, high-ranking American officials participated in the negotiations. What problems were discussed, is not specified. The US Treasury and the White House have not yet commented.
Earlier, on March 17, US President Joe Biden expressed confidence in the weakening of the American banking crisis. During a conversation with reporters, Biden was asked if he was sure that “the banking crisis had subsided.” The head of state answered in the affirmative.
On March 11, it became known about the bankruptcy of Silicon Valley Bank in the USA. The organization went bankrupt in less than two days. After the bank made an unsuccessful operation with securities, depositors began to withdraw funds sharply from their accounts.
After the sale of the British branch of the bankrupt Silicon Valley Bank, shares of American banks began to lose positions in the auction. Thus, Western Alliance securities fell by more than 44%, and First Republic Bank by almost 59%. Shares of banks PacWest, Zions and UMB Financial fell in price by 20.7-27.5%.
The next day, Axios reported that the administration of US President Joe Biden would soon face a crisis in the banking system. The publication notes that if the US government does not arrange a deal to save Silicon Valley Bank depositors before branches open on March 13, the Cabinet will face a catastrophic crisis.
At the same time, information appeared that the US authorities were not considering the possibility of buying out the bankrupt SVB. According to Treasury Secretary Janet Yellen, the current situation is different from the financial crisis of 2008, when the government bailed out many banks to protect the country’s economy.
In turn, Biden tried to convince American citizens that they can be confident in the security of the country’s banking system. He vowed to ask Congress and “banking regulators to tighten rules on banks and reduce the risk of this kind of bank failure happening again” and to protect jobs and small businesses in the country. According to the American leader, the situation around bankrupt banks will not affect taxpayers.
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