HomeIndustries"Catastrophic" to Let SVB Depositors Lose Money, Buffett States

“Catastrophic” to Let SVB Depositors Lose Money, Buffett States

Chairman of Berkshire Hathaway Warren Buffet stated on Saturday that it would have been “catastrophic” to allow depositors in Silicon Valley Bank to lose their money after U.S. regulators took over the bank following its collapse.

In response to the bank’s failure in early March, U.S. officials made the controversial decision to protect all existing account holders including those who held deposits exceeding the $250,000 limit imposed by the Federal Deposit Insurance Corporation.

“I can’t imagine anybody saying I’d like to be the one [on] television tomorrow and explain [to] the American public why we’re keeping only $250,000 insured and we’re going to start a run on every bank in the country and disrupt the world’s financial system,” Buffett revealed during Berkshire Hathaway’s annual meeting on Saturday.

Following the start of the banking crisis, Buffett decided to pull back his banking investments. He criticized the banking sector for not sufficiently punishing the culprits of misdeeds.

Berkshire Hathaway’s banking portfolio suffered in the first quarter as a result of the financial sector’s instability, with its Bank of America stake declining by $4.7 million during the first three months of the year.

Home Prices Rise for Second Straight Month

U.S. home prices increased for a second consecutive month in March, reflecting the sustained inventory shortage faced by buyers. This streak comes after seven...

Futures Rise as Debt Ceiling Deal Set for Next Challenge

U.S. futures advanced during Tuesday's morning session as investors wait for the U.S. debt-ceiling deal to be presented before Congress. Policymakers are under pressure...

Oil Remains Steady as Traders Await Approval of Debt Ceiling Deal

Oil remained little changed on Monday as traders wait to see if lawmakers approve the U.S. debt ceiling deal that policymakers agreed to on...