Billionaire Warren Buffet advises the US government on the banking crisis

Washington [US], May 7: AFP news agency on May 7 quoted billionaire Warren Buffett as saying that the message from the US government regarding the regional banking crisis was "poor", and that could be the reason why customer confidence has not been restored.
The crisis started in March in the US, in which 3 banks were gradually acquired with the support of authorities.
With Silicon Valley Bank (SVB) and Signature Bank, the Federal Deposit Insurance Corporation ( FDIC ) made the controversial decision to support uninsured deposits, citing the pretext of crisis prevention. spread.
By law, the FDIC insures up to $250,000 in customer deposits at eligible banks, but the FDIC insures all SVB and Signature deposits, including those in excess.
Speaking at a shareholder meeting of his Berkshire Hathaway Group, billionaire Buffet said that despite the FDIC's unusual move, customers are still worried.
"It shouldn't have happened. The message was very poor. It was poor because politicians sometimes like it poor, because of the agencies and the press," said billionaire Buffett, who continues to run the group. The group is 93 years old.
According to him, what happened to SVB shows that the government takeover is complete with the deposit guarantee extended, but "public opinion remains confused".
Before regional bank First Republic received an emergency takeover by JPMorgan Chase on May 1 and helped ease worries about banks, First Republic had a tumultuous week.
Some mid-tier banks were hit on Wall Street as well, with shares of PacWest falling 68% before recovering 82% in Thursday trading alone.
Meanwhile, billionaire Buffett's Berkshire Hathaway Group on May 6 announced a huge profit of $ 35.5 billion in the first quarter alone, thanks in large part to strong financial markets.
In the first 3 months of the year, the group sold 13.2 billion investment shares, while buying only 2.8 billion, significantly reducing the influence from shares.
Billionaire Buffett has transformed Berkshire Hathaway from a small textile company acquired in the mid-1960s into a behemoth today worth more than $700 billion. The group is headquartered in the state of Nebraska and primarily operates and is funded by insurance, from which it invests in many subsidiaries in a variety of sectors.
According to Forbes magazine , billionaire Buffett's fortune on May 7 was worth 112.3 billion USD, helping him to hold the 6th position in the list of the richest people in the world.
Source: ThanhNien Newspaper