Warren Buffett in contact with Biden officials on banking crisis as US small lenders seek wider deposit guarantee

Billionaire investor Warren Buffett has reportedly been in contact with officials from the Biden Administration seeking to resolve the banking crisis affecting small lenders in the United States.

The banking crisis is due to the lack of deposit insurance, which is the federal guarantee that protects customers’ funds in the event of a bank failure. This has left many small lenders without the necessary protection and has put them at risk of collapse.

In response to this situation, Buffett and other influential investors have reportedly been in contact with Biden officials, hoping to find a solution to the banking crisis. The investors are seeking an expansion of the deposit insurance system, which would provide additional protection for small lenders.

Buffett, who is one of the world’s most successful investors, is no stranger to banking crises. He famously made a fortune during the global financial crisis of 2008, investing in financial companies that were in distress at the time.

The Biden Administration has yet to comment on Buffett’s involvement in the current banking crisis, but some experts believe that his influence could be beneficial in finding a resolution.

The banking crisis has been particularly hard on small lenders, who often lack the resources to survive a major economic downturn. Without the additional protection of deposit insurance, they could be at risk of collapse and that could have a major impact on the US economy.

However, some experts believe that Buffett’s involvement could be a positive development for small lenders, as his influence could help pave the way for an expansion of the deposit insurance system. This could provide the much-needed protection for small lenders and help them survive the banking crisis.