Fitz-Gerald Group chief Keith Fitz-Gerald says the banking coalition is not keeping the market afloat because many big traders believe there will be a bailout after the Dow weighed negatively on the collapse of Signature Bank and the SVB has responded.
The Oracle of Omaha has reached out to officials in the Biden administration to provide support during the current banking crisis.
According to Bloomberg, billionaire investor Warren Buffett has had several meetings with President Biden’s team in recent days.
The calls focused on Buffett possibly investing in the regional US banking sector in some way, but being the billionaire
Buffett has reportedly provided advice and guidance on the crisis.
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Billionaire investor Warren Buffett (Daniel Zuchnik/WireImage/Getty Images)
The Berkshire Hathaway boss has a long history of helping banks in crisis situations.
Companies Buffett has helped on the post include Bank of America and Goldman Sachs.
Buffett gave Bank of America a cash injection in 2011 after its stock plummeted on losses related to subprime mortgages.
In 2008, Buffett gave Goldman a $5 billion lifeline to prop up the bank following the collapse of Lehman Brothers.
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FOX Business has reached out to Berkshire Hathaway for comment.
Close-up of the sign with logo on the facade of the First Republic Bank branch in San Ramon, California. (Photo by Smith Collection/Gado/Getty Images)/Getty Images)
Last week, US regulators unveiled extraordinary measures to reassure customers, promising to pay out uninsured deposits in the failed banks in full.
Biden’s team created backstops that do not require direct government spending from taxpayers, including Federal Reserve actions.
Major US banks voluntarily pledged $30 billion this week to stabilize First Republic Bank.
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Customers queue at the Silicon Valley Bank headquarters in Santa Clara, California. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
The crisis began when Silicon Valley Bank, the 17th largest in the country, was shut down by the FDIC a week ago as regulators tried to protect customers as it faced a liquidity crisis after a $2 billion loss .
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It was the biggest bank failure since the financial crisis.
Federal regulators last Sunday said New York-based Signature Bank would be shut down to protect consumers and the financial system after the SVB collapse.