Another Banking Crisis, Another Call to Buffett

We were not too surprised to see stories pop up over the weekend about Warren Buffett, CEO of wide-moat Berkshire Hathaway, being in conversations with the Biden administration about the banking crisis, as well as reports from the major news outlets that a large number of private jets have made their way to Omaha this weekend. In just the past 10 days, we've seen the U.S. regulators step in and backstop depositors at two failing banks, Silicon Valley Bank and Signature Bank. The Swiss government stepped in to shore up Credit Suisse, and the U.S. regulators are working with 11 banks (including wide-moat JPMorgan Chase) to shore up First Republic Bank by placing $30 billion of their own funds in deposits at the struggling institution.