Warren Buffett: Berkshire Hathaway Cautious on Banks
Warren Buffett noted on Saturday that Berkshire Hathaway is being cautious with the banking sector due to the lack of clarity in messaging from government officials and organizations regarding deposit insurance, along with the disruptions brought on by banking regulations.
The billionaire expressed his concern at the company’s annual meeting in Omaha, Nebraska, about the confusion in the public’s mind after Silicon Valley Bank (SIVB.O) became the largest bank to fail since the 2008 financial crisis.
Despite having 89% of its $175 billion in deposits uninsured at the end of 2022 according to the Federal Deposit Insurance Corp (FDIC), depositors were still protected through a “systemic risk exception”, even if their accounts exceeded the $250,000 limit.
