The mythical investor agreed with the words of Jamie Dimon, executive director of JPMorgan and assured that bankruptcies “have not ended”. However, he tried to calm depositors.
Warren BuffettKnown as the Oracle of Omaha and considered by many to be the greatest investor in history, he said more US banks are likely to fail, but depositors must be sure they won’t lose their funds.
“Bank failures have not ended”the Berkshire Hathaway chairman and chief executive said in an interview on CNBC on Wednesday. The “foolish decisions” of bank managers should not “terrify the entire citizenry of the United States for something that should not scare them.”
Buffett said he is willing to bet that no depositor will lose money next year. Still, the billionaire investor cautioned that shares in troubled banks are not value investments because shareholders are likely to lose even if the government takes steps to protect depositors.
“They are not going to save shareholders”Buffett said after being asked if battered shares of regional banks, including First Republic Bank, would be a “bargain.”
Buffett’s predictions about the banking sector are in line with those recently made by Jamie Dimon, executive director of JPMorgan Chase, who assured that lhe banking crisis in the United States that caused the markets to crash last month is an episode that “is not over yet” and will be felt for years.
Buffett said the structure of the Federal Deposit Insurance Corporation (FDIC), which collects the valuations of banks with the deposits it insures, means the federal government won’t lose money while it sorts out the deposits. bankrupt banks.
“People are under the impression that the FDIC is the US government,” Buffett said. “But the cost of the FDIC, including the cost of their employees and everything, is borne by the banks. So the banks have never cost the federal government a penny.”
The sales of Berkshire’s bank shares are not critical of the management of those banks, Buffett said, but rather speak to their cooling sentiment in the sector in general.
Source: Ambito
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