Berkshire Hathaway’s Warren Buffett joins ‘Squawk Box’ from Tokyo to discuss the banking crisis fallout, and the role FDIC plays during a bank failure. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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LEARN MORE ABOUT: Bank Failures
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Warren Buffett, the American business magnate, investor, and philanthropist, is known for his successful investments in various industries, including the banking sector. He has been instrumental in the growth and development of the American economy, especially during times of crisis. In the wake of the recent banking crisis fallout, Buffett has reassured depositors in the U.S. that no one will lose their money on deposits.
Buffett is the CEO of Berkshire Hathaway, a massive conglomerate that has invested heavily in the banking sector over the years. His company owns significant stakes in many leading banks, such as Bank of America, Wells Fargo, JPMorgan Chase, and Goldman Sachs. Therefore, he has a vested interest in the stability and success of these institutions.
Despite the challenges posed by the COVID-19 pandemic, Buffett remains optimistic about the future of the banking industry. He believes that the U.S. banking system is strong enough to weather the current storm, as well as any future crises that may arise. In an interview with CNBC in May 2020, he declared, “The banks will not get this country in trouble, I guarantee it.”
Buffett’s confidence in the banking system is understandable, given the strong regulatory framework that governs it. Since the financial crisis of 2008, the U.S. government has implemented various measures to increase transparency, accountability, and stability in the banking industry. As a result, banks are now better capitalized, more transparent, and less exposed to risks than they were before.
Furthermore, depositors in the U.S. are protected by the Federal Deposit Insurance Corporation (FDIC), which guarantees deposits up to $250,000 per depositor per bank. This means that even if a bank fails, account holders are assured of getting their money back, up to the insured amount.
Buffett’s statement that no one will lose money on deposits in the U.S. is, therefore, not unfounded. Deposit insurance is a vital safety net for millions of Americans who rely on banks to store their money safely. It gives them peace of mind and confidence that their funds are secure, even in the face of adversity.
In conclusion, Warren Buffett’s assurance that depositors in the U.S. will not lose money due to the banking crisis fallout is a testimony to the resilience and strength of the American banking system. While no system is perfect, the measures put in place to protect depositors have gone a long way in ensuring that their funds are safe. As Buffett himself put it, “The American miracle, the American magic has always prevailed, and it will do so again.”
He is telling lies and minimizing the problems.
Tax payers will lose money because of the FDIC/Banks
Warren Buffett should save the USA since he makes so much money of USA
Amazing how Buffet can talk so much and say so little, no specific illustration , just generalizations that really don’t educate us.
'The sucker's going up' is actually a pretty good reason to buy. One of the most successful group of traders, Turtle Traders, followed this philosophy with proven results by buying 20-day stock breakouts. Of course proper target and risk management went into their successful formula as well.
Warren is looking a little more frail, and that saddens me. He has made
millions of people very happy.
Whatever we were doing in the mid 90s to mid 2000s was right. We need to go back to that NOW!
Mr. Buffet buy all crypto companies for only 5 billion and dismantle them. Have disclosure they will not make another company. Berkshire becomes 1 million stock per share from 500 K. The stock market and jobs and America will become the Greatest it's ever been and You will double You Money 🙂
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
The amount of discipline this man has is remarkable.
that means all will lose money in deposites, except USA
“People shouldn’t worry” meanwhile sells bank stock
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The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?.
Based on Warren Buffett's statements in the video, it seems that he is confident in the stability of the US banking system and the safety of depositors' money. He mentions that the government will not allow major banks to fail, as it did during the 2008 financial crisis, and that depositors' funds are insured by the Federal Deposit Insurance Corporation (FDIC).
As general advice would be to take Warren Buffett's statements with caution and to carefully monitor the stability of the banking system. While the FDIC does insure deposits up to a certain amount, there is always the risk of bank failures and the potential for systemic risk in the financial system.
It is also important to consider the potential impact of economic factors such as inflation and interest rates on the stability of the banking system. As these factors can affect the profitability and solvency of banks, it is important to keep a close eye on their trends and their potential impact on the financial system.
Overall, it is important to remain vigilant and to continuously monitor the stability of the banking system, while also taking appropriate steps to protect one's own financial interests. This can include diversifying investments, keeping deposits within FDIC-insured limits, and staying informed about economic trends and developments.
Bottom line is the bank customer pays for the FDIC. Insurance !
Don’t believe me ?
Take a look at your local bank fees
your might still be there, i just won't be worth much in 5-10years!
Global financial markets have been significantly impacted by SVB's demise, prompting investors to sell off bank equities hastily and reevaluate their interest rate expectations. I am a $350,000 investor who is at a crossroads and wondering if it is wise to hold onto securities that are losing value. I want guidance on the best approaches to maximizing my returns in this negative market.
this guy got me into investing got to thanks him for that after watching his documentary now i trade for living
Give you guys a tip. Play this video at x1.25 speed. Lol
no point to interview him anymore…
Is it me or is someone wearing and listening to an IFB?
this guy is having a hard time lying like he usually does.
Only US dollar is losing against anything
How the mighty have fallen. Hes just a ranting old man now. So sad. Just bumbles his way through conversations. Noticed it the last year, same with Monger.
Just stop interviewing them its cringing
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
no one?
So how is a bank a business not a state sponsored monopoly if they always get bailed out when they fail?
92 wow , Superb life
What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $ 350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?
Technically he is correct you won't lose money on the bank, but you will lose purchasing power which basically is the same only disguised so you keep on working hard so the government can spend money at your expense.
I tend to disagree with Warren Buffet @5:40 with the banks never costing the federal government a dime . The TARP program in 2008 cost the taxpayer 700 Billion to bail out banks and rewarded CEOs with big bonuses for their failure.
Silicon Valley Bank (SVB) was the 16th largest bank in the US, and it wasn't subject to the most strict controls. How many banks actually are subject to those controls, besides the big four? Any bank could suffer a run and fail, and if that happens to a community level or even state level bank it probably won't upset the national economy or ecosystem of banks, but any multi-state bank should be more closely watched.
First time I've really heard Buffet struggle through an interview like this….
Just wow. This guy becomes more bumbling by the minute.
I make huge profit on my investment since I started trading with Mrs Shana Heckel , her trading strategies are highly exceptional,
I wish he was the American president just shows a 92 is still sharp but some 78 year Olds get dementia
Never listen to the super rich.
"No one will lose money" what a load of BS.
Great guy .. take notes all you millionaire/billionaires out there to invest into longevity research and technologies otherwise you can’t take with you and this is result
The bank losses could be in the Trillions and the FDIC only has a few hundred billion. Private banks like the FDIC can go bankrupt. Thats why we have the wonderful bail in policy not bail out. Your deposits will be bailing out the banks. He is just trying to prevent bank runs.