Berkshire Hathaway’s Warren Buffett joins ‘Squawk Box’ from Tokyo to discuss the fallout from the banking crisis, and how depositors shouldn’t be worried about their money. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has weighed in on the fallout from the banking crisis, warning that we’re not through with bank failures just yet. In an interview with CNBC, Buffett discussed the ongoing challenges facing the banking industry and the potential for further failures in the future.
Buffett’s comments come at a time when the banking sector is grappling with the prolonged impact of the 2008 financial crisis. While many banks have recovered from the fallout of the crisis, others are still struggling to stabilize their operations and remain profitable. With the rise of online banks and fintech companies disrupting the traditional banking model, the industry is facing significant upheaval, and Buffett’s remarks underscore the ongoing uncertainty surrounding its future.
One of the key factors behind Buffett’s warning is the issue of leverage within the banking sector. Leverage, or the use of borrowed money to amplify investment returns, has been a longstanding concern for regulators and investors alike. In the aftermath of the financial crisis, banks have faced increasing scrutiny over their level of leverage, with many institutions being forced to deleverage and strengthen their balance sheets in order to comply with stricter regulations.
Buffett also touched on the potential for increased competition within the banking industry, particularly from non-traditional players such as technology companies and fintech startups. As these new entrants continue to disrupt the sector with innovative products and services, traditional banks are being forced to adapt in order to remain competitive. This ongoing evolution of the industry could lead to further consolidation and potential failures among smaller, less well-capitalized banks.
Despite the challenges facing the banking industry, Buffett remains confident in the long-term prospects of the sector. He emphasized the importance of a strong and well-managed banking system, noting that a healthy financial system is crucial for the functioning of the broader economy. However, it is clear that the banking sector still has a long road ahead as it continues to address the fallout from the financial crisis and adapt to the changing landscape of the industry.
In conclusion, Warren Buffett’s warning about the ongoing potential for bank failures serves as a sobering reminder of the challenges facing the banking sector. As the industry continues to grapple with the aftermath of the financial crisis and the evolving competitive landscape, it is clear that there are still significant hurdles to overcome. Investors and regulators will need to remain vigilant in monitoring the health of the banking system in the years to come.
Who the hell trust billionaire people? That is insane. There will be more bankruptcies
Crypto will take up the gap, banks need to suffer a bit they don't create enough value in society. They make far too much to do so little. But the real problem is governments printing money during covid, its basically a tax everyone is now paying for and more so for those less off.
The irony of the Name of The Video.
Large banks have been given the green light to do what they want- government will bail them out ON the tax payers . He should say that .
We have a regularly scheduled banking crisis so the banks get bailed out and normal people get screwed under the disguise that “we need to save the Joe and Jane Average”. It’s a banking cycle used to get bailed out for bad decisions by financial institutions with little risk because their going to get federal money to shore up bad management. Just my humble opinion having gone through these crisis regularly.
Current media exacerbates the hype causing panic for viewership. I miss the news of old where it was facts not unfounded speculation.
Sorry Sir I used your information for my operations man management at the recent world war in the new generation 2020
Becky has great legs
Can’t believe what this guy says
Moral of the story: don’t keep more than $250k with any bank EVER.
Becoz he always bullish…whatever the economic situations..I don't think this is not the smartest move in this generation..we must know when to buy, and when to sell..to avoid 60% loss in buffet portfolio at 2008 great recession..even now his portfolio is in losses..
Your headline for this video is an example of what Warren Buffet was saying. Adding panic inducing sensationalism and making the issue seem more scary than it should be is a failure in media. You should have more integrity than that but people tune in more and you can sell more advertising dollars if people are more scared.
buffet is slowing down
Survival of the fittest doesn’t apply in the banking industry because the federal reserve won’t allow it. Banks are not allowed to fail whatsoever.
Banks can and will take depositors money if they fail. Sooooo wtf is he talking about!!!
No such thing as a banking crisis, instead we have a government that fails to govern and take responsibility crisis!
Please post whole interview!! Love Buffett
And they should fail. That’s capitalism
How about posting the entire interview?