Buffett says bank runs would have been ‘catastrophic’ if not for deposit guarantee
Warren Buffett says there would have been “catastrophic” consequences if US regulators had not insured the deposits at Silicon Valley Bank and Signature Bank, as their failures risked sparking a run at lenders across the country.
“Even though the FDIC [Federal Deposit Insurance Corporation] limit is $250,000 . . . that is not the way the US is going to behave anymore than they’re going to let the debt ceiling let the world go into turmoil,” the Berkshire Hathaway chief executive told tens of thousands of shareholders gathered in downtown Omaha for the company’s annual meeting on Saturday.
This story originally appeared on: Financial Times - Author:Eric Platt
