Warren Buffett says it was ‘inevitable’ that the federal government would totally cowl Silicon Valley Financial institution depositors

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The government will ‘fully cover’ Silicon Valley bank deposits, Warren Buffett says
If the U.S. government had not guaranteed all deposits at Silicon Valley Bank (SVB), it would have been “catastrophic,” as Warren Buffett put it. “That’s why they were covered,” the famous investor said at Saturday’s Berkshire Hathaway annual shareholder meeting in Omaha, Nebraska.
To protect SVB accounts above the $250,000 limit, the FDIC, the Treasury Department, and the Federal Reserve all declared “decisive actions” in March. SVB’s collapse on March 10, 2023, and subsequent seizure by the California Department of Financial Protection and Innovation necessitated the extreme move due to inadequate asset management and a bank run. It occurred at the same time as the failures of Silvergate Bank and Signature Bank, making it the third largest bank failure in American history.

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Berkshire Hathaway Inc. chairman and CEO Warren Buffett has stated that he never doubted the government would insure depositors’ funds at SVB. The CEO and chairman of Berkshire Hathaway was emphatic that the United States would not act in such a way or let the debt ceiling to throw the world into chaos. Policymakers have warned of dire consequences for the economy and the future ability of the United States to borrow money if the federal debt limit is not raised by June, but he remains confident that Congress will break its current deadlock on borrowing and raise the limit before then.
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WARREN BUFFETT ON BANKING CRISIS: ‘NOBODY IS GOING TO LOSE MONEY ON A DEPOSIT IN A US BANK’

Customers and FDIC representatives Luis Mayorga and Igor Fayermark chat on March 13, 2023, in Santa Clara, California, outside the headquarters of Silicon Valley Bank. Photos by Brittany Hosea-Small for Reuters and Fox

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According to Buffett, it was “inevitable” for the government to back up all of SVB’s deposits. In an interview broadcast on CNBC on Wednesday, he reiterated these points. “We’re not over bank failures, but depositors haven’t had a crisis,” he stated. Banks fail. However, savers need not worry.

“No one is going to lose money on a deposit in a U.S. bank.”
“It’s not going to happen,” Buffett said. In his words, “you don’t want to show a dumb choice by managers right into a panicking the entire citizenry of America about something they don’t have to be panicked about

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