Warren Buffet Says Bank Failures Aren’t Over

Warren Buffet Says Bank Failures Aren’t Over

THE SIGNAL

Investing legend Warren Buffett believes there could be more bank failures down the road, but depositors should not ever be worried.“We’re not over bank failures, but depositors haven’t had a crisis,” the Berkshire Hathaway chairman and CEO told CNBC’s Becky Quick on “Squawk Box” Wednesday from Tokyo. “Banks go bust. But depositors aren’t going to be hurt.“related investing newsBuffett tells why he sold most of his bank stocks — except oneSarah Min13 hours agoThis Friday could hold the key to our bank stocks and the direction of the market for weeksZev Fimaa day agoThe collapses of Silicon Valley Bank and Signature Bank last month — the second- and third-largest bank failures in U.S. history, respectively — prompted extraordinary rescue action from regulators, who backstopped all deposits in the failed lenders and provided an additional funding facility for troubled banks.The “Oracle of Omaha” said some of the “dumb” things that banks do periodically became uncovered during this period, including having mismatched assets and liabilities as well as questionable accounting.“Bankers have been tempted to do that forever,” Buffett said. “Accounting procedures have driven some bankers to do some things that have helped their current earnings a little bit and caused the recurring temptation to get a little bit bigge …

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