One of the biggest American investors, Warren Buffett, is negotiating with the White House to save the banking sector. This was reported by Bloomberg.
According to the publication, the businessman can take a number of measures that can lead the US banking system out of the crisis. In Washington, they decided to involve Buffett and his company Berkshire Hathaway to buy shares of regional banks suffering from the economic situation.
The fact is that on the eve of the increase in the key rate in the United States and the inclusion of the printing press, inflation may rise, and the authorities are interested in attracting some kind of financial reducer for injections to large scale and controlled in the banking sector.
At the same time, Warren Buffett is known for his investments in undervalued assets. The businessman is the largest shareholder in Bank of America, JPMorgan Chase, Wells Fargo, Goldman Sachs, US Bancorp and Bank of New York, and also holds majority stakes in several other banks.
The entrepreneur himself justifies his decision to invest in regional banks by the possibility of capitalizing on a falling market by buying back shares and distributing them among the shareholders of Berkshire Hathaway by converting them into shares of the parent company. At the same time, some of the cash received from the Fed will be used to pay dividends to shareholders.
As a result of such actions, the banking system will become more centralized, which will facilitate the introduction of digital currency into circulation in the future. Along with this, the dollar-linked global economic system will remain.
Photos used: Fortune Live Media/flickr.com
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