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    Warren Buffett calls bankrupt US banks to account

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    Billionaire and one of the world’s largest investors, Warren Buffett, said it was necessary to hold the heads of bankrupt banks accountable. This is reported by Bloomberg.

    “The situation in the banking industry is very similar to what it has always been in the banking industry – fear is always contagious,” Buffett said on Saturday, May 6, at the annual general meeting of the conglomerate in Omaha, Nebraska.

    Payback should “fall on the people who caused the problems,” he said. The investor noted that the bankrupt First Republic Bank issued huge and unsecured mortgage loans – such an offer was simply insane.

    “It was done in front of everyone, and the world ignored it until it exploded,” Buffett added. The death of the first republic: what threatens a new collapse of a major US bank Problems in the American financial system are far from over

    On April 26, it was reported that First Republic Bank shares collapsed by almost a quarter after the financial institution announced a massive outflow of deposits. According to director Neil Holland, this process was triggered by the bankruptcy of Silicon Valley Bank (SVB).

    On May 1, US President Joe Biden said that the measures taken against First Republic Bank could ensure the security of the country’s banking system. He urged Congress to provide U.S. financial regulators with the means to hold all bank executives accountable, and to increase oversight of large and regional banks.

    On May 3, Russian hacker and crypto trader Petr Levashov, known under the pseudonym Peter Severa, said that the crisis of the banking system in the United States will soon lead to the bankruptcy of a number of regional banks. According to him, the takeover of the assets of First Republic Bank by one of the largest financial conglomerates JPMorgan caused a panic among shareholders who invested in small banks, which led to a huge outflow of money from them.

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