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Buffett Interview: Bank failures are not over yet, but depositors will be fine, no need to worry about the overall system

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Buffett Interview: Bank failures are not over yet, but depositors will be fine, no need to worry about the overall system

During an interview with CNBC anchor Becky Quick, Warren Buffett stated: "Bank failures have not ended yet, but depositors will not be in crisis. Banks will go bust, but depositors won't." Buffett believes that although banks will lose a lot of money, American citizens don't need to worry about losing their deposits and don't need to worry about the overall system in the United States.

"The cost of the FDIC is covered by banks. Banks have never let the federal government spend a penny. The public doesn't understand this," Buffett said. "No one will suffer losses because they have deposits in American banks. It won't happen."

Buffett stated: "During this period, some stupid things that banks have been repeating have been discovered. I don't know why we keep looking for new ways to lose money when the old ways have been working well. They have not made the mistakes they made in 2008."

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Recap: The Department of the Treasury, the Federal Reserve, and the FDIC have intervened, and Silicon Valley bank deposits are all available for withdrawal.

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