BUFFET BELIEVES BEWARE OF BANKS

It's no secret that the finance industry has been under scrutiny after the Silicon Valley, First Republic, Signature Bank controversy (the many others and more to come). Silicon Valley had too many clients locked in on bonds and a surplus of start ups needing more funding went to withdraw holdings caused a recipe for disaster. Silicon Valley had to sell their bonds at a $2 billion loss. Regional banks seem to be so risky that Warren Buffet has sold all of his banks except Bank of America. While First Republic lost around 41% of their total deposits, Bank of America JP Morgan and Citi Bank saw a record level of deposits. Banks have been a big part of Buffet's portfolio, but since he has taken a different strategy. Not only Buffet, but BlackRock CEO also sold around 7% of his holdings which is equal to around $25 million. Buffet says the troubles are not as drastic as 2008 and big banks should be able to handle the pain.