2023: What would have happened if SVB's deposits were not fully insured?

BECKY QUICK: Thanks, Warren. The first question comes in from Randy Jeffs in Irvine, California. And his question is, “If Silicon Valley Bank’s deposit had not been fully covered, what do you think the economic consequences would’ve been to the nation?”

WARREN BUFFETT: Well, I’d would just simply say it would’ve been catastrophic. (Laugh) And that’s why they were covered. And even though the FDIC limit is $250,000, that’s the way the statute reads, but that is not the way the U.S. is going to behave any more than they’re going to let the debt ceiling cause the world to go into turmoil.

And I can’t imagine anybody in the administration, in the Congress, in the Federal Reserve, whatever it may have been, FDIC — I can’t imagine anybody saying, “I’d like to be the one to go on television tomorrow and explain to the American public why we’re keeping only $250,000 insured, and we’re going to start a run on every bank in the country and disrupt the world financial system.” (Laugh) So, I think it was inevitable. Charlie, do you have anything?

CHARLIE MUNGER: No, I have nothing to add.

WARREN BUFFETT: OK.

Well, incidentally, I should mention this now, Ajit and Greg will be here in the morning session which ends at noon. And so, if you have questions to direct to them, the time to do it is in the first half of the show. And then after lunch Charlie and I will be back.