Buffett warns of increasing vulnerability in the financial system

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ME News message, March 31 (UTC+8). Warren Buffett warned that as ties between the banking system and non-bank institutions grow increasingly close, he has started to see signs of fragility in the financial system. He said that ensuring stability in the financial system should be the Federal Reserve’s top priority, and pointed out that banks such as JPMorgan Chase are key hubs for the economy, processing tens of trillions of dollars in cash flows every day. “They affect one another; if one has a problem, it could spread to other institutions,” Buffett said Tuesday in an interview with CNBC. After a series of blow-ups in the recent credit markets sparked concerns about the risks to banks and private credit fund balance sheets, investor sentiment has been shaken. Buffett said that once market panic spreads, many investors could quickly pull out. (Source: ChainCatcher)

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