Warren Buffett warns he’s watching stability of banking system

Warren Buffett, for his part, said that if panic sweeps through markets, many investors will likely head for the exits. Photo by JOHANNES EISELE/AFP via Getty ImagesArticle contentWarren Buffett cautioned that he’s seeing signs of fragility emerging in the banking system as it has become more connected to non-bank players.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe legendary investor said the stability of the financial system should be a high priority for the Federal Reserve, noting banks like JPMorgan Chase & Co. are key cogs in the economy, shepherding trillions of dollars every day.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle content“They all affect each other, and the troubles from one can spread over to another,” Buffett, the chairman of Berkshire Hathaway Inc., said in an interview with CNBC on Tuesday.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentInvestors have been rattled after a series of recent blowups in credit markets sparked fears that risks are brewing on the balance sheets of banks and private credit funds alike. Buffett, for his part, said that if panic sweeps through markets, many investors will likely head for the exits.Article content“If people yell fire in a crowded theatre, everybody runs still — it still pays to beat people to the door,” Buffett said. “I will stand back there and say, ‘Everybody stay calm,’ but that’s because I can’t run fast.”Article contentBuffett, 95, recently stepped down as chief executive of Berkshire, the US$1 trillion conglomerate with interests spanning insurance, utilities, railroads, energy and consumer goods. The company is also a longtime investor in banks including American Express Co.Article content—With assistance from Jenny Surane.Article contentBloomberg.comArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentTrending Chinese cars can’t cross from Canada to U.S., Trump’s envoy says Autos Opinion: Doug Ford hands Donald Trump a trade weapon FP Comment Suncor reveals expansion plans as key oilsands mine enters its last decade Energy Old Age Security reform is a good idea; arbitrary clawbacks are not Personal Finance Subscriber only. Chinese are burying their dead in empty apartments rather than pay skyrocketing cemetery costs Subscriber only Financial Times Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Chinese cars can’t cross from Canada to U.S., Trump’s envoy says Autos Opinion: Doug Ford hands Donald Trump a trade weapon FP Comment Suncor reveals expansion plans as key oilsands mine enters its last decade Energy Old Age Security reform is a good idea; arbitrary clawbacks are not Personal Finance Subscriber only. Chinese are burying their dead in empty apartments rather than pay skyrocketing cemetery costs Subscriber only Financial Times