Is Your Money Really Safe in the Bank? Why Buffett Is Selling Financial Stocks and What You Should Do Now

A young man stands in front of a bank ATM labeled "Out of Service" and "Bank Closed," looking concerned as he tries to withdraw cash.

Not long ago, my bank’s app crashed for an entire weekend. Payday had just passed, and I couldn’t transfer money or withdraw cash. That experience reminded me how much we rely on banks—and how fragile that system can be.

Recently, Warren Buffett sold off large holdings in Bank of America and Citigroup. He rarely makes sudden moves without a reason. Could this be a warning?

Can Banks Really Be Trusted?

Many believe big banks are "too big to fail." But in 2023, we saw the collapse of several major institutions, including Silicon Valley Bank (SVB).
According to a 2024 report from the U.S. Office of the Comptroller of the Currency (OCC), nearly half of the country’s largest banks carry serious financial risk.

Government bailouts help—but they’re not instant. If your bank fails, your funds could be inaccessible for days or weeks.

What Happens When a Bank Fails?

A friend of mine had her account frozen due to a “security issue.” She had money in the account, but couldn't use it for three days. Imagine that happening across an entire bank.

In the event of a failure, you may not be able to withdraw money, pay bills, or even access online banking. That’s why a backup plan is no longer optional.

Two Ways to Protect Your Money

1. Diversify Your Bank Accounts

Most people don’t realize this: FDIC insurance only covers $250,000 per depositor, per bank. Anything above that is not protected if the bank fails.

To stay protected:

Spread funds across multiple banks
Keep at least three months’ worth of essential expenses in a liquid, low-risk account
Use a mix of traditional and online banks for redundancy

Personally, I use both a national bank and a digital bank. If one goes down, I still have access to cash.

2. Keep Emergency Cash at Home

During storms or outages, I’ve seen stores stop accepting cards—only cash worked.

A simple plan:

Keep $3,000–$5,000 in cash at home
Store it securely and accessibly
Replace old bills as needed

It doesn’t have to be a large stash—but enough to get through unexpected events.

Final Thoughts: Act Before It’s Too Late

Buffett isn’t selling bank stocks for no reason. When one of the most cautious investors in history steps back from financials, it’s worth paying attention.

Here’s your checklist: