Billionaire Bill Ackman has warned of “vast and profound” consequences of the U.S. government letting Silicon Valley Bank (SVB) fail without protecting all depositors. “No company will take even a tiny chance of losing a dollar of deposits as there is no reward for this risk. Absent a systemwide FDIC deposit guarantee, more bank runs begin Monday am,” he cautioned.
Government Has Until Monday Morning to Fix Its ‘Soon-to-Be-Irreversible Mistake’
Billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, has warned of “vast and profound” consequences of the U.S. government allowing Silicon Valley Bank to fail without protecting all depositors.
He tweeted Saturday that the government has until Monday morning to fix its “soon-to-be-irreversible mistake,” elaborating:
By allowing SVB to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank.
He stressed that unless JPMorgan, Citibank, or Bank of America acquires Silicon Valley Bank before Monday’s market open, or the government provides a guarantee for all of SVB’s deposits, “the giant sucking sound you will hear will be the withdrawal of substantially all…