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Billionaire investor Bill Ackman posted a lengthy tweet about the Silicon Valley Bank collapse Saturday.
Ackman criticized the response of the federal government and its lack of monitoring SVB for risk.
He said the government has „about 48 hours to fix a-soon-to-be-irreversible mistake“ with its handling of SVB.
Billionaire investor Bill Ackman is calling on the federal government to intervene in the collapse of Silicon Valley Bank after the once-trusted bank of tech and startup founders was shutdown by regulators on Friday.
„The gov’t has about 48 hours to fix a-soon-to-be-irreversible mistake,“ Ackman tweeted in a lengthy post Saturday morning.
SVB became the second-largest bank failure in the US, after its stock price cratered by about 86% this week, prompting the Federal Deposit Insurance Corporation to take over. Ackman warned that if the government or another large bank like J.P. Morgan or Bank of America fails to take over SVB, it may lead to similar bank runs at other small financial institutions, as anxious clients move to pull uninsured deposits.
In Ackman’s view, this could lead to the collapse of several other smaller banks around the country.
The billionaire founder and CEO of hedge fund Pershing Square Capital Management argued that a lack of more immediate federal intervention earlier in SVB’s collapse could have larger, disastrous effects for the banking industry and the economy at large.
