Billionaire Bill Ackman said the top management of Silicon Valley Bank (SVB) made a fundamental mistake and should be fired. The collapse of Silicon Valley Bank was recorded as the largest bank failure in the United States in the last ten years. Bill Ackman shared his views on the Silicon Valley Bank collapse, which was recorded as the largest bank collapse in the United States in the last decade, on Twitter.
“What should the FDIC do? @FDICgov to guarantee all bank deposits by Sunday night before Asia open and call a time out. Run a process to recapitalize @SVB_Financial while managing liquidation of UST and MBS portfolios to be reinvested in short term UST. Determine the capital hole and raise a ‘fortress’ amount of capital from investors co-led by @generalatlantic @sequoia etc. and smart financial investors to recap bank. Need a balance between sophisticated VCs and risk-adverse financial investors. Replace senior management and board . Equity holders pre-recap are wiped out, bond holders are protected. @FDICgov to receive penny warrants on recapped bank as compensation for its backstop guarantee. FDIC develops a new guarantee regime where large dollar deposit insurance is made available up to sensible limits per account to accommodate business borrowers while 100% guarantee remains in place. Once new deposit insurance regime is employed, 100% guarantee is removed.”
Billionaire Bill Ackman said the US government must guarantee all deposits held by Silicon Valley Bank (SVB) within the next 48 hours. According to Ackman, if the government fails to do this, it will risk the collapse of many financial institutions.
Bill Ackman, CEO of hedge fund management firm Pershing Square, said in a tweet that the “voice of withdrawing substantially all uninsured deposits from all banks as well as systemically important banks” will be heard in the industry. Ackman suggested that this would be the result of the world realizing that an uninsured deposit was an unsecured illiquid claim at a failing bank.