Bill Ackman wants sanctions on SVB exec

Famed billionaire Bill Ackman has dipped his toes into what is now the talk of Silicon Valley Bank across America. In response to the news, the billionaire tasked the government with ensuring that all deposits in banks are guaranteed within the next 48 hours, or the country’s financial institutions risk being destroyed.

Bill Ackman says government needs to respond

Bill Ackman says governments could spell doom if they fail to respond to all uninsured deposits at banks. The billionaire mentioned that he thought users would go to the bank on Monday morning to withdraw all their funds. However, he noted that this might not be a problem for popular banks, which always have a way of insuring users’ funds. The billionaire also said the issue would draw attention to the dangers of uninsured deposits at a failing financial institution.

Banks could be destroyed if the government didn’t intervene and people withdrew all their money, he said. However, he noted that the only way to eliminate that possibility is to ensure that one of the top banks buys out the struggling financial institution by Monday morning.

Analyst wants FDIC to help SVB

The billionaire argued that the catastrophic chain of events could have been prevented had the government strengthened guarantees on depositors’ funds on Friday. He also said the bank could salvage its reputation by transferring ownership on the spot to another top bank for a small stake. Bill Ackman said some SVB executives made costly mistakes for which they should be held accountable. He mentioned that the top management of the bank should be fired.

Investors still get about 98% of their value back, Ackman noted. This was after he said he had run a small estimate. Ackman also mentioned that the FDIC needs to come out and say it will insure all deposits in banks and have a plan to address the whole situation. Unlimited’s Bob Elliot made a similar statement, in which he mentioned that the future of the country’s financial institutions depends on the actions of the FDIC. About a third of U.S. deposits are held with smaller banks, only half of which are insured, he said.

Source of information: Compiled from CRYPTOPOLITAN by 0x Information.The copyright belongs to the author Owotunse Adebayo, and shall not be reproduced without permission

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