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Hedge Fund Manager Expresses Concern on Potential Failure of SVB, Calling for Government Bailout

Cointime Official

Hedge fund manager Bill Ackman took to Twitter to express his concern over the potential failure of Silicon Valley Bank (SVB Financial), citing that it could have a significant impact on the economy, as many venture capital-backed companies rely on SVB for loans and holding their operating cash.

Ackman suggested that if private capital is unable to provide a solution, a highly dilutive government preferred bailout should be considered.

"After what the Feds did to @jpmorgan after it bailed out Bear Stearns, I don’t see another bank stepping in to help @SVB_Financial." Ackman tweeted.

"The gov’t could also guarantee deposits in exchange for a dilutive warrant issuance and other covenants and protections. If @SVB_Financial is indeed solvent, this would buy time to enable SVB to restore the franchise and raise new private capital." Ackman added.

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