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.
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.
— Bill Ackman (@BillAckman) March 10, 2023
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