In a chilling metaphorical warning, billionaire investor Bill Ackman has sounded the alarm bells that the collapse of Silicon Valley Bank (SVB) could trigger a “vast and profound” ripple effect throughout the financial world. Speaking out in the aftermath of SVB’s closure last Friday, Ackman stated that without a bailout or a swift acquisition by a major bank, the consequences could be “irreversible”.
Ackman drew parallels to the tragic sinking of the Titanic, stating that the financial community is facing a similar moment of crisis, with time running out to save what could be lost forever. He called on the U.S. government to intervene immediately to guarantee all of the failed bank’s deposits, before it’s too late.
“If we don’t act quickly, SVB will go down in history as one of the greatest financial tragedies of our time. It’s like the Titanic sinking all over again,” Ackman said in a tweet. “The passengers of this ship are the thousands of innovative, fast-growing companies that relied on SVB. If we don’t rescue them, they will all sink with the bank.”
Ackman went on to criticize the FDIC and the Office of the Comptroller of the Currency for not keeping a closer eye on SVB’s operations. He also warned that without access to their accounts, SVB’s clients would soon run out of available funds, causing thousands of companies to fail to make payroll.
The collapse of SVB has sent shockwaves throughout the tech industry and the world of venture capitalism. Ackman believes that the failure to rescue the bank will lead to a catastrophic domino effect, with thousands of companies collapsing and sending the economy into a tailspin.
As the clock ticks down to Monday’s opening bell, Ackman’s plea for intervention has taken on a new sense of urgency. Will the government step in to save SVB and prevent a financial cataclysm, or will the Titanic of the financial world sink beneath the waves, taking thousands of innovative businesses with it? Only time will tell.
[…] https://www.bqprime.com/bloomberg/us-discusses-fund-to-backstop-deposits-if-more-banks-fail Ackman’s dire warning of a looming financial cataclysm, as Silicon Valley Bank sinks […]