{"id":562639,"date":"2023-03-12T09:14:54","date_gmt":"2023-03-12T06:14:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bill-ackman-warns-us-govt-fix-mistake-in-48-hours-or-face-destruction\/"},"modified":"2023-03-12T09:14:54","modified_gmt":"2023-03-12T06:14:54","slug":"bill-ackman-warns-us-govt-fix-mistake-in-48-hours-or-face-destruction","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bill-ackman-warns-us-govt-fix-mistake-in-48-hours-or-face-destruction\/","title":{"rendered":"# Bill Ackman warns US gov&#8217;t: Fix mistake in \u201848 hours\u2019 or face \u2018destruction\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af2b575f1f83\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af2b575f1f83\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bill-ackman-warns-us-govt-fix-mistake-in-48-hours-or-face-destruction\/#%E2%80%9D_Bill_Ackman_warns_US_govt_Fix_mistake_in_%E2%80%9848_hours_or_face_%E2%80%98destruction_%E2%80%9C\" >&#8221; Bill Ackman warns US gov&#8217;t: Fix mistake in \u201848 hours\u2019 or face \u2018destruction\u2019 &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bill_Ackman_warns_US_govt_Fix_mistake_in_%E2%80%9848_hours_or_face_%E2%80%98destruction_%E2%80%9C\"><\/span>&#8221; Bill Ackman warns US gov&#8217;t: Fix mistake in \u201848 hours\u2019 or face \u2018destruction\u2019 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvMGI3ZDk5MDYtZWZkNi00ZmU0LTlmY2MtNTBiYjA0MzU5YTM0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Billionaire Bill Ackman has urged the United States government to \u201cguarantee\u201d all deposits held by Silicon Valley Bank (SVB) within the next \u201c48 hours,\u201d or it risks the \u201cdestruction\u201d of many financial institutions.<\/p>\n<p>In a Mar. 11 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BillAckman\/status\/1634564398919368704\">tweet<\/a>, Bill Ackman, CEO of hedge fund management firm Pershing Square, said a \u201cgiant sucking sound&#8221; will be heard from the \u201dwithdrawal of substantially all uninsured deposits,\u201d\u00a0from all banks,\u00a0besides the \u201csystemically important banks (SIBs),\u201d should the government fail to \u201cguarantee all\u201d of SVB\u2019s deposits before the \u201copen on Monday.\u201d<\/p>\n<p>Ackman suggested that this would be the result of &#8220;the world&#8221; realizing what an uninsured deposit is \u2013 \u201can unsecured illiquid claim on a failed bank.\u201d<\/p>\n<p>He warned that these withdrawals will \u201cdrain liquidity,\u201d from community, regional and other banks and \u201cbegin the destruction\u201d of these crucial institutions, if the government fails to protect \u201call depositors.\u201d <\/p>\n<p>Ackman said that the only other way to prevent this from h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening, was in the \u201cunlikely\u201d event that major financial institutions such as J.P. Morgan, Citibank or Bank of America, acquire SVB before the open on Monday.<\/p>\n<p>It was argued by Ackman that this all could have been \u201cavoided\u201d if the US government had \u201cstepped in on Friday\u201d to guarantee SVB\u2019s deposits, adding that the long-standing bank\u2019s \u201cfranchise value\u201d could have been safeguarded and &#8220;transferred&#8221; to a new owner in return for an \u201cequity injection.\u201d<\/p>\n<p>Ackman suggested that SVB\u2019s senior management \u201cmade a basic mistake\u201d but should be fired. He noted:<\/p>\n<blockquote><p>\u201cThey invested short-term deposits in longer-term, fixed-rate assets. Thereafter short-term rates went up and a bank run ensued. Senior management screwed up and they should lose their jobs.\u201d<\/p><\/blockquote>\n<p>After conducting a \u201cback-of-the-envelope review\u201d of SVB\u2019s balance sheet, Ackman believes that even \u201cin a liquidation,\u201d depositors \u201cshould eventually\u201d get back approximately \u201c98% of their deposits\u201d.<\/p>\n<p>However, he argued that \u201ceventually\u201d is \u201ctoo long\u201d when you have \u201cpayroll to meet next week.\u201d<\/p>\n<p>Ackman tweeted shortly after, reiterating that the Federal Deposit Insurance Corporation (FDIC) should guarantee all SVB bank deposits by Sunday night, along with a proposed plan.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What should the FDIC do? <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FDICgov?ref_src=twsrc%5Etfw\">@FDICgov<\/a> to guarantee all bank deposits by Sunday night before Asia open and call a time out. Run a process to recapitalize <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SVB_Financial?ref_src=twsrc%5Etfw\">@SVB_Financial<\/a> while managing liquidation of UST and MBS portfolios to be reinvested in short term UST. Determine the capital hole\u2026 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/g96k1b7soy\">https:\/\/t.co\/g96k1b7soy<\/a><\/p>\n<p>\u2014 Bill Ackman (@BillAckman) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BillAckman\/status\/1634694924707807236?ref_src=twsrc%5Etfw\">March 11, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Silicon Valley Bank failure could trigger run on U.S. regional banks<\/em><\/strong><\/p>\n<p>This comes after Bob Elliot, CEO of investment firm Unlimited, said that the Federal Reserve and FDIC decisions regarding the future of SVB may affect regional banks across the United States, putting trillions of dollars at risk of a bank run.<\/p>\n<p>Elliot stated that nearly a third of deposits in the United States are held in small banks, with 50% of those deposits being insured.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bill-ackman-warns-us-gov-t-fix-mistake-in-48-hours-or-face-destruction\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bill Ackman warns US gov&#8217;t: Fix mistake in \u201848 hours\u2019 or face \u2018destruction\u2019 &#8220; Billionaire Bill Ackman has urged the United States government to \u201cguarantee\u201d all deposits held by Silicon Valley Bank (SVB) within the next \u201c48 hours,\u201d or it risks the \u201cdestruction\u201d of many financial institutions. In a Mar. 11 tweet, Bill Ackman,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":562640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/0b7d9906-efd6-4fe4-9fcc-50bb04359a34.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[71939,70934,33355,67874],"class_list":["post-562639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banks","tag-regulation","tag-silicon-valley","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=562639"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/562640"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=562639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=562639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=562639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}