Hedge fund manager Bill Ackman warns of ‘economic meltdown’ following Silicon Valley Bank collapse
“These withdrawals will drain liquidity from community, regional and other banks and begin the destruction of these important institutions,” said Ackman, the founder and CEO of Pershing Square Capital Management in Manhattan.
“The increased demand for short-term UST will drive short rates lower complicating the @federalreserve’s efforts to raise rates to slow the economy.”Getty Images/iStockphoto Bill Ackman predicted the lack of government intervention to guarantee SVB funds would lead to an ‘economic collapse.’Ackman wrote that he thought it was “unlikely any buyer will emerge to acquire the failed bank,” and warned that “thousands of the fastest growing, most innovative venture-backed companies in the U.S. will begin to fail to make payroll next week.”
“The FDIC’s and OCC’s [Office of the Comptroller of Currency] failure to do their jobs should not be allowed to cause the destruction of 1,000s of our nation’s highest potential and highest growth businesses while also permanently impairing our community and regional banks’ access to low-cost deposits,” Ackman said.
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