Why Bill Ackman fears Wall Street's $30 billion rescue of First Republic could have catastrophic fallout
threatens other banks, the financial system, and the US economy. Here's a closer look at why he's worried, and what he wants.in First Republic Bank for at least 120 days.
The billionaire investor and Pershing Square chief argued the big banks' show of faith hasn't addressed the root problem — a lack of trust in the banking system. As a result, they don't keep the cash on hand — which makes it tricky if they have to satisfy a sudden surge of withdrawals.last week because its money was tied up in long-dated bonds that had slumped in value due to rising interest rates, and a large number of its customers tried to pull out their money at the same time.
That could discourage banks from lending money, causing a credit crunch that could hurt consumers and businesses and hammer the entire economy.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ackman says plan to deposit $30B into First Republic is bad policyBillionaire investor Bill Ackman says US banks depositing $30 billion into First Republic creates a 'false sense of confidence'
Read more »
Why Britain's 'Illegal Migration Bill' is so controversialBritain's parliament introduced a new bill that would have migrants who enter the U.K. 'promptly removed, either to their home country or a safe third country.' This is, according to the government, a way of removing the 'incentive' to travel across the English Channel to the U.K. in small boats.
Read more »
Ask Amy: Why should I pay half the power bill when I’m just one person?Granted, I don’t skimp on heat or air conditioning. I like to be comfortable.
Read more »
Schumer declares House GOP’s first major bill 'dead on arrival'Schumer killed any hope House Republicans may have harbored about their sweeping energy package making its way through the Senate – much less becoming law.
Read more »
Casey, Fetterman bill would help first responders hit with big costs in Ohio-like disastersBeaver Falls Fire Department lost 13 sets of gear, 10 self-contained breathing apparatuses and 10 face pieces because it responded to the East Palestine derailment, according to the Fire Fighter Association.
Read more »
Billionaire Ackman 'Extremely Concerned' $30 Billion Bank Rescue Plan Risks Financial Contagion Spiraling Out Of ControlThe billionaire investor has been outspoken about the need for government intervention in the banking crisis, but he has some notable critics.
Read more »