Billionaire investor Bill Ackman says SVB was not a bailout: 'The people who screwed up will bear the consequences'
In a long tweet on Sunday, the founder and CEO of hedge fund Pershing Square Capital Management said that the government injected money in the form of preferred stock into banks during theThis time, the depositors are being protected via the
insurance program that has been funded by premiums paid by banks, he said, adding:"The fund will recoup any losses by assessing more premiums on the banks." In his tweet, Ackman even applauded US authorities' intervention, saying the government"did the right thing for the country" by protecting depositors.
"The people who screwed up will bear the consequences. The investors who didn't adequately oversee their banks will be zeroed out and the bondholders will suffer a similar fate," Ackman added. But he also issued a warning —"More banks will likely fail despite the intervention, but we now have a clear roadmap for how the gov't will manage them."
He said the government sent a message that depositors can trust the banking system."Without this confidence, we are left with three or possibly four too-big-to-fail banks where the taxpayer is explicitly on the hook, and our national system of community and regional banks is toast," he added.
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