Billionaire Bill Ackman on US Banking Crisis: We Are Running Out of Time to Fix This Problem
Billionaire Bill Ackman has warned that “We are running out of time” to fix the problem that led to the collapses of regional banks. “How many more unnecessary bank failures do we need to watch before the FDIC, U.S. Treasury, and our government wake up?” he stressed, adding that “We need a systemwide deposit guarantee regime now.”Billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, has warned that time is running out for the U.S.
The regional banking system is at risk … The rapid rise in rates impaired assets and drained deposits. Ackman explained that the “failure” of the Federal Deposit Insurance Corporation “to update and expand its insurance regime has hammered more nails in the coffin.” He stressed that First Republic Bank “would not have failed if the FDIC temporarily guaranteed deposits while a new guarantee regime were created. Instead, we watch the dominoes fall at great systemic and economic cost.
Ackman continued: “Confidence in a financial institution is built over decades and destroyed in days. As each domino falls, the next weakest bank begins to wobble. Until investors are rewarded for betting on a wobbling bank, there will be no bid, and the best sale is the last price.” He stressed:“How many more unnecessary bank failures do we need to watch before the FDIC, U.S. Treasury, and our government wake up? We need a systemwide deposit guarantee regime now,” he concluded.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FXStreetNews - 🏆 14. / 72 Read more »