'Government has 48 hours': Billionaire investor Bill Ackman calls Biden to bail out SVB by Monday morning or face a catastrophic market crash and tens of thousands of job losses.
Billionaire hedge fund manager Bill Ackerman predicts an economic downturn after the Silicon Valley bank collapse.
Ackman urges the US government to take action to protect all of the bank's depositors for fear there will be a ripple effect across other smaller banks.
Greg Baker, CEO of SVB Financial Group, sent a video message to bank staff, acknowledging the bank's "incredibly difficult" 48 hours.
Billionaire hedge fund manager Bill Ackman predicts "economic collapse" within hours of opening up to banks Monday morning after the Silicon Valley bank failure.
Ackman urges the US government to finally step in and protect all of the bank's depositors, warning that failure to warn could lead to a ripple effect across other smaller banks in the industry.
The worry is that customers will rush to withdraw cash from their accounts for fear of instability across the banking system with the real possibility of a domino effect.
Ackmann urges the government to take action and fix a "reversible error" by Monday morning, to prevent such a grim scenario.
His ominous warning came hours after Greg Baker, CEO of SVB Financial Group, sent a video message to bank employees acknowledging the "extremely difficult 48 hours" before its collapse on Friday.
Billionaire hedge fund manager Bill Ackerman predicts an economic meltdown on Friday after the Silicon Valley bank collapse.
Ackman believes there could be a ripple effect on other smaller banks in the industry and urges the government to take action by Monday to prevent such a grim scenario.
Ackman believes there could be a ripple effect on other smaller banks in the industry and urges the government to take action by Monday morning to prevent such a grim scenario.
"It is with an incredibly heavy heart that I am here to deliver this message today," he said in a video. "I want to acknowledge how hard the past 48 hours have been for all of you. I care so much about all of you. It's hard.
I look back to focus on two things. 1.) Despite this incredibly difficult time, I'm focusing on you and thinking about the result of what this could be. and 2.) I am customer focused.
Friday's Silicon Valley bank collapse was the worst financial institution failure in the US since the Great Recession, totaling $209 billion at the end of 2022.
The 16th largest bank in the United States failed after a 60 percent share drop due to low customer deposits, forcing SVB to sell $1.75 billion.
Although the FDIC has taken control of the lender, Baker said it is working with banking regulators to find a partner for the bank, but there is no "guarantee" a deal will be struck.
Baker wore a black blazer with a crest from Gleneagles, Scotland's luxury golf resort, and spoke from a room framed by dark cabinets.
"As I heard this morning, I no longer make those decisions, which is difficult. But I am working with the FDIC to determine how to communicate the best outcome to our clients and employees.
"I can't imagine what was going through your head, and you are wondering, you know, about your business, your future. I aim to figure out how to preserve a small part of the franchise value we've spent so much time building and find the right partner who can FDIC work with This establishment in a form or fashion.
He asked employees to "hang out, try to support each other, try to support our customers, work together" to get a better outcome for the company.
He said, "Thank you, and my heart is with you."
On Friday, it was revealed how Baker sold $3.57 million in stock in a pre-planned spontaneous sale two weeks before the bank collapsed—and CFO Daniel Beck sold 2,000 shares at $287.59 a claim on the same day his boss, Duterte, dumped his boss. . $575,000.
Becker unloaded 12,451 shares at an average price of $287.42 each on Feb. 27. The price fell to just $39.49 on Premarket Friday before the FDIC seized the bank's assets.
Greg Baker, chief executive of SVB Financial Group, sent a video message to bank employees acknowledging the "very difficult 48 hours" before its collapse on Friday.
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