Tension, as US Billionaire Investor Blast The Banking Industry
It has been quite an interesting weekend for the crypto industry, and again, Bill Ackman, the United States investor has brought the attention of journalists to what he described as profound consequences for the mistakes made by the U.S banking industry. In the latest report, the billionaire investor was quoted saying that the United States banking regulators “messed up.”
In an interview with journalists, while talking about the recent development in the finance industry, he said that there may be consequences if the government refused to step in and intervene. He went ahead to reveal that the worst case scenario will be a failed bank deposit system, which he predicted would happen over the weekend. He also stressed that the consequences of this action could be vast and very significant. Bill cleared that this can only happen if the key stakeholders refuse to bail out Silicon Valley Bank.
From the excerpts gathered during the interview, Bill warned that it will be a huge mistake if a strong bank does not acquire Silicon Valley Bank before the market opens on Monday.
Bill Ackman Gives a Strong Warning
It was gathered that Bill warned that the government has only 2 days to fix their so-called mistake or face huge financial crisis. He made this statement in one of his tweets on Saturday. He also said that the global bank customers have grown above listening to the story of some “unsecure deposits.” He further went ahead to claim that an unsecured deposits in any bank is synonymous to a failed banking system.
Recall that on Friday, it was reported that the Silicon Valley Bank alongside the Federal Deposit Insurance Corporation started working as receivers in the bank. Also, before the deposit crisis, Silicone Valley Bank is known among cryptocurrency venture capitalists, companies and Start-ups. When asked about the likely prospective buyers of the Silicone Valley Bank, Bill became a bit uncertain about the possibility of top financial houses acquiring it.
He also went ahead to demystify his earlier assertions, by declaring that it is not yet certain whether the top banks like Bank of America, JPMorgan, Chase, or Citibank are interested in acquiring Silicone Valley Bank. Bill also revealed for the first time, that he is interested in the injection of equity should the government make efforts in safeguarding the deposits, latest, on Friday. He added that this will go a long way in helping during the process of transferring to the prospective new owners.
More Warnings
Bill Ackman, in a separate interview again warned that customers of Silicon Valley Bank are at the risk of losing getting access to the funds in their accounts. During the interview, he disclosed that there are thousands of companies in the United States who are likely to start failing to make payrolls starting from next week.
In what appeared to be an emotional moment, the billionaire went a bit hard on the Federal Deposit Insurance Corporation (FDIC). He blasted the agency, accusing them of being responsible for the many troubles of Silicone Valley Bank.
He accused them of ignoring the bank’s activities which he claimed led to the distress. According to him, the failure of Deposit Insurance Corporation and other sister agencies are responsible for the damage that is now suffered by over a thousand businesses operating within the country.
Before now, Bill has been known to be a force to reckon with in the world of Hedge Funds, and stock analysis. His contributions to the financial sector has saved not only individual amateur investors from making bad investment decisions, but has been a role model to top thriving businesses all over the world
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