(New York = Yonhap Infomax) Correspondent Jeong Seon-young = Billionaire investor Bill Ackman evaluated that the US government’s intervention in the Silicon Valley Bank (SVB) crisis was the right decision to intervene to protect depositors, not bailout.
According to CNBC on the 13th (local time), Bill Ackman recently tweeted, “This was not a bailout in any form,” and “the people who screwed things up will be responsible for the consequences.”
“The important thing is that the government has sent a message that depositors can trust the banking system,” Ackman said.
A senior U.S. Treasury official said on the previous day that “the Federal Deposit Insurance Corporation’s (FDIC) Deposit Insurance Fund (DIF) will protect all depositors of banks that have gone into court receivership due to bankruptcy.” .
The U.S. Treasury Department, the Federal Reserve System (Fed) and the FDIC issued a joint statement declaring that all SVB deposits are fully insured, regardless of insurance coverage.
This is a change from the measures taken to bail out banks with taxes during the financial crisis.
“If we hadn’t intervened on this day, a bank run like the one in the 1930s would have continued on Monday, causing enormous economic damage and suffering millions of people,” he said.
“Even with intervention, more banks are likely to collapse, but now there is a clear roadmap for how governments will manage banks,” Ackman stressed.
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