Top-rated hedge fund manager Bill Ackman has predicted bank runs on non-SIB banks. In a Twitter post that Ackman last edited yesterday night, he explained the reasoning behind his prediction.
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In the post, Ackman said that a trusted source has informed him that Silicon Valley Bank (SIVB) investors will be given around 50% of their deposits tomorrow and Tuesday, with the balance paid out, based on realized value, within the next three to six months.
Ackman continued by stating his belief that if investors are indeed paid according to that schedule, there will be bank runs beginning tomorrow. He expects the bank runs to take place in non-SIB banks, meaning banks whose activity does not impact the stability of the entire banking system.
According to his logic, there is no company that would risk losing any of the money it has deposited in a bank, because “there is no reward for this risk,” he explained. Further making his point, Ackman wrote, “Absent a systemwide FDICgov deposit guarantee, more bank runs begin Monday am.”
Learn more about the companies affected by SVB’s collapse here.
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