Bill Ackman says the US should consider the SVB bailout as a possible option

(Bloomberg) — The U.S. government should consider a “very dilutive” bailout for SVB Financial Group if a private equity solution cannot be provided, according to Pershing Square founder Bill Ackman.

Most read from Bloomberg

Companies supported by venture capital use SVB both for loans and operating cash. The government could also choose to guarantee deposits in exchange for warrants to enable the firm to raise new funds, he said.

SVB Financial Group CEO Greg Becker on Thursday decided to allay concerns about the bank’s financial position and advised customers to “keep calm.”

SVB races to prevent bank runs as fund giants advise withdrawing cash

The bank’s clients include venture capital investors, and Becker asked them to support the lender, just as it has for the past 40 years, according to people familiar with the matter.

Bear Stearns, the investment firm that failed during the 2008 global financial crisis, was later bought by JPMorgan Chase & Co., a move CEO Jamie Dimon has since said he regrets.

Click here to see the source of this information

Most read from Bloomberg Businessweek

©2023 Bloomberg LP

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
%d bloggers like this: