Famed investor Bill Ackman is warning that America’s regional banking system is at risk and criticized the Federal Deposit Insurance Corporation (FDIC) for worsening the banking crisis facing the nation.
“The regional banking system is at risk,” Ackman stated in a tweet on May 4. The collapse of Silicon Valley Bank (SVB) has “woke up uninsured depositors everywhere,” he said. Ackman blamed the FDIC for failing to expand its insurance regime, which has ended up hammering “more nails in the coffin,” indicating worsening of the banking crisis.
First Republic Bank (FRB) “would not have failed if the FDIC temporarily guaranteed deposits while a new guarantee regime were created. Instead, we watch the dominoes fall at great systemic and economic cost.”…