The CEO of one of the largest publicly traded hedge funds has warned that the turmoil sparked by the collapse of Silicon Valley Bank (SVB) is not over and a “significant number” of banks could fail in the next two years.
Man Group CEO Luke Ellis made the comments during a Bloomberg conference in London on March 22 when asked whether he believes the banking crisis is over.
“It depends on what you define as a crisis; I think that we will have a significant number of banks that will not exist 12, 24 months from now that exist today,” Ellis said.
He added that some firms could be taken over by larger rivals, as with the recent UBS deal to buy Credit Suisse for around $3.23 billion, and others will simply “disappear of their own accord,” while noting that the Federal Reserve and financial regulators are currently working to prevent banks from failing….