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Billionaire Investor Warns of Possible Bank Run in Silicon Valley

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Billionaire Investor Warns of Possible Bank Run in Silicon Valley

According to reports, billionaire investor Bill Ackman disclosed on social media that a source he trusted revealed that Silicon Valley bank depositors might get about 50% of the funds next Monday (March 13)/Tuesday (March 14), and the balance would get other deposit funds according to the realized value in the next 3-6 months. If this is proved to be true, it is expected that a large number of banks without deposit insurance will run from Monday morning, No company will risk losing a dollar of deposit because this risk has no return. Bill Ackman believes that the Federal Deposit Insurance Corporation of the United States should guarantee all bank deposits and suspend them on Sunday night before the opening of the Asian market, and run the process to recapitalize and manage the liquidation of the UST and MBS portfolios to reinvest them in short-term UST. In addition, Bill Ackman said that he had no direct contact with Silicon Valley banks.

Billionaire Bill Ackman: Silicon Valley bank depositors may get about 50% of the funds next Monday and Tuesday

Analysis based on this information:


Billionaire investor Bill Ackman caused a stir on social media when he revealed that a source he trusted disclosed information about the possible fate of Silicon Valley bank depositors in the near future. According to Ackman’s source, depositors might only receive 50% of their funds on March 13-14, while the rest of their money would be disbursed over the next 3-6 months based on the realized value of the bank’s assets. This news could trigger a bank run in Silicon Valley, as individuals and companies rush to withdraw their deposits and protect their money.

Ackman believes that the Federal Deposit Insurance Corporation (FDIC) should guarantee all bank deposits and suspend them before the Asian market opens on Monday. By doing so, the FDIC can recapitalize and manage the liquidation of the UST and MBS portfolios, and reinvest them in short-term UST. Ackman argues that the FDIC has the resources to prevent a bank run and protect depositors from losing their hard-earned money.

The absence of deposit insurance in many banks is a major concern for Ackman, as it could lead to devastating consequences for depositors. The risk of losing money with no returns is simply not worth it, as companies and individuals would rather withdraw their deposits and invest them elsewhere. The possible bank run in Silicon Valley could have a domino effect on other banks without deposit insurance, leading to a systemic collapse of the financial system.

It is important to note that Ackman has not had direct contact with Silicon Valley banks, and his information is based on an anonymous source. However, his warning should not be taken lightly, as he is a respected figure in the investment world, and his predictions have proven to be accurate in the past.

In conclusion, the possible bank run in Silicon Valley could have dire consequences for depositors and the financial system as a whole. The FDIC should take immediate action to prevent this from happening by guaranteeing all bank deposits, suspending them before the Asian market opens on Monday, and managing the liquidation of UST and MBS portfolios. The absence of deposit insurance in many banks is a major concern that needs to be addressed before it is too late.

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