Hedge fund manager Bill Ackman: The failure of Silicon Valley Bank could destroy important long-term drivers of the economy, and government bailout should be considered

ChainCatcher message, renowned hedge fund manager Bill Ackman posted on social media: "The failure of Silicon Valley Bank could destroy an important long-term driver of the economy, as venture-backed companies rely on Silicon Valley Bank for loans and to hold operating cash. If private capital cannot provide a solution, a highly diluted government priority bailout plan should be considered.

After seeing the Federal Reserve's actions in bailing out Bear Stearns, I don't believe any bank will step in to help Silicon Valley Bank.

The government could also guarantee deposits in exchange for issuing dilution warrants and other covenants and protections. If Silicon Valley Bank is indeed solvent, this would buy time for the bank to restore its charter and raise new private capital." (source link)