Billionaire Hedge Fund Manager Says More Regional Bank Pain is Coming
Pershing Square’s Bill Ackman has some strong thoughts on the regional banking crisis.
Here’s a breakdown of his tweet:
1/ The downward spiral: “At this rate, no regional bank can survive bad news or bad data as a stock price plunge inevitably follows.”
2/ Bank failure potentially coming this weekend: “’Pursuing strategic alternatives means an FDIC shutdown over the coming weekend. And there is no incentive [for buyers] to bid until Sunday after the failure.”
3/ The banking system is a house of cards: “Confidence in a financial institution is built over decades and destroyed in days. As each domino falls, the next weakest bank begins to wobble.”
4/ First Republic wouldn’t have failed if… The Federal Deposit Insurance Corp temporarily raised the deposit insurance beyond $250K.