Ackman Urges US Government to Guarantee SVB Deposits

Billionaire hedge fund manager Bill Ackman has warned the US government that failing to guarantee all deposits held by Silicon Valley Bank (SVB) within 48 hours could result in the destruction of several financial institutions. In a tweet on March 11, Ackman called for the government to step in and protect all depositors, warning that a “giant sucking sound” would be heard from the withdrawal of uninsured deposits from all banks, not just the systemically important banks.

Ackman argued that the world would realize what an uninsured deposit is – an unsecured illiquid claim on a failed bank – and that this would lead to a drain on liquidity from community, regional, and other banks. He said that this could “begin the destruction” of these crucial institutions if the government does not take action.

Ackman also suggested that major financial institutions, such as JPMorgan Chase, Citibank, or Bank of America, could acquire SVB before Monday to prevent this outcome. However, he argued that this was an unlikely event and that the government needed to step in to guarantee SVB’s deposits.

According to Ackman, the situation could have been avoided if the US government had stepped in on Friday to guarantee SVB’s deposits. He argued that the long-standing bank’s “franchise value” could have been safeguarded and transferred to a new owner in return for an equity injection.

SVB is a bank that specializes in providing financial services to the technology industry. Its clients include startups, venture capital firms, and private equity firms. The bank has been in operation for over 35 years and has over $100 billion in assets under management.

SVB’s deposits are currently uninsured, meaning that they are not protected by the Federal Deposit Insurance Corporation (FDIC). This is because the bank’s deposits are considered to be predominantly from institutional clients and high net worth individuals, who are not covered by the FDIC’s deposit insurance program.

In response to Ackman’s tweet, SVB issued a statement saying that it was “well capitalized and well positioned to support our clients.” The bank also said that it had no plans to seek an acquisition and that its focus was on continuing to serve its clients.

The US government has not yet responded to Ackman’s call for deposit guarantees for SVB. However, the situation highlights the risks that can arise from uninsured deposits and the need for investors to carefully consider the risks and benefits of depositing their funds with financial institutions.


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Bill Ackman predicts crypto will remain

People have said that a lot of technology companies in China are working on making it possible for Chinese soccer fans to watch the FIFA World Cup in the metaverse.

These projects are part of a five-year plan that the Chinese government announced at the beginning of November. The goal of the plan is to improve the local virtual reality (VR) industry and help it grow.
According to a report from the state-run media outlet Global Times that was published on November 20, the video streaming platform Migu is one of six Chinese companies that have secured the rights to show the World Cup. Migu plans to create a “Metaverse-like” space that will allow users to watch a livestream of the game while wearing virtual reality headsets.
ByteDance, the company that owns TikTok and its Chinese version, Douyin, has been granted the licencing rights to air the competition. Pico, a subsidiary of ByteDance that makes VR headsets, will be broadcasting the World Cup live. Users will be able to create and gather in “digital rooms” to watch the game together.
It looks like China’s virtual reality (VR) business, which is still new, is using the World Cup to test out the technology.
On November 1, an ambitious industrial strategy was pushed by the nation’s Ministry of Industry and Information Technology, together with four other agencies in the country.
Even though China’s five-year plan for 2022–2026 says it wants to improve its virtual reality (VR) industry and ship more than 25 million units worth $48.56 billion, the plan doesn’t say if this goal is for each year or for the whole plan.
The plans don’t say anything about whether or not the metaverse would use blockchain technology, like the city of Wuhan’s proposal, which was later changed to remove any mention of non-fungible coins (NFTs).
X2Y2 reduces the amount of the optional royalties. The NFT marketplace X2Y2 has changed its policy on opt-in royalties and said in a November 18 Twitter thread that it will once again charge creator royalties on all collections, both those that are already out and those that will come out in the future.
In August, the marketplace was one of the first to implement alternative royalties. At that time, it transitioned to a system known as “flexible royalty,” which enables purchasers to choose the amount of the royalty that they would pay.
The NFT community responded to it in a variety of different ways.


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