“Bill Ackman warns: U.S. regional banking system in crisis due to lack of deposit insurance update”

Activist Bill Ackman, founder of hedge fund firm Pershing Square, said the U.S. regional bank system was in crisis and regulators failed to update and expand the deposit insurance program. He showed recognition that he stabbed him.

　　First Republic Bank is the second largest bank failure in U.S. history, and the fourth to fail since early March, following Silvergate Capital, Silicon Valley Bank (SVB) and Signature Bank. . JPMorgan Chase acquired First Republic on Monday.

Ackman said First Republic would not have gone bankrupt if the Federal Deposit Insurance Corporation had temporarily insured its deposits while it built the new plan. “Instead, we’ve seen dominoes fall with significant systemic and economic costs,” he said.

“The banking industry is a game of credit. At this pace, no regional bank can survive bad news and bad data. ‘Pursuit’ means the FDIC will cease operations next weekend.”

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Original title:Bill Ackman Warns US Regional Banking System Is at Risk (2)(excerpt)