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As experts continue to weigh in on the fallout of SVB Finance Group SIVB-owned Silicon Valley Bank’s collapse, one more voice from the Street joined the chorus.
What Happened: Anthony Scaramucci, the founder of Skybridge Capital, took to Twitter to raise the ominous prospect facing the regional banks following the SVB collapse.
“Who will leave deposits in a regional bank after this?” he asked. He also empathized with the small businesses, which have lost their capital access to create jobs.
Replying to a question on Twitter, he said he holds no money in the failed bank.
Meanwhile, hedge fund manager Bill Ackman said, citing a source, that SVB depositors will likely get about 50% back on Monday or Tuesday and the balance based on realized value over the next three to six months, Scaramucci suggested the best path forward is returning depositors their money in full and allowing the equity holders return to go to zero.
See Also: Best Financial Services Stocks To Buy
Fed Needs To Act: The Fed has to announce a buyer of the assets for the Silicon Valley Bank by Sunday evening, 6 p.m., Scaramucci said in a separate tweet.
“A failure to do that will unleash a domino effect that will cascade through the markets and the nation’s banking system,” he added. The view echoed sentiments expressed by Ackman and tech entrepreneur and investor David Sacks.
Scaramucci also replied to a tweet by Nikki Haley, who is campaigning for the Republican presidential nomination, regarding a potential bailout. The former South Carolina governor tweeted that taxpayers shouldn’t be bailing out the bank, and instead private investors can purchase the bank and its assets. “The era of big government and corporate bailouts must end,” she added.
Replying to her, Scaramucci said, “The taxpayers don’t need to bail this out but the Fed and treasury should help to create an acquisition of assets to assure customers of their deposits.”
“What is needed is a restoration of trust. Why are we paying all of these taxes if the Gov’t can’t help with that?” he said.
Read Next: Bill Ackman Says Government Has 48 Hours To Fix The SVB Mess: ‘A Soon-To-Be-Irreversible Mistake’
Photo: Collision Conf on flickr
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Image and article originally from www.benzinga.com. Read the original article here.