Why Bill Ackman fears First Republic rescue threatens banks, economy

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Why Bill Ackman fears Wall Street's $30 billion rescue of First Republic could have catastrophic fallout

threatens other banks, the financial system, and the US economy. Here's a closer look at why he's worried, and what he wants.in First Republic Bank for at least 120 days.

The billionaire investor and Pershing Square chief argued the big banks' show of faith hasn't addressed the root problem — a lack of trust in the banking system. As a result, they don't keep the cash on hand — which makes it tricky if they have to satisfy a sudden surge of withdrawals.last week because its money was tied up in long-dated bonds that had slumped in value due to rising interest rates, and a large number of its customers tried to pull out their money at the same time.

That could discourage banks from lending money, causing a credit crunch that could hurt consumers and businesses and hammer the entire economy.

 

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You must be new here if you are asking Ackman.

Wasn't Ackman pleading for the rescue of SVB a few days ago?

Risk Free investing. What could go wrong…?

This guy

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