| Both Ackman and Cuban have called for measures beyond "protection of depositors". Ackman: "What should the FDIC do? @FDICgov to guarantee all bank deposits by Sunday night before Asia open and call a time out. Run a process to recapitalize
@SVB_Financial while managing liquidation of UST and MBS portfolios ... Equity holders pre-recap are wiped out, bond holders are protected." [1] Cuban: "The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits. Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it" [2] In a following tweet, Cuban claimed "this isn't a bailout" [3]. Their tweets, like many of the comments here, seem to be arguing the semantics of a "bailout". However, both Ackman and Cuban are calling for financial assistance from the Fed, which is absolutely a bailout, if only "partial". [1] https://twitter.com/BillAckman/status/1634694924707807236 [2] https://twitter.com/mcuban/status/1634416692301373442 [3] https://twitter.com/mcuban/status/1634418925331968007 |