![\"Billionaire](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2023\/05\/bill-ackman-time-running-out-768x432.jpg\")
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Billionaire Bill Ackman has warned that \u201cWe are running out of time\u201d to fix the problem that led to the collapses of regional banks. \u201cHow many more unnecessary bank failures do we need to watch before the FDIC, U.S. Treasury, and our government wake up?\u201d he stressed, adding that \u201cWe need a systemwide deposit guarantee regime now.\u201d<\/strong><\/p>\n Billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, has warned that time is running out for the U.S. government to fix the banking system. He tweeted Wednesday:<\/p>\n The regional banking system is at risk \u2026 The rapid rise in rates impaired assets and drained deposits.<\/p>\n<\/blockquote>\n Ackman explained that the \u201cfailure\u201d of the Federal Deposit Insurance Corporation (FDIC) \u201cto update and expand its insurance regime has hammered more nails in the coffin.\u201d He stressed that First Republic Bank \u201cwould not have failed if the FDIC temporarily guaranteed deposits while a new guarantee regime were created. Instead, we watch the dominoes fall at great systemic and economic cost.\u201d First Republic Bank was seized<\/a> by regulators earlier this week and most of its assets were sold to JPMorgan Chase.<\/p>\n The billionaire added that globally systemic banks (G-SIBs) \u201chave an unfair competitive advantage as too big to fail means only their uninsured depositors can sleep soundly. Until the playing field is leveled, the regional banks are at grave risk.\u201d<\/p>\n Ackman continued: \u201cConfidence in a financial institution is built over decades and destroyed in days. As each domino falls, the next weakest bank begins to wobble. Until investors are rewarded for betting on a wobbling bank, there will be no bid, and the best sale is the last price.\u201d He stressed:<\/p>\n We are running out of time to fix this problem.<\/p>\n<\/blockquote>\n \u201cHow many more unnecessary bank failures do we need to watch before the FDIC, U.S. Treasury, and our government wake up? We need a systemwide deposit guarantee regime now,\u201d he concluded.<\/p>\nAckman Calls for Urgent Action as Time Runs Out to Prevent More Bank Failures<\/h2>\n
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