Time Running Out to Fix US Banking Crisis: Ackman

• Billionaire Bill Ackman has warned that time is running out for the US government to fix the banking system.
• He called for a “systemwide deposit guarantee regime” to prevent more bank failures.
• Ackman stressed that “we are running out of time” to address this issue before further damage is done.

Billionaire Warns Time is Running Out to Fix US Banking System

Billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, has warned that the U.S. government is running out of time to fix its banking system. He tweeted Wednesday: „The regional banking system is at risk.“ He highlighted how the rapid rise in rates had impaired assets and drained deposits, and how the Federal Deposit Insurance Corporation (FDIC) had failed to update and expand its insurance regime, leading to more bank failures.

Calls for Urgent Action

Ackman called for urgent action from the FDIC, U.S Treasury and U.S government, stressing: „We need a systemwide deposit guarantee regime now.“ First Republic Bank was seized by regulators earlier this week with most of its assets sold to JPMorgan Chase, which Ackman believes would not have happened if there was a temporary deposit guarantee in place while a new guarantee regime was created. He also noted that globally systemic banks (G-SIBs) have an unfair competitive advantage due to their too-big-to-fail status.

Time Running Out

Ackman warned that time was running out on fixing this problem before further damage is done, tweeting: „How 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.“ He added that confidence in financial institutions can be built over decades but destroyed in days – noting how each failing domino impacts the next weakest bank until investors are rewarded for betting on them again or until it’s too late – emphasizing his point with „We are running out of time“.

Unfair Competitive Advantage

Ackman also noted how G-SIBs have an unfair competitive advantage as only their uninsured depositors can sleep soundly – making it essential for a level playing field so regional banks aren’t put at such high risk from market volatility or other external factors beyond their control or understanding.

Final Words

In conclusion, Ackman emphasized his call for urgent action from both private companies and governmental organizations alike – warning that if nothing were done soon then not only could more unnecessary failures occur but also irreversible damage be inflicted upon our economy as a whole by allowing these issues go unresolved any longer than necessary