Ackman Says US Should Mull SVB Bailout as Possible Option
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The US government should consider a “highly dilutive” bailout of SVB Financial Group if a private capital solution can’t be provided, according to Pershing Square founder Bill Ackman.
Companies backed by venture capital use SVB both for loans and operating cash and a failure of the firm could destroy a crucial long-term impulse for the economy, he said in a series of tweets. The government could also choose to guarantee deposits in exchange for warrants to enable the company to raise new funds, Ackman said.