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US Shouldn’t Have Bailed Out SVB Depositors, Say Investors Like Ken Griffin and Carson Block

  • Griffin tells FT US capitalist economy is breaking down
  • Asness, Block say the rescue reduces need to worry about risk
Bloomberg business news
SVB Fallout: Wall Street Debates Moral Hazard

The US government’s emergency decision to backstop the financial system after the collapse of Silicon Valley Bank has earned praise from prominent names including Larry Summers and Bill Ackman.

But after a frantic weekend that saw the Federal Reserve and Joe Biden’s administration take extreme measures to protect depositors at SVB and the rest of the nation’s banks, a small but vocal group of market heavyweights has emerged as critics of the rescue package.