Skip to content

Ackman Concerned About ‘Contagion Risk’ Spiraling Out of Control

Bloomberg business news

WATCH: First Republic Bank Gets $30 Billion of Bank Deposits in Rescue

Source: Bloomberg

Updated on

Spreading the risk of financial contagion to achieve “a false sense of confidence” in First Republic Bank is “bad policy”, Pershing Square’s Bill Ackman said in a tweet.

The activist investor said moves by the largest US banks to deposit $30 billion with First Republic “raised more questions than it answers.” The plan was devised with US regulators and included contributions from JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley.