Bill Ackman says US should consider SVB bailout as a possible option

(Bloomberg) – The US government should consider a “highly dilutive” bailout of SVB Financial Group if a private capital solution cannot be provided, according to Bill Ackman, founder of Pershing Square.

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Companies backed by venture capital use SVB for both loans and working capital. The government could also choose to guarantee deposits against warrants to allow the company to raise new funds, he said.

SVB Financial Group chief executive Greg Becker on Thursday allayed concerns about the bank’s financial health and advised customers to “keep calm”.

SVB tries to avoid bank run as fund giants advise withdrawing cash

The bank’s clients include venture capital investors, and Becker asked them to support the lender just as he has supported them for the past 40 years, according to people familiar with the matter.

Bear Stearns, the investment firm that failed during the 2008 global financial crisis, was later bought by JPMorgan Chase & Co., a move CEO Jamie Dimon has since regretted.

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