{"id":1900386,"date":"2023-03-17T16:46:55","date_gmt":"2023-03-17T20:46:55","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/first-republic-bank-rescue-creates-a-false-sense-of-confidence-says-hedge-fund-investor\/"},"modified":"2023-03-17T16:47:15","modified_gmt":"2023-03-17T20:47:15","slug":"first-republic-bank-rescue-creates-a-false-sense-of-confidence-says-hedge-fund-investor","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/first-republic-bank-rescue-creates-a-false-sense-of-confidence-says-hedge-fund-investor\/","title":{"rendered":"First Republic Bank rescue creates a &#8216;false sense of confidence,&#8217; says hedge fund investor"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffirst-republic-bank-rescue-creates-a-false-sense-of-confidence-says-hedge-fund-investor%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1900386&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"col-12 col-md-7 col-lg-8 col-xl-9 float-left body colgap-l-50\" itemprop=\"mainEntityOfPage\">\n<div class=\"ArticlePage-articleBodyWrapper\">\n<div class=\"ArticlePage-articleBody\" itemprop=\"articleBody\">\n<div class=\"RichTextArticleBody\">\n<div class=\"RichTextArticleBody-body\">\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<div id=\"Brid_79075071\" class=\"brid\" style=\"width:16; height:9;\" itemprop=\"video\" itemscope itemtype=\"http:\/\/schema.org\/VideoObject\">                <meta itemprop=\"name\" content=\"SVB collapse: SVB Financial Group files for Chapter 11 bankruptcy\">               <meta itemprop=\"description\" content=\"SVB Financial Group announced Friday it was filing for Chapter 11 bankruptcy to reorganize under court supervision. The group announced that SVB Securities and SVB Capital's funds and general partner entities would not be included in the Chapter 11 bankruptcy.\">               <meta itemprop=\"duration\" content=\"PT1M55S\">               <meta itemprop=\"uploadDate\" content=\"2023-03-17 17:40:56\">               <meta itemprop=\"thumbnailURL\" content=\"https:\/\/cdn.brid.tv\/live\/partners\/19383\/snapshot\/1264633_th_1679075029.jpg\">               <meta itemprop=\"contentUrl\" content=\"https:\/\/cdn.brid.tv\/live\/partners\/19383\/sd\/1264633.mp4\">              <\/div>\n<p>               <script type=\"text\/javascript\"> var _bp=_bp||[]; _bp.push({ \"div\": \"Brid_79075071\", \"obj\": {\"id\":\"27789\",\"width\":\"16\",\"height\":\"9\",\"video\":\"1264633\"} }); <\/script>               <script type=\"text\/javascript\" async src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script>              <\/div>\n<\/p><\/div>\n<p><span class=\"ArticlePage-articleBody-firstLetter\">B<\/span>Bill Ackman, an illionaire investor, criticised the recent bailout by First Republic Bank. He said that it creates a problem. &#8220;false sense of confidence.&#8221; <\/p>\n<p>Pershing Square Capital Management&#8217;s CEO, Ackman, criticized the plan of 11 major US banks to invest $30 billion in FRB. He also questioned Treasury Secretary Janet Yellen\u2019s call for Wall Street banks. &#8220;recycle&#8221; They received deposits from FRB and transferred them back into it. <\/p>\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure mb-1 mb-sm-3 mb-md-1 article-lead-photo data_invisible\" data-align=\"center\" data-image-size=\"fixed\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\">\n<div class=\"Figure-container\"> <picture><source media=\"(max-width: 768px)\" type=\"image\/webp\" width=\"767\" height=\"511\" data-image-size=\"1060x600_md\"><source media=\"(max-width: 768px)\" width=\"767\" height=\"511\" data-image-size=\"1060x600_md\"><source media=\"(max-width: 1440px)\" type=\"image\/webp\" width=\"645\" height=\"430\" data-image-size=\"1060x600_xl\"><source media=\"(max-width: 1440px)\" width=\"645\" height=\"430\" data-image-size=\"1060x600_xl\"><source type=\"image\/webp\" width=\"1060\" height=\"707\" data-image-size=\"1060x600\"><source width=\"1060\" height=\"707\" data-image-size=\"1060x600\"><\/source><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"Figure-caption\" itemprop=\"caption\">                 Bill Ackman.                <\/figcaption><div class=\"Figure-credit\" itemprop=\"author\">                 (AP Photo\/Richard Drew)                <\/div>\n<\/p><\/div>\n<\/figure><\/div>\n<\/p><\/div>\n<p><b>FIRST REPUBLIC-BANK EXECUTIVES MARKET STOCK IN MONTHS PRINCING UP TO TURMOIL: REPORT<\/b> <\/p>\n<p>&#8220;Spreading the risk of financial contagion to achieve a false sense of confidence in FRB is bad policy. The SIBs would never have made this low return investment in deposits unless they were pressured to do so and without assurances that FRB deposits would be backstopped if it failed,&#8221; Ackman made the comments in a tweet, Friday. <\/p>\n<p>&#8220;FRB is no SVB. It is a well-managed, well-capitalized, high-service bank with good assets that is beloved by its clients. It is caught up in a bank run due to no fault of its own. It does not deserve to fail,&#8221; He continued. &#8220;We need a temporary systemwide deposit guarantee immediately until expanded and modernized @FDICgov insurance system is made widely available.&#8221; <\/p>\n<p>He also critiqued a &#8220;lack of transparency&#8221; Concerned about the deal, the warning was that the $30 billion aid package could lead to markets assuming the worst. <\/p>\n<p>&#8220;I have no investments long or short in the banking sector. I am simply extremely concerned about financial contagion risk spiraling out of control and causing severe economic damage and hardship,&#8221; He stated. &#8220;We need to stop this now. We are beyond the point where the private sector can solve the problem and are in the hands of our government and regulators. Tick-tock.&#8221; <\/p>\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">.@SecYellen reportedly pushed SIBs to recycle some deposits they received @firstrepublic into FRB for 120-days. FRB default risks are now being spread to the largest banks. <\/p>\n<p>Spreading the risk of financial contagion to achieve a false\u2026 https:\/\/t.co\/rDwQophwly<\/p>\n<p>\u2014 Bill Ackman (@BillAckman) March 17, 2023              <\/p><\/blockquote>\n<p>               <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>              <\/div>\n<\/p><\/div>\n<p>Elon Musk, Twitter&#8217;s CEO, was intrigued by the analysis and responded in kind. <\/p>\n<p><b>CLICK HERE TO VIEW MORE FROM THE WASHINGTON XAMINER<\/b> <\/p>\n<p>&#8220;The inefficiency of the set of heterogeneous resource allocation databases we call money is astounding,&#8221; He tweeted. <\/p>\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Amazing is the inefficiency of the collection of heterogeneous resource allocation databases that we call money.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) March 17, 2023              <\/p><\/blockquote>\n<p>               <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>              <\/div>\n<\/p><\/div>\n<p>In an attempt to avoid a bigger collapse following the collapse of Silicon Valley Bank, the government announced a $30 billion rescue plan. Despite recovering from the day before on Friday, the bank&#8217;s stock continued its slide.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><\/p>\n<hr>\n<p>&#8220;Read More from&#8221; <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/investor-criticizes-first-republic-bank-rescue\">First Republic Bank rescue creates &#8220;false confidence,&#8221; says hedge fund investor<\/a>&#8221;<\/p>\n<hr>\n<p><span style=\"font-size:11px\"><em>&#8220;The views and opinions expressed here are solely those of the author of the article and not necessarily shared or endorsed by Conservative News Daily&#8221;<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Billionaire investor Bill Ackman criticized the recent bailout of First Republic Bank, saying that it creates a &#8220;false sense of confidence.&#8221; Ackman, CEO of hedge fund Pershing Square Capital Management, bashed the plan by 11 major United States banks to pour $30 billion into FRB, further taking issue with Treasury Secretary Janet Yellen&#8217;s call for<\/p>\n","protected":false},"author":1,"featured_media":1900387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[5373,6711,6160,4854,4338,4337,7856,9116,12701,6269],"class_list":["post-1900386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-bank","tag-confidence","tag-creates","tag-false","tag-fund","tag-hedge","tag-investor","tag-republic","tag-rescue","tag-sense"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1900386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1900386"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1900386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1900387"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1900386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1900386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1900386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}