Fannie Mae (FNMA)

[Robert from yahoo bd]

"By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is – an unsecured illiquid claim on a failed bank," he began.

He then predicted that people will rush to withdraw huge sums of uninsured deposits from all non-systemically important banks (SIB).

"These funds will be transferred to the SIBs, US Treasury (UST) money market funds and short-term UST," Ackman postulated. "There is already pressure to transfer cash to short-term UST and UST money market accounts due to the substantially higher yields available on risk-free UST vs. bank deposits."

Ackman said that "the destruction of these important institutions" will begin once depositors start draining money from regional and community banks. He asserted that the U.S. government could have guaranteed SVB's deposits in exchange for penny warrants to avoid its collapse and create potential for profits.

"Instead, I think it is now unlikely any buyer will emerge to acquire the failed bank," he continued. "The gov’t’s approach has guaranteed that more risk will be concentrated in the SIBs at the expense of other banks, which itself creates more systemic risk."

https://www.foxbusiness.com/markets/billionaire-bill-ackman-svb-collapse-government-has-48-hours-fix-irreversible-mistake