Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Public Policy Dealbook

Andrew Ross Sorkin (left) and Citadel's Ken Griffin disagree about bailouts (Ryan Muir/Getty Images via The New York Times)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Mar 14, 2023

Top Investors Disparage SVB Bailout 

Investors are warning that the Silicon Valley Bank (SVB) bank bailout was a mistake and will incentivize riskier financial behavior. 

Key Details

  • A small group of investors is now saying Sunday’s bailouts were a mistake and that it will incentivize riskier activity and reward mass failure. 
  • Citadel founder Ken Griffin told the FT that the U.S. shouldn’t have protected depositors for SVB and that the bailout reflects a loss of financial discipline.  
  • AQR Capital Management founder Clifford Asness tweeted that the bailouts create a moral hazard, as a reduced incentive for making financial mistakes increases risks. 
  • Muddy Waters Capital founder Carson Block says depositors should be responsible for risks, and bailouts send the wrong message to banks.

Why It’s News 

On Friday, the U.S. experienced its second-largest bank failure in history with the sudden collapse of SVB, causing repercussions in the entire financial industry. On Sunday, Treasury Secretary Janet Yellen ruled out the possibility of a bailout for SVB in a Sunday interview with CBS. This was backtracked immediately after President Joe Biden announced a bailout for SVB on Monday, ensuring depositors could pull their funds from SVB. 

The Biden administration’s bailouts have generally received approval from big-name investors like Larry Summers and Bill Ackman, a move many feel was necessary to keep a contagion of bank runs and liquidity crises from spreading to other banks, Bloomberg reports.

While others are blunt but somewhat supportive. Tweets New York Times DealBook editor Andrew Ross Sorkin: “It is a bailout. Not like 2008. But it is a bailout of the venture-capital community + their portfolio companies … It is the right thing to do in the moment, but there will be ramifications.” 

President Joe Biden spoke on Monday morning, reassuring users that “your deposits will be there when you need them.” He also affirmed that the administration is “firmly committed to holding those responsible for this mess fully accountable.” 

Notable Quotes 

“The U.S. is supposed to be a capitalist economy, and that’s breaking down before our eyes. There’s been a loss of financial discipline with the government bailing out depositors in full,” Griffin told FT. 

“It’s not as bad as if we also let [FTX founder] Sam Bankman-Fried off the hook. But it ain’t ok,” tweeted Asness. 

“Corporate depositors, in particular, should be expected to manage their counterparty risks. Bailing out uninsured depositors at SVB, which are mostly corporates, further infantilizes markets by sending the message that such risk management is anachronistic,” tweeted Muddy Waters Capital founder Carson Block.

Home / News / Top Investors Disparage SVB Bailout 
Share
FacebookTweetEmailLinkedIn

Related Stories

Wall Street Makes $100 Billion Bet on Weight Loss Pills

by PJ Howland Leaders Staff
Investing

Oct 25, 2023

Ozempic

Investor optimism around a potential blockbuster obesity drug by Structure Therapeutics led to soaring share prices across the weight-loss pharma sector.

Key Details

  • Structure Therapeutics' stock jumped 35% after reporting positive results from early clinical trials of a once-daily weight-loss pill.
  • The experimental drug helped participants lose about 5% of their body weight over one month without side effects, although there are concerns with Ozempic.
  • Analysts predict the global anti-obesity medication market could reach sales of $100 billion by 2030, up from $71 billion currently.
  • With promising growth prospects, investors are betting on companies developing new weight loss drugs like Structure, Eli Lilly, Novo Nordisk, and Pfizer.

Go deeper

FacebookTweetEmailLinkedIn

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn
Chevron Gas Deal
Markets

Oct 23, 2023

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com