'Kid wants mamma.': Adani Group CFO takes a jibe at Bill Ackman for suggesting bailout for Silicon Valley Bank
Adani Group Chief Financial Officer (CFO) Jugeshinder Singh on Saturday took a jibe at billionaire investor Bill Ackman for suggesting that the US government should consider a "highly dilutive" bailout for startup-focused lender SVB Financial Group.
"Kid wants "mamma" to come help," Singh tweeted replying to Ackman's post.
The failure of SVB Financial could destroy an important long-term driver of the economy as VC-backed companies rely on Silicon Valley Bank (SVB) for loans and holding their operating cash. If private capital can’t provide a solution, a highly dilutive gov’t preferred bailout should be considered," Ackman, founder and CEO of Pershing Square Capital Management, said in a series of tweets.
"The gov’t could also guarantee deposits in exchange for a dilutive warrant issuance and other covenants and protections. If @SVB_Financial is indeed solvent, this would buy time to enable SVB to restore the franchise and raise new private capital," the tweet read.
To be clear, a bailout should be designed to protect SVB Financial depositors, not equity holders or management, Ackman stated. "We should not reward poor risk management or protect shareholders from risks they knowingly assumed."
