- Ken Griffin, Cliff Asness, and Carson Block criticize the US government's decision to backstop the financial system after the collapse of Silicon Valley Bank.
- Griffin says the bailout is breaking down the capitalist economy.
- Asness argues that regulators have created moral hazard and that the bailout reduces the incentive for depositors to think about the risks of where they put their money.
- Block believes that the bailout rewards mass failures of risk management and infantilizes markets.
- SVB's seizure was precipitated by fleeing depositors and sent shock waves across global markets.
US Shouldn’t Have Bailed Out SVB Depositors, Say Investors Like Ken Griffin and Carson Block
The US government’s emergency decision to backstop the financial system after the collapse of Silicon Valley Bank has earned praise from prominent names including Larry Summers and Bill Ackman.
Ambereen Choudhury
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