The US government should consider a ‘highly dilutive’ bailout of SVB Financial Group if a private capital solution can’t be provided, according to top US investor and hedge fund manager Bill Ackman. “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. TRENDING STORIES See All Premium Women's Reservation Bill: K Kavitha joined by Oppn as h . . . Premium CUET 2023: Exam date, application deadline, other detai . . . Premium Multibagger Manish Goel stock hits life-time high despi . . . Premium Earn up to ₹20 lakh! Sebi announces reward for providi . . . The failure of @SVB_Financial could destroy an important long-term driver of the economy as VC-backed companies rely on 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. — Bill Ackman (@BillAckman) March 10, 2023 “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," Ackman said in a subsequent tweet. Shares of Silicon Valley Bank ( SVB ), a key lender to technology startups, sank as much as 60% at the close on Thursday. The worry comes after the Santa Clara, California-based SVB said Wednesday that it was holding a $2. 25 billion share sale after suffering a significant loss on its portfolio, which included US Treasuries and mortgage-backed securities. SVB Financial Group Chief Executive Officer Greg Becker on Thursday moved to quash concern surrounding the bank’s financial position, recommending customers to ‘stay calm’. “To be clear, a bailout should be designed to protect SVB_Financial depositors, not equity holders or management. We should not reward poor risk management or protect shareholders from risks they knowingly assumed. The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails and the dominoes continue to fall. That is why gov’t intervention should be considered," Ackman added. MORE FROM THIS SECTION See All Premium Premium Women's Reservation Bill: K Kavitha joined by Oppn as h . . . Premium Premium CUET 2023: Exam date, application deadline, other detai . . . Premium Premium King Charles allowed Lilibet to be ‘Princess’ before Ha . . . Premium Premium Boeing says to set up freight conversion facility in India Giving the example of Bear Stearns, the investment firm that failed during the 2008 global financial crisis, and was later bought by JPMorgan Chase & Co, Ackman said “after what the Feds did to jpmorgan after it bailed out Bear Stearns, I don’t see another bank stepping in to help SVBFinancial. " Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less OPEN IN APP.