Anthony Scamarucci, the founder of SkyBridge Capital, wants the United States Federal Reserve (Fed) to intervene in the aftermath of the Silicon Valley Bank’s (SVB) collapse.
Anthony wants the Federal Reserve to intervene
Analysts are calling for the Fed to push another investor or bank to acquire and assume SVB’s assets and obligations, making depositors and creditors whole.
In Anthony’s view, the Fed must announce a buyer for SVB’s assets before midnight on Mar. 12.
Otherwise, a contagious domino effect will cascade through the financial markets, including bitcoin and crypto.
While everyone does not share Scaramucci’s views, his concerns are not unfounded. The collapse of SVB has shaken investor confidence in the competence of financial institutions, and the failure of the Fed to intervene could lead to a broader loss of confidence in the banking system.
With citizens calling for SVB’s collapse to play out and the Biden Administration to relieve Jerome Powell, the Fed chair, of his duties, Scaramucci’s view is not well received.
Some are skeptical of government intervention in a capitalist system. They argue that if the FED protect SVB’s management from the consequences of their actions, or the lack thereof, the move could be dubbed “socialism for rich bankers.”
Alternative solutions to SVB collapse
The current situation is viewed as the real-world variation of popular crypto sentiment, “not your keys, not your assets.”
The main argument remains that if the government intervenes to “save” private companies, including banks, taxpayers will have to receive up to 30% equity as compensation.
Another suggested that SVB’s failure is simply a result of “the survival of the fittest” and that good assets should be sold to other companies.
The collapse of SVB has depressed the crypto market, with top coins, including Bitcoin, under pressure. Although prices have recovered, the immediate trend remains bearish as macroeconomic factors are not favorable for bulls in the near term.
Dalmas Ngetich
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