Pershing Square Capital Management Bill Ackman calls out not only the management of the Silicon Valley Bank, but also the federal government for not properly overseeing the bank’s activities, which led to the bank’s collapse SVB Finance Group SIVB branch on Friday.

Who is to blame for the SVB crisis: Speaking in a Twitter space on Saturday, Ackman pointed the finger directly at the bank’s board and senior management team for mismanaging the institution and calling for their removal and replacement with a new team. He highlighted the fact that most of SVB’s held-to-maturity securities consisted of mortgage bonds issued by government-sponsored companies such as Fannie Mae and Freddie Mac. He also said the bank’s collapse was a “prudential error” by the government, which shares responsibility.

He described the bank’s failure as a “break-the-buck moment in banking,” adding that unless the government steps in and fully guarantees all of the bank’s deposits, it “could really wreck the economy and cause a lot of misery.” ”

Also read: Roku has 26% of cash at SVB Financial, deposits uncertain – 27 other companies linked to failed bank

Impact on banking: “You’re going to see very rapid capital flight” from small institutions and other institutions with exposure to private equity and venture capital, Ackman said. At the very least, the collapse will “massively increase the cost of capital for smaller institutions compared to larger institutions,” he added.

Ackman explained that SVB was in a unique position to see failure, describing the bank as an “anomaly in terms of risk” and customer concentration in the technology sector. He said the problem is compounded by the community being connected via Twitter, so when Peter Thiel “Withdraw your money”, the reaction of the SVB customers was immediate.

What it means for the Fed: Ackman said Friday’s move will likely influence Fed rate decision…