Bill Ackman on the need to guarantee uninsured deposits at Silicon Valley Bank

 I woke up Saturday morning after the events of the week pretty convinced that if the government didn't, at a minimum, guarantee deposits at Silicon Valley Bank, we'd have a massive run on pretty much every regional bank on Monday.  And my advice was "we need to guarantee all deposits, not just those."  Unfortunately, I think the run is continuing.  If you look at the deposit inflows at the big banks, if you talk to anyone at JPMorgan who works at opening accounts, they're working literally around the clock to take in all the capital that's flowing in.  That's not good for our banking system and our country and that's what I was afraid of over the weekend, which is why I was so public, if you will.

~ Bill Ackman, interview with Harry Stebbings, 20VC, 27:00 mark, March 20, 2023

Mohamed El-Erian on BTFP guaranteeing uinsured deposits

We're here [bank failures] basically because we had a prolonged period of overly-loose monetary policy.  When it came to adjusting monetary policy, the Fed did not act fast enough and then it had to hit on the breaks.  And you've heard me say over and over again, when you hit the breaks, you risk both economic and financial accidents.  And we've just lived through a financial accident.

It's important to stress that depositors should not worry.  Your deposits are fine.  And there is no need to move your deposits...  Honestly, there is no risk to your deposits anymore.

It is almost impossible now to go back on unlimited deposit guarantee.

~ Mohamed El-Erian, CNBC interview, 0:45 mark, March 13, 2023