Bill Ackman says U.S. did the 'right thing' in protecting SVB depositors. Not everyone agrees

Billionaire capitalist Bill Ackman said the U.S. government's enactment to support depositors aft the implosion of Silicon Valley Bank is "not a bailout" and helps reconstruct assurance successful the banking system.

In his latest tweet connected SVB's collapse, the hedge money capitalist said the U.S. authorities did the "right thing."

"This was not a bailout successful immoderate form. The radical who screwed up volition carnivore the consequences," wrote the CEO of Pershing Square. "Importantly, our gov't has sent a connection that depositors tin spot the banking system."

Ackman's comments came aft banking regulators announced plans implicit the play to backstop depositors with wealth astatine Silicon Valley Bank, which was unopen down connected Friday aft a slope run.

"Without this confidence, we are near with 3 oregon perchance 4 too-big-to-fail banks wherever the payer is explicitly connected the hook, and our nationalist strategy of assemblage and determination banks is toast," Ackman added.

Ackman further explained that successful this incident, shareholders and bondholders of the banks volition beryllium chiefly the ones affected, and the losses volition beryllium absorbed by the Federal Deposit Insurance Corporation's (FDIC) security fund.

This is successful opposition to the large fiscal situation successful 2007-2008, wherever the U.S. authorities injected taxpayers' wealth successful the signifier of preferred banal into banks, and bondholders were protected.

The decisive authorities enactment was seen by immoderate arsenic a captious measurement successful stemming contagion fears brought connected by the illness of SVB, a cardinal slope for start-ups and different venture-backed companies.

Not everyone agrees.

Peter Schiff, main economist and planetary strategist astatine Euro Pacific Capital, said the determination is "yet different mistake" by the U.S. authorities and the Fed.

He explained successful different tweet: "The bailout means depositors volition enactment their wealth successful the riskiest banks and get paid higher interest, arsenic there's nary downside risk."

The result?

"... each banks volition instrumentality connected greater risks to wage higher rates. So successful the long-run galore much banks volition fall, with acold greater semipermanent costs," Schiff said.

In a statement precocious Sunday — issued jointly by the Federal Reserve, Treasury Department and the FDIC — regulators said determination would beryllium nary bailouts and no payer costs associated with immoderate of the caller plans.

"Today we are taking decisive actions to support the U.S. system by strengthening nationalist assurance successful our banking system," said a associated connection from Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg.

Along with that move, the Fed besides said it is creating a caller Bank Term Funding Program aimed astatine safeguarding institutions affected by the marketplace instability of the SVB failure.

The connection — besides said New York-based Signature Bank volition beryllium closed owed to systemic risk. Signature had been a fashionable backing root for cryptocurrency companies.

Ackman said successful the tweet that had the authorities "not intervened today, we would person had a 1930s slope tally continuing archetypal happening Monday causing tremendous economical harm and hardship to millions."

"More banks volition apt neglect contempt the intervention, but we present person a wide roadmap for however the gov't volition negociate them."

Still, immoderate analysts are not convinced the regulators' enactment volition enactment up assurance successful the U.S. banking strategy and bounds the fallout. 

"I don't deliberation that you tin understate the information that the American banking strategy is in," seasoned slope expert Dick Bove, told CNBC's "Squawk Box Asia" connected Monday.

"Right astatine this moment, I don't deliberation you would expect to spot the Treasury Secretary, the caput of the Fed and the caput of the FDIC, making a nationalist associated connection — unless they understood intelligibly the hazard that the banking strategy and the American successful America is facing close now," helium said.

Bove pointed retired the U.S. banking strategy is astatine hazard for 2 reasons.

"Number one, the depositors person mislaid religion successful American banks: Forget the radical who whitethorn oregon whitethorn not person been taking wealth retired of SVB. Deposits successful American banks person dropped 6% successful the past 12 months," helium noted.

"The 2nd radical that has mislaid religion successful the American banking strategy are investors," helium added. "The investors person mislaid religion due to the fact that the American banks person a full clump of accounting tricks that they tin play, to amusement net erstwhile net don't exist, to amusement superior erstwhile superior doesn't exist."

He went connected to accidental that accounting practices for the banking manufacture are "totally unacceptable," and that banks are utilizing "accounting gimmickry to debar indicating what the existent equity is successful these banks."

"The authorities is present connected its backmost feet. And the authorities is trying to bash immoderate it tin to halt what could beryllium a major, large antagonistic thrust," Bove said.

The White House said President Joe Biden volition code the federation connected Monday greeting connected however to fortify the banking system.

"I americium firmly committed to holding those liable for this messiness afloat accountable and to continuing our efforts to fortify oversight and regularisation of larger banks truthful that we are not successful this presumption again," Biden said in a statement. 

Jeremy Siegel, Wharton School of concern professor, noted the government's involution volition "fortunately" stem the losses from SVB's fallout.

He said SVB is much similar a determination slope dissimilar different large Wall Street players. As a result, the authorities is improbable to instrumentality a governmental deed from its latest action.

"They're much successful the class we telephone determination banks. And actually,  politicians emotion determination banks, successful opposition to the large names, which are casual to target, to ... deed politically," Siegel told CNBC's "Street Signs Asia."

"They person a batch of governmental support. All the Congress men and women, are going to beryllium proceeding from their radical and their district," Siegel said. "The smaller banks are not the JP Morgans, Goldman Sachs and each those. These are the banks that we usage … getting down to the determination level."  

 — CNBC's Jeff Cox contributed to this report.