Part 4/11:
Bill Ackman forecasts that depositors at SVB might initially receive 50% of their funds early next week, with the remainder based on the bank’s realized value over subsequent months. Such partial payouts are likely to ignite further bank runs, especially at smaller, non-systemically important banks, as depositors rush to withdraw their funds to avoid potential losses. Ackman highlights that without a government guarantee, these withdrawals could drain liquidity from community and regional banks, damaging vital sectors of the economy.