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Ken Griffin, founding father of the Citadel hedge fund, says the US central financial institution’s rescue package deal for Silicon Valley Financial institution exhibits that American capitalism is “breaking down earlier than our eyes”.
Griffin instructed the Monetary Instances that US taxpayers shouldn’t should bail out institutional traders, following the choice by the Fed to intervene to forestall contagion all through the banking sector following the collapse of Santa Clara-based SVB.
“The US is meant to be a capitalist economic system, and that’s breaking down earlier than our eyes,” he mentioned in an interview. “There’s been a lack of monetary self-discipline with the federal government bailing out depositors in full.”
Learn Griffin’s ideas on the US economic system right here.