Home/ News / India/  Adani Group CFO Jugeshinder Robbie Singh takes jibe at Bill Ackman on SVB bailout by US federal government

Adani Group CFO Jugeshinder Robbie Singh has taken a jibe at American billionaire investor Bill Ackman for his comment on the Silicon Valley Bank (SVB) bailout by the federal government.

As per Ackman, SVB Financial’s failure could have a significant impact on the economy's long-term growth potential, as many venture capital-backed companies depend on the bank for loans and holding their operating funds. In the event that private capital is unable to offer a solution, a government-backed bailout with high levels of dilution may need to be considered.

Ackman, however, emphasised that any bailout for SVB Financial must prioritise the protection of the bank's depositors, rather than its equity holders or management. He argued that poor risk management should not be rewarded, nor should shareholders be protected from the risks they willingly assumed.

Also Read: SVB meltdown: Bluestone, CarWale to Paytm - Indian startups bear the brunt

Ackman further explained that the risk of SVB Financial's failure and deposit losses extended beyond the bank itself. If SVB were to fail, there was a risk that the next least well-capitalised bank could face a run and also fail, setting off a chain reaction of failures. Ackman believes that this scenario highlights the need for government intervention to be considered.

Singh shared Achman’s tweet and wrote: “Kid wants "mamma" to come help." The comment by the Adani Group CFO comes after Prime Minister Narendra Modi was accused by the Congress of attempts to provide a bailout for Adani Enterprises Ltd's follow-on public offer (FPO).

Also Read: 'Did a Union Minister make personal calls to save Adani FPO?' Congress' fresh attack on govt

According to Jairam Ramesh, Member of Parliament (MP) and the General Secretary for Communication of the Congress party, his party is asking important questions pertain to the actions of senior members of the Union Cabinet who attempted to utilise public funds and call in favours in order to bail out the Adani Enterprises FPO.

A number of questions were raised by the Opposition regarding the “bailout" of the Adani FPO and the alleged concealment of relevant information from investors. It asks whether family offices that were pressured to bail out the FPO were given assurances that the move was meant to save Gautam Adani's reputation and whether it was promised that the money would be returned to investors and the FPO cancelled. The questions also raise the issue of a potential violation of Indian securities regulations by selectively sharing information with only a few investors and whether it is ethical to deceive FPO investors in this manner.

Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.
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Updated: 12 Mar 2023, 11:24 AM IST
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