Bill Ackman, billionaire investor and CEO Pershing Square, caused a real commotion on the finance part of Twitter on Friday by claiming that Bank of America is going to buy Signature Bank.
According to Ackman, the deal is set to be concluded on Monday.
Signature Bank is one of three banks that folded earlier in March. It was closed by regulators after depositors withdrew around 20 billion from their accounts in the wake of the Silicon Valley Bank collapse.
“I am hearing that @BankofAmerica is going to buy Signature Bank on Monday,” wrote Ackman on Twitter. “Unless and until we can protect uninsured deposits, the cost of capital is going to rise for smaller banks pushing them to merge or be acquired by the SIBs. I don’t think this is good for America.”
Reuters reached out to its sources on Friday to verify Ackman’s claims, and the response was that BofA currently doesn’t have any plans to acquire Signature Bank. Both BofA and Signature Bank representatives declined to comment on the rumors.
Following the closure of Signature Bank, which was considered a crypto-friendly financial institution, Federal Reserve stepped in and issued a statement that it would take measures in “a manner that fully protects all depositors.” It also promised that all depositors would have access to their money by Monday.