By Amy Mek. Article originally published at RAIR Foundation USA.
Luke Ellis, CEO of the largest publicly-traded hedge fund, Man Group, has warned that the turmoil following the collapse of Silicon Valley Bank is not over yet. He predicts that a number of banks will collapse in the next two years.
Ellis made his statements Wednesday during a Bloomberg conference in London when he was asked whether he thinks the banking crisis is over.
“That depends on what you define by a crisis. I think a significant amount of banks will no longer exist in 12 to 24 months,” the hedge fund boss said.
He added that bigger rivals could take over some banks. For example, UBS bought Credit Suisse for about $3.23 billion. Others will simply ‘disappear.’ However, he noted that the Federal Reserve and financial regulators are taking measures to prevent banks from collapsing.
Ellis said smaller regional banks in the United States and challenger banks in the United Kingdom are particularly at risk.
The CEO also warned that more pain is headed for stocks as turmoil in the banking sector hasn’t passed.