Michael Burry compared the move to rescue the bank to the stance of J.P. Morgan P2

 “The Big Short” investor Michael Burry says the exceptional action taken by regulators to stem the spread of the crisis by regional banks has proved sufficient to handle the current volatility and stabilize the situation. financial market determination.

“In October 1907, the Knickerbocker Trust failed due to a risky bet, causing panic. The other two soon failed, and the crisis spread. When a race begins with a healthier-looking “Trust,” J.P. Morgan stood firm for the next three weeks, as the panic resolved and the market bottomed out,” Burry said in a tweet Wednesday.

More than a century ago, the financial crisis known as the "Panic of 1907" took place when many banks withdrew money, including the Knickerbocker Trust. The crisis ended in just three weeks after J.P. Morgan – the founder of the bank named after him – pooled money with other financiers to rescue the banking system.

The founder of Scion Asset Management seems to believe that history will repeat itself and the importance will depend entirely on rescue measures from regulators. 

On Sunday night, two days after Silicon Valley Bank declared bankruptcy, the government announced that all relevant depositors would receive their funds back and the government would provide a grant facility. additional capital for troubled banks.

Burry, known for his prediction right before the 2008 crisis, said on Monday night that he hoped the ongoing banking crisis would end soon without serious damage. “This crisis can be resolved very quickly. I don't see real danger here," Burry said in a now-deleted tweet.

Burry became famous for betting on mortgage-backed securities before the 2008 crisis. Burry was depicted in Michael Lewis' book "The Big Short" and the subsequent Oscar-winning film of the same name. . Investors weren't entirely sure that the crisis was over on Wednesday. 

The sell-off was stronger on Wall Street as concerns have spread beyond the region's banks. Shares of Credit Suisse, a Swiss bank with major operations in the US and globally, fell more than 20% to an all-time low.

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