"Shark Tank" prima Kevin O'Leary and his portfolio of companies were affected by nan Silicon Valley Bank (SVB) collapse, and now nan multi-millionaire investor is not holding backmost erstwhile it comes to cutting ties pinch nan now-defunct financial institution.
Appearing connected "Cavuto: Coast to Coast" connected Tuesday, O'Leary sounded disconnected astir nan U.S. Federal Reserve and different institutions' announcement that they would cover each depositors without nan load falling connected taxpayers.
"There's going to beryllium problems up present because, frankly, I don't deliberation conscionable guaranteeing deposits is capable to support everybody pinch each of their money successful conscionable nan location bank," O'Leary said. "Going forward, I deliberation a batch of slope managers are going to say, 'Wait a second, I person nary consequence ... because if thing goes wrong, arsenic agelong arsenic I enactment wrong nan shot rules of banking, thing tin hap to maine because nan Fed covers each my depositors."
Related: 'It's Not nan Wealthy Taking nan Hit': Mark Cuban's 'Baby' Among Companies With Millions In Silicon Valley Bank
He besides revealed that wrong his ain finance company's portfolio, O'Leary Ventures, each assets person been transferred to "five different financial institutions" and noted that astir different high-level finance companies "will do nan same."
O'Leary besides maintained that SVB's estimation has been wholly tarnished, noting that nary matter what nan slope attempts to do to bounce back, it will beryllium difficult for it to garner nan public's trust.
"The franchise worth of nan words 'Silicon Valley Bank' has been trashed," he said bluntly. "It's nary amended than radioactive waste. It's go nan poster boy for idiot management. So nary one's going to want that brand. Not here, not anywhere. And truthful I'm not really assured that they're going to get bought."
Related: Kevin O'Leary Bites Back astatine Critics of His Controversial Tweet. 'If You Don't Get It, You Don't Fit nan Entrepreneurial Mold.'
O'Leary was not nan only "Shark Tank" prima pinch money handled done SVB.
Co-star and billionaire Mark Cuban was vocal connected societal media upon nan bank's illness astir his desire for authorities agencies and regulators to measurement successful and thief retrieve nan costs for companies that stood to suffer nan mostly of their financial assets, which stands successful guidance to what O'Leary thought should person been done.
"The Fed should IMMEDIATELY bargain each nan securities/debt nan slope owns astatine adjacent par, which should beryllium capable to screen astir deposits," he said via Twitter, revealing that his portfolio of companies had an estimated $8-10 cardinal that was tally done SVB, though nary of those assets were his individual funds. "Any losses paid for successful equity and caller indebtedness from nan caller slope aliases whoever buys it. The Fed knew this was a risk. They should ain it."
Related: 'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Depositors were granted entree to SVP costs Monday morning, though shareholders and unsecured indebtedness holders were not protected.