More banks will fail in two years, says Man Group CEO

More banks will fail in two years, says Man Group CEO

LONDON, England : Luke Ellis, CEO of the hedge fund Man Group, said that the banking crisis that caused by the collapse of Silicon Valley Bank has not ended, and more banks will fail within two years.

After the ongoing chaos, Credit Suisse was rescued over the weekend by Swiss rival UBS, in a move that brought some calm to markets.

Ellis said he thinks smaller and regional banks in the US and challenger banks in the UK could be at risk, because they think we will have significantly more banks that don't exist in 12 -- 24 months.

He said that the growth in social media had accelerated how quickly concerns about banks were circulated. He said things happen at a much faster speed, whether it is a crisis or good news. A spokesman for the Bank of England said the UK banking system is well-funded and safe and sound, as reported by the Bank of England.

In response to the crisis, central banks around the world have coordinated measures to ensure the flow of cash between banks.

Alexander Chartres, investment director at Ruffer LLP, stressed that if there is a US recession, he would invest across different asset classes.