Bill Ackman warns of financial contagion risk from First Republic rescue.

Bill Ackman, the activist investor, has expressed concern over the risk of financial contagion spiraling out of control after the largest US banks deposited $30bn with First Republic Bank. Ackman said that spreading the risk of financial contagion to achieve a false sense of confidence is bad policy. He added that half measures don't work when there is a crisis of confidence and that he has no investments long or short in the banking sector.