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Feb 9, 2024
02/24
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and unfortunately silicon valley bank touched off. it had enormous uninsured deposits in liquidity and when it suffered these losses it suffered a a run. and that run threatened similar runs at other institutions. it also had exposure to uninsured deposits. the president and the treasury and the regulators took actions to try to stem a systemic bank and i believe we were successful in accomplishing that topic i think it madam secretary. centered around so south dakota's not recognize her quick thank you secretary yellen welcome to thean committee. center at lummis headed up a letter with eight of us would commit to a timeline of section 123 report and complex to parts of the financial system. the report is three years overdue and your response encourages the of ask unanimous consent we ask to be entered into the wreck of a. >> thank you, mr. chairman, madam secretary but to start oue first. the 20 toy three and a report being stated. u.s. banks to continue to have sound levels of regulatory capitol and healthy levels of profitability
and unfortunately silicon valley bank touched off. it had enormous uninsured deposits in liquidity and when it suffered these losses it suffered a a run. and that run threatened similar runs at other institutions. it also had exposure to uninsured deposits. the president and the treasury and the regulators took actions to try to stem a systemic bank and i believe we were successful in accomplishing that topic i think it madam secretary. centered around so south dakota's not recognize her quick...
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Feb 7, 2024
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sarah: we have panic over this issue that was going on with silicon valley bank.hat was more about the assets they were holding on their balance sheets. now we are dealing with the fact that you have an asset class that is overvalued relative to where the current market is, both for rents and occupancies. how big does that become? people have argued about the size of the office commercial -- commercial real estate market. education will not be the problem but the problem will be acute in specific places. that is going to be difficult for lenders. the biggest issue this time is profitability as opposed to banks going under. depends on how big the stop -- cats have to be. katie: sounds like that is a story we will be following for months. but you talk about a you pain, isolated issues. when you think about the broader market, do you see any risk of spillover beyond regional bank stocks? sarah: there is always risk of spillover. in september and october of last year when the market was looking shaky, the ai story saved the equity space. if you have investors that are
sarah: we have panic over this issue that was going on with silicon valley bank.hat was more about the assets they were holding on their balance sheets. now we are dealing with the fact that you have an asset class that is overvalued relative to where the current market is, both for rents and occupancies. how big does that become? people have argued about the size of the office commercial -- commercial real estate market. education will not be the problem but the problem will be acute in...
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Feb 6, 2024
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i did that trade coming out of the silicon valley bank disaster on the kre.matters so much. whether it's cost of funding or technology applications. jp morgan is going to kick the heck out of all of these smaller banks and reap the awards when problems arise. i think the bigger question here is, think we don't have to have a recession unless you have a banking crisis. is one of these regional banks going to have a problem like in march? likely yes. however, will it be systemic? i don't think so. >> thank you for spending me this. it's what the chair said sunday night, i do think it's a manageable problem, said jay powell. we're doing a lot to manage it. there will be some banks that have to be closed or merged out of existence because of this. that will be smaller banks, i suspect, for the most part. >> scott, guess how manyback ba have failed since 2013? 513. we have over 4,000. >> svb was the second largest bank failure ever. >> sure. >> these are not insignificant, even though there have been a large number to your point of failures. >> but it didn't cripp
i did that trade coming out of the silicon valley bank disaster on the kre.matters so much. whether it's cost of funding or technology applications. jp morgan is going to kick the heck out of all of these smaller banks and reap the awards when problems arise. i think the bigger question here is, think we don't have to have a recession unless you have a banking crisis. is one of these regional banks going to have a problem like in march? likely yes. however, will it be systemic? i don't think...
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Feb 9, 2024
02/24
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my question to you is in response to the fires of silicon valley banks. how have the agencies altered their approach to supervision? >> so, you know, this is a matter for the individual agencies but both the fdaic and the fed have put in domain reports on what happened . and these reports include analysis of the failings -- their own failings -- in terms of their supervisory programs. and, clearly, as i believe they have testified, strengthening supervision so that they address taking more timely action. >> i appreciate that. the question is, is that happening? are the bank supervisors -- are the supervisors actually following through on the recommendations we set through the fdaic and the fed? >> i believe they are but fsoc is not a point to engage in the situations. i think calling on those agencies directly for follow-up is probably -- >> i appreciate that. let me jump to one final thing here. non-bank mortgage originators and servicers. i see in the data, and i am sure you see as well, they continue to gain market share from banks of the last 10 years
my question to you is in response to the fires of silicon valley banks. how have the agencies altered their approach to supervision? >> so, you know, this is a matter for the individual agencies but both the fdaic and the fed have put in domain reports on what happened . and these reports include analysis of the failings -- their own failings -- in terms of their supervisory programs. and, clearly, as i believe they have testified, strengthening supervision so that they address taking...
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Feb 11, 2024
02/24
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in fact, it allowed silicon valley bank to opt-out of maintaining nearly 2% more capital for their book of securities that had a large amount of unrealized losses. when the federal government raised interest rates. when svb was forced to sell those at a state loss, it resulted in the fastest bank run in the united states history. since then, republics have tried to claim that capital had nothing to do with the bank failures, but their own witness, margaret testified that svb's capital shortcoming was a problem and she supported efforts to fix it. i'm so happy our federal bank and regulators have issued proposals to fix this issue and otherwise strengthen capital requirements for the largest banks. the financial stability oversite council urge regulators to finalize these bank capital rules in its annual report. would you briefly try and explain to members why the bank capital proposal is so important for financial stability? >> well, it's really critically important to the safety and stability of our entire financial system for there to be strong standards of capital liquidity and risk
in fact, it allowed silicon valley bank to opt-out of maintaining nearly 2% more capital for their book of securities that had a large amount of unrealized losses. when the federal government raised interest rates. when svb was forced to sell those at a state loss, it resulted in the fastest bank run in the united states history. since then, republics have tried to claim that capital had nothing to do with the bank failures, but their own witness, margaret testified that svb's capital...
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Feb 22, 2024
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it comes as we approach the one year anniversary of the collapse of silicon valley bank.now to discuss the state of banks is the chairman and -- i.r.a. robins. welcome back, iraq. good to have you with us. >> great to be here. >> i guess if i were sitting in your shoes i would sit there and say, okay, we have come through this rough year with silicon valley bank, republic, and others. we thought we were coming out of it. along comes new york's community bank. this is the last thing i need. am i right? >> i feel like i'm going through ptsd with what happened last year. hoping that wasn't gonna transpire this time. i think the real difference is back in march there was concern about trust within the banking industry. we are an industry with a foundational perspective. our spots ability is to be a good steward of our depositors. what happened last month's there was concern. if i put my money in any bank, what does that mean for me? imagine i try to take my money out, and then there was this correlation is said, a bank stock price that is associated with the ability take mone
it comes as we approach the one year anniversary of the collapse of silicon valley bank.now to discuss the state of banks is the chairman and -- i.r.a. robins. welcome back, iraq. good to have you with us. >> great to be here. >> i guess if i were sitting in your shoes i would sit there and say, okay, we have come through this rough year with silicon valley bank, republic, and others. we thought we were coming out of it. along comes new york's community bank. this is the last thing...
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1-year loans to institutions after silicon valley bank collapsed. a week ago investor david sacks sent up a warning flare about the upcoming end to the program. listen. >> i think that there's a lot of stress in the regional a banking system, and i think bftp has been sort of propping them up. and i think once you remove that, we're going to start to see more stress. the reason why all these banks are under so much stress is because they've got toxic bond portfolios -- [inaudible] spike in interest rates. there's an inverted yield curve which is pressuring goes if sits and, finally, there's a lot of risk in their commercial real estate portfolios. none of those three conditions have changed. liz: and yet wall street climbs the wall of worry. to floor show on whether investors should be worrywarts or embrace the tape and go with the bulls' flow. keith fitz-gerald and teddy weisberg are here at the ready. investors are pouring into all a kinds of investments including look at bitcoin and crypto-related stocks. bitcoin bun punched above $6 -- 46,000, t
1-year loans to institutions after silicon valley bank collapsed. a week ago investor david sacks sent up a warning flare about the upcoming end to the program. listen. >> i think that there's a lot of stress in the regional a banking system, and i think bftp has been sort of propping them up. and i think once you remove that, we're going to start to see more stress. the reason why all these banks are under so much stress is because they've got toxic bond portfolios -- [inaudible] spike...
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Feb 16, 2024
02/24
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the uncertainty in the turmoil from the failure of silicon valley bank hurt working families. when small businesses with their employees in ohio and utah, and minnesota and california and rhode island and montana and south carolina across the country didn't know if they could get access to their money and make payroll, and of course, the claims in this ad campaign are simply not true. your game too often is to try to confuse people. most americans think of a bank's capitol if you force people to think about it at all, most americans think of a big's capitalize money stashed away in a vault somewhere, but that is not what it means, you will know that. capitol is just a way to fund loans and investments in risky activities in a way that can absorb losses if things go south. it means shareholders and investors are on the did not taxpayers, and what those glossy aunts don't tell you is that your banks have been reducing homebuyers for years now, long before the new capitol requirements were proposed. remember that. these are proposals at this point. they haven't even been implemen
the uncertainty in the turmoil from the failure of silicon valley bank hurt working families. when small businesses with their employees in ohio and utah, and minnesota and california and rhode island and montana and south carolina across the country didn't know if they could get access to their money and make payroll, and of course, the claims in this ad campaign are simply not true. your game too often is to try to confuse people. most americans think of a bank's capitol if you force people...
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Feb 20, 2024
02/24
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biggest one of which was the silicon valley bank. and i want to put the most context of crazy some of these are. the treasury secretary jannette yellen would have us believe we have not read the economy would come down. i want to put that numerically inspected. ultimately it was about 18 billion. a lot of money. maybe a lot of money to most of you but at the end of the day, the capitalization of all silicon valley was about 16 trillion so the treasury secretary would have you believe that if we trimmed about 2,000 off the market cap so it wouldn't silicon valley i don't find that terribly credible. then you also have to have things washed away but in terms of revenue, nothing i'm saying should be construed. but i don't think my friend should get bailouts. every annual produces about half a trillion dollars in revenue every year. but you think about 18 billion. we are again omar washington said the value revenues have declined because we didn't bail them out by under 4% our economy would crater. if you think that doesn't add up, you'r
biggest one of which was the silicon valley bank. and i want to put the most context of crazy some of these are. the treasury secretary jannette yellen would have us believe we have not read the economy would come down. i want to put that numerically inspected. ultimately it was about 18 billion. a lot of money. maybe a lot of money to most of you but at the end of the day, the capitalization of all silicon valley was about 16 trillion so the treasury secretary would have you believe that if we...
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Feb 17, 2024
02/24
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and bank such as silicon valley bank or s b b, or as at present it is more of a traditional impact of rising interest rates. meaning it's more difficult for the bars to a back of loans. but i would also stress that data losses on n y, c, b colors have been quite small. by contrast that warning about the possibility of large choices in the future. should investors be worried about about what's happening right now? i don't think trust yet, largely because the market concerned has been limited to one bank. i think in a time like this investment would be for an over the balance sheets of every bank and it's pamper. and to the extent that this is probably a underwriting agency, sometimes as well, and they haven't found any falls elsewhere. and edition has real estate and what has become for the a commercial real estate advisors of the banks and non de, an extra institutions. they do seem to be pockets of risk, but they largely tend to be in the separate business districts of the mattress cities. and while that doesn't work for them, the rest of it seems to be at the levels which should enc
and bank such as silicon valley bank or s b b, or as at present it is more of a traditional impact of rising interest rates. meaning it's more difficult for the bars to a back of loans. but i would also stress that data losses on n y, c, b colors have been quite small. by contrast that warning about the possibility of large choices in the future. should investors be worried about about what's happening right now? i don't think trust yet, largely because the market concerned has been limited to...
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Feb 7, 2024
02/24
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valley bank, signature bank.se. ultimately a bit of nervousness. it was a welcome sight for solid demand with 121 billion in supply, but many investors are nervous that some of the issues may exaggerate some of that demand. tyler, back to you. >> rick, thank you so much. >>> the s&p 500 nearing 5000 for the first time despite fed officials continuing to try to reel in expectations on the time and frequency of rate cuts. minneapolis fed president said on squawk box earlier today -- >> i would say 2 to 3 cuts would be appropriate right now, but again, i don't want to prejudge things. that is my gut based on the data we have so far. >> our next guest is expecting those cuts to have a summertime kickoff. let's bring in sarah malik, chief investment officer. sarah, welcome. thank you for joining us. you expect rates to take off later this year. where do you think the s&p will end the year? usually we have 10% returns. what do you think of this year? >> our price target is 49 or 50 but looking at year-to-date, we've ha
valley bank, signature bank.se. ultimately a bit of nervousness. it was a welcome sight for solid demand with 121 billion in supply, but many investors are nervous that some of the issues may exaggerate some of that demand. tyler, back to you. >> rick, thank you so much. >>> the s&p 500 nearing 5000 for the first time despite fed officials continuing to try to reel in expectations on the time and frequency of rate cuts. minneapolis fed president said on squawk box earlier...
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Feb 7, 2024
02/24
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like svb and in fact allowed silicon valley bank to opt out of maintaining nearly 2% more capital forheir book of securities that had a large amount of unrealized losses when the federal government raised interest rates. when svb was forced to sell those securities and stable off, it alarmed customers resulting in the fastest bank run in the united states history. republicans triedes to testify that it wasn't due to capital. i'm so happy our federal banking regulators have issued proposals to fix this issue and otherwise strengthen capital requirements for the largest banks. the financial stability oversight council urge regulators to finalize the bank capital rules in its annual report. would you briefly try to explain to members why the bank capital proposement iss so important for financial stability. >> it's really critically important to address and implement a national agreement on bosil3. the proposals are up for comment and really up to the banking regulators to decide on the appropriate specifics. >> thank you, madame secretary. unfortunately i wanted you to know the mega ban
like svb and in fact allowed silicon valley bank to opt out of maintaining nearly 2% more capital forheir book of securities that had a large amount of unrealized losses when the federal government raised interest rates. when svb was forced to sell those securities and stable off, it alarmed customers resulting in the fastest bank run in the united states history. republicans triedes to testify that it wasn't due to capital. i'm so happy our federal banking regulators have issued proposals to...
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Feb 16, 2024
02/24
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silicon valley bank lost in a single day.ecting to lose 100 million more the following day. 85% of the firm's deposit. shortly thereafter on signature bank and first republic, each of which lost 20% of deposits within hours were much faster than we have seen in previous episodes. the runs on all three were especially severe. imprudent funding reliance on uninsured deposits placed by concentrated and often highly networked customer base. these deposits were previously assumed to be at the depositors were heavily concentrated in venture capital in the technology sector firms. signature bank set uninsured depositors from crypto related firms. high concentrations of high net worth and ensure depositors. many of these depositors rapidly withdrew their balances. deposit flows much higher than assumed under the liquidity requirements such as the liquidity coverage ratio. at the same time these institutions face these outflows they also face challenges meeting them with the asset. the high quality liquid asset, not monitor for these
silicon valley bank lost in a single day.ecting to lose 100 million more the following day. 85% of the firm's deposit. shortly thereafter on signature bank and first republic, each of which lost 20% of deposits within hours were much faster than we have seen in previous episodes. the runs on all three were especially severe. imprudent funding reliance on uninsured deposits placed by concentrated and often highly networked customer base. these deposits were previously assumed to be at the...
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Feb 15, 2024
02/24
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then in 2023 of this year, the silicon valley bank didn't maintain enough capital and it had to cost over $20 billion from the fdic. so let me ask you, should we believe you, that you have the batmanin we've got this kind of an issue, or should we be able to have an intervention to adjust this? >> well, senator, i think, since the financial crisis, this body along with congress and the president passed the dodd frank act, which changed the capital rules. there is the adoption of further standards, and each one of those more severe, so even in the last five years we probably had 10 to 15% more capital required under those tests. i think there has been a significant amount of regime change made. the question is for the institutions that failed earlier this year is that none of them are captured with that scrutiny, and our view is as a group they had to go away and do two things, keep them alive long enough so they could resolve, and secondly this week, -- 2.1 to $2.2 billion to the fdic to pay for the cost of the cleanup, and our company along with all of us, our view is that these cap
then in 2023 of this year, the silicon valley bank didn't maintain enough capital and it had to cost over $20 billion from the fdic. so let me ask you, should we believe you, that you have the batmanin we've got this kind of an issue, or should we be able to have an intervention to adjust this? >> well, senator, i think, since the financial crisis, this body along with congress and the president passed the dodd frank act, which changed the capital rules. there is the adoption of further...
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Feb 1, 2024
02/24
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that was the most since the silicon valley bank crisis of march of last year.york bank, community bank putting aside additional provisions. the question is, to what extent will this reverberate more broadly across the banking sector? this is a three-day view. you see the knock for the kbw. we saw the ripple effect to the japanese banking sector earlier today. this all links to the higher rates environment as well, what's that doing -- what that's doing to the real estate sector. the fomc, really interested now in terms of the pushback that we heard from jay powell around a potential march cut. we had expectations it was about 50-50 leading into the decision. now that's been paired by traders. they are reassessing after jay powell said he thought it was unlikely that a cut would come through in march. bear that in mind in terms of the repricing around the potential march decision from the fomc, from the fed. really interesting. the statement that they put out yesterday removed the words around the resilience of the u.s. banking system. they removed that versus t
that was the most since the silicon valley bank crisis of march of last year.york bank, community bank putting aside additional provisions. the question is, to what extent will this reverberate more broadly across the banking sector? this is a three-day view. you see the knock for the kbw. we saw the ripple effect to the japanese banking sector earlier today. this all links to the higher rates environment as well, what's that doing -- what that's doing to the real estate sector. the fomc,...
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Feb 5, 2024
02/24
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last year, we had silicon valley bank. this year is about the real economy. you get parts of the commercial real estate in arrears and that will start to build. it is a risk. >> ben emons, futures in the red. trepidation after jay powell rolled out the march cut. >>> we have more to come on "worldwide exchange," and the one word investors have to know today. >>> first, three days and five u.s.-led strikes across the middle east. we go live to one of the busiest ports in the region to see the impact the houthi tattacks ther. >>> and the one stock that may live up to lofty expectations. a very busy hour sllti ahead when "worldwide exchange" returns. (♪♪) (♪♪) (♪♪) how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. >>> welcome back to "worldwide exchange." looking at futures here and the dow would open almost 100 points lower. let's see how europe is shaping up. joumanna bercetche is in the l
last year, we had silicon valley bank. this year is about the real economy. you get parts of the commercial real estate in arrears and that will start to build. it is a risk. >> ben emons, futures in the red. trepidation after jay powell rolled out the march cut. >>> we have more to come on "worldwide exchange," and the one word investors have to know today. >>> first, three days and five u.s.-led strikes across the middle east. we go live to one of the busiest...
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Feb 5, 2024
02/24
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we had fear in the spring last year with the collapse of silicon valley bank and a few others that it would lead to a credit crunch. we mostly have not seen more credit tightening than what you would expect just from the monetary policy and the rates. that still feels like more of the same. now you've had the long rates which the fed does not directly control, they have been on a journey. they were up and then down and we fluctuated back and forth a little. it feels like credit remains tight and especially at the lower part of the credits back from consumers, small business and higher rate credits, they are getting a squeeze and we hear that from our bankers as well is from businesses themselves. mike: austan goolsbee, thank you for joining us. the journey of the 10 year a ticket ride at disney world. thank you for joining us. austan: been a long time, great to see you. mike: austan goolsbee, the president of chicago federal reserve bank. katie: that was austan goolsbee, chicago fed president and bloomberg's own michael mckee. how are markets assessing the fed's position? we will disc
we had fear in the spring last year with the collapse of silicon valley bank and a few others that it would lead to a credit crunch. we mostly have not seen more credit tightening than what you would expect just from the monetary policy and the rates. that still feels like more of the same. now you've had the long rates which the fed does not directly control, they have been on a journey. they were up and then down and we fluctuated back and forth a little. it feels like credit remains tight...
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even as silicon valley bank imploded, signature bank also went -- was purchased by new york community bank and then, of course, jpmorgan swallowed up first republic. but that was a year ago. has the macro environment changed a bit? i do realize that they had continued their rate hike path all the way through last march and this regional banking crisis, but right now things are a little different, aren't they? >> the macro environment's different in the following way: to some extent the fed put could be back here, you know, if you had enough financial instability. and i don't think that was the case a year ago. so a year ago the fed was hiking through these, you know, banking stresses. let's not call it a crisis because it, you know, it didn't play out in the worst way. and so everybody probably got lucky there. but now inflation's coming down. i mean, in march and may of last year we were still looking at 4%, maybe 5% on year-over-year core inflation. and now we're looking at a for the fed's, you know, preferred measure below 3. so the fed would have some room -- liz: a little bit of
even as silicon valley bank imploded, signature bank also went -- was purchased by new york community bank and then, of course, jpmorgan swallowed up first republic. but that was a year ago. has the macro environment changed a bit? i do realize that they had continued their rate hike path all the way through last march and this regional banking crisis, but right now things are a little different, aren't they? >> the macro environment's different in the following way: to some extent the...
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Feb 7, 2024
02/24
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valley bank crisis everyone braced for conditions tightening up.rashed. small caps had some trouble. and the market just migrated toward quality and this is what it is the top-heavy market is for quality. if you're complaining about it, it's saying what's wrong with this market? people only want to buy the best companies with the clearest earnings growth. there's something perverse about that that being said, everything gets overdone eventually. >> i'm not sure if you were listening at that moment, but marko kolanovic, new note, says this is all worse than the dotcom era how do you respond to that >> you have to tell me what you're measuring is it just growth over value large cap versus small cap it's certainly not absolute valuation. showed that yesterday. it's definitely not the general frothiness of the market 1999, i keep pointing out, you had almost 500 ipos. the average first day pop was 90%. we can't find an ipo here and the ones we get don't do well. you can talk to me about why the market is valued for subpar returns going ahead, the marke
valley bank crisis everyone braced for conditions tightening up.rashed. small caps had some trouble. and the market just migrated toward quality and this is what it is the top-heavy market is for quality. if you're complaining about it, it's saying what's wrong with this market? people only want to buy the best companies with the clearest earnings growth. there's something perverse about that that being said, everything gets overdone eventually. >> i'm not sure if you were listening at...
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Feb 12, 2024
02/24
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valley bank. the idea that no uninsured depositors in that bank could absorb even amman -- modest amount of losses to spare some of the pain or eventually pain on taxpayers it's unfathomable. we had this conversation about the fed stepping in, effectively, internationalized the banking sector. so worries about this have to be at best mitigated. this clearly more losses to be taken, as alicia noted and the certain banks -- larger cra exposure. but when the time comes the fed has already told us the government's already told us that they're not able to -- as investors, you have to react to that, at least modestly. >> well, certainly with the don't fight the fed -- the feds not perceived to be adversarial anymore. it's pivoted. we're zooming that the next move is a cut. >> listen. rightfully so. again, you've gone from 9% inflation worth 3% were on our way to 2%, maybe we'll get stuck at two and a half, i don't know. but again, from an investment, that's an economic discussion weather to the 3%, or w
valley bank. the idea that no uninsured depositors in that bank could absorb even amman -- modest amount of losses to spare some of the pain or eventually pain on taxpayers it's unfathomable. we had this conversation about the fed stepping in, effectively, internationalized the banking sector. so worries about this have to be at best mitigated. this clearly more losses to be taken, as alicia noted and the certain banks -- larger cra exposure. but when the time comes the fed has already told us...
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Feb 15, 2024
02/24
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distress that arose a year ago in the wake of silicon valley bank's failure. immediately prior to becoming vice chair he was dean of the ford school of public policy at the university of michigan, 2,009-2,010, he served as assistant secretary of the treasury for financial institutions and in that role, he led the obama administration's response not just the financial crisis and also negotiated much of the dodd-frank act. i am particularly pleased to introduce michael because we've known each other since we were teenagers growing up a few miles from here in suburban maryland, so with that i give you vice chair byron. [applause] >> thanks very much, really great to see you and have you moderating this conversation and thanks to all of you for being here and for inviting me to be here. after having had to miss this conference last year i appreciate the opportunity to join you this year around. as you might expect i was a little busy in march 2023 around this time and i will, after a bit, share some thoughts on lessons learned from the stress in the banking system
distress that arose a year ago in the wake of silicon valley bank's failure. immediately prior to becoming vice chair he was dean of the ford school of public policy at the university of michigan, 2,009-2,010, he served as assistant secretary of the treasury for financial institutions and in that role, he led the obama administration's response not just the financial crisis and also negotiated much of the dodd-frank act. i am particularly pleased to introduce michael because we've known each...
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Feb 7, 2024
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it seems like the thing to let them acquire other troubled banks but the silicon valley bank seem likequality. that is almost like the playbook that is unfolding here in the last couple of weeks. [indiscernible] >> thank you so much for sticking around today. doesn't look like we are getting s&p 5000. that does it for us. i will see you tomorrow. >>> not quite 5000 on the s&p 500 but still record highs. a lot of green and major indices as the dow and s&p do quite well today.
it seems like the thing to let them acquire other troubled banks but the silicon valley bank seem likequality. that is almost like the playbook that is unfolding here in the last couple of weeks. [indiscernible] >> thank you so much for sticking around today. doesn't look like we are getting s&p 5000. that does it for us. i will see you tomorrow. >>> not quite 5000 on the s&p 500 but still record highs. a lot of green and major indices as the dow and s&p do quite well...
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Feb 1, 2024
02/24
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valley bank. let's bring in leslie picker some analysis. leslie? >> that's a key question today. the fallout from new york community bank or continues. those shares, as you mentioned, at a yesterday's 38% decline, is currently down more than eight and a half percent. nycb's fourth quarter earnings feeling a biting slump in quality thanks to loans with a coconuts multi family portfolio and an office c r e loan. for many bank investors, it was dij@ vu, eliciting fears of contagion akin to what they experienced last spring. even more ironic since nycb acquired part of signatures balance sheet from fdic receivership after that bank failed last march. the question now is whether and why see the's issues are isolated to that one bank or if it is broader systemic risk at. play analysts say the regional banks all of its likely overdone, quote, given idiosyncratic factors tied to nycb. the firm notes that nycb crossing 100 billion in assets threshold after acquiring signature kid subjects into a whole host
valley bank. let's bring in leslie picker some analysis. leslie? >> that's a key question today. the fallout from new york community bank or continues. those shares, as you mentioned, at a yesterday's 38% decline, is currently down more than eight and a half percent. nycb's fourth quarter earnings feeling a biting slump in quality thanks to loans with a coconuts multi family portfolio and an office c r e loan. for many bank investors, it was dij@ vu, eliciting fears of contagion akin to...
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Feb 7, 2024
02/24
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just 11 months ago, equity markets fell dramatically, as silicon valley bank and others collapsed, butk, markets are confident that the policymakers will have their back. if you look at issuance shifts, path forward guidance, you can see heavy intervention to keep things on the path to a soft landing. we may get there, but clearly, with a 4.1% ten-year, a buoyant equity market, and an economy with gdp running above 3% for going on three quarters in a row, the policy stance is not restrictive. that bodes well for stocks over bonds, but stock markets are being led by a scant few names. >> yeah. tamagotchi, those are those -- >> digital pets. >> children used to -- >> if you don't, they die. >> children -- you need to care for them, so -- >> right, right. >> there's this care going on. >> yeah. i was thinking of the legions of viewers out there who have no idea what you're talking about. in terms of your positioning, you said stocks over bonds, is that reflected in your own portfolio? >> yeah, i think there's a chance that this exuberance -- well, let's step back for a second. on friday,
just 11 months ago, equity markets fell dramatically, as silicon valley bank and others collapsed, butk, markets are confident that the policymakers will have their back. if you look at issuance shifts, path forward guidance, you can see heavy intervention to keep things on the path to a soft landing. we may get there, but clearly, with a 4.1% ten-year, a buoyant equity market, and an economy with gdp running above 3% for going on three quarters in a row, the policy stance is not restrictive....
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and he was asked point blank yesterday like, hey, did you miss silicon valley bank and he's like, yeahwe missed it. it was obvious. but yeah, i mean, with them removing what that statement, that we believe the u.s. banking system the is sound and resilient, that doesn't sound very positive for our banking system. now, what is likely to happen and david towel talked about this earlier today, it's the small regional banks, the very small banks where roughly 35% of their portfolio is these commercial real estate loans, compared to like a jp morgan where it's probably less than 5% of their portfolio. president what this all amounts to, maria, is more too big to fail because as these little banks p fail the jp morgans, the bank of americas of the world will gobble them up and they'll get bigger and bigger. maria: the banking system, real quick, kevin on that. >> everything that was plaguing the banking system in 2023 still exists today. compressed asset prices due to high yields and low treasury prices an ripples affecting the commercial real estate market. that's going to have a lingering
and he was asked point blank yesterday like, hey, did you miss silicon valley bank and he's like, yeahwe missed it. it was obvious. but yeah, i mean, with them removing what that statement, that we believe the u.s. banking system the is sound and resilient, that doesn't sound very positive for our banking system. now, what is likely to happen and david towel talked about this earlier today, it's the small regional banks, the very small banks where roughly 35% of their portfolio is these...
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valley bank. it was very frightening, and she said we are working with the banks, regular laters are to manage risks. she called it manageable but said some institutions are quite stressed. and that would be new york community bank and now they're getting sued. is there anything that worries you that the market is taking so much of this in stride at the moment? >> well, the issues last year where you had the massive deposit flight given sort of electronic runs on the bank, i think that probable if was softed very quickly with the fed stepping in with one of their macro prudential too manies that i think really stemmed the tide and prevented that from becoming contagious. but we do still have is, of course, the commercial real estate exposure. not to mention the fact that when in the new york community bank, and i don't cover the stock, i don't cover any stocks, but when they purchased the assets of signature, that moved them up to a different tier in terms of capital requirements. so not really id
valley bank. it was very frightening, and she said we are working with the banks, regular laters are to manage risks. she called it manageable but said some institutions are quite stressed. and that would be new york community bank and now they're getting sued. is there anything that worries you that the market is taking so much of this in stride at the moment? >> well, the issues last year where you had the massive deposit flight given sort of electronic runs on the bank, i think that...
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Feb 22, 2024
02/24
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the ceo says there's a gap in san francisco commercial banking left from silicon valley bank first republic. and that's left entrepreneurs looking for a high touch personalized placed a bank. it does expect to open a full-service office on california street in san francisco in the fall. mortgage demand takes a massive hit as interest rates rise, the average interest rate for 30 year fixed mortgage increased to 7 point o 6%. so both applications to refinance as well as buy a home dropped 10% last week and eating continues to cost. more in relief isn't expected to come soon. restaurant and food company executives tell the wall street journal they're still grappling with rising labor costs and higher rent and some ingredients like cocoa are getting more expensive. recent data from buy now pay later app say they're seeing more people use those apps to buy groceries that summarized in subscribers with the older unlimited plans, will see increased subscription costs next month's. this is the 5g get more. the 5g play more. 5g do more in the 5g. start unlimited mobile plans. those will go up by $4
the ceo says there's a gap in san francisco commercial banking left from silicon valley bank first republic. and that's left entrepreneurs looking for a high touch personalized placed a bank. it does expect to open a full-service office on california street in san francisco in the fall. mortgage demand takes a massive hit as interest rates rise, the average interest rate for 30 year fixed mortgage increased to 7 point o 6%. so both applications to refinance as well as buy a home dropped 10%...
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Feb 20, 2024
02/24
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so is it in trouble, maybe even headed for collapse like nearby silicon valley bank and first republicago. ed: it's not had a major impact with us. >> no, they say. we lend modestly. charge a bit more. pays depositor a bit less. but you thank your lucky stars that you're not a bank that put money into fancy downtown real estate. ed: sometimes small is good. paul: was that your thinking? going in that small is good in that you wouldn't get stuck with properties that might plummet in value? wendy: our core is community banking, if you will. and so it's always going to be the type of lending where we have a loan, but also a personal guarantee, and with guarantor support, we can look at the other assets of the person behind the property, if you will. and that kind of just goes back to the core community banking people. it's a people business. paul: isn't a big problem elsewhere in the country among regional banks, that if the value of what's on their books, the collateral of the commercial real estate has gone down a lot, that they're not going to be able to lend locally. ed: it just has a
so is it in trouble, maybe even headed for collapse like nearby silicon valley bank and first republicago. ed: it's not had a major impact with us. >> no, they say. we lend modestly. charge a bit more. pays depositor a bit less. but you thank your lucky stars that you're not a bank that put money into fancy downtown real estate. ed: sometimes small is good. paul: was that your thinking? going in that small is good in that you wouldn't get stuck with properties that might plummet in value?...
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Feb 13, 2024
02/24
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FBC
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western alliance which, of course, a year ago in march really struggled after silicon valley bank had inloaded and gone -- imploded and gone bankrupt. so this is not a good picture here. key bank, down 5.9%. new york community bank, and that's the one that has been stressed out the past up couple of weeks after it reported numbers that missed estimates but also they had to slash their dividend because they had too much exposure to commercial loans. this is kind of precisely the moment where the market is now cheaper to buy. if you look at big financials, you can see the big names in financials are also a getting slammed here. we've got let's say goldman sachs down about 4.33%. let's see, morgan stanley down 4%. citigroup down 2.9%. jpmorgan down -- is that 4? if 1.5%, down 1.5%. so what we're going to do is we're going to bring in some voices here to get everybody on the same page about what's gown on and whether this is an opportunity to buy or if it's just the beginning of a greater selloff or perhaps a bigger correction. we're calling it the floor show, as we always do. joining us
western alliance which, of course, a year ago in march really struggled after silicon valley bank had inloaded and gone -- imploded and gone bankrupt. so this is not a good picture here. key bank, down 5.9%. new york community bank, and that's the one that has been stressed out the past up couple of weeks after it reported numbers that missed estimates but also they had to slash their dividend because they had too much exposure to commercial loans. this is kind of precisely the moment where the...
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Feb 5, 2024
02/24
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you seem confident in the banks, and yet the silicon valley bank, second largest failure in u.s. we -- we did. and we forthrightly saw that we needed to do better. so, we've spent a lot of time working on ways to make supervision more effective and also to adapt regulation to a more -- to a modern context, in which a bank run can happen so much faster than it could have even 20 years ago. >> reporter: another economic hangover after the pandemic is a sharp increase in the national debt. 30 years from now, it is projected to be $144 trillion or $1 million per household. >> how do you assess the national debt? >> we mostly try very hard not to comment on fiscal policy and, you know, instruct congress in how to do their job when actually they have oversight over us. >> but is the national debt a danger to the economy in your view? >> on the long run, the u.s. federal government is on an unsustainable fiscal path. that just means that the debt is growing faster than the economy. >> i have a sense this worries you very much. >> over the long run, of course it does. effectively, we're
you seem confident in the banks, and yet the silicon valley bank, second largest failure in u.s. we -- we did. and we forthrightly saw that we needed to do better. so, we've spent a lot of time working on ways to make supervision more effective and also to adapt regulation to a more -- to a modern context, in which a bank run can happen so much faster than it could have even 20 years ago. >> reporter: another economic hangover after the pandemic is a sharp increase in the national debt....
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Feb 15, 2024
02/24
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silicon valley bank lost in a single day.ecting to lose 100 million more the following day. 85% of the firm's deposit. shortly thereafter on signature bank and first republic, each of which lost 20% of deposits within hours were much faster than we have seen in previous episodes. the runs on all three were especially severe. imprudent funding reliance on uninsured deposits placed by concentrated and often highly networked customer base. these deposits were previously assumed to be at the depositors were heavily concentrated in venture capital in the technology sector firms. signature bank set uninsured depositors from crypto related firms. high concentrations of high net worth and ensure depositors. many of these depositors rapidly withdrew their balances. deposit flows much higher than assumed under the liquidity requirements such as the liquidity coverage ratio. at the same time these institutions face these outflows they also face challenges meeting them with the asset. the high quality liquid asset, not monitor for these
silicon valley bank lost in a single day.ecting to lose 100 million more the following day. 85% of the firm's deposit. shortly thereafter on signature bank and first republic, each of which lost 20% of deposits within hours were much faster than we have seen in previous episodes. the runs on all three were especially severe. imprudent funding reliance on uninsured deposits placed by concentrated and often highly networked customer base. these deposits were previously assumed to be at the...
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Feb 13, 2024
02/24
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silicon valley bank i would argue is a one off because they were so irresponsible on duration matchinglity issue. it was this duration matching with assets and liabilities. they were so irresponsible. many banks are not severe responsible. i never thought it was systematic. i do believe it was more of a one-off in the silicon valley bank and the other regionals who got caught up with the same lack of risk control, same thing in europe. company like bnp or lloyd's, these are the financials we have that have never had major quality compliance risk issues. this is what one has to look for is the culture of risk control. in banks, this is number one, risk is number one. jonathan: let's talk about your approach to investing. we caught up with apollo in the previous hour. we were talking about passive investing over the last 10 years with the explosion of it and getting session the bigger getting bigger with money going into equity markets and going into the magnificent seven like over the last 12 months. how would you frame things? do you see passive investing as the enemy to the kind of th
silicon valley bank i would argue is a one off because they were so irresponsible on duration matchinglity issue. it was this duration matching with assets and liabilities. they were so irresponsible. many banks are not severe responsible. i never thought it was systematic. i do believe it was more of a one-off in the silicon valley bank and the other regionals who got caught up with the same lack of risk control, same thing in europe. company like bnp or lloyd's, these are the financials we...
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Feb 2, 2024
02/24
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silicon valley bank put it in liquid treasury bonds and mortgage bonds that we don't really need banksng. if we want treasury bonds, we can do it ourselves. no real asset for banks to load up on it they got a bad call on rates oversomething the fed had done something it had never done before raising zero to five in 15 months this is what we need banks to do which is financing ill-liquid re the commercial property market has been licking for a while i'm surprised we have not seen a more of a reckoning. your average office tower is half full on a good day. it is friday it is 25% full that is not a thriving market. leases roll off slowly tenants gain bargaining power over time. particularly regional banks which is financing real estate it's a credit bomb which makes me nervous >> there was an expectation last year of a massive wave of transactions mergers with the smaller community banks. we have not seen that so far why do you think that is >> it is mostly a regulatory overhang and administration is not friendly to mergers, particularly to bank mergers there is a bit of psychology we lik
silicon valley bank put it in liquid treasury bonds and mortgage bonds that we don't really need banksng. if we want treasury bonds, we can do it ourselves. no real asset for banks to load up on it they got a bad call on rates oversomething the fed had done something it had never done before raising zero to five in 15 months this is what we need banks to do which is financing ill-liquid re the commercial property market has been licking for a while i'm surprised we have not seen a more of a...
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Feb 6, 2024
02/24
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we ended up having a lot of concerns around the silicon bank -- silicon valley bank. because the fhlb had provided billions of dollars in the weeks that led up to their buyouts. whenever that happens, we will get questions about what the priority was. if that is in fact the mission and they are backed by the federal government, how can they justify giving billions of dollars to these two banks? >> thank you for the question. some banks are certainly part of the greater financial ecosystem. as part of the report that we issued, the discussion about all this and the failure of the three banks or the two banks over the weekend, what i would say is the primary regulator of permissible activities -- we try make sure that they are not the lender of last resort. and to the extent that if they want to advance, we certainly work with them, we assess their credit and we look at their activities. we'll get reports of examination. we have to rely on our own credit assessment. based on the requirement of law, they are required to provide advancement and advancements need to be use
we ended up having a lot of concerns around the silicon bank -- silicon valley bank. because the fhlb had provided billions of dollars in the weeks that led up to their buyouts. whenever that happens, we will get questions about what the priority was. if that is in fact the mission and they are backed by the federal government, how can they justify giving billions of dollars to these two banks? >> thank you for the question. some banks are certainly part of the greater financial...
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Feb 9, 2024
02/24
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food bank or alameda county community food bank or silicon valley food bank.ring home win for all of us here who are fighting food insecurity. >>> a live look outside right now. from mark hopkins. you can see it is beautiful out there. lots of lights and glowing there. and this is what it feels like to be a part of the 49er faithful and part of a family. we are all united in one thought going into super bowl sunday. and that is community, connection, and knowing that that brings a win. let's talk to jess about the weather. >> all right. let's take a quick look outside. this afternoon reed it's going to be a gorgeous one. drying up and warming up and talking about 50s in the forecast later today. upper 50s near san jose and los gatos. this weekend we'll continue too crank up the -- heat? that was really a loose word for that. we'll continue to warm up as we head into this weekend with low 60s and sunshine in the forecast for us. and we're already seeing that imagery right now on the satellite. now we kicked off the week with the atmospheric river event and brou
food bank or alameda county community food bank or silicon valley food bank.ring home win for all of us here who are fighting food insecurity. >>> a live look outside right now. from mark hopkins. you can see it is beautiful out there. lots of lights and glowing there. and this is what it feels like to be a part of the 49er faithful and part of a family. we are all united in one thought going into super bowl sunday. and that is community, connection, and knowing that that brings a win....