averted on one side. still a concern. on the other, lower rates maybe. two-year, we see the move there. not to mention at least some market participates believing given what they broke in the banking system, the fed may be done at least done for now. let's get over to carl and sara on the floor >> session highs for stocks. i'm sara eisen here with carl quintanilla. we are live from the floor of the new york stock exchange. today, fifth third bank ceo tim spence joins us as regional banks try to avoid the fallout from the collapse of silicon valley bank. and thomas hoening and the federal reserve stepping in. and robert greifeld about the contagion in the markets the president this morning

reiterating all deposits will be protected as treasury, the fed, the fdic combine to take these extraordinary measures and sure up the confidence in the banking system first republic is down 75%, despite these liquidity injections from the fed and from jpmorgan bonds are surging as yields basically collapse the two-year got to 3.99 this morning. right now, 4.02. headed for the biggest three-day drop since 1987, yet the market has turned around with the major indices in the green s&p up 18. watching the likes of lloyd blankfein tweet that a few banks may have issues like svb, but only a few fed likely on hold >> everybody is weighing in today. we'll start with the picture for

regional banks look at the kbe, down 25% over the last week. how can they reassure investors they're in a safe financial position let's bring in fifth third's ceo, tim spence. great of you to join us on a day like today where we're seeing pressure on the entire group, including your stock what are you hearing >> thank you, sara i think todays like today are the days most important for us to be out in front of our markets and in front of clients to reassure them that the issues as you mentioned earlier really are contained to a limited number of banks who either had concentration challenges in individual sectors, or asset liability mismatches that are now working their way through the system >> do you have any of those? >> no. no i'm exceptionally comfortable with the position we got

we have one of the most granular stable deposit bases among any of the regional banks. a significant share of deposits come from individuals. i was talking to folks in the branchs and call centers this morning, there's no unusual activity going on out there at the moment we carry our securities portfolio 100% available for sale so this issue that materialized in silicon valley, where held to maturity was really hide until maturity is not a problem we face we have the ability to access contingent funding through a wide variety of sources above and beyond having a strong deposit base >> so just want to be clear, because there's a lot of talk and concern out there about uninsured deposits leaving the industry you're not seeing anything like that happen right now at fifth third? >> no. we're probably not the best litmus test for you because such a significant share of our deposits do come from consumers,

our consumer business. but we're not seeing anything out of the ordinary here in terms of the flows of funds. that said, for the industry in general it's probably too early to tell. >> one thing we got this morning from schwab and their release was this percentage of total bank deposits that fall within the fgic insurance limits. can you give us a similar number >> we run slightly ahead of the regional bank average, in the low 50s. >> low 50s are you bracing for a new era of regulation, a hotter spotlight once we sort this out and look at remedies to prevent a similar episode in the future? >> i think there's no question that there will be a policy response here. we have anticipated, have been anticipating for the better part of the past year that tlac may make its way down to the regional bank groups we're well-positioned in that

regard at some point we have to address the accounting designations and the differences in the for sale versus held to maturity treatments there's no question that what triggered the outflows at silicon valley bank last week was the surprise on the unrealized losses on the portfolios such a significant share of it was held in mature until sale securities >> what is the financial health, how would you characterize it, of your commercial and consumer customers right now? >> it continues to be strong we talked about this this past wednesday at the rbc conference. business health is very good consumers, in particular homeowners, have been able to manage inflation very well i anticipate with the noise in the market that you will see

people be more reticent to stay away from the crypto-focused banks. but the general health of consumer clients remains very good >> i was going to ask, how these recent events will ultimately impact loan demand and credit quality. >> i think in the immediate term i expect loan demand will continue to soften that had been happening over the course of the past few quarters in general, just as businesses look forward to the impact of higher rates on the economy. >> one of the things that the street is wrestling with now, separate from the events of the weekend and this crisis in a sense, is the model changing how do you keep depositors from just being attracted to other instruments like money markets do you have to raise your rates?

do you have to offer better project? do you have to lower fees? how will that work if the delta between what you get outside and what you get in the bank is so different. >> i'm glad you asked that this is an area that's probably not as well understood as it should be. the stability in the deposit base is a function of the share of your deposits that are operational to your clients. for the average american household, it's the account, if they pay the mortgage or rent out of, it's how they buy groceries, it's where they get their paycheck for commercial clients, it's where they manage receivables and payables and how they handle short-term liquidity needs the focus, i think, really has to be on the quality of the produce offering and the degree to which you're doing things, whether that's on the consumer side giving somebody your paycheck early, helping to manage unexpected expenses, and giving them tools to avoid fees

that really drives the stickiness and the stability of the deposit base equivalently on the commercial side of the equation, it's the value you can build into the management of the accounts payable and accounts receivable process. that's been our focus. you have those good, core, operational deposits rate is less important in that particular portfolio and you can use the rate that you do want to extend to manage your overall liquidity profile. >> you're talking about convenience really, the ability to dip in and use it in your daily life does that mean the sector at large is not going to face eps pressure would you be telling the street to expect -- or telling investors to expect maybe some cautious guidance once we start getting earnings prints in a few weeks? >> i think from my point of view, we reaffirmed our guidance for the first quarter this past week we talked about the fact that deposit betas had picked up

steam across the industry. we were one of virtually all the banks that presented at the rbc conference who made that same comment. i think you'll continue to see deposit betas accelerate as people focus on maintaining stable liquidity profile in general, the banking sector remains healthy and profits continue to look good. i would anticipate that continues to be the case here barring more material change in the outlook for the real economy. >> tim, just to sum it up, your stock is down 19%. you have reassured us on the liquidity and deposits one thing i'm hearing as it relates to some of these steep selloffs in the regional banks and super regionals is that there's a rethink going on about the business model for banks like yours there's going to be higher regulation, stricter regulation, and that regionals have not been as regulated as the big banks post the financial crisis, there's been tailoring towards

the big ones that brought the system down, now it's your turn and that's just going to result in lower r.o.e. and higher capital positions and a tougher outlook for you. would you agree with that? >> i take issue with the idea that we're not heavily regulated and regularly scrutinized. we're an acc bank and we are in a large bank group i certainly believe that for the bottom 4,000 banks, regulated banks in the u.s., there's going to be much heavier regulatory scrutiny we would welcome any measure that will continue to improve the transparency of the value of securities approvals and otherwise so they don't trigger the sort of surprise silicon valley did this past week. to the extent that tlac makes its way in our segment of the market or banks are required to hold more capital, the business

model will clearly have to evolve in order to compensate for those changes. in general, we're balanced we have the benefit of a nice mix between consumer and commercial we have great fee generating businesses and we have worked hard over the course of the past ten years to develop fortress level credit quality inside the bank and we'll figure out how to face whatever comes our way. >> your words are reassuring the stock is off the lows, down 17%. tim, appreciate you joining us >> thank you very much i don't look quite as happy as i did in the teaser photo you used, but i'm feeling good >> tough day those head shots are our best. appreciate it. >> there you go. thank you. let's turn from the regional banks to the federal response. joining us is former fdic vice chair and kansas city fed, thomas hoening i think larry summers said over

the weekend there will be a lot of discussion with moral hazard, finger pointing and time to get to that, but right now the priority is stability. did the weekend bring that in your view? >> i think the weekend did bring greater stability this morning than it otherwise would have had. whether it's sustainable, that will have to wait and see. as you see by the market that you were just talking about, banks are under pressure people don't know for sure and that will depend on just the banks themselves showing the public that they have good liquidity, that their capital is genuinely strong making that message very clear over time. because there's -- with these high interest rates, there will be more pressure on banks as we go forward from here they have their work cut out for them for the future. it's up to the banks to have strong balance sheets, strengthen them further. it's up to the regulators to do

their job and confirm that we have a little ways to go to reassuring the markets and the public >> a lot of talk about the fdic and whether or not they should raise for everyone the cap on what deposits are insured. do you think that's a wise idea? what needs to be done if, in fact, that were to happen? >> i think the fdic set the expectation that all deposits are going to be insured. they can say this is a one-off, but what about the next regional bank or larger bank that has any kind of hiccup and they would say, no, we're not going to bail you out. i think that would be catastrophic probably. they set the expectation now, it's just a matter of carrying it out as they go forward. that weakens the market

discipline it raises the moral hazard issue. but that's probably a discussion that will go on from here for some time. >> is it possible for them to come out and say we'll guarantee to make whole all uninsured deposits across the u.s. banking system >> they can't. that will take legislation and they used the systemic exemption, which is also a complicated factor for future sh shots. they will have to use that again in terms of the fdic, the fed, the treasury buying off on that. that will get criticized, because if you use that in every instance, i think then you're -- you're actually in a sense abusing that exemption i think most politicians will buy into that when you have the immediacy of a crisis and a

meltdown that they're facing that's the nature of the beast >> a lot of hand wringing about those rollbacks of regulation in 2018 would the picture be much different if that had not happened >> i can't say for sure. here's what i would tell you i think the greatest weakness in all this is the use of so-called risk weighted capital measures rather than capital -- equity capital assets let me give you the example. silicon valley bank at one point prior to the immediacy of the crisis was reporting a 16% risk weighted or approximately at least in that neighborhood risk weighted capital to asset ratio. that spells great strength 16%. but if you took all their assets, including those securities that they had their interest rate risk in, that

ratio fell by more than half if you took the intangibles out of that, it fell to 5% they didn't have 16% capital supporting their balance sheet, they had 5%. that's true for the entire banking industry, especially the larger regionals and the largest banks. one thing we do need to do is take away this risk weighted -- or make it secondary and let people know exactly how much capital is standing between them and the banks issue of solvency. that would do a lot to bring market discipline back and improve the long-run situation, not the short-run. they can increase their capital now. it does mean perhaps paying out less dividends temporarily, but that's -- the dodd-frank is a monster. it's a very costly regulation that i think has its own negative impacts as well as it's

stronger ones. you need to look at that piece by piece >> before we let you go, i have to ask about your other expertise, that is as a former fed member, kansas city fed president. there is a major rethink going on about what the fed is going to do next 4.06 on the two-year yield it was above 5% less than a week ago. do you think the fed should take a pause? >> that's a good question. first of all, the fed is culpable in this crisis because they left it at zero for so long we learned in the '70s, if they back off, they may pause, i don't know, but if they back off for any length of time, inflation will probably reignite and we'll have this problem again down the road. they'll have to face the fact that we'll have some rough times here, and they need to leave interest rates higher until we get this inflation back down and then get order to things again

yes, they'll be under pressure not to raise rates probably they should raise a quarter. if they don't, i think what they'll have to deal with is are they going to back completely away and start lowering rates? then we have a recycle of the inflation problem. they have to think this through carefully. >> that explains some of the action we've seen lately in gold, back above $1,900. appreciate it very much. an important day thank you. >> thank you thanks for the opportunity >> markets back to pricing in cuts for this year stocks are flying now. nasdaq up 1.25%. up on the dow. let's look at the government's response to silicon valley bank's downfall and the plans to safeguard the financial sector moving forward, joining us is representative maxine waters great to have you back on. >> thank you very much thank you for taking, you know,

the opportunity to talk about this issue it's very important. the american people want to know what's happening and i appreciate your attention to the issue. >> we are all over it. tell us what your role in congress is in trying to fix this crisis? y much i'm a ranking member, i'm not the chair anymore. the democrats are not in majority the republicans are. we know we must work together on this issue and we have been doing that over the weekend. what we have done is we have had the fdic, who is giving us briefings, both democrats and republicans together the fdic has been working all weekend, 24 hours a day. the fed, the treasury, everybody is focused because we're all focused, we have come up with a way to deal

with making sure we protect our depositors, both those that are insured, those that are not insured. so those worried about the payroll coming up can rest assured that those startups and others who have their payroll operations inside silicon valley bank and other banks will be okay >> how do you begin to stop this from happening again in the future a lot of talk about helping depositors now, but how do we presentvent this from going on n forward? >> the banks have access to funds and loans if they felt they needed it when they looked at their balance sheets. i think that's going to be

helpful. the other thing is we always have to look at whether or not the banks are holding enough capital. that's always been, you know, a confrontational issue almost we need to look at that. we need to look at what was being raised in the conversation you just had about whether or not in the future everybody is going to be insured. whether or not -- i think you also entered into maybe a conversation about whether or not the premiums that are charged to banks that creates the insurance pool is going to be increased so, yes, there are things that we need to look at and we will i've already talked with the chair about us getting together in our first hearing as soon as possible so that we can make sure we understand exactly what happened when the run on silicon valley bank began from the

depositors and when did silicon valley bank fist realize that the balance sheet was off, that they had to get something done very soon. as i look at it, i think the interest rates had a lot to do with the fact that they couldn't sell off securities. they needed to sell off securities and/or get loans, and when the market discovered that they could not do that, they were being turned down, game over you know, they had to shut it down >> indeed. >> yes, yes, we need to look at -- >> i was going to say, it sounds like you're saying there is runway in congress on a bipartisan basis toallow the fdic to raise the cap on deposits that are insured over the long-term. >> listen, i -- here's what you need to think about what is happening with the congress.

we are focused on it we understand we cannot have the systemic risk that we have just experienced. so we're going to be making sure we know exactly what happened and what needs to be done to strengthen regulation to ensure that our banks are safe. so everything is on the table to be looked at >> i wonder if you have regrets on focusing too much on the biggest banks in the country as it relates to financial regulation, no question that's what broke the system. but if small and mid-sized banks have been overlooked in terms of the more harsh regulatory requirements, that potentially led to this problem. >> well, we're always concerned about our very small banks and what we can do to ensure they can operate. we like them an awful lot because they're in the communities, they know people in the communities, they know how

to deal with loans through the various people in the communities, the small businesses, et cetera. we support small businesses very strongly they were the ones who got -- you know, we had to go back and redo the ppp program so we could put money into those businesses so they could stay alive we want to make sure what we're doing will help them and not hurt them. of course, there are concerns about the regional bank and if this contagion had taken place, the regional banks and some of the small banks would have really been in trouble so we'll look at everything. >> congresswoman, it's amazing to us, just a few days ago we were watching you question the fed chair at the house hearing and the whole discussion was about the risk of inflation, wage growth and cpi. do you think the fed chair should have brought more to the discussion about episode risk

like this? >> the fed is trying to figure out what to do about interest rates. we know raising interest rates is the key to getting down inflation. many people don't like it. we don't want to stop homeowners from purchasing homes, getting mortgages. they have to figure that out they have to figure out what they'll do for the next quarter. we know they were concerned if there were other banks that appeared to need capital, that they opened up this new facility by which they could assist banks. again, we're looking at everything

we worry about jobs, the startups and able to get the payroll out, give the checks to make the payments to all of the people that work for them and with them. we don't want to stop innovation, but we have to be concerned about risk and whether or not in an effort to help out that we don't create the kind of risk that in the final analysis that could cause the type of collapse we have experienced. >> one thing investors were hoping for is that the fdic would find a buyer over the weekend for svb bank, other failed banks, a bigger bank, a better well-capitalized bank would step in to cover sol of th some of these losses is that something you would be open to? i know there's been hesitation

because of the post financial crisis reforms, but do you think we should see more bank mergers? >> no. as a matter of fact, there was a lot of speculation about a buyer. it could not happen in that short period of time they were talking about it within 24 hours, 48 hours. that could not happen. i think with silicon, it's going to be sold off and we don't know how it will be sold off, whether it be told off to a big buyer or whether or not it will be broken up and parts of it will be sold in different ways. we know that has to be decided but i'm not interested in more mergers. i'm not interested at all. i do not want this country to be a country that is at the mercy of four, five, big banks i want our regionals and smaller banks to be properly

capitalized. i want them not taking risks and make sure they stay alive and they're serving the people whom they are now trying desperately to serve >> not sure the market agrees on that one i know you talked about hearings so, what are you looking at as far as that is concerned and what went wrong and how to prevent it i wonder if you will call someone like a peter thiel who helped spark the panic that led startup businesses to pull their money out of svb it's one of the things that made this whole situation unique. >> i cannot tell you who all will be called up. i'm not the chair of the committee. they are in the position and have the responsibility. we'll work with them to organize and determine what our mission is in that first hearing, what we're trying to do, what we need to do next i think we have a good working

relationship on that the people called up to testify, we will probably have a portion, one or two of those, they'll have the others. right now we're in the process of planning for the first hearing and working to get that done >> congresswoman, thank you very much for taking the time >> thank you very much more delving deeply into this i do appreciate it here's what i think, given what has happened over the weekend, the way the federal government came together, all of the agencies, the people should have confidence that we really do care and that the banking system and safe, what we did with the insured and uninsured meant that we took a big step to make sure that those depositors got their money back i have confidence and i want the people to have confidence in the system when we do our hearings at any legislation that's needed, it's going to be strengthening the

confidence that people should have we will look at every nook and cranny to make sure we get it done >> congresswoman maxine waters, appreciate the urgency there it is amazing, carl, what a crisis can do to speed up actions like this taken by the government that she talks about. like stepping in to -- >> makes you wonder what they're hearing from their constituents about their local bank google says financial insurance is at a 52-week high >> as it relates to peter thiel, a lot of my conversations over the weekend made it unique he yelled fire in a crowded theater. people like him, bill ackman, coming out and stirring a lot of concern about this when it comes to bank runs, confidence is everything >> it was a big leap from the

self reliant liberaltarianism over the past few years. coming up, bob greifeld is with us. si vix is coming back to 25 regional banks still getting crushed. a lot more "squawk on the street" still to come. so no matter what the market's doing, he's ready. and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company. do you ever worry we'll live forever? no, it's literally never crossed my mind. what if we live to like 100? that's 35 years of being retired. i don't want to outlive our money. and i have been eating all these stupid chia seeds! i could totally live to be 100! why do i keep taking such good care of my- since we started working with empower, we're able to get all our financial questions answered, so we don't have to worry. so you never-

no. never. join 17 million people and take control of your financial future to empower what's next. start today at empower.com nothing, it really is something. as an expedia member, you can save up to 30% when you add a hotel to your flight.

so you can have a bit more money, to do even less. somewhere out there is that one-in-a-million. wsomeone who thinksl with their hands. who can shape raw materials into something meaningful. and who wants to serve in their own way. if you're out there. if you're looking for more. we're looking too. we're calling on a new generation of builders for navy's next-gen submarines. this is ge vernova, helping generate and move the energy that our world needs. ♪♪ welcome to a new era of energy.

welcome back dow is up 240 here as we watch the impact on the equity markets from the collapse of svb we have the dow at 32,140. s&p up 30 points treasury yields, the two-year basically hovering north of 4.0. did crack 4 this morning >> bond yields lower and the buying of bonds as the market prices out more fed interest rate hikes if you look at what's working in the stock market right now,

utilities, real estate, health care defensive but also high-yield paying >> pharma, of course, big pharma deal here as pfizer makes it official after the reporting from the "journal" about seagen, a $43 billion deal back to the market, looking at market structure amid this banking fallout. the kbw falling a i longside the regionals today. joining us this morning is bob greifeld i have to know your thoughts this morning how does the banking model evolve from this point on? >> i think what happened over the weekend is essentially the banking model was nationalized i think the federal government had three options in front of them one is to find a buyer i think that was probably option one. but you think back to what happens to jpmorgan and bear

stearns in 2008, that was not likely to happen in that timeframe. second was to let the market play out i personally have three companies in financial technology that have all of their banking with svb i was living through this. all three we had arranged alternative financing to get them through the payroll cycle it was also forcing us to think about which of the companies we really believe in over the long-term. didn't choose that option. third option was to take the easy option, backstop everything and i think in the moment that feels very good. over a longer period of time we have to recognize we have nationalized banks the genie is out of the bottle any time a bank runs into trouble the expectation will be that the feds will backstop that that has long-term implication >> do you think that -- we just talked to maxine waters.

do you think this gets codified into law do you think limits on bank size are a part of this >> i don't know about bank size, but market expectation and behavior will be assuming it gets codified into law that is going to be the dominant procedure and certainly there's a moral hazard to thinking about the fact that if something goes wrong, that the government will be there to backstop you >> what -- isn't that what the fdic's job is? $250,000, isn't that kind of an arbitrary cap? shouldn't they insure depositors that when we put our money in american banks they're safe? >> that's what we'll get to. it will be a different world that we live in. $250,000 is a number, unlimited is a different number with implications on how you fund and support that over time if we want to turn the banking

function into a utility function to do that, that's one way to approach it. >> what will be the impacts of this >> you look at silicon valley bank and they had a narrow set of deposits. are you going to get to a regulatory environment where your deposit base has to be diversified? that's not in the rules today. that's not one thing they've done other things wrong. that's not one thing that silicon valley bank did wrong. the second is duration clearly as the fed moved, you had duration risk increasing dramatically so you look at how this bank was managed either in competence, which bordered on malfeasance, but any way you slice it, they

did not manage the risks the fed will backstop everything, then that matters less than other situations those are the two likely regulatory issues you see come to the fore in the next couple of months. >> a lot of discussion about the future of tech funding, what happens to vcs, what happens to innovations in fintech, crypto, life science and ai as the market was getting excited about new growth stories in tech what happens there >> this is a hard one. i first was in svb in 2003, i came to know very quickly how important they were to the ecosystem. how much the magic of silicon valley was tied to svb it's important to recognize how pervasive they were. i'm shocked that my three

companies are all banking exclusively in svb the ceo is from boston, i'm from new york, you're from pennsylvania, yet we do all our banking on the west coast. they're that competitive and that enabling of us growing over time i think you'll see a subtle but real impact on innovation in a short period of time, but when there's a vacuum, it will get filled over time over the next 18 months, the ecosystem has to think about how they'll be funded going forward. it's a real issue. >> what about vc funding and the health of some of these venture capital firms that were also tied up into this bank >> it's real i would say one thing the regulation can do that was not mentioned, a lot of people ended up with svb because of bundling. they said if you want to get a line of credit from us, we want your cash deposits

they said if you want a lower rate, we want all your cash deposits i think the regulators can look at that time, that bundling of services there with respect to the cash management activities of these tech companies, these vc companies, that's the more easy thing to replace clearly understand what svb did. back in the day when there's not a bank that would underwrite any of these vc firms or startup companies, they were there for them that was necessary for the growth of it i guess our hope right now, is that this is so he accomplished and pervasive in our society that people will step in to where they were. clearly back in '03, nobody else would do that and they did >> there's a psychological overhang to what's happened here and that will somewhat reduce the animal spirits >> i think that's why we'll likely have you back to talk about the impact on ipo exits

and m&a in the coming weeks and months, bob. as always, appreciate it good to see you. >> good to see you thank you. >> thanks, bob apple, microsoft, amazon, all up the nasdaq is up more than 1.25% right now. up next, the cuban missing crisis for banking that's how one vc with significant money tied up in silicon valley bank describing the crisis that's next. the focal point for the markets has been the move for bo yldndies sharply lower across the curve. more "squawk on the street" when we come back we got this. we got this. we got this. we got this. yay! we got this.

we got this! life is for living. we got this! let's partner for all of it. edward jones

we turn to the venture capital impact after the collapse of silicon valley bank. our next guest calls this the cuban missile crisis for banking with the bomb going off in venture. joining us now is ryan falve, who was also a former employee a long time ago at svb we're lucky to have you here from san francisco welcome. >> thanks for having me. >> how much has this turned your world on its head? >> it's turned the world dramatically last week we were quite concerned for our portfolio companies, for the jobs at those portfolio companies and to the broader

ecosystem. i think we're relieved of how it's turned out and thankful that the system in some ways work in that the depositors were protected here the ramifications of not protecting the deposits of small businesses would be extreme. now we're looking at the ramifications long-term. >> what are those ramifications? >> we have to think about the jobs our jobs are two-fold, thinking about the founders and how they support their businesses venture has a clubby component to it. silicon valley bank was part of that club. we have to look at how that -- elements of that club created some of these issues i think really opening it up and creating a more sustainable and stable way for us to fund these companies over time. >> the culture thing, as a depositor, that feels like something you could suss out there's a debate about what -- how much of your bank's risk

profile you look into, as a depositor, right do you think that as an aggregate depositors were lax or not? >> no. i think really it's unfair to hold to account businesses that they should be tracking the financial health of their banks. >> right >> especially banks that are seen as really the main source of financing for the ecosystem the losses of silicon valley bank will have a bad impact on the industry they were a central player they provided a lot of capital they were one of the few banks that would open up deposit accounts for these early-stage companies and they had a specialty in serving them. the idea that a startup or young founding team should look around and say i have a million, i should have four different bank accounts is crazy. >> what about the venture capital firms that started pulling money and telling their portfolio companies to pull money from this bank at the onset of this. i'm thinking about peter thiel and the founder's fund

how did that happen exactly? did you -- were you involved in that as well >> we did not advise our portfolio companies to pull money out. we did not pull money out either we sent an email out late thursday night saying try to stay calm. i think the system protects depositors, it's unlikely we would lose money i don't want to comment on the behavior of other specific venture capitalists or funds i think the vast majority of us in the ecosystem were focused on protecting our companies we have 60 different portfolio companies with a quarter billion in deposits, and very little of that at a big four bank. >> it's not back to business as usual, is it what happens to business risk tolerance at your companies regarding all lines of growth?

hiring people, r&d, cap ex does that change from this point on, absent the situation here? >> i think that this situation has exacerbated a challenging funding environment for startups the risk profile has shifted against startups for our companies, we're trying to say keep it lean -- >> the wheels were already in motion >> the wheels were already in motion we see the impact on tech stocks startups are not different >> is it going to be hard to fund raise >> probably. yeah >> a lot harder? >> you know, great companies will always get funded the real impact is on the margins. many companies we're invested in, it's a $250,000 check. we're trying to help them get the business going it may be pre-product. that's a high-risk area to sit i hope the other funds we work with don't pull back i think there's a lot of great

opportunity. >> ryan, great to talk to you today. >> thanks for having me. we'll continue to track the fallout from the collapse of silicon valley bank, much more coming up on "squawk on the street" with the dow up 300 points we're watching shares of buyoum silver lake and others deals getting done a mega deal as well. shares up sharply. we're back in a moment three kids?! this was never part of the plan! these kids order the lobster mac 'n cheese! what if she wants to play golf? we're going to have to outlaw golf. absolutely no golf in this house! not under my roof! since we started working with empower, all of our financial questions have been answered, so we don't have to worry. so you never- nope. always part of the plan. join 17 million people and take control of your financial future to empower what's next. start today at empower.com

everything's changing so quickly. financial future to empower what's next. before the xfinity 10g network, we didn't have internet that let us play all at once.

every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it. huh? what a time to be alive. introducing the next generation 10g network. only from xfinity. the future starts now.

as sara said before the break, tech stocks not having a bad day. apple, microsoft up 2% smaller names with svb expo sure like roblox are up today deirdre bosa has a tech check for us hey. >> that's right. as you said, carl, nasdaq is the outperformer in today's session and tech gainers the interesting dynamic is playing out in real time the sharp move in bond yields is making valuations more attractive rates higher, future profits appear less valuable growthier companies they're looking better right now as yields drop, despite the turmoil in tech over the last few days and questions about the financing landscape, you're seeing even unprofitable tech rise in today's session. zoom, data dog, crowdstrike, some of the gainers, outside of pharma on the nasdaq 100 if there is a flight to safety in tech, it's fortress like balance sheets you are seeing apple, amazon,

outperforming in the session beyond today's immediate action that could be a different story and you can see some of this reverse. bofa warrants the collapse of silicon valley bank could set up a big tech versus smaller tech dynamic. if the events of the past few days created a big banks over regional banks preference in financial, the software equivalent could be big, better capitalized. microsoft, adobe, amazon, google, over smaller less capitalized companies. morgan stanley warning on software flames saying the fallout could exacerbate weakness versus stronger security dynamics. as everything remains volatile, that's the case in tech. these are the short-term trends, but certainly the longer term ones, lots of questions about the fundraising landscape. >> just got a statement from related note from etsy, ever is coming out clarifying their cash positions. etsy saying small group of sellers, half a percent of our active seller base had their payments delayed on friday

i guess the question now that we know that those depositors will be made whole as a result of the government, what will be the second order effect? we were just talking about venture capital fundraising going to get harder and other issues that this is going to create for tech, maybe bring humility in tech. >> we've been tracking how valuations have become higher. the funding environment will be difficult for some companies to open up accounts because silicon valley bank really catered to the tech ecosystem and would help companies when other banks couldn't or would not, so that is going to change a lot of the dynamics here. we also talk about some of the big portfolios, the funds like softbank's vision fund they may have to mark down their portfolio companies earlier than they might have liked. >> thank you deirdre bosa coming up at the top of the hour you will not want to miss brad gerstner on the halftime report his take on where the vc community turns next for

capital. biggest losers on the nasdaq 100. deirdre mentioned smaller tech and non-tech names in here like pfizer, marriott, some of the biggest cap tech names rallying as we are ei ts llsenghiray broaden out. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. (vo) this is more than just a building. it's billion-dollar views. perfectly located. an inspiration. and enough space to start an empire. loopnet. the most popular place to find a space.

i'm christine mahon. i'm retired from public health nursing and from the army reserve. my retirement funds allow me to enjoy what i love to do. i volunteer with the medical reserve corp. as long as you can make an impact, why stop? for businesses of all sizes, there are a lot of choices when it comes to your internet and technology needs. when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose a next generation 10g network that's always improving, getting faster; more reliable; and more intelligent to keep you ready for today and tomorrow. the choice is clear: make your business future ready with

the network from the most innovative company. comcast business. powering possibilities™. my army! cumbias. cumbias. whatever those things are. [ sighs ] we will destroy the mushroom kingdom. [ gasps ] they're all counting on us. i fear nothing. [ growling ] what? no pressure. it's on like donkey kong. [ ominous music playing ] [ gasps ] [ chuckles ]

unbelievable, carl, to watch the stock market and bond market just this morning we've been all over the map we opened up lower the dow down 280 points. we're rallying now at the highs of the day it's broad, it's technology, it's some of the big cap tech stocks ark innovation fund is up 4% right now. and the backdrop to all of this, beyond the bank failures over the weekend and the government support, is that there are serious recalibrations now of what the fed is going to do this year you see it most pronounced in the 2-year yield which has plummeted in the last week as the market thinks the fed may take a pause in march, only do one more rate hike and start cutting rates. sharply different than last week. >> it is amazing i mean it is also true, though, that the positioning on

treasuries last week as powell was on the hill was extreme. >> extreme hawkishness now something else something very different and you see it in the dollar as well which is weakening a full percent. >> i loved your point about if we were seeing real panic in a sense the dollar would be painting a much more different picture. >> you would buy the dollar if you thought the banking system was on a brink of collapse although we watch first republic. >> let's get to the judge. >> carl, thank you very much welcome to the halftime report i'm scott wapner, front and center the latest on the fallout from svb, the implications on the market, fed and your money our investment committee and special guests on what happens now. altimeter's brad gerstner there he is joining me momentarily we kick things off with josh brown, joe terranova and britain talkington you heard carl talking about what's taking place in the bond market today stocks are up, yields have plunged. the 2-year dipping below