ready over there, so you get to look at me for another few seconds. we watch an s&p that's up almost 1.8% nasdaq up 2% big rally in so many stocks we were following yesterday in a different way. the regional banks are rebounding nicely as you look at the broader market not to mention the dow getting a bit of help from the likes of boeing, which is up quite nicely thanks to phil lebeau. oh, all right. we can keep going if you want. i'm happy to go all day long >> let me tell you this, before we send it over to them. whose engines are going to be on these planes, not just for riyadh but also for saudia, general electric that's a nice footnote to this order out of saudi arabia today. >> interesting because shares of ge have had quite a decent close. some people do point to the multiple of ge yeah, the multiple there, which

is quite high. but perhaps, phil, their business is obviously focused. >> the aerospace is chugging along very nicely. we were there last week and talking with larry culp, ge aerospace has it going right now and you can see that >> not where i thought we would end this hour, but it's where we did. let's send it over to sara and carl on the floor. >> good tuesday morning. i'm sara eisen here with carl quintanilla on the floor of the new york stock exchange, setting the agenda for us. jpmorgan's michael furoly with an inline cpi number, while wall street is resetting fed expectations ahead of next week. >> two more regional bank ceos on the sharp rebound today key corp's chris gorman, and kevin blair joining us later, an exclusive with the former ceo of disney, michael eisner on set with us at post

nine the state of vc funding, disney, and much more. >> a lot to get to today s&p, 3925, not that far away from the 200-dayaverage. we'll see how much that acts as resistance dollar index back below 104. vix, 23. >> feels better. the banks are all rallying, especially the regional banks and so are technology companies. we'll kick it off with the inflation print. in light of this morning's economic data and svb's collapse, our next guest expects the fed to raise rates by 25 basis points next week, saying he thinks a 50 point hike is now off the table. joining us, mike feroli. the debate is 25 versus pause, mike why do you think 25 is happening? >> so, i think this morning reminded us that inflation is still a persistent problem in the economy. if the fed were to pause next week, that would send the wrong

signal about their resolve, which they have been trying to convince the public and the markets that they're really resolved and inflation is the battle number one. i think a pause would send a mixed signal there so we do think 25 looks to us like the most likely outcome >> i totally agree, which i said last hour, mike. but the argument is that a lot of what's inside the inflation number is backward looking, like rent like shelter a lot of the goods prices are deflating, and a lot of the impact of this banking collapse and crisis, which is more systemic and more worrisome has forward looking deflationary impact >> all data is backward looking, but i would say in the number we got this morning, when you strip away shelter, when you strip away goods, that core services x rent category, which chair powell has been highlighting, that was up .5, and that was the firmest gain since september

so i think the number itself was still concerning now, in terms of the outlook going forward, yes, i think some of the developments we have seen over the last week in the banking sector have potential to weigh on credit creation and overall economic growth. but that's kind of part of how fed hikes play out through the economy. expect some slowing in the economy is what you should expect but i don't know that the fed's quite convinced that what they put in place is enough to with confidence say that growth is slowing to get us back to 2% inflation. >> at the same time, mike, inflation expectations on the three-year basis awfully close to where we were when the pandemic began meta laying off another 10,000 maybe that gets reflected in jobless claims some time soon. do you think even 25 has even a touch of courting danger given

the knocks to stability we have gotten >> look, they're either going to overdo it or underdo it. you're never going to do it right. now, that being said, tech layoff announcements have been kicking around for three to six months now but just last week, we saw another 300,000 plus gain in employment i don't think we want to get too carried away with those anecdotes until -- you did mention the jobless claim numbers. those did move up last week. it will be interesting to watch what we see this thursday in that regard. but yeah, there's always a risk the fed is going to overdo it, at least if you go 25, that minimizes the risk relative to going 50 so i think you have that at least. >> when do the layoff announcements start to show up in the data, for real? when does that actually become an economic problem? >> so, actually in last week's jolts number, beneath the

surface, you did see an increase in layoffs so i do think maybe we're starting to see the leading edge that was for january maybe at the leading edge of this certainly, we and others have been waiting a long time to see the labor market slow. we didn't see it in the employment report, but i think some time in the next few months that should start showing up, particularly now that you're starting to see the goods producing sectors finally show some signs of the effects of the cumulative effects of rate hikes. construction, manufacturing, trade and transportation, warehousing, things of that nature are starting to actually see some of the usual effects of rate hikes on employment >> the market is there it looks like the odds are up for 25 next week and then cuts later in the year. mike, thank you very much. apprec altiate you joining us. from the fed to the svb fallout, bank stocks are clawing back yesterday's steep losses with the kre having its best day

now since november of 2020 baird with an especially bullish new note today, calling regional banks, quote, one of the best risk/reward opportunities in years. but moody's at the same time does cut its outlook for the u.s. banking system to negative this morning joining us, kevin blair, bank with nearly 350 locations across the southeastern u.s., stock moving today as well kevin, great to have you we have had heard from quite a few bank executives in the last 48 hours, let's say, who suggest it's at least something approaching business as usual. is that how it feels >> it does when you think about what's happened the last couple days, it just presents us with an opportunity obviously to be in front of our shareholders or in front of clients telling a story. as i told our team members yesterday and some of the clients, we're built on relationships. and when you have a relationship with a client, it's a two-way street when we lend money to our clients, we need to make sure that not only do we underwrite

that loan but we have a level of trust they're going to fulfill those requirements that we need them to fulfill, and quite frankly, when they deposit money, we need to fulfill those same requirements to safeguard their liquidity. there's been lots of discussions. the market today is a lot more construc constructive it's given us a real opportunity to reach out to clients and eliminate some of the misinformation out there we have actually grown our deposits 6% on an annualized basis quarter to date. we continue to have inflows and that allows us to have the type of liquidity tat some of these other banks didn't have. >> right how do you think then the picture changes on earnings pressure what happens to net interest margin how does all of this start to get reflected in corporate guidance in the coming weeks >> well, look, i think it's still too early to know what it means in terms of nim. we have known for some time that the betas on the deposits, the

lags that exist, would continue to increase. we expect that to continue into the foreseeable future we built a lot of that into our guidance for '23 so we're still fairly constructive on nim. we think we'll see expansion in 2023 overall for the year. in short term, there's going to be headwinds on the margin based on the deposit betas but we also have a large fixed asset pool that we'll reprice over time. as long as rates stay higher, we'll have the opportunity to have a bit of a tailwind for the long term on the nim front so it's early, but we still remain cautiously optimistic on the nim. >> a lot of people i have been talking to, kevin, think as a result of this the small and midcap banks -- it's going to be a tougher road for them. their models are going to be challenged they'll have increased regulation the big are only going to get bigger, they're going to take market share, and ultimately, we could see consolidation. is that house the future looks

>> we talk about primacy all the time they choose synovus, because we provide them a relationship. we're just the right size. we can outcapability and function the small banks and we can, i think, out service and out relationship the larger institutions that's not going to change in this environment people want somebody on the other side of the table they can trust. you're going to continue the relevancy and need for regional banks. as it relates to m&a, and regulations, i would just start with regulations we're below $100 billion, but today, we continue to provide stress testing on capital and liquidity, just as if we were over $100 million. those are practices that we think are smart and allows us to manage within a risk appetite that would look a lot like larger institutions. i don't think we're any more risky than a bullish bracket firm or money center bank. we're managing to the same requirements as it relates to m&a, we're focused on organic growth. we're in the southeast

we think it's one of the best footprints in banking. we grew loans last year 11%, we'll grow again this year there's a lot of growth in front of us. so m&a is not something we're focused on we're focused on investing in synovus. >> just to be clear, you don't have to go through the liquidity coverage ratio rules, right? >> that's right. >> wouldn't that be harder to comply with, to measure the liquidity, which is something big banks have >> that's over $250 billion. between $100 and $250, there's internal stress testing required we run a very similar internal stress testing analysis that mirrors what happens with the lcr. in today's world, we don't have to comply with the reporting requirements but we're doing a lot of the same stress testing to understand what the risk is of the outflows based on the category of deposit. >> kevin, appreciate it. that's good guidance, and we hope you'll come back in the weeks to come.

obviously, the story is not going to disappear completely. appreciate it very much. >> thank you for having me really appreciate it >> still ahead this hour, the strategist who warned on silicon valley bank last year will join us this hour regionals rebounding we'll talk to the ceo of key corp with the latest on the collapse of silicon valley bank, and next, an exclusive with snrmer disney ceo, michael "squawk on the street" final hour just getting started. s... my business' payroll taxes will calculate themselves. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed.

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let's turn now to the vc sector our nesguest has moonshot bets facing pressure as silicon valley bank collapse has investors worried about systemic risk to fund-raise in this environment. here to talk about that and much more, including the media sector, we have the former ceo of disney, michael eisner. michael, great to have you back on welcome. >> thank you so you are involved in the vc world right now do you see a big impact as a result of this banking failure >> no, because i think it was resolved over the weekend. and resolved well. the taxpayers are not going to be handled, and if these young start-up companies are saved, which i think is important, it drives the economy, parts of the

economy, and it drives great innovation, some of the great big media companies we all know started that way >> i guess the bigger question from here is implications on just vc funding, which clearly flowed in the last few years as result of low interest rates what built silicon valley bank up and now are dried up. does that happen >> i think there was a lot of enthusiasm that always has been a lot of enthusiasm for the last 20 years, 30 years on investment in new companies and i don't know, i came into the airport yesterday, and i went through clear and all of a sudden they can recognize your eyes, and you whip through it. these things start with this kind of innovation starts with this kind of investment so there is abuse occasionally, but we should be really happy that it's happening, making our lives better >> are you making investments right now? >> i have investments in all

sorts of things including technology companies and start-ups. i have a few that will work and a few i don't want to talk about. >> i guess you'll keep us posted there. >> is this part of the cycle pushing you to adjust your playbook or not? or how does this echo with prior cycles you have seen regarding tech funding >> my playbook has always been if something you hear doesn't make sense, you probably shouldn't do it. and if something does make sense, reasonable, risky, but reasonable risky investment is a good idea. i think i missed the pets.com momentum of that era i have been pretty careful and lucky in many ways >> everyone wants to know what you think of disney right now. bob iger returned. the only thing we have heard or seen from you is you tweeted welcome back, bob iger does that mean you think it was a good move? >> i think it was a great move

for disney i'm a little nervous for bob because he left with a ten-plus, plus, plus, plus rating. to continue that is not easy i think he will achieve it there are headwinds he has to deal with, some of which were there way before he left i'm rooting for him. if anybody understands that company, it's bob. and i made the right decision. i think he made the right decision i like bob chapek. >> you always thought very highly of him. >> i hired him he did well in the parks maybe he was the wrong guy for that particular job. i think the board was right ing bringing bob back. bob was pretty right going back. i think he loves the company and i think all is well that will end well, but it's going to be a while >> disney ceos never want to leave. >> for good reason >> it's a great job. i will say, having 20 scripts by

my bed unread every night for 40 years, including paramount and abc, is kind of nice having a little more time i think i'm still alive because i retired from disney. i didn't retire from life. so it worked out >> there is an ongoing debate that the street has about whether disney's entertainment umbrella needs to be broad or classic, what you would think of as the classic disney era. does iger need to decide between the two and does that have implications for the hulu stake? >> i think both are appropriate. i think most important thing at disney is disney i think the prices in the parks went way too high. i think since i left, they went two or three times above inflation. i think everybody has to belife othe guests have to be all vips. i don't think you should charge for back of the house and all t that stuff i think bob is addressing all

that i think you need that moat around disney. disney is it, and you have to be careful not to dilute disney because that is forever. that said, having star wars and marvel, fox was a little expensive, but having these other entities that help their streaming service is pretty smart. >> and hulu? what's the call? what's the right call? >> i like hulu i haven't talked to bob about hulu intentionally, because i knew i was coming on here i didn't want to slip up and say something that screwed it up but i like hulu. >> what would you tell him >> what would i tell him i don't know you know, espn is in good shape. they have an nfl for 11 more years. but, you have the streaming services you have google, you have apple. you've got netflix they're all outspending the

traditional media companies, and that's where it hurts. because it is events, it is brands, it is high energy product, the best product. and they can be outbid so this is an issue you have to be conscious of. the small independent films are having a hard time finding a place. in theaters have to be readjusted because they're only taking marvel movies, warner brothers event movies and those little movies like the one that just won the academy award has a hard time finding a place. all of this will come out in the wash >> now, there's increased scrutiny on streaming profitability. netflix is the only one that has really done it >> everybody is kind of -- it's like lemmings going to a cliff they all want to follow netflix. that's their only business in netflix. they care, used to care about revenue, not profits so all of the companies overspent, too many people, too

many attempts to have too much product. holding product back from selling it to others, which i know disney now is changing their mind on, warner brothers is changing their miernd on. we're going to get back to windowing. hbo and this one and that one. i think it's revolving back to a more intellgent system >> what about the ad supported model? we're looking at some of the prices without ads on some of these services but netflix is embarking on this big experiment here >> advertising >> yeah, advertising >> advertising are still the backbone of a lot of the entertainment business i think they're having trouble with for instance regional sports which is a real problem it is frankly, if the subscription rates get so high that it excludes average americans, the advertising model is a very good model it's positive for the consumer, and i think it will be positive

for getting to profitability for the streamers that aren't netflix. >> when you think about the price of a movie ticket and popcorn and babysitter, does this feel exclusionary at $20 a months for even the lower cohort in america >> you mean for streaming? >> yeah. >> first of all, you know your teenagers that are dating do not want to be in the same room as your parents watching streaming. and movies are a very inexpensive form of entertainment. even with a babysitter, even with the popcorn movies are not going away. as a matter of fact, i had a lot of conversations with the ceos, this idea of keeping movies away from the theaters and putting them only on streaming is not working. i think some of the streaming services didn't get any more subscribers by having original movies on the streaming services you are now going to find movies, and maybe even some of the smaller movies back in the

theaters they just have to readjust how many they have, how deep, how big the complexes are. >> florida, do you think of that as material? i mean, to disney's future right now or is this going to blow over can iger find a way to make peace with this culture war that i never thought i would see disney in? >> i have a lot of thoughts about this none of which i'm going to tell you. >> all right >> because i don't want to get into a culture conversation. i think it got out of control. i think if i had been ceo at that time, i would have expressed my opinion but separated it from the disney ceo opinion. i think it escalated to the point of ridiculousness, frankly. i don't think it's meaningfully different. yes, there are non-disney people on that reedy creek board. i think they will become

disneyphiles they'll love disney. by the way, the way disney built under reedy creek was better than all of the way it was built around the rest of the country the roads were thicker, the drains were deeper >> utilities were more robust. >> hospitals were great. there was no problem there there was a cultural conversation >> that's why people argue it was punitive >> punitive, cultural, irresponsible, shouldn't have happened >> they're going to be a punching bag now, especially if desantis runs for president. >> disney is going to be a punching bag >> don't you think >> people have ran for president in this country love going to disneyland, going on the car, having all the screaming getting on the cover of "time" magazine as opposed to france, when they wouldn't be seen near disney i think it's not wise politically to be anti-disney.

i could be wrong i'm pro-disney, but i am not running for anything >> finally, there's been so much excitement around some of these media stocks this year, warner brothers and paramount yeah, they got hammered last year, but i wonder how you see consolidation playing out now that rates are moving higher and companies could be opportunistic. >> i think people are missing some things. for instance, if streaming really escalates, for instance, sports, all of the regional sports is now going to be streamed national sports will be streamed what do you need you may need ten gigabytes to get the streaming done well. who's going to win that? maybe comcast, maybe a company that actually sells band width as far as conglomeration, are some companies too big, will they be broken apart, will things be sold the way it's been forever. so maybe that will continue. >> who are you buying? >> what? >> whew are you eyeing

>> who am i eyeing i'm eyeing you all we're sitting in the studio. >> you're dodging. >> no, i'm not i'm eyeing >> michael eisner, we appreciate the time and thoughts on everything, disney venture appreciate it. >> great to be here. >> michael eisner. >> still to come, the ceo of key corp on this meltdown in bank stocks one of the top s&p gainers at this hour. plus, watch uber and lyft and doordash pretty good morning as this california appeals court mostly upholds prop 22. allows these gig economy companies to classify their workers as independent contractors rather than employees. stocks awfully close to session highs. dow up 450 don't go away.

welcome back here's what's happening at this hour the justice department and the s.e.c. have started separate investigations into the collapse of the silicon valley bank

that according to the "wall street journal" citing people familiar with the matter, investigators also looking at stock sales from the company's ceo and cfo in the week before the bank failed. and what an official is calling a transformational change, the epa is proposing a national standard to reduce the level of forever chemicals in drinking water. the epa says long term exposure is linked to significant health risks. >> apollo global is buying univar, marking one of the biggest leverage buyouts up about 14% in trade. the deal is expected to close in the second half of this year sara >> thank you, seema. >> coming up, more on what today's inflation print means for the fed next week. much, watch the airlines shares grounded after alaska and united cut guidance. thatto sry lives on cnbc.com we're back in a moment

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. welcome back let's look at the banks today. moody's downgrading its debt rating of signature to junk as it places six more u.s. banks under review for a downgrade our next guest flashing some warning signs on both the signature and svb back in august pointing out higher than average default rates -- default risks for the two names. in this updated screen, first republic takes the top spot with an average default rating of

27.78% joining us, tom soros. what alerted you to this i guess before the street really got its arms around it >> really what it comes down to is equity volatility what we found is that prepandemic, we really built this model to look at high yield credits. when you have an area where you have high price to book with equity names, you have volatile free cash flows, a high proportion of liabilities and short term liabilities and not a lot of cash, the old adage that credit leads equity doesn't fly anymore. equity leads credit. we tinkered with this model where now we can do it with investment grade credits you can take that equity volatility and it gives you a leading signal those two banks saw extreme amounts of equity volatility last summer, and that tipped us off, especially given their own fundamental balance sheet metrics. >> what else pops on the screen, then any other names?

>> first republic pops up there, ally bank pops up as well. financials now as you might imagine because we're in a bit of a banking crisis concern, you're seeing financials popping up across the board as the highest risk entities on our screen >> for bulls who want to argue, look, we're deeply undersold on the name and standard deviations and is that for a good reason? >> for good reason, and you can make an argument that for now, this has been stabilized and we have put a backstop on the depositors which means in theory there should not be any more runs on these banks at least on deposits that's a koo point even with these elevated default risks, you don't get that unless there's a depositor run. you can stabilize that and take the risk off the table >> if you're just looking at equity volatility, we learned in the last 48 hours that equity prices don't necessarily reflect the fundamentals of what's happening in the banks yesterday's first republic was down 66%, the chairman was

telling jim cramer there were no deposit outflows >> that's why it's a leading indicator and the right model for the right time we had a very unique set of circumstances that hit these banks. this model might not work if the environment is slightly different. equity volatility gives us that leading signal, but it may not be necessarily a long term valid tool because there's other factors at play. >> what do you make of people who want to draw lines from all of this to hyg and say, look, we're not in any kind of danger zone historically? >> well, right now you're not seeing credit behave the way credit behaved in 2007 and 2008. but i think that makes sense because if you go back to the problems happening at silicon valley bank, it's very much an interest rate risk management program. that's usually the prelude to the credit risk-off. the real risk coming down the pipeline here is probably commercial real estate risk, which if this does force banks to tighting credit, then that becomes a bigger problem,

broader credit issue >> would you be watching >> absolutely, and those banks that are most tied to commercial real estate, particularly those with the most concentrated real estate exposures, those who have the most concentrated geographic exposures. also looking at mortgage back security spreads >> does the directionally more dovish fed take the heat off a little bit >> it does it gives you a sense of safety we saw it in 2007, periods i the fed came out and gave us a more dovish tone. and that gave the market some calm, but we knew the credit risk was building along the way. the real problem here, two problems, one is the pace at which rates have risen that causes the depositor problems and liability issues. then the level becomes a valuation issue as weller. we haven't done anything to deal with the level the level going to rise further in the next week >> have you seen those stress

levels yet in the market >> you get the anecdotal stories of landlords handing the keys back to the banks. you're seeing spreads widen out in it lowest rated investment grade rungs. you're seeing those initial signs but nothing again that is broadly systemic of course, the most important one is things like, one of the most important ones, nonperforming loans. banks aren't indicating nonperforming loans are rising at this rate eventually, that's what we would worry about. >> you're not calling for a fed cut by any means >> no, and i think it was premature the market had priced in two fed cuts for this year. i think it makes sense for the fed to give us 25 basis point this month and then pause to evaluate quote/unquote the data. it means the economic data like the cpi that came out hot today but not where the fed wants it to be, but also the financial market data. there's more than just inflation now. i think the fed pauses, but i don't see cuts this year >> a lot of people talking about

credit suisse cbs today? >> this is a broader problem, not just u.s. banks. that seeks to the next phase of this, the credit risk. there's going to be credit risks and some banks are already seeing the credit risks. as credit conditions tighten further, which they almost will from this phenomenon we have seen play out, you should start to see more strain on the credit focused and credit centric banks. >> thanks for coming in, and congratulations today. >> thank you after the break, look at key corp surging double digits, leading the comeback in bank stocks this morning. we'll talk to the ceo about the state of business, liquidity, and much more. the nasdaq hitting session highs right now, 2.5%. the dow is up almost 500 points. we'lbeig bk.l rhtac

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look at key corp right now leading the rebound in financials, up 14.5% after it closed down by nearly 30% yesterday amid the silicon valley bank fallout. what is ahead? here to discuss in an exclusive interview is key corp's ceo, chris gorman thank you for joining us appreciate you guys speaking out. i can't imagine what the last 72 hours have been like for you how have you been reassuring your customers >> well, first of all, thank you for having me on we have been out just talking to our customers in the ordinary course, and so it isn't like we're doing anything differently

than we always do. just in the ordinary course, we're out talking to our retail customers, out talking to our commercial customers and it's business as usual but it certainly has been an interesting 72 hours, to your point. >> business as usual with your stock down 30% have you seen any deposit outflows >> no, what's interesting is we really have not. we obviously are watching our deposit outflows carefully in fact, over the weekend, we had the biggest deposit growth in our retail business that we have had year to date. so we have been really pleased with the stableness of our deposits and we have actually enjoyed some deposit inflow. >> what about the other sort of piece that everybody is worried about here, which is how you're funding those deposits and the kind of duration risks and what kind of losses you have on the balance sheet? what can you tell us there >> sure. so obviously, duration risk is

important. as we look at our portfolio, 50% of our portfolio is three years or less in duration. so we're fortunate in that we have a very short durated portfolio, which is obviously pretty helpful in an environment like this. >> so are you saying that you have been a beneficiary of some of the outflows we have seen from silicon valley bank and signature? >> well, you know, we're part of the whole banking ecosystem. and we have been pleased to be able to serve clients who actually, you know, i'm pretty sure have noticed we're looking for a home we have been able to serve some of those clients and have been pleased to do so >> yi don't mean to throw fuel o the flame, but i wonder if you think there's merit in the argument that certain elements of the vc world try to foment worry in an effort to get paulsy

makers to back them up in ways that weren't relevant to retail depositors in this country >> carl, i'm not sure exactly who was fomenting what concerns. but clearly, svb have a business that's concentrated around an ecosystem, and that ecosystem is obviously very connected to many parts of the economy >> so what does all this mean, this fallout and the pressures we saw in the banking system what's it going to mean for loans and for lending standards? >> well, i think lending standards, i think people will tighten their credit boxes i think people are focused obviously on liquidity but the banking system is in great shape. i look at credit metrics all the time, and not only our credit metrics but really across all of the regional banks credit metrics are in good shape. i think you'll see, sara, people

are open for business. as i said, conducting business as business as usual but i think probably some of the excesses that, by the way, weren't in the banking system, i think probably you'll see some of those pulling back a bit. >> elizabeth warren has this op-ed in the times where she basically says i told you so, when back in '18 when these rollbacks were occurring, sort of predicting in her view the excesses that were to come do you think she has a point >> no. i think, carl, within the banking system, i can tell you we're a category four bank we're extremely regulated. we're subject to stress tests every single year. we conduct our own stress tests constantly so at least from my perspective, i don't think it was lack of regulation i think it was a matter of a lot of concentration and perhaps not the best balance sheet

positioning. >> longer term, i wonder, we have been asking a lot of bank executives this question, whether or not we're going into an era where for example, the marketing message changes to retail depositors that emphasizes security and safety, and if it does, what does that sort of imply about your level of worry about financial and credit conditions going forward. >> i think convenience, safety, and security are kind of what we sell we're a bank that's out in our communities all the time and what we're really selling people is the fact that we're easy to do business with, that their money is safe, that they can communicate with people, that we can serve their needs. so i don't think -- i don't think that really changes. i think it's going to be for us more of the same of how we have done business. go ahead >> no, no, go ahead.

>> our big focus, and we have been focused on this for probably the last four years is this notion of primacy by primacy, everyone has an operating account, whether you're an individual or you're a business, where you're basically running all of your flows through that account and because we are the primary bank in 85% of the instances, we're really well engrained with the companies that we serve. so i think our whole notion of sound profitable growth ties in well with that >> what about being opportunistic here, chris? there are reports the feds would rather see pieces or svb and other banks end up in the hands of midsized regional banks like yours. would you be interested in a deal >> well, we have a pretty good history of acquiring and successfully integrating

businesses we have purcpurchased a lot of e businesses, whether they were digital or analytics companies that's typically where we focus, buying businesses we can plug into our core business and make us more impactful for our clients and prospects. we have prospects. we have completed one significant acquisition since 2016, and that was the acquisition of first niagara, and that worked out really well for us i think the right deal at the right price makes sense, but for me it would be a really high both strategic and financial hurdle >> did you express interest to the fdic this weekend or otherwise? >> sara, we never talk about any deals that we may or may not have looked at >> i feel like you didn't rule it out just now, so, chris, thank you very much. appreciate you coming on i know there's a big sigh of relief today in the shares >> thanks so much.

>> chris gorman. a lot more on our bank coverage later in the day and the hour. a big interview 1:15, the ceo of charles schwab be will join me on "the exchange." stock is up sharply today, 10% after taking a beating on all of this bank stock. a look at meta in the spotlight today because the company finally confirmed another round of layoffs, another 10,000 we're watching the semis stocks, nvidia, lam research, intel. amd up a whopping 7% technology rallies in fact, everything is rallying. communication services and financials at the top. you love closing a deal. but hate managing your business from afar. you need to hire.

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one of the big stories of the morning, meta announcing more cost cuts in the form of layoffs. the company says it expects to reduce head count by around 10,000 and close out 5,000 open job postings the second major round of job cuts at meta the street likes that news on a day tech is doing very well. s&p tech up 2.5. let's bring in julia boorstin. julia, we talked about not just the numbers and the move but the way zuckerberg is framing it in this manifesto of a memo >> manifesto of a memo that talks about how the year of efficiency is getting more efficient, how they are going to be driving the productivity of their engineers, will be flattening the whole

organization and figuring out systems to make the whole company more productivity. productivity is key here the thing i want to point out, carl, this is a company that between november and then these layoffs announced here, eliminating 21,000 jobs plus, also eliminating 5,000 open roles, but even with those 21,000 layoffs, the company is still going to have more employees than it did in summer of 2021. i don't know if we can pull up that wall here but what is so important to acknowledge this is a company that added so many employees since the beginning of the pandemic that this is still not going back to the prepandemic employee numbers >> which raises the question, julia, if there's more cuts to come, right? if there's more they're able to trim or if we should look at this as, you know, a positive thing that we're not seeing mass layoffs across tech to put it in perspective in that way.

>> the con seven tuvcensus seeme mark zuckerberg knows these additional layoffs were coming these numbers are sort of higher than what people were hoping for at the beginning of the year when he talked about this additional efficiency but very much in line with what's been expected the past couple of weeks t. seems there's not going to be anything else coming right now, but the hope is among the analyst who is have been issuing these positive commentaries and reports, carl, right now the hope is this is a company that will be able to return to growth without having to spend a lot more on costs. >> we'll talk more later, of atur wh it might mean for earnings. julia boorstin on meta

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. what is wall street buzzing about this morning ken griffin. the citizen and shares up huge in western alliance after that call but also after what we've seen in the regional banks major rebound. griffin made headlines when he told "the financial times" the bailout of svb depositors by regulators proved that, quote,

capitalism is breaking down, stirring kind of a debate about whether that was the right thing to do. >> certainly a face-off between him and some vcs, big ackman we have griffin on western alliance baron buying schwab. people wondering what buffett is doing. >> we'll talk to the ceo of schwab at 1:15 that's been kind of a litmus test for the banking system. >> let's get to the judge. carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center the big rebound for stocks and questions now about what happens next. we'll bring that to our investment committee today, which is making some new moves in this market, and they are quite interesting. joining me kari firestone, josh brown, joe terranova, jim lebenthal. let's check the market the dow is good for 400 almost on the nose. nasdaq is up quite nicely, up better tha