coming up relief rally on wall street. stocks jumping as inflation comes in sort of as expected and bank shares soaring as investors seem to think, kelly, the worst is over. >> at the same time meta cutting another 10,000 jobs leaving 5,000 positions unfilled they say they're running better as a leaner organization and they're no longer supporting nfts what does the future for mark zuckerberg's mta now look like let's check on the markets dow's up 153 he we lost some ground after that news of russian fighter jets downing a u.s. drone the nasdaq still an outperformer of 1 1/2%. the small cap russell leading the way as bank stocks rebound today for more on that breaking drone story let's bring in eamon

jafz javers from the pentagon. >> the pentagon's command says the russian airplanes targeted an unarmed american reaper drone that was flying in international airspace over the black sea. the 2 su-27 fighter jets conducted what the u.s. calls an unsafe and unprofessional intercept with the u.s. air force drone. they say one of the russian jets struck the propeller of the u.s. drone, which forced u.s. operators to bring the drone down in international waters in the black sea. now, that came just after the russian jets had dumped fuel on and flew in front of the drone in what the u.s. side calls a reckless, environmentally unsound manner the american military says the incident demonstrates a lack of competence on the russian side and the united states also says russian pilots have engaged in a pattern of dangerous actions over the black sea which the pentagon says are dangerous and could lead to miscalculation and unintended escalation. the mq-9 drone is made by general atommics

it's mostly operated by the u.s. air force for long endurance high altitude surveillance missions the pentagon says u.s. aircraft will continue to operate in international airspace now, remember, we saw similar market jitters in response to an incident back in november when a missile from the war zone landed in nato territory in poland. in that case the missile turned out to be an errant shot fired by the ukrainian side, so nothing to worry about there in terms of nato territory. a little bit different picture here today in terminals of what's going on in the black sea in international waters, guys. back to you. >> eamon javers following this breaking story for us this afternoon. let's go over now to dom chu for a deeper look at the market moves. dom, the market was really ebullient this morning and then when this news broke a little bit of the steam went off the boil >> it wasn't just, tyler, kelly, to your point off the broader market if you'll take a look at the standout sector it's got to be the banks, the financials overall. the best-performing sector in the s&p. but take a look at the kbe bank

etf. the spider bank etf. it's up 3% still a very solid move higher but put in context with the fact that it opened up around 8% to 9% and you can see we've lost a tremendous amount of steam in this bank trade. remember, this is still down about 30-some percent from the highs that we saw over the past year now, if you drill down into some of the bigger moves in the banks also, the embattled regionals, especially on the west coast, feeling some of that pain and they're still up solidly but off session highs. though first republic is still up about 37% it was up about 60% at one point today. western alliance bank up 21% pac west up 42%. and zion's bancorp up about 3% outsized moves but again off session highs. and then one other place to watch is those bigger banks. right? the money centers. the ones where from at least an investment standpoint some people are looking at whether or not deposits hypothetically leave smaller banks and go to the benefit of companies like jpmorganchase, bank of america, citigroup and wells fargo. each of those stocks has now

given up gains for the day so far. jpmorgan up just fractionally, same with bank of america. citigroup up 1 1/2% and wells fargo up 3 kelly, i'll send things back over to you. >> dom, thank you very much. the first domino to fall in the silicon valley bank collapse was losses in bonds as yields rose they fell in value and it's not just banks dealing with those losses. there's more institutions potentially exposed. frank holland is looking at some big tech companies with bonds on the balance sheet. frank? >> as you mentioned silicon valley bank isn't the only company seeing losses from treasuries on the balance sheet. some of the country's largest tech companies also reporting unrealized loss ntz billions for example, microsoft with more than 2.5 billion in unrealized losses in treasuries according to the latest filings. alphabet just over $2 billion. apple just over 1.5 billion. wedbush says we could be headed toward what they're calling a write-down bonanza when it comes to bonds in many company portfolios and i've spoken to analysts and

a microsoft investor both agree these companies are in a much different position than svb and these losses won't fundamentally change their view on the stocks, but it does have the potential to impact earnings and what we're seeing isn't a total surprise according to euro finances, yields soared in 2022. u.s. mega cap tech companies sold 75 billion in bonds with an average loss of 6% back over to you >> all right, frank, thank you very much. many regional banks have been under pressure this week and that's putting it mildly following the failure of silicon valley bank. but wafedd bank headquartered in seattle and known for its conservative approach has been a bright spot up 3% this week. here for some more on the state of banking and the fallout from svb is brent beardall, president and ceo of wafd bank brent, i can't tell you how good it is to see you because for those viewers who don't know brent was involved tragically in a -- what turned out to be a fatal airplane incident right

around new year's in which one of his dear friends, who was the pilot of that plane, perished. you have our sympathies over that and you have our joy that you are here to join us today. good to see you, my friend >> tyler, good to be with you. and thank you for the kind words. i feel very fortunate to be alive and it has changed my life >> absolutely. >> nothing like coming back to a good banking crisis. >> well, that's what i was going to say, and this is what you get as reward for all of the struggle that you've gone through because your injurie were profound. let's talk banking here a good bit. have you been hearing from customers of svb have you been talking to them? are they repatriating money to your bank? >> we have been hearing from them we have been talking to them and yes, i believe we will see a nice inflow of deposits. and i think many regional banks will i have to say over this weekend i think there was a crisis of

confidence in the banking system in the united states when svb failed and then there was question as to whether the depositors would be made whole and i applaud the federal regulators for stepping in and saying depositors, you don't need to worry, your money is safe, you will be repaid in totality and then the banks that survive will be the ones that foot the bill i take that as a good thing and i think you will see depositors flow toward the healthiest banks. >> there are regional banks and then there are regional banks p. your bank has been known and you have been known for running a relatively conservative investment portfolio, more short-term securities than long-term. you hedged your long-term securities in your holdings. you had few unrealized losses as compared with svb, and you have a diversified client base, which they did not are those the keys to successful bank management in this -- is

that the lesson here, basically? >> it is, right? and it's not news to anyone. it turns out diversification can be a really good thing what stands out to me is i looked at what happened to silicon valley bank. i cannot believe the bet they made on interest rates when rates were so low and they had this massive influx of deposits right? from 2019 to 2022 they grew from $60 billion of deposits to $190 billion of deposits. and what did they do with that money? they couldn't make loans fast enough so they instead invested that money. and i believe -- i'm old-fashioned. i believe a bank is put here to be an intermediary we bring in deposits and then we should make -- take those deposits and lend it out to good loans in the communities we serve. and they couldn't deploy those funds fast enough in loans, so they turned and they really became a hedge fund and invested that money, and in hindsight

they made some strategic mistakes >> brent, one thing i can't understand is if they had this huge influx of deposits and there weren't enough loans to make and they put it in the safest stuff, they put it in treasuries and mortgage-backed securities, why are he we so outraged by that what should they have done instead? >> well, it's not that they took outrageous credit risk right? they put it in the safest from a credit risk standpoint but what they did is they took interest rate risk so they put that money to work at 1 1/2% for the long term. and as you fknow today you can get similar yielding securities at north of 5% so now they have all of a sudden -- they essentially lost $15 billion of market value -- >> is the problem that they weren't hedged is the problem that they didn't sell soon enough what would their other options have been at the time? in retrospect obviously, okay, we did a bunch of rate hikes, those securities are underwater. but what were their other

options at the time? >> the options at the time would be to keep that money short. why go long with that money? they could have kept a good chunk of it short term, earning only 25 basis points >> exactly >> two years they did not take credit risk, from an outsider's perspective, this v they took interest rate risk and so many of these failures -- i'm a student of bank history. and so many of these failures go back to greed. and in essence they were greedy. they demanded to have higher returns in the short term. >> but if we go back to that period of time you're saying the only way for them to have done this more safely, say, they're in bills or whatever, they would literally have made 25 basis points >> correct >> they basically -- would they even have been profitable at the time and what should regulators have done then to say hey, even though you look like you're in something safe this is all going to blow up at what point were the regulators supposed to intervene and what should they have forced them to do should they have forced them to go short

not short but short duration i mean >> yeah, you know, certainly we should look at valuing companies not just on gaap accounting because from my perspective they were relying on an accounting gimmick, the difference between available for sale, which goes through your capital, and held till maturity, which is where they put the majority of their securities so by having them in held to maturity that didn't have to flow through their capital then with what happened last week everybody was brought to their attention, oh my goodness, look at the losses they have on their portfolio and they said in essence they have no economic value of equity. >> brent, i want to close with one question, and i know that your bank does a fair amount of commercial lending to commercial borrowers. i want you to listen to something josh brown said about an hour ago on scott wapner's program. let's listen to his views on commercial real estate then i want to get yours >> commercial real estate is the next shoe to drop.

specifically office building real estate. there is so much trouble coming to this sector, both in the forms of headlines, in the forms of large private investors walking away from buildings, in the form of leases being re-signed at much lower prices per square foot in cities like new york, chicago, even miami. >> several of the banks that have been on the troubled list including first republic were exposed in commercial real estate, office buildings what about you and how do you react to what josh brown just said about vulnerabilities in commercial real estate? >> yeah, first i don't think josh is too far off base but i think you have to look below the surface because there are different kinds of commercial real estate commercial real estate can be an apartment loan and it can be an office building. and it could also be be a speculative ski resort so you have to look behind the headlines of commercial real

estate and say what kind the vast majority of our commercial real estate is shelter-based. people need a place to live. i do think there will be weakness in terms of office but the weakness will be concentrated on the large metropolitan areas we're still seeing all kinds of strength in office in the markets where people are coming into >> brent, great to see you keep getting better. we appreciate your time. brent beardall >> thank you very much bye-bye. >> incredible. >> yeah. >> let's turn to today's cpi data despite inflation rising in february, the report was in line with expectations. is the fed winning the inflation fight or not could the bank collapses change their plans for upcoming hikes let's bring in greg daco chief economist at parthenon we were joking it's daco tuesdays. >> great to be here. >> what is the significance of this morning's print in a nutshell, do you think >> i think if we abstract a little bit from the current environment of banking stress which i know has been difficult

we would be in an environment that would have otherwise pushed the fed to increase interest rates by 50 basis points at next week's fomc meeting. i think the discussion right now is likely to be more either a pause or 25 basis point rate hike, which i think is more likely but i think you'll see powell and the rest of the policy makers highlighting a dual track approach on the one end monetary policy is still continuing to aim at reducing inflation, and on the other hand macro prudential policy is essentially aimed at ensuring confidence and resilience in the banking sector >> do you not take the collapse of several banks over the past -- at least two over the past week, greg, as signs that the tightening is playing out and the business cycle is rolling over and the lag is starting to catch up with us and why should they keep hiking? >> well, i do absolutely think that we are in an environment where there is a gradual realization that the fed can't

do everything everywhere all at once that essentially by raising rates, tightening monetary policy, it is leading to an environment of tighter financial conditions and now very importantly tighter credit conditions those will have an effect on interest rate-sensitive sectors but indirectly will also have effects on the broader economy, on business investment, on consumer spending. this & that is going to continue to slow. i think the backdrop against which this is taking place is very important to keep in mind from a fed perspective so while they will continue to want to fight against inflation in the latest cpi print will give them reason to do so they have to be very conscious that in trying to battle inflation they are increasing some of the risks, some of the vulnerabilities in terms of financial sector stress. >> greg, let me ask you what i fear is a dumb question but i'm going to ask you nonetheless and that is this is it conceivable that the actions of the fdic and the federal reserve in putting money into the banking system or bank-stopping it is in and of

itself an inflationary force in the economy, or is that something we need not worry about? >> well, i think we have to consider the fact that there is certainly interplay between macro prudential policy and monetary policy. by making the new program a program where the assets on banks' balance sheets are valued at par, this to some extent offsets the drag from tighter credit conditions, tighter interest rates or higher interest rates and tighter financial conditions so there is interplay between the two. and i think to some extent that is why the fed will want to continue pressing on the policy brakes in terms of raising the federal funds rate a lot of observers were very quick to write off the possibility of the fed tightening monetary policy any further but we're seeing now there is a return and more nuance to this narrative i think we should not forget that fed chair powell and the rest of the policy makers at the fed are very much concerned about their legacy they do not want to be seen as

having allowed inflation to run out of control i'm more on the dovish side. i think we will start to see accelerating disinflation going forward. but the fed seems to be more hawkish and convinced that it needs to do more in ermz it of monetary policy -- >> do you see that disinflation in today's report? >> i think we are starting to see signs of it. if you look at the composition of growth on a month-to-month basis, on a sequential basis you're seeing that it's a large -- the large driver is still the shelter cost element services excluding shelter and excluding energy rose about 0.3% on a month-to-month basis. to me that points to gradual disinflation it's not going to be a straightforward and smooth process. it will be bumpy but i think we are likely to see accelerating disinflation over the course of the next few months into the spring and summer and that will bring inflation down closer to 2%, 2 1/2% by the start of next year >> that we can hope for. >> wouldn't that be nice

>> greg, thank you so much we appreciate your time today. greg daco. daco tuesday that's funny we mentioned today's big bounceback in stocks that group -- bank stocks, excuse me. that group up nearly 2% today. energy also higher every stock in that group is up. more on that coming up and a huge sigh of relief for crypto bitcoin. bitcoin up 25% this week and it is only do esy.actuda we'll be right back. to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. go. go lights. go big city lights.

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stocks higher. the dow looking to snap a five-day slide as regional banks rebound today after yesterday's debacle. investors becoming more optimistic that the contagion from the closure of svb has been contained. and the consumer price index coming in just as expected for more on what seems like a little bit of a sigh of relief from the markets let's bring in art hogan, chief market strategist with b. riley wealth management art, always good to see you. let me ask you the question that i just asked greg daco are you seeing signs that inflation or disinflation is in the air? >> well, i can tell you this the path of the cpi in february was a lot better than we were concerned about in january the jobs report we just got for february and likely will be true of the ppi and pce the problem is it's not happening fast enough. but it's certainly getting there in the right direction

i would also offer up that when owners equivalent rent finally catches up with the reality of what's happening in housing prices we'll likely see a precipitous falloff through the summer and into the fourth quarter. so we're likely going to see a core pce that sits at or about 2 3/4 to 3 1/4% in the fourth quarter. that point in time the fed will probably be at 5 1/4 on the terminal rate. that will be plenty restrictive and what likely generates a rate cut in the first quarter of next year, being restrictive and their job being close to being done >> remind me, 5 1/4 would mean one or two more rate hikes of a quarter point? >> two more 25 basis points. likely to keep the same cadence. and wrap things up in may. and i think what that does, tyler, at that point in time is if they eventually pause, let's say they pause at 5 1/4, it's may, that kind of flips a switch in how we look at economic data. we'll stop looking at economic data through the lens of what does this mean for monetary policy and we can actually celebrate strong jobs numbers and not be so concerned this is going to jack the terminal rate up to 6 or 7%, something we were

talking about as early as two weeks ago. >> give me some names of equities that you've got your eyes on in light of what you see as the interest rate environment and in light of what you see -- well, maybe you don't see more talk of possible recession as we move into the third and fourth quarter of this year >> i think if you look at the world and want to be defensive, which i think probably makes sense at least for the first half of this year, you certainly want to look at things that you need versus things that you want and things that have strong balance sheets i would look at a company like apple which has got a fort rhett-like balance sheet it's certainly shareholder friendly and both their buybacks, paying a dividend and creating demand for goods and trading at a multiple unto itself, we haven't seen in quite some time, so very reasonable there. i'd also offer up that a financial that's been beaten up in the sort of baby out with the bathwater environment that we're in is jpmorgan i think jpmorgan, looking at a jpmorgan and saying that somehow that's related in the exact same

way to svb or signature bank and not actually a recipient of one of those deposits that have left those regional banks is probably the wrong way to look at it. so trading close to one times book and clearly a great value here, a great management team, rock solid balance sheet pape third one i would offer up is defensive in health care's abbvie it's got a very consistent dividend it's one of the dividend aristocrats. and clearly a business that is well run, continues to reinvent themselves if you're thinking defensive with a lean toward perhaps things needing to slow down here in the economy, those are three names i would point to >> all right, art, great as always to see you. thank you for your time today. >> thank you >> art hogan >> further ahead on the show regional bank insiders selling over $100 million in shares ahead of the svb collapse. we'll dig into the numbers and the reports. plus a gig decision in california a key court ruling in favor of uber and lyft. when "power lunch" comes right back when you stay at a vrbo

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♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house. welcome back to "power lunch," everybody. as stocks are higher, money is coming out of bonds, sending the yields sharply higher. unlike the past couple of days

for more on the volatility we're seeing in the bond market let's go, where else, to chicago is and rick santelli. hi, rick >> hi, tyler there's so many issues going on here but let's start at the beginning. the 8:30 eastern beginning cpi for february and if you look at what i call the super -- the super core x food energy and shelter you can see we've made some significant progress and also just to point out the 6% on year over year headline today at 6% was the lowest level since september of '21. 5.5% was what we had when you were removing ex food and energy unlike the shelter chart i just showed that was the lowest since november of '21. there's been a lot of talk about not only what's going on with europe and the uk and how there's a high correlation, our central bank seems to be the central bank of the world. but lots of eyes focused on the banking index in japan and when you overlay that with the kbw you can clearly see he that they moved right in sync.

as a matter of fact, you could even argue that the japanese market was a little more aggressive on the downturn but what's very interesting here, tyler, is if you go back to 1989 when their stock market peaked you can clearly see the current event at least in japanese terms just gets dwarfed by some of the volatility from 89 over the next several years finally, this is a three-day chart of 2s versus 10s it's moved 21 basis points which means 2s are gaining on the comeback over 10s. that will figure prominently in the fed's decision, especially considering it's next week remember, 443's where it closed last year. my call they may do a quarter but it's got to be over that yield and higher in yield than it closed last year. back to you. >> thank you very much energy stocks meantime rising today even as oil prices are falling 4% pippa stevens can explain all this >> oil is down all day long but then this latest leg lower came after the headlines about the russian fighter jet hitting the u.s. drone

now, it's a little bit of a head scratcher because you might think the escalation would be supportive for prices ux particularly since russian crude has held up so much better than anyone would have thought. but i just talked to rebecca babbin at cibc private wealth and she said this is another indication of the oil market kind of ignoring the fundamentals and instead moving on the broader macro concerns, the growth concerns, concerns around the svb fallout and she essentially said there's just not enough good stuff right now to keep people in the oil trade. we haven't seen those demand numbers materialize and that really has been the bullish case and john kilduff reminding me once again that wars -- escalations can also lead to a slowdown in demand that seems to be what's driving the -- >> basically the explanation here is that long after we've stopped talking about the drone being hit by those russian fighters we will still be talking about the macro economy globally and the slowdown and how much demand -- baseline demand there ultimately is >> exactly oil's been in this range for a

long time it's on track for its lowest close of the year i do think we could see some support at that $70 level which it's really approaching, at 71.28 but until we get this sense of demand rebound we're really not going to see any type of meaningful recovery also had opec this morning saying in their monthly report that they see a surplus in supply during q2 they see demand rebounding in china but that will be counteracted by slowdown in u.s. and european demand. >> there you have it 71 stubborn stuck there. pippa, thank you very much let's get to bertha coombs now for the cnbc news update bertha >> hey, kelly, thanks very much. here's what's happening at this hour president biden has signed an executive order expanding federal background checks for gun purchases. he's also asking the federal trade commission to issue a report on how gun makers market firearms to minors china says the u.s., uk and australia have gone, quote, further and further down a wrong and dangerous road, unquote. with their agreement to provid australia with conventionally

armed submarines and prosecutors in los angeles have decided not to retry harvey weinstein on rape and sexual assault charges involving two women after a jury could not reach an agreement on the counts in december he was convicted on similar charges involving another accuser. kelly? back over to you >> bertha, thank you bertha coombs. ahead on "power lunch," meta announcing 10,000 layoffs, getting rid of 5,000 more open jobs they already cut 10,000 positions in november. the ramifications in tech check, after this somewhere out there is that one-in-a-million. someone who thinks 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.

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welcome back to "power lunch" and today's tech check. and meta, got to talk about this memo the year of efficiency everything 10,000 more workers are being let go after the 11,000 cuts announced in november. 5,000 openings evaporated. here to discuss, julia boorstin joins us from l.a. in studio steve kovach is here as well. it's great to have you both along. and julia, let's just start with you. a huge move. is this now the end of it or do

we know yet? >> well, it seems like this could probably be the end of it for now. but a number of analysts weighing in. very bullish reactions to this move by mark zuckerberg saying that the year of efficiency just got even more efficient. in addition to announcing those layoffs and the fact that they're taking those 5,000 open job positions off the table the company also announcing it's lowering its expense guide for the year but what's so remarkable about all this, kelly, is even with these dramatic layoffs, 21,000 employees between last year in november and the layoffs just announced now, the company still has more employees now than it did in summer of 2021. we just have to remember this is a company that grew so dramatically and mark zuckerberg has really changed his tune he warned that there's the possibility that this new economic reality will continue for many years but he's saying that they can cut costs and they can still return to growth >> and what's amazing, steve, is also his comments which kind of

go back to the elon musk factor and salesforce but musk's -- zuckerberg said they are running more efficiently as they've done some of these cuts. i don't know how they did it so strategically that they're able to make that the case. but one, he mentioned that and number two he went through and looked at their engineers and the ones in office are more effective than the ones working at home. >> that really stuck out to me at the very end of this memo they basically said we're doing these studies on return to office and the people we hired during the pandemic who came into the office to work with colleagues are more productive you can see what groundwork they're laying here. i would not be surprised if this summer or around labor day, come in three days a week becomes come in three days a week or else you're out. on top of that what kinds of jobs are they eliminating, kelly and tyler? they're eliminating middle management jobs. >> that's what i was going to ask, where are the cuts coming from >> become a contributor is what they say or the implication is you're going to be out so they want teams to be reduced in size. they don't want managers

managing any more than ten people directly. and what they call it, they call it flattening the organization this is a huge criticism when you work at a big silicon valley company, especially google it takes so many layers to get anything done and move very slowly they're also trimming projects just this weekend they announced no more nfts they're done with that trend >> that seemed more core to the metaverse. that's what i don't understand >> but it was also just kind of -- let's be honest, it was never really a thing it was never really a money maker. the idea idea was we're going to have creators making nfts on instagram and facebook it's collapsed there's no way for them to do it anymore. >> i was going to say one thing that's interesting is he does mention the term metaverse mark zuckerberg does mention the term metaverse twice in this memo but he also is shifting the way he's talking about what meta wants to do, saying they want to be a company that enables human connection so i think it's really important to note that he talks about ai, how they're going to use ai to

enable human connection but he's sort of distancing himself from this idea that meta is a metaverse company first and foremost >> either one of you jump ball here, when facebook did its first round of cuts and then twitter cut, it gave cover, let's say, to other companies that then came in with their own cuts are you hearing, either of you, that more cuts may be on the way from other companies >> not necessarily but a headline just crossed over bloomberg just a few minutes ago saying more cost cuts are coming to apple and now apple is -- of course we keep talking about this. the one company that hasn't done these mass layoffs or last time i talked to tim cook a couple months ago he said we're still cutting costs, we're not hiring, but much like facebook they are -- or meta, rather, they are hiring engineering talent still that's what they want. it's this middle management, the people who kind of don't have that technical expertise now apple has always run more leanly than their other peers. not really hearing much more about cuts salesforce might be another one.

>> julia, how about you? >> i feel like meta wants to get credit for the fact they did their first round of layoffs in the fall before this was something that all the tech giants were doing. but i would also say i'm hearing a lot about the start-ups in the space. even though start-ups are so relieved they now have access to their funds at silicon valley bank that they still feel like they have to be more cautious. maybe they don't have access to debt and they are looking at ways to cut costs. so that is a whole other part of the tech ecosystem that's looking at cutting back. >> we have to leave it there, folks. steve, julia, thank you very much appreciate it. silicon valley bank ceo greg becker sold nearly 30 million in stock over the past two years. insiders at svb dumped more than 60 million in stock since 2021 and that's just one regional bank we'll break down some numbers next as we head to the break, throughout the month of march we celebrate women's heritage, sharing the stories of women leaders in business and those of our cnbc teammates and contributors

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firm apollo global is reviewing silicon valley bank's loan book and is considering buying a slice of the loan book at par. a person familiar with the talks said while apollo is interested in proceeding it is unclear what the fdic is aiming to do and that might be because the fdic is still trying to find one buyer of the whole svb book and it's worth noting that apollo is said to be one of a few private equity firms reviewing svb's book more to come as we get it, guys. >> the loans, not the deposits >> the loans specifically. >> yeah, okay. seema, great stuff thank you very much. seema mody keep an eye there. still to come, are big name llininials worth buyg foowg recent declines in we'll trade it in today therese-stock lunch. but to make it powerful enough to connect your data wherever it is, you need cdw and netapp. cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security, control data 24/7 and automatically detect anomalies. in the cloud, at least.

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it's investing in... her. them. him. and them. do they look "sort of" in? this is a place you can live in, build in, move in, thrive in. if you're all in, it's all in north carolina. ranked america's top state for business. welcome back, everybody. time for our three stock lunch and today we're sipping on some big movers and not all of them are banks. uber is surging with other gig economy names after a california court declared they can keep classifying drivers as contractors. jetblue higher after boosting its revenue outlook. and jpmorgan rallying with the other banks today. here to help us trade all three is shelby mcfadden, senior analyst at motley fool asset management great to see you, shelby let's start with uber. would you be a buyer here? >> when it comes to uber i'm

going to go ahead and hold and that comes down to the competitive advantage and economic situation, both of which we use to aquality at motley fool asset management even though i'm not one to make a habit of trading directly on policy or rulings or legislations it's important to understand how this affects the p & l on a going forward basis so without having to expand their operational expenditure in the form of increased benefits for drivers were they to be classified as employees, there's now an elimination of not only 100 million plus in explicit costs but also a potential upgrade in their competitive standing along with lyft in that whole industry so there is a little bit of a battle won there but what keeps me at a hold is the fact that i'm not quite sure the growing pains are done and that this is going to be the end of these sort of labor-related snafus for uber. it's a hold for me >> especially if unionization is now easier >> shelby, let's move on to a second company that also has had

recently its interactions, shall we say, with government, and that is jetblue. >> sure. so jetblue's also a hold and that comes down to the fact that they are able to sort of deliver on a value proposition in an unfavorable macro environment. not just for consumers but for their own operations and we know that as you bumped outlook and they're potentially positioned to gain from increased share of leisure travel compared to business travel, but they are still up against that fuel cost in the case that they're able to go ahead and capture more volume of customers because folks are squeezed and price sensitive, and then they can go ahead and retain those volumes, then they may have an opportunity to go ahead and pass on price, when those jet fuel prices start to eat at margins but because of all the moving pieces, it's a hold. >> let's get to the banks, shelby don't have to weigh in on all of them, but what about jpmorgan? >> so, jpmorgan is going to be a

buy. and that comes down to the age old tale of a flight to quality. so, you know, we find that quality is a bit sector agnostic you can find it in a lot of places often times there is still going to be a standout when an entire group has seemingly fall nen in the rubble jpmorgan is an example of that we know there is going to be a stream of depositors looking for a new place to position their cash and their assets. and we know that it is very likely that smaller regional banks will be up against regulation and the cost offal regulation when we look at the larger stalwarts, it seems more dependable in this kind of time and it would be a buy for me. >> very good shelby, thanks for your time we appreciate it today >> got to love an investment company that has the confidence to call itself the motley fool.

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[office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. welcome back, everybody. take a quick look at bitcoin, which continues to rally might have been up through 26k earlier. up 3% today. look at the week to date gain, up 25% back above 25,000. 26 earlier was the highest level since june just an interesting sign of liquidity, if we want to call it

that, plenty of people saying this is money sloshing from the traditional financial system back to -- >> one of the great ironies. i would rather have my money in bitcoin than in a federally insured deposit institution. >> exactly. >> so it goes. >> so we'll take it as the liquidity gauge if nothing else. >> very interesting. up 25% this week alone >> absolutely. and for those who say that the bank collapses were a huge tightening of financial conditions, perhaps this is the indication that's maybe being unwound somewhat >> very interesting. all of the interconnections. >> yes >> one little bank, not so little, one little bank in silicon valley insiders at silicon valley bank selling more than $150 million in shares in the years and months leading up to last week's collapse of svb. robert frank is here to discuss some of the sales, so-called

scheduled sales, i assume, others opportunistic ones. explain. >> they happen to be very well timed, many of them. so there is a lot of attention on this $3.6 million sale by the ceo of svb greg becker and he -- that was a sale that was less than two weeks before they made that announcement of their big loss and then the bank collapsed. so then i said, well, let's figure out how much he sold over the total. over the past two years he cashed out $30 million worth of stock sales. if you look at the company officers, over $84 million of stock sales over two years so that's a lot. >> insider selling there i wonder what they did with the proceeds >> some of them they were buying options, so in the case of becker, he was exercising option at a much lower price and selling. the rest of it went into their bank accounts which are totally insured. >> they kept enough of them in different places and different titles is this an endemic to the

regional banking centers others that we know of who have been big sellers lately? >> jim herbert, the executive chairman of first republic sold about $28 million worth of shares over the past years, what is interesting about these sales, particularly that february sale, is that it raises the whole question of what are known as 10b51 plans the idea is if you already scheduled it, you can't be charged for insider information. like a fig leaf. >> was that $$3.2 million sale one of the scheduled sales >> it was. he set it up in on january 26th and he sold on february 27th so the question is, at the time when he set it up on january 26th, did he know there was a potential of a big loss? and this is what gary gensler of the s.e.c. has been talking about for a long time, these programs are -- have been abused and he started new rules which under these new rules in the s.e.c., becker's sales could not have happened because one of the

new rules says there has to be at least a 90-day cooling off period between the time you start the sale and the time you actually sell. so he started january 26th, he sold february 27th, under the new rule he would have had to wait two more months to do that. and that prevents people from saying, something's coming, i better sale, i'll start a scheduled program, schedule this a month from now. >> sometimes people schedule it even for a week or two later, so it is a one-off sale so these new rules are designed more transparency, and this cooling off period and i'm sure either way they're going to look at this sale and say what did he know on february 27th when he sold it. >> was he hiding under this umbrella of the scheduled sale rule >> that's right. that's right the s.e.c. already charged somebody who had a prescheduled sale program selling $20 million in shares before the stock plunged. they filed a complaint against this we'll see if they do more, maybe even in this case. >> there is that argument about democratize the information. if you're an insider and you

think a storm is coming, you want to sell your shares, do it, but let us see that's the whole point of the disclosure you say if people were tracking the sales, they may be tipped off earlier. >> bi >> by the time you knew on february 27th, you would have had time to saell, but not a lot a lot of people weren't looking at it. >> what came as a surprise to me, maybe it shouldn't have, congress people have the right, once they leave office to be earn a living. let's stipulate that. >> a good one. >> and a good one in case of barney frank, the member of the board, i read he made in excess of $2.3 million as the author -- >> for being on the board and potentially lobbying looser rules, all the rest of it. his involvement is -- he's somebody who would say, i was one of the people who tried to raise the fdic cap and do all these things that would have

prevented this particular situation going back five or ten years, but the issues there with the crypto exposure, there are still questions. >> interesting all right. i'm sure he'll be on cnbc over next -- >> or newsmax. >> yeah. >> i think that's where he pops up. >> yeah. >> frank and frank >> frank and frank frank squared. all right, robert, thank you very much. thank you for watching "power lunch." >> "closing bell" starts right now. kelly, thank you very much welcome to the "closing bell." i'm scott wapner live from post nine at the new york stock exchange this make or break hour begins with a stress relief for stocks rebounding after the svb shock investors wondering what it all means for the market, the fed, the economy and so much more we'll ask billionaire investor carl icahn that very question when he joins us live. here is the score card with 60 minutes to go in regulation. major averages, they are all still in the green today a really nice day for the russell. not quite as strong as it was, but nonetheless, that strong

regional bank rebound is h