under way today. could kind of lead to clustering of activity around some of the big round number index levels. that'll do it for us let's get to david and sarah on the floor right now. good friday morning. welcome again to "squawk on the street." i'm sarah eisen with david faber. setting the agenda for us today, down 20%, up 20%, now down 20% we'll have the latest for you on first republic, as 11 big banks team up for $30 billion deposit rescue we'll talk to analysts from wolf research. citi's chief economist nathan sheets will join us the vulnerables in the market, and his call on a pause for the fed next week. later, ecb former president jean-claude trichet on the 50 basis point rate hike we saw from europe this week. credit suisse's worst week since the financial crisis. we're going to start with the markets. take a look there.

we are -- oh, this is almost the lows of the session, sarah, but it certainly seems to be as we've been watchling the last to hours. nasdaq the best of the bunch s&p is negative to the tune of 1.15%. also want to keep a close eye on the banks, as we have been all week first are erepublic continues te in the spotlight yesterday, a whipsaw day today, no different, really. well, different in the fact that it's been straight down, even after the positive response we saw yesterday. $30 billion plan unveiled by the consortium of 11 banks. >> it is a familiar pattern. we wonder if the rescue attempt will stem the bleeding and inspire confidence we came in monday morning thinking, hey, wait a second, the fed just stepped in and guaranteed uninsured depositors of svb why are banks selling off? it leaves you feeling like some of these are -- i don't want to say half measures but band-aids

are not fully fixing the problem. bridge measures until we get to the other side will the other side be sales of some of these banks? o or will the market calm down as we absorb the fact that we are seeing liquidity getting boosted, for instance, thanks to the fed to borrow and other measures like that >> yeah. of course, we're also keeping an eye overseas on credit suisse. see what develops this weekend over there, as well, there may be perhaps some movement given the problems that that very important -- i know swiss bank, certainly has implications globally, as well. not going to fail in any way, but the questions there become more about whether, in fact, credit suisse, and you can see the shares retreating a bit, is absorbed in some way if the regulators there take a larger role in dictating the future for that institution. >> i think the rates team wins with the research note title, everything, everywhere all in a week it's kind of the way this week has felt while bank rescue plans eased

some of the near-term fears for the state of banks, plenty of questions remain about who can be the next to fall. the fear is visible in today's action financials leading declines once again. first republic unable to catch a bid, despite the deposit infusion joining us is wolf of research managing director who has had a week, as well. how are you feeling about the system right now >> thanks for having me on look, the good news is the fed responded quickly to stabilize the system we've done a lot of work analyzing some of the fed's statistical releases, like the h4, in conjunction with other texts. the bank runs appear largely contained. really little evidence of acute deposit outflow outside of a select few higher risk regional banks. the bad news here is that the investment landscape for the banks remains murky. we were worried about higher capital requirements, even

before the svb fallout now, investors need to brace for much tougher capital liquidity that's good for the system in terms of safety and soundness, but weaker earnings and lower returns are likely to be the new normal as bank investors try to navigate this land cape. >> you're not worried about the acute bank failure issue, bank runs, any of that. you're worried about earnings and what the future looks like what markdowns are you taking on some of these stocks and their earnings >> yeah, so we've been cautious really since last march on the bank space writ large. while the calls worked, i don't see any reason to change our stance the big banks are better positioned than the regionals, but the expectation is that you're going to have, even just from higher capital requirements, potentially a 200 basis point decline in returns then you also have to contemplate higher funding costs

in addition to that. maybe some credit costs, as well, and some deterioration there as the economy slows there's a lot of risks percolating in the broader space. i'd say the investors that we're speaking with are look at the smaller regional banks as potential areas or pockets of value. the one area of caution that we would flag is do the homework on these securities portfolios. you have a lot of banks with deeply underwater securities books that could see significant hits to capital in a regulatory regime that'll have significant implication for earnings and returns going forward. >> yeah. obviously, investors are trying to take account of that, as you say. what about the bigger beeanks, though, because they've gotten a lot in deposits and seem to be safe doesn't mean they're going to thrive, does it, given the capital markets are pretty quiet, given their own securities portfolios that, in some cases, may also need to be marked down? i'm curious.

make sense of that for me. >> good news for the big banks is they were not given any exemption on their afs securities portfolios. that's the easiest change to implement, to force banks to market their securities book and flow that through capital. the good news is that the big banks have already been doing that at the same time, they re were other changes to the regulatory or capital regime that were already in process, really starting atd ath the the beginno this year. michael barr is a hawk in my mind, likely to increase requirements for the big banks yes, they've been the ports in the storm of what has taken place, but they're going to be to be immune to some of the tougher regulatory standards that are ultimately coming down the pike you brought up a good point on capital markets. we watched the data closely. we started to see green shoots

on ecm i think you're likely to see a protracted delay it is going to take longer for that inflection to ultimately take hold. you really need to see confidence improve, given what has just taken place i think it is going to take longer for that to develop >> are we going to need to see dividend cuts, particularly among the regionals? >> no dividend cuts, sarah, in my mind, unless you experience something akin to -- we're not anticipating there are buybacks one of the biggest risks we see to earnings the flenext 12 to 1 months, the street had a lot of buyback in numbers it's not clear they're beginning to have approval or the go-ahead to execute significant buybacks. we have some big banks where the amount of buyback in numbers through '24 is more than 20% of their market cap that's certainly going to have significant implications for the earnings outlook, as well.

>> what about, finally, reserve additions? we may be moving into slower growth obviously, there are some who believe we're going to have a recession. not to mention commercial real estate are we going to start to see things on that front at all? >> yeah. i do think we're likely to see some increases in provision. credit all things considered has been relatively define nine. the more acute pressures and the greater risk to returns over the next, call it 12 months, is really greater funding pressures weighing on nii and higher capital requirements but, certainly, they're not out of the woods on credit i'd say it is a secondary risk at the moment but something we're monitoring. >> are you a buyer of any of these stocks, steven >> we have only two buys across all of the big banks it's wells fargo and bank of new york both are really value plays in our mind i think the better place for

people to be putting money to work right now, sarah, it's the wealth managers where people have thrown out the rate sensitive baby with the bath water, so to speak names like lpl, which is our top pick raymond james and stifel they're trading at bank multiples but are far better positions with low-level uninsured deposits really strong capital ratios, even on fully marked securities books. significant levels of liquidity. lpl, in fact, is the best organic grower in the wealth management space, and they're not even a bank. a really immunity to a lot of the pressures. that's where i'd be looking to deploy more capital. >> interesting steven chubak, thank you very much wolfe research david, it feels a lot of money moved to wealth management, money market there has been a rotation this week on the rethink on banks and rates and everything else. >> without a doubt >> yeah. >> but, i mean, we've gone back

to the idea that, in part, what was part of this dynamic was people realizing they actually could get real rate somewhere, typically treasuries, which were offering a week ago a lot more, but still a significant rate versus what you're getting in the bank the deposit outflows were, in part, prompted by that, as well. >> yeah. turned out to be risky business when you wouldn't think that for treasuries. >> no, no. let's talk more about the svb collapse we started this a week ago with the broader banking dow downturn, the impact on the ability to raise money that is, i guess, for corporations ipos acquisitions, will it be a result let's ask kristina partsinevelos for that. >> hi. there is a desperation for cash among smaller tech firms, and now many are dealing with a financial environment that's going to be more constrained post svb fallout that's what could make for a ripe m&a merger and acquisition environment and force start-ups

to ipo sooner. take smaller tech firms, pagerduty, atlassian, if customers are cutting back, it obviously doesn't bode well for their bottom lines take, for example, gitlab, warning that cost cuts from customers were hurting their ability to expand. you could see it on your screen right now, just how the stock plunged earlier this week. and you have that situation with the smaller tech names, but mega-cap tech names are flush with cash on their balance sheets there's another so many buybacks and dividend increases they can do it is making an opportune time to snap up smaller players >> i think that there's depressed asset values, where, you know, companies that are healthy right now could pick up growth engines at much lower costs and plug them into their machine to help drive growth >> what bush predicts this

growth and the current weakness could do is have a 20% increase in the ipos, but expect the valuations to come down from the pandemic era take, for example, payment processing firm stripe they had their latest round of funding just a few days ago, and it showed its valuation is down by almost half from its peak of $95 million two years ago. that's because investors are expected to shun ipos that lack a credible path to profitability. >> yes, the world has changed on that front thank you. kristina partsinevelos. still to come, so much focus on europe as the central bank raises interest rates by 50 basis points we're joined by the former president of the ecu, leading the bank through the financial crisis in 2008, jean-claude trichet. then, today, we'll hear from c citi's nathan sheets he still sees a rate hike

coming he also used to work at the fed. provides a unique perspective. we'll get his take when "squawk on the street" comes back. down 400 points. goldman sachs is the biggest drag on the w.do only two positive, home depot and microsoft. be right back. new projects means new project managers. you need to hire.

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the global banking crisis complicating the path for monetary policy in the u.s. and abroad the european central bank this week did stay the course, announced a 50 basis point

increase that's a double interest rate increase in the policy meeting yesterday. ecb's sixth consecutive rate creek. began hiking rates in july of 2022, for the first time in 11 years. the hike comes ahead of the fed's meeting next week. the policy decision roaemains i the air. former ecb president, jean-claude trichet. glad to have you on the show nice to see you. >> it's a pleasure. >> what should the fed do next week >> well, we will see of course, before the hectic fi activity today, everybody was expecting 50 basis points. whether it'd be 50, 25 or 0, i led it to the open company meeting. they know bertter they have to see what happened exactly and what is the degree of, i would say, disruption that

is in the market i will not make any recommendation to the fed. >> a lot of people look back on your time leading the european central bank, and a lot of people look back on 2008 and what they call a big mistake, when you hiked interest rates. yes, we were seeing rising commodity prices and inflation, but then we saw, of course, the stress in the money market funds and then lehman and you know what happened next a lot of people see that as a mistake for making what europe suffered during the crisis worse. the question i'm wondering is, with that hindsight, do you worry about what the european central bank did this week >> well, first of all, several banks have very important responsibility, and every decision you are taking is a complex and delicate balancing act, when you have both inflation threats on the one hand and market which is hectic on the other hand.

you have to weigh exactly the situation. what we did in the past in the ecb, including in my time, was to be rapid and swift when we had to combat destruction, when we had to combat speculation i want only to tell you that even before lehman, i gave myself 95 million euros, dollars, you name it, to the market in august 2007. it was long before lehman, and it was because of the dysfunction. so we've always been very, very swift on combating destruction, including, of course, purchasing the portuguese, italian and spanish treasuries on the one hand, you have that on the other hand, the ecb is

responsible for price stability. so i take it that the decision they made yesterday was the right one. two elements first, increase rates by 50 bases points, as you said. on the other hand, we are not any more explicitly mentioned, what we will do in the future. no more explicit guidance. >> they took guidance, yeah. >> that is a big change. that is a big change because the previous forward guidance was 50 plus 50. now, they say 50 because we are responsible for price stability, and we would see exactly what that does, the evolution of the situation. we stake our decision as a function of this new element. >> right so on the everyolution of the situation, given your knowledge of the european banking system, what to you think happens to credit suisse, and how does it

reverberate through the system >> well, first of all, it's a new demonstration of the fact that we are living in a global village, if i may, in the financial sector because one element intervening, one event intervening in the u.s. has immediate consequence, not only on many other u.s. regional banks but also on other weak, i would say, financial institutions in the world. so that is really -- that calls for great vigilance. vigilance is of the essence. no complacency of any kind, including in applying by the, i would say, so-called rule. as regard to the credit suisse, it was obviously the weak estee est bank in europe not too surprising they are on the spot now i hope very much that appropriate solution would be found out as rapidly as possible, both for the european,

i would say, assets of the credit suisse and also for the u.s. we can see how it moves. what is clear is that the swiss central bank was extremely rapid, also as the fed has been, on trying to be as ample as possible it is not a definite solution. >> yeah, i'm curious to follow up on that, mr. trichet. specific to credit suisse, which has been a mismanaged institution for this years, the swiss are obviously not going to allow it to fail, but you seem to be of the belief it'll be absorbed or its various businesses may be by various other banking institutions >> i have no particular information on that, of course, but from an outside standpoint, i would think what is very important is the business model of credit suisse would be

credible again it would be credible in the eyes of the counterparts and clients. that, of course, calls for some changes. as you said, credit suisse has been the weak institution in europe and in switzerland. don't forget that switzerland is not part of the european union we are in a domain where the responsibilities are clear from that standpoint. but we knewthat credit suisse had problems, and i hope there will be appropriate medium and long-term solutions would be found out, indeed. >> i wanted to ask you about another story that's developing that you might be able to shed some light on here for us. these are the protests that are happening in france right now after macron raised the retirement age they're getting fairly intense i'm wondering if you think this is a threat to him remaining in power? >> no, i don't think so.

we are in a democracy. we have institutions these institutions will decide we don't know yet what will be the final decisions taken by the, i would say, parliament, because there would probably be now a motion of something like impeachment of the government. i don't trust for a moment that this motion will be voted. i take it that even if it was a little bit difficult, the parliament would be better not to have the cause to procedure which is bypassing it is perfectly legal, but it is bypassing the normal procedure of the parliament. but i trust that macron will, of course, stay firm in power in any case, it is overdue for france to go in the direction that the government wanted to

indicate for instance, the age for retirement is 67, not 64, which is creating so many problems in france so everybody knows that anything that you do under tension is very difficult and is triggering a lot of a position. that goes without saying the french are particularly elo eloquent, if i may, in their opposition, but i don't think it'll change the government and the president. >> valuable for investors to get your take on that. thank you so much, jean-claude trichet. good to talk to you, especially on a week like this. >> it was a pleasure up next, as financials and energy, sarah pointed this out earlier in the program, that's been struggling as much, if not more both, though, have been weak on the week investors, well, they've been turning back to technology

stocks, particularly large cash. the nyse fang index on pace for the best week in a year. we'll talk about what is driving the rally. also, fedex reported earnings, and they were better than expected, at least the guidance was cost cutting has been a key there. not demand we'll talk more about that we'll talk more about that stay with us we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent.

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welcome back sell-off today on wall street. take a look at this chart, the nasdaq 100 versus the s&p 500. the ndx outperforming for 11 days in a row through yesterday's close, the longest streak since july 2017 nasdaq 100 on pace for its best week since november of 2022. another chart to watch related, the nyse fang plus index is up 19% since monday as investors turn back to tech as a haven of sorts. amd, meta, nvidia, microsoft, top beneficiaries.

with those names, maybe you can say a hacven, right stronger balance sheet, especially when the problem du jour is in the -- >> sorry mike isn't here to debate whether it is the result of lower rates we're 100 basis points lower on the two-year in a week you believe that mike said it is also rotation to safer names. >> i think the broader point is actually similar, which is, the market and the move in bonds is positioning for a weaker economy this week and lower interest rates. all of that makes secular growth versus cyclical growth more attractive when you're talking about secular growth, you're talking about tech, right? whether it is big tech or ark innovation fund or bit ccoin, it rallies with weaker rates and what is the plus in fang plus, any idea >> no. >> all right >> apple >> maybe. >> nvidia. >> fang, apple was originally. >> alphabet, no, google is the

"g." fang hasn't worked. >> not in a long time. >> the pressure. >> meta benefitted from the manifesto by mark zuckerberg, talking about a leaner organization, getting people back to work that stock had a strong week look at that not bad, right over 10%. >> some of these growth names, you're getting them at a lower valuation. a reset earnings. >> yup. >> with cost dismy, discipline,? you're getting that versus when we were buying them in 2021 just off of zero interest rates and liquidity. >> prospect of growth, yeah. different times. let's get to a news update contessa brewer has that for us. >> good morning, david we have some international news for you here ahead of next monday's meeting in moscow between xi jinping and vladimir putin, the white house says it has real concerns that the chinese leader will try to broker peace in ukraine by promoting a cease-fire that

would amount to a ratification of russia's conquest national security council spokesman john kirby says xi should contact ukrainian president volodymyr zelenskyy and, i don't know, get his perspective. that's what he says, to avoid any one-sided proposals. with finland's leader standing by his side, turkish president erdogan announced today his government will start the approval process for finland's admission to nato. it'd clear the way for it to join the military alliance erdogan says sweden, the other country that's asked to join nato after russia invaded ukraine, is still being too soft on groups that turkey considers terrorists. and in a show of unity, nato secretary general stoltenberg and ursula vander line took a helicopter trip together to see the natural gas platform in the norwegian sea. they're stressing the importance of protecting norway's energy infrastructure, now that it's eu's largest supplier, and replacing exports that used to

come from russia sarah, there's our trip around europe >> all right thank you very much, contessa brewer fang plus, microsoft thank you, dierdre bosa. phone a friend and it is the best performing, up 11% up next, morgan stanley turns bullish on nvidia a. a a.i., a major reason it's a buy. an upgrade from jpmorgan after they injected $5 billion into the bank. we'll break down the calls of we'll break down the calls of the day next diminishes wrinkled skin in just two days. gold bond. champion your skin. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.

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i want to turn back to first republic, stock down 25% this despite the fact that yesterday, as we told you, of course, 11 banks injecting $30 billion worth of deposits, holding the money there for 120 days they're getting the same rate as any other depositor would. that was designed to, obviously, increase confidence in the overall institution. this morning, we're seeing sort of mixed reaction from those who follow it from the research side we got two down grgrades, one fm atlantic equities. jpmorgan came out supportive webbush says, hey, if this were to be sold, that might be a benefit to the banking system. there would be virtually, in their opinion, no residual value for shareholders atlantic equities say, well, we

assume they had outflows of $30 billion. inflows of $30 billion they also say they're probably tier one leverage ratio is down to 6.4%. to get back to 8%, they'd need to raise $5 billion in capital the market cap of the company is $6.4 billion right now sarah, very much mixed reviews, perhaps not quite the boost in confidence that the banks who got together to do this had hoped for. >> why, because it doesn't fix the underlying problems? investors seeing as a bridge to a sale >> i don't know specifically certainly, people are perhaps going to be looking through the asset side here, trying to determine how well-positioned this company is in the new world, so to speak, where they may be facing higher regulation. obviously, you have a portfolio that is underwater to some extent in terms of the marks they need to take. if you have a steady deposit base, you can ride that out over a longer period of time and get back to business as usual. though business as usual may not

be what it had been. >> yeah. it gets back to the question of what is the earnings power of a company in the aftermath of this will the $30 billion be enough, frankly, right >> yeah, i suppose. >> we haven't seen things come together it's a strong statement. >> we saw what they borrowed briefly at the dismount window. >> more than $100 billion. >> big number. we know the outflows were significant, of course, occurring on thursday and friday really strong. as well on monday. unlike signature and svb, obviously, first republic stayed alive. >> it remains our top pick, jpmorgan analysts say, high risk and high reward. not a total -- not everyone is bailing on this bank. >> nope. >> in terms of the analyst coverage also want to mention a call since we're talking about big calls on nvidia citi group piling on, raising the price target to $305 from $245 bull case as high as $400. on the back of, what else, positive generative a.i. comments from cloud giants

like -- and they specifically cite amazon, alphabet, and bydu. did you see they're joining the chat bot race? >> didn't go well on the introduction, right? >> i don't know. the stocks did okay. >> yeah, it was fine in the note, they talk about the software and internet teams are seeing a shift in cloud spending to a.i therefore, that means, if jim cramer were here, he'd say, that means nvidia that very well mean nvidia, even as budgets are under pressure. when we talk about it, i talk about chat gpt4. have you been using it >> i haven't the new one? >> i have to try it. >> they can see what's in your refrigerator and make recipes. >> i didn't know that. >> so they can see, rebecca jarvis showed me this on abc, spoke to the ceo take a picture in your refrigerator, and they'll come back with the recipes you can make. >> helpful. >> helpful for me who doesn't

know how to do anything in the kitchen. just three weeks ago, citi group's chief economist nathan sheets says said we are seeing a resilient economy. a lot has changed. he's calling for a 25 basis point interest rate increase next week, down from 50 before the banking problems began nathan sheets joins us next. we're keeping an eye on the market right now we are selling off and continue to move south. down 434 on the dow. holding on to gains for the week, but we are cutting into the gains. s&p 500 now up only about a ekrcent or so for the we it's down about 1.3% back in two minutes.

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to smooth, heal, and moisturize your dry skin. gold bond. champion your skin. welcome back to "squawk on the street." huge move in bonds this week sharply lower yields as the market rethinks the entire fed path, about what the fed will not just do next week but from there. market is now expecting interest rate cuts later in the week. joining us now is citi group chief global economist nathan sheets he's been at the federal reserve as an economist sh as well you expect them to go higher by 20 bases points next week, then what >> we had originally expected a 50 basis point rate hike given the extraordinary developments we're seeing in the banking sector and markets, we think the fed is likely to nod its head at the financial

instability and, as a result, only hike by 25. i really do think, though, there's going to be a debate around the table, and it's not going to be between 25 and 50. given everything, it'll be between 0 and 25 our expectation is that inflation remains hot enough that the fed will prefer to hike a bit. over time, they're likely going to need to hike yet more to ex extinguish inflation. >> do you think the cuts in june are mispriced? >> i think june sounds pretty aggressive to me for cuts. both because when i look at the inflation story, that's still looking pretty hot by the same token, you know, i think there's a lot of risk out there in the financial sector. i was at the fed through the

global financial crisis, and so i've seen what these financial crises can do. but this looks very different to me the large institutions are in better shape the regulation is much stronger. i think that we're in better position i don't see this stress proliferating in a way that's going to mean the fed is cutting by midyear >> but i do wonder if the data is starting to give them some room i know you mentioned inflation which came in hot in the data releases though some of the latest, the university of michigan sentiment dipped this was before the banking problems began the inflation expectations, importantly, are now at the lowest since april '21 there are forward looking indicators here showing inflation will come down not to mention, whatever comes out of this banking problem, at the very least, it'll be tighter lending standards and a weaker economy, right >> yeah.

this is absolutely the case. when we have these kinds of financial stability stresses, they take a toll on economic activity and i think the debate is, you know, how serious and how long-lived that headwind is. and is it possible that it is sufficiently severe, that the fed is actually hiking by midyear? i would say yes. but, you know, what we've seen over the last three years for the global economy, for the u.s. economy, is extraordinary resilience there have been these periods where we have absorb ed shocks. for instance, the sterling crisis, the guild crisis last fall they grab our attention, they're threatening, but the economy has shown an extraordinary capacity to shake them off. we just have to see how this thing proceeds

there's certainly meaningful downside rest we're monitoring, but at this stage, this feels like there's still some underlying strength in the economy. the financial stresses are more likely to recede than be front and center in three to six months' time. >> one other thing i wanted to ask you, nathan, as a former fed economist, is how do you look at what we saw from the balance sheet update from the fed this week, the borrowing from the discount window higher than the financial crisis, $153 billion should we look at that as good, they're shoring up, liquidity ahead of what come next, or a sign of more stress? >> frankly, i think it's both. you know, is it, from a federal reserve standpoint, given that there's a degree of stress in the system, is it constructive that banks are willing to access the fed's window i think the answer to that is

yes. but that's conditioned on there being a degree of stress in the system i think you are seeing financial institutions position themselves in a more defensive way than they have previously >> yup. >> and that does suggest, as i've highlighted, you know, there are risks here that we need tomonitor and be aware of the banks are responding to those. >> really quickly, any chance of a soft landing, or does that get thrown out the window? >> you know, it seems to me that between these financial instability risks we talked about, plus the inflation risk and if thatpersists, what the fed needs to do, soft landing looks remote right now. >> nathan sheets, thank you very much always good to talk to you sir, from citi group. up next, we have discussed, of course, the outperformance of technology stocks, particularly the largest of them this week. "tech check" has the flip side

of the trade on the other side of the break another check on shares of credit suisse. a poor week, down 23.5%, let's call it. down another 6% today, despite what was a $54 billion liquidity, available lifeline, so to speak, from the swiss national bank. we're keeping a close eye on it this weekend this weekend don't go anywhere. 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, 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 - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly.

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executives accountable following the collapse of silicon valley bank eamon javers with that >> reporter: sara, president joe biden issuing a statement just this minute saying the administration took steps here to save the banking system this week, but what he's discovered in the course of that process is he doesn't have enough authority within the federal government to do all things he wants to do he's calling on congress to take new action to do three key things according to a fact sheet released he wants to expand the fdic's authority to claw back compensation including gains from stock sales from executives at failed banks like silicon valley and signature bank. he also wants to strengthen the fdic's authority to bar executives from holding jobs in the banking industry when their banks enter receivership and the last item he wants congress to take action on is expand the fdic's authority to bring fines against executives at failed banks aimed at putting pressure on executives to

understand there will be significant consequences for them after the fact if their banks fail in theory that provides incentive to not allow a situation like this to get out of control in the future david, the question here is going to be, does congress follow up on what the president is asking here we'll see the mood on capitol hill later this afternoon, david. >> eamon, he's not asking for deposit insurance for all deposits, is he? >> reporter: that's not in here. exactly. that's the question, whether that's implied now based on the actions the administration took earlier in the week or if you have to codify that in some way. if you do, what would that cost? enormous amounts of money at stake there. time for our "tech check." deirdre bosa is looking at losses at tiger global i'm glad we got to the story private valuations like public ones. there's a lot of discretion that can be used in marking the

valuations of their public and private portfolio, we are getting numbers from some of the largest, most active investors of the last few years. tiger global one of them, of course "the journal" reports the fund marked down the value and startups by 33% across its vc funds, soft bank marked down by a similar amount last year that was the peak of unicorn valuations companies valued at a billion dollars or more. tencent is an interesting one. it has become this investment powerhouse all five names, by the way, are investors in tiktok's parent bytedance. a lot of money at stake as the government tries to figure out what to do david, tiger global was the poster child of the tech boom, a crossover fund that did both public and private investing hit

extremely hard during the tech rally last year. as you have been talking about all morning and may be enjoying a renaissance this we are, the last week or so, nasdaq and tech have been outperformers. we talked about it earlier this week, this tech trade boosted by lower bond yields and the prospect of a more dovish fed. it's been fascinating listening to your debate, sara, with santoli this morning, too. >> dee, i do wonder on the markdowns, it's been a question for a long time f. we start seeing down rounds of fund-raising, will that bring yet another lower valuation, do you think, or is this already accounting for that possibility? >> that is key if we start to see more down rounds i want to look at this chart, funding rounds versus what's happened in spacs. the blue line at the top, look at that. we call it lala land n. a way

the startup world is living in lala land. no one wants to raise the down round. they're not raising money. so much capital available in the peak of 2021, startups raised money then so they don't have to do a round that begs this whole question of how these funds are marking, they don't have to mark them down, so they're not how does that end? probably not super well if we continue to see valuations come down or stay down. the energy trade fading big this week. is it a buying opportunity or the start of the bigger plunge we'll discuss. take a look at first republic down again today after a roller coaster week despite the fact that $30 billion infusion from fellow big banks. banks. stay with us lily! welcome to our third bark-ery.

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its worst week of 2023 opec plus says it's join by macro financial fears. u.s. crude stockpile didn't help it rose by 1.6 million barrels last week according to government data. all of this is really about the economy and the diminished prospect for maybe a soft landing in the u.s. even though we do have china reopening as covid restrictions relax on the flip side wanting more oil >> can you give me a one year? i want to take a look. >> i think it's down 30% 29% or so. >> once china's economy starts getting going again that would increase demand but look >> this is good news for jay powell who is fighting inflation. i would say, look, not necessarily due to oil, there's one more thing we didn't mention in the last three hours next week president xi and president biden are meeting. investors are watching this.

it's not a zero percent risk china could arm russia, it's something that the u.s. has warned about but it's a risk what would happen? >> very bad things >> i don't like to leave the show on that note. >> have a good st. patrick's day. >> happy st. patrick's day it's going to be a working weekend for us after a pretty extraordinary week that's going to do it for us thanks to david. we'll send it now to "the halftime report" with frank holland. sara, thank you very much. welcome to "the halftime report." i am in for the judge scott wapner front and center, what's next for your money following a really wild week on wall street. joining me for the hour to discuss is rob sechan joining us remotely, brenda vingiello, joe terranova and steve weiss. let's check the markets. we're seeing red across the board. down 1.25% the s&p down just about the same still on pace for 4% gai