nominating directors to salesforce's board. it is monday, march 27th, 2023. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick with joe kernen. andrew is off today. it is monday. quieter this monday. the u.s. equities are higher at this hour. looks like the dow futures are indicated up 133 points. s&p futures up 17. the nasdaq up 29. last week was an up week for the markets. all three averages were up by 1%. the nasdaq up 1.6%. if you are looking for the month, the dow is actually off

by 1.3%. s&p is flat. nasdaq is still the winner at 3.2% for the month. treasury yields are bouncing all over the place. you can't count where something is at the beginning of the day at the end of the day or the week. right now, the 10-year treasury is 3.453% with the 2-year treasury below 4% at 3.917%. in breaking news, helping regional banks. fdic says first citizens bank will buy the depoits of silicon valley bank. it is$72 billion of assets at the discount of $16 billion. $90 billion in securities and other assets remain in receivership. this position by the fdic. the fdic received equity protection rights in first citizens bank shares. potential value up to $500

million. they will receive a line of credit from the purposes. it has a profit sharing agreement to protect further credit losses. at the beginning of the day, the silicon valley bank branches will begin operating as a division of first citizens bank. the ceo will join us this morning. in the top 30 as far as banks. 109 billion in assets. >> svb was 16 in terms of assets before everything fell apart. >> 16th. this will put it in the top 25. $109 billion is what it had before. very big regional bank. first republic is up today.

back over $15. a lot of the regionals are back. now i think with the fed back to inflation. >> i don't know if it puts this to bed, but it looks better at the moment. i think it will cost the fdic $20 billion. if you are talking about the profit sharing they get on top of it to deal with it. >> the fdic insurance is hit at $20 billion. >> right. they had $120 billion the last time i looked at the balance sheet for the fdic. 1/6. fdic is not government money. funds that come from the banks. they pay the fees. a good deal for first citizens bank. $72 billion of assetassets. >> it gives them another foothold. growing quickly. maybe this will be, you know,

something that we remember helping stabilize. something else i was going to say here. i can't remember. >> we have three hours. >> we do. >> first republic shares up 25%. a gain of $3. $15.55. >> $17 trillion in deposits is tough to insure. >> yes. >> 20. we use up 20 billion. that's the idea. we said it before. janet yellen was looking at it last week. >> whether or not they take all banks. >> implicit and explicit. we won't do it for every one. >> it is a case by case basis. u.s. regulators are looking at an effort to give first republic to shore up its balance sheet. the stock is up today.

bloomberg reports that talks are in an early stage right now. one idea supposedly under consideration is expanding the fed emergency lending program. if you listen to larry summers, he said they should insure all deposits a year to give people time to move things around. there is a lot of push back on that idea coming from congress and other place where is you -- places where you need to get that authority. lawmakers are looking for answers with the bank failures. steve liesman has a list of what lawmakers are asking. i bet that is a long one, steve. >> it is. the we'll be asking and should be asking. fingers, becky, pointing at the fed this week and potentially supervisory lapses in the bank failures. michael barr will go before congress tomorrow for two days

of testimony. the ranking senate committee member said the months and years leads up to the closure and the risky practices were on the fed reserve radar for more than a year. they neglected to act. the stress test with the rising interest rates and if the fed has concerns of deposits and the role of rate hikes and rate cuts in creating a fragile banking system. related issue. does the fed put the dual roles it serves on the same level? one former senior official i talked to said to me the monetary policymakers and supervisors are in different places physically and

culturally. the two sides are not really in communication. the fed successfully argued in dodd-frank to keep both roles. something that is separate in the bank of england. amid the rate hikes, one official balked at the speed. esther george. she dissented from the june rate hike. she was concerned about the impact on the banking system. george no longer at the fed. no other fed official dissented through the most aggressive rate hike cycle in years. few fed officials mentioned the threat to the banking system and interest rate risk. becky. >> neel kashkari, from minnesota, made comments over the weekend. he said it could be a much bigger threat for the potential of something slowing down

because -- landing in a recession because of concerns. >> recession. right. >> interesting. >> i wonder -- >> go ahead, steve. >> go ahead. >> no, i was going to say interesting piece in the journal. almost as if the san francisco fed and bank were on the same page in terms of which risks they were really looking at here or had their eye on. no risk, per se, the dei manager. the san francisco fed has been trumpeting efforts of climate change risk and inclusion and community reinvestment. the bank and regulators were on the same page. according to the journal. that is the journal's take on a lot of thing. i don't know about the mandate. they seem to be exclusive. we seem to be price stability and bank stability.

let the private sector take care of full employment by getting out of the way. you know, don't put that onus on the fed to where they have to be all things to all people. some of the -- right now, the price stability must be more important. if you try to cause higher unemployment and that means you are putting the mandate on the back burner. it's too much. they have three mandates, really. >> yeah. i think that's an interesting issue. joe, i go back -- if you go back to the issue when they cut rates to zero. that created tremendous growth, by the way, including the fiscal stimulus from the trump and biden administrations. these banks grew fast. if you are a super vis if you are a supesupervisor, yo should respond and raise interest rates and slow growth at the banks and supervisor on the back end says let's go

slower on the way back up. that is what esther george said. no one dissented. supervisors don't have much to say other than with supervision. is the fed really coordinating policy with monetary policy? there is an argument that they should be separate issues. >> you know, you are working remotely, steve. >> what? >> working remotely. becoming increasingly rare a few years after. >> you think? >> is it? i thought was permanent. >> there are parts of the country where it never was a thing. big cities are the places. i would say part of that is because people don't want to go back to the horrible commute of big cities. you can get away with it, sure. >> what about the people in the big cities supporting? >> 8 million people live in new york city? you know how many who work here?

12 million. those are out dated pre-pandemic numbers. >> this guy out here was starving for a couple of years. my buddy right there. the coffee and falafel stuff. get out of your house. >> look, people are going to the starbucks or local coffee shop in their hometowns. they do that. i get it. there is something missing when you can't come into the office. i understand workers who say i don't want to go back. that was a crappy lifestyle. two hours each way. >> it is not as equal. >> you can be more productive at home. >> organization and learning and culture and mentorship. on and on and on. you are on a computer. you will go nuts. it is bad for your health. >> it probably is bad for your mental health. coming in five days a week.

>> coming in at 3:30 a.m. >> this is you. >> bye, steve. the chairman of saudi national bank resigned. the comments earlier this month sparked a selloff of credit suisse. saudi national bank lost more than $1 billion. the chairman is stepping down for personal reasons. >> i heard the interview at the time. he was asked point blank. he said absolutely not. he said why. they own 9.9% of the bank and regulatory reasons. if you go above 10%, there are changes to the rules and regulations. it kicks a lot of different things in. i think the bigger reason he is stepping down, i don't know the comments sparked run on it. they lost $1.5 billion. back in october, they took a

9.9% stake which was valued at $1.5 billion which valued it at $15 billion at the time. if you are stepping down, it is because you lost $1.5 billion for the saudi family. >> is that personal reason? maybe even here. >> the saudi sovereign wealth fund overed by 37% of saudi national bank. they lost. >> what if you resign for personal reasons in china? is it ever for personal reasons? >> serving at the whim. >> of the ccp. you can call it personal reasons. >> the idea of him saying absolutely not. we are not going to put -- he didn't say explicitly we are not throwing good money after bad. his point from the regulatory perspective, we can't do any more. he shouldn't have said absolutely not. there is a lot of stuff happening in banking right now. coming up, futures right now

triple digits. we ended last week higher after extra craziness. we talk about the strategy ahead. later, we take you live to beijing where executives from major companies attended the development forum since the end of covid con i am here because they revolutionized immunotherapy. i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here.

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a court filing showed pieces of twitter source code leaked online. twitter issued a subpoena online to the software platform github where the user identified free speech enthusiast shared source code without permission. twitter wants to know the identity of anybody who downloaded it. elon musk will review the algorithm. it is not clear if the code was included in the material that was leaked. salesforce says elliott management will not proceed with nominating directors to the board. a joint statement said in light of the salesforce strong fiscal

2023 results, board and management actions and new multiyear growth strategy is committed to continue the working relationship. not as far as the board goes. a multibillion dollar stake in salesforce in january. one of several hedge if you understand -- hedge funds to disclose. >> that is what nelson peltz announced on "squawk on the street." the stock went up in both cases. >> joining us now is stephanie link at hightower. she is a cnbc contributor. less hybrid work force. we have a hybrid economy. signs of weakness, but signs of strength. i don't know how you navigate that. with higher rates, as you point out, roughly 500 basis points. you probably will see some

effect to earnings in coming quarters. >> we definitely will. this is a challenging time. as you just mentioned, like we have good economic data, the first quarter gdp is running about 3.5% at this point in time. much stronger than what most people are expecting. again, the higher rates that you are talking about and we are seeing are going to take its toll eventually. it is a challenging time. that being said, i feel the silicon valley bank deal today is very good news. it provides confidence. that is something we lost in the banking system over the last two weeks. this speed, joe, has been incredible. so, to just see this deal get done, that's a good thing, number one. as i mentioned, it provides confidence, number two. i hear also and you have been reporting that the deposit situation is calming down. that's really good news.

that being said, the financial conditions are getting tighter. maybe that's going to do the job for the fed if the fed doesn't raise going forward. we have to wait and see in terms of how much we slow down. >> it does free up, maybe, this new stability which frees up the fed's hand to maybe continue its inflation fight. one of the silver linings to when the fed seems to be breaking something and they go on pause. are they back on track? do you expect them to raise again? will we get to the target of 5.5% or 6%? >> yeah, look, we get a very important number on friday and the core pce number will come in at 4.7%. to your point, inflation is still pretty high. we know the fed wants that number closer to 2. let's see what that number comes

in and how they react. i don't think they will go. i thought powell sounded dovish last week. as i mentioned, the tight financial conditions in the system led by the banks and this bank crisis we just went through will slow us down. does that do the work for the fed kind of thing? i'm leaning in that direction. look, all that being said, there are places to be investing. you know, i'm a long only manager. i'm looking for ideas. you have to have more of a balance this year. last year, i was much more cyclical. this year is more of a balance between growth and value. just looking for opportunities. >> where? give us some. >> so, recently, i bought back tjx. we talked about that in the past. i think the consumer is actually hanging in there. they are benefitting from better inventory throughout the

industry. they have pricing power. i think margins are going to expand. especially as freight costs come down. you lack easy comparisons. i like keurig/dr. pepper. i think the cold business is doing quite well. i think the coffee business and concerns with tough copaisons are over done. 16% trade to discount of coke and pepsi. i bought schwab two weeks ago. i do like the name. they have $100 billion in cash flow from the cash operations. they have $300 billion in liquidity that they can get from the government funding. at 14 times earnings, the ceo is buying shares. i like that one a lot. then the sleeper this year is ge. that stock is up 39%. i also like ge healthcare.

they spun off ge healthcare. they will spin off the power gen business next year. it is a simplerattractive. a lot of places to put your money at this point. just using the dislocation that we get to be able to see the opportunities. >> all right. thanks, steph. is there anything behind you? i miss the tree a little bit. is easter only two weeks away? yeah? >> two weeks from yesterday. >> it is. >> we got room back there for something. baskets. visual aids in the corner. >> a bunny. >> thanks. >> oh, there is a bunny behind you. it is six feet tall. it's invisible. >> what? >> the invisible rabbit?

>> i don't know harvey. >> a great rabbit. seven feet. he is invisible. tough to measure. when we come back, jack ma has returned after a year abroad. we have details next. let's look at the winners and losers in the s&p 500. first republic bank up. key corp up. charles schwab up the same amount. banks ac (woman 1) ro i just switched to verizon business unlimited. it's just right for my little business. unlimited premium data. unlimited hotspot data. (woman 2) you know it's from the most reliable 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today. go. go lights. go big city lights. go spotlights. go stadium lights. emerson software helps clean energy

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alibaba's co- founder jack ma has returned to mainland china after a year overseas. that is according to the report that says he spent the last year in japan. in november of 2020, ant group called off the ipo after ma gave a speech which drew the ire of regulators in china. a lot of talk of what it means and signals. there has been a lot of thought that the communist chinese party is calming business as they are looking to shore up the economy after everything with covid and beyond. later this hour, we will speak about this with eunice yoon in beijing. coming up, minneapolis fed president neel kashkari is

talking out over the weekend about the turmoil in the banking sector. details next. through the month of march, we are celebrating women in business and those of our cnbc teammates. here is ellen cooper with listen -- with lincoln financial. >> as women, we are prioritizing at home or in the office or in the communities. it is constantly changing. sometimes work wins and sometimes life wins. it is important also that your company or wherever it is you work understands that. listen to your needs and commit to the choice you make and if to the choice you make and if you decide to take down time, lily! welcome to our third bark-ery.

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good morning. welcome back to "squawk box" live from the nasdaq market site in times square. the futures are up 150 points on the dow. nasdaq up 30. the s&p is up 18 or 19 or so. kind of a quiet weekend. the only news in the banking sector, i guess you consider stabilizing and good news. first citizens. we will talk to the ceo of citizens. the raleigh, north carolina lender buying the assets of the silicon valley bank and taking the deposits. >> i think they have $72 billion of assets they are taking for $16 billion. >> right. >> a better structured thing. you feel the calm we haven't had walking in the last couple days. we will see. we will see what it means. neel kashkari says the banking system is resilient despite the

last couple weeks. he spoke on "face the nation." the minneapolis fed president said the question of banks too big to fail is beyond doubt, but the regional banks need to be addressed. kashkari said the stress in the sector and the crunch to follow could bring the economy closer to recession. let's talk about the turmoil on the economy and joining us is the chief economist of pantheon. ian, thank you for coming in. >> thank for having me. >> it is a no duh statement. this brings us closer to the possibility of recession. the question is how much closer and what does the fed do as a result? >> this is a gazillion dollar question now. the importance is to appreciate the bank standards were tightening before the banks started to fail. over the last year, since the fed started raising rates aggressively, we see tightening in lending standards. whether the bank or the

borrower, everybody said before svb failed, credit is harder to get and more expensive. >> because the fed's intention of tightening. >> this is why you raise rates. you want to slow down the flow of credit. on top of that, you have bank failures and deposits running and going to money funds and bank management say how do we survive? we don't do it by lending. we will see a further ratcheting up of standards. more than what we had. when the flow of credit is squeezed, bad things happen to growth. i'm getting nervous that the economy that i thought would dodge recession is now at greater risk of falling into one. it could be severe. bank credit is the life blood for small businesses. most people drive a huge amount of economic activity and they will struggle. >> only people who can get a loan are people who don't need

it because they have the money. >> the definition of the credit crunch. if you want it, you can't get it. if you want to carry capital or inventory on equipment or software. you need to borrow money from banks. if the money is not there, economic activity suffers. it is early. at this point, we don't know. this is why the fed speakers are saying we don't know how bad it will be. what worries me is the starting point is not great. it is not like this comes out of the clear blue sky. i have been watching the loan surveys getting tighter and tighter. getting up to levels consistent with the unpleasant situation and the bank failures on top. >> one bank lending to industrial and commercial companies that were you looking at commercial real estate. that number jumped after march 15th. you say not so quickly. >> it is a classic sign of

distress. when borrowers realize credit is difficult to get, the first thing they do is grab whatever they have available. they don't want to call the bank next week as say, sorry. here are the new terms. we saw this after lehman failed in '08 and in covid in the early stages. the nasty credit crunch was coming, but bank lending jumped and it looked great, but it did not last. i think we're probably in the phase now. i think it will last a month or so. my guess is later in the spring, we will see the lending numbers drop aggressively. that is a very bad sign for cap x. >> do you think the fed is thinking the same thing you're thinking? if that is the case, there are still expectations. a lot of people you talk to think the fed will hike again. twice or three times. the fed may cut rates and you are looking at fed futures by june. >> i think the june is unlikely to me.

i'm not ruling it out. the spread of the opinion is wide. now we had the meeting out of the way, we get fed speakers coming out. neel kashkari is very hawkish. there he was yesterday talking about increased risk of recession. jim bullard talking about rates going up 5.5%. no one in the market thinks that. that was the view. it isn't any more. no hike in play and 75 basis points of easing by the end of the year. chair powell says we are not thinking about easing, but dismissing it. the split within the fed and quite a big risk with markets and federal reserve. this is resolved by the data. the data will tell us they need to get their foot off the brake. >> the transitory phase and neel was the biggest dove? >> he was and then he wasn't. >> he looked like mr. mmt for a

while. >> for a while. >> that was wrong. you know, a lot of people say, wow. >> modern monetary theory. >> they got that wrong back then. how do we know they are not getting it wrong now? here he is as the poster child for the other side now, right? >> absolutely. everyone is fighting uncertainty. i think, you know, they want to position themselves saying i got that wrong. the risk of recession is not done. that's not helpful. of course the risk of recession has gone up. the question is how much has it gone up and what are you, the fed, going to do about it? at the moment, the fed is stonewalling and say we are not easing this year. you hold these positions until you can't hold them any more and move quickly. the markets have wind of the idea that they are actually a credit crunch in the economy which was weak anyway. >> you think we're out of the woods? first citizens and silicon

valley bank isn't going to help deutsche bank. >> no, it's not. we are not going to wake up one morning and find a bank failed and that cleared position. all of the bank is taking it to paper and giving it to the fed and getting cash in return. i don't suppose the depositors are losing money. the banks need to transform to maturity and lend to the private sector. if the issue is survival and get through the next six months and the bank is punished with the undiversified loan book, the last thing you do is loan more. this is the life blood. you are squeezing the life blood for the under developed economy. the tech sector is struggling and the layoffs. that will spread. these numbers should be great for the last few months and now it is a signal and i'm guessing by the time get to late summer

and spring, we will have a weaker picture. >> it sounds like the fed wants someone to do their work for them. they should relax a bit more. don't you think? >> absolutely. i don't want to hike again. i don't think they should have hiked at the last absolutely not. they talked about this the last year and the lag. they are not acting as they believe it. if you believed it, having raised rates by so much, given the turmoil in the banking system, you would say we don't need to do more. we have six until the next meeting. this is not the decision for the ages. we don't hike and we are in a position in may to make a better judgment. they did it again. >> they are afraid of the inflation. if you look at uk inflation numbers, they came back unexpectedly. if you think inflation is the one that is a problem? >> i think all of the things that drove it up are now working in the opposite direction. wages, margins are compressing.

food and energy is now negative. uk story is a british specific thing. doesn't have anything to do with the u.s. or european implications. it is british specific. high double digits and now is dropping quickly to negative. i'm not worried anymore. the lag effect of the fed and what it has done is essential. this is the biggest tightening since volcker. >> thank you very much for coming in. coming up, we will talk more about the banks and the economy.

coming up, we will take you live to beijing where executives from major companies attended a business forum over the weekend. business forum over the weekend. the ceo at the center power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.

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people in china. 7-'s a touge to nb■balance. >> what finally happens5a■ with tiktok, do you think? how do we --fñ @r(t&háhp &hc% >> oh, man. >> is there a way5a■ of -- i wa going to say -- is there ai] wa of sequesteringxdçóe/qçó things? and do they have an interest, go what politicians here want? >> when iéy>t(j regulators andñ what china'st(?;■xdriv÷÷ññiq do services and what kind of retaliatory thing there could be.+■q&ñ now, they probably won't retaliate against anxdi]q apple it. they're already blocking facebook. they're alreav■ blocking "new york times" and twitter. >>5a■ i block "the new york tim÷ >> yeah, but you know what i a normal personxd can't go ther and type it in and visita5■jf i course. >> kidding. >> that's çóinteresting. i hadn't thought about that from that perspective. what areq they so mad at?

ñir >> as if it's6z■t( some impositn >> i guess the question we have tot( ask ourselves, do wean go down thatt to read. !ysrz%ñtqz we want to beat 6z■t and is4 thing?xd how much of azv■ danger is i]it? i mean, i can just -- having watche/1 cofgaess act aroundñi tech, i think representative they've hadu■ 32 hearings about this andht■ nothing has happene >> nothing ever gets done. >> there has beenvj zero pieces- >> they say forget it. >>0l■ exactly. jack ball just returned to china today or just +■recently. the>p uját zero pieces of major legislation. something needs to be done, but nothing has bu-rz/[e. so justçó h!ï confident -- maybe they give the president somefi power to do itn an executive orde&ju)áy it would be in a limited way. >> you want to see crazy stuffl goingxdron in today's youth?

i'm like --v >> you're rqjájjt at me when you say today's youth. >> there are things that i think are +7ju(+vlike whent( i was a kid, myxd p,■t(father's generatd the same thing to me. i know that,ñi butht■ can i bdú tiktok for everything? >> that'sxd the heart of the online culture for that generation for sure.qi]t(jf >> we shouldfá ba*!9hr( i don't like what's nb■happeninc i'm kidding.% i'mñ kidding. p>> it'sñr the ge. >> get off my set. >> good-bye, steve. ■qçñback, first citizens ceo frankñi holding wi jointñám■c in a first on cnbc interview. we're goingnb■ to ask him5a■ abe decision to buy assets from the failed silicon valley bank. coming up right after this break. futures this morning looking better all the time. dow futuresñi0l■ indicated up bk (vo) with their verizon private 5g network, associated british ports can now precisely orchestrate nearly 600,000 vehicles

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♪♪xdñiçócu$si]qu■ good morning, and welcomec back to "squawk box" herer cnbc, live from the nasdaq market site in times square. u.s. equity futures are in the yúyree&é%@r(t&háx they've addedxdoknb■ñrñi?;■ a l. they're up about c150. indif e" up about!u■ 40,okt(qñi sb0)h22, which wouldç((ut that 23, i thinkçó it closes somewhe aroundé(■ --i] right aroundñi 3 so, so we're closing in on that ñ has kind of been the midpoint of a4% range that we'ñez seen recently. there'sht@etvóñi trea3uarqáy th!ten-year now underñr 3.5 at 3.46, and the two-year,ñi+■ 3.9& ñpinversion, wh narrowing aqçóçó little bit. and after allçó of thexd angst

stress in the banking sector, which may be easingxdqó[■ a litt h weekend, the breaking news, or this morning, first citizñn■ bankç?$(uvr'g a large chunk ofñ silicon valley bank, around $72 billion of svb's assets at a joining us now is frankxd holdi, chairman and ceo of first citizensf0nyqym■3w■ bank, and5a say, wow, what an altruistic move, frank, and welcome, it'sç could -- in a lot of crises there's a lot of e1opport=urqáy is that!u■ how you see this?xd >> xda5■ñrabsolutely.é- that should instill confidence in our deposit system, and it's alsorgreatt(qçó example oí■áñi regulators andw9i banksó[■ come togetherw3 to÷d protect depositó d>@$ñsqp', you are very !u■ citizens done in the last five, tn(years,e1 frank?

>> we've got añi l7tb of experie in?oa■ acquisitions. ñ acquisitionw3ç?$ @r(t% completed inñi earlyu■ 2022 was, gives us a lot of experience and a lot of background to handle this transaction,ñiq and we'rel excited aboutxd it. if you -- you know, if you're1á going2

two weeks, more than two weeksx actually, to find aeyót(çóçó bu' theseñiñi assets. it seems like a shortjfqjf time an acquisition, but a very long this. what did it take?fá what sort of assurancesñi did y need before you felt comfortable with this, or was itçóq simply matter of price? >> well, we want to recognize the fdic for its lea)ership in this is a very challenging process, but we think the outcomejf waslújut(u;ó forñi xx3 associates, and for the entire] banking system. ■ the busin silicon valley was in, i guess, you know, it's nicelp to just a all of those -- how many branches are you ñiadding? i guess you go from like theq 30th largest bank to you'll bej ow. i dokwá know what the actual numberxdxdçó will be, but■óñi d any expertise o g startups or te kind of business that sv9was

arena? dwell,ok at our lpcore, we are conservative relationship bank, and whatokñiqqf valley is a real passion and commitment around their customep servicejw@r(t&háhp &hc% we feel like we'll find muchw3)% more in common here than not. >> you know -- us --w3 overlaps ourñ-3úáe)engt private banking, wealth management, and smallñiçó banki3 small business banking. what we are -- what we look forward to learning andr listening isñrçóñisáf and venture market, and we'll be adding a lot ofçó associates in that -- for that capability. >> butt( this doesn't include lp ankm the feds are still looking for a buyer of that lpbusiness. is that justñijfñi b%■fause youd business? >> it does include that.

what we areqfá leaving behind i the securities portfolio that was a part ofxd silicon valleyl that the çóxdfdic isñr going to q8bsorb, you've looked -- iw3ql, you must have skoun! dq$ehcoure what you're acquiring andq ggeling very confidentv.j)q -- you're lookincklp at. i was just wonderinglpxd in youk bank, did you have a -- any duration risk that youçó didn't have toe1 d size ofçó your bank? you can do risk-weighted capital >>dwell, we have a long history of being very conservative, and we have ampleq liquidity and we're working with theñi i]fdic both agreed that we have the strength and stability toi]e1 ht this transaction, and we look clients today, and we're meeting a lot of new ñii]associates.

the fed hasçó raised f>irates, basis points -- almost 500 basis points in a very short period of time, do you think there is a looui7 termsñrñi banking sector? it's all içóñi guess people are valuing things asx+m;v he,ep to there is ço$exd concern and fleeing,q it notfá necessarily can be seen as money >>fr)urjçó incumbent upon banks be safe no matter what the direction of interest rates are, andje/)q very well-ázq(aredñ] for whatever that direction is. we've gone through stress w3t,o confident in ourq safeá8t( andç stability. >> hey,t(ñr xdxdfrank, can you us about the structure with táñ fdic. theqxde1 fdic is saying it mayñr

they also have a deal to share in the potential?;■ upside with you, iy(utáj/ght in stocks of&ì% first citizens that reportedly cduzq:]=iq!■i] u(v+o >>q well, we've been goingçó ov numbers in an investor call competitive bid process is good for bothjf regulator and bank. raleigh too? sights on e1that,vófrank? isjf that what you're doing? are theyrxdlpnervous?fá >> i don't think bank of america very focused onq our own it( bu business. this month we celebratelp 125 ñ lpxdbusiness, andfá we ark during that whole time we've beenxde1q éñt(e1lp focused on tr passionate about safety, lp soundness, andi] laser focused o3iñcustomers. >> we did have an economist with us earlierñc3 today who said th

inevitably bank lending is going to tightenxd up, that'sçsw■ñii÷ what the fed isi] concerned abo at this point, how muchu■ tight. part of what they've been doinñ is trying to tighten conditionsi isñifá that the case with yonk? is it harder tofáçó getxnañi lo this point as liquidity dries up? >> i don't know that we've changed our terms orçóçóxd cond for us, but we arelp -- at our core, we are conservativet(w3 and dilige underwriters, and that's appropriate actually ek■ our whole system. >> all t(t(rightr( e1frank, the charlotte,ñr you're raleighxd dm i t(guess, and rese%á!ñoktriang lñ$xlr(t&háhp &hc% after the developments that cami together over?;■ the weekend th &háhp &hc% luck. >> good to be with you, thank ço you. >> you're welcome. for more on the markets and the global &i%9 want to bring in rogert( çóaltm the founder and senior chairman3

of e1evercore. what you see happening in thee1 banking e1in÷uqie9ñ what< ■xdjf do you think about stability here? 1bssjñ hope ite1 meansb.■ we've a corner on the banking crisis, seen. when youxjk look at the huge amounts, 160ñi billion, i belie, that the bankse1 borrowedtx week from the fed between thelp funds facility, that tells y$mñ tremendous ñid"xde1stress. at the same time,1)ñ we knowfá this isi]xd nothing like qxd200. in 2008 you had assetçóçóó[■ va collapsing across a leveraged financial system in the middle of a xdrecession. here you have duration mismatch &háhp &hc% there's really no reason whye1f this crisis should resemble any aspect of the earlier one.

>>fáe1 okay. so you say, though, yourself, that you're continuing to watch e=ii=]%9ñr what other things are you watching to decidet(xde1qq if t contagiont(q has been held? is itym■ just stock prices? >> i'mdq also watchingu■u■ rece risk. the storm signalsfá are flying that. yourself that thefáçó risks of utfáe1i]ñi risen añi lot,ñi partlyt(qñr because openr financial conditions have e1 tightened, as you just mentione( in the earlier interview, and that's reard■çót( quitefá clear through several indicesth$jtó[■ financialñrfájf5a■q market --ñi tightening, and we see this in the sharply inverted yieldlp xd se fed funds futuresok in terms of where the funds rate is going to

be at the end of the year as ézd markets see it and versus where the fed sees lpit. that's a huge gap,xd and it tel you that the market at the moment thinkslp that the econom will bóm■ so weak at year end tt the fed will have to be cuttingo and you see this in theçóqñiq coná

>> i'm not sure it isfá mislead jrjoe. mis. there are people who probably know a lot mored about deutsch @wk than i0l■ do,ñlbutlp what i isokçó a situation which is solo matter how youçórmeasure it. i don't see deutsche banke1 bei at é@■qt(t(qrisk, and i don't te should be any type of broadf)h contention in europe because some of the largerú wealth capitalize and conservatively run. >> cocoas,ñi at 1s.q some people saidñrçó they werex% hedging the exposure to some of those jfbonds,6z■ñr which now le they might not be asqçó safee1 people had hoped, they're getting a higher yield, and they were using credit to fault swap to h >> well,ym■ obviously thee1 ht■

of the credit suisse e1at1s was shock and if you're anq investment manager, you -- you know, you may not want to hold at1s:$r' anyq portfolio justq because you'd lookñr pretty foolish if anythq happened in that regard. i don't think that getsé@■ to t question of whether the europeag i don't think it is ñiu■lpi]unh and i think, as i said,xd the biggest bank, deutsche +■bank, actua,sf strong. >> roger, th

first citizens bank buying silicon valley bank's deposits and loans. the dealwshr'cludesxd a purchas at a discount of $16.5 billion;r

our next guest says that the fed needs to lower the short-termfá 4f rates or else that 9-■u■ failures.t(ym■ ow is chris whalen, m9 áñi] biddersu■ do you think were involved? did they get a pretty good deal% for the stock to be reactingñ)h% that way and for all thexd positive a development as it seems? >> it is, okjoe. fdic, their goal iuói] to minim% loss to the insurance fund, and when they sell youq thatñr asse )ért's a brand new ñrasset.u■ it'sa5■ passed throughu■$x■ the receiversr3tremendous deal for citizens, they just got done same thing goes with new york community r

thefá assets from signature is goingu■i]g that institution. >> so the reaction in the stocks of the otherár sense today.ñi so is this the -- we're in a pretty good -- we're at a goodt% stage in terms of the healing process for the regionalq banks chris? do you think this crisis hc3j xd passedó >> no, becauseq unfortunately te banks are competing with the u.s. treasury. the treasury isxd paying 4% for 90-day t bills, the!u■ fed's pad res. the cost of funds todayq for mot ndñi 1.5, they're just notxd made for thió the one takeaway i have for this whole period of the past couple% of weeks is that we're in such a hurry to dealok with the inflatñ issuñx9 th in a great hurry,e1 but you can fix these things that quaxe&y,s% and youq can'ti]i]xd expectçó f institutions to adjust their

banks is&háhp &hc% yourlp cost h funds upx].sñixd to 4%. quarter. >> so as far as the duration svb>ó how much of that is out there, and does opening a window for whereq you cançó get a loan against some of thosj securities, does that solve the problem, or are there+■w3qc añ= banks that have theirñ=/h asset totally misalloqouq" in terms of duration? >> well, it's better this quarter than it was last quarter. third quarter]i=hu(jjf horrific. it was closet(r dollars in xdfáfáe1unrealized l both available for sale andñixdd to maturity securities. that's what got everybody's attention, joe. uarter, the disclosure won't be1 ñquarter. it will be around maybe half a trillion dollars total forqi] te two e1numbers. eb÷éf

the issue. see, the facility the fed +uu■ out there is so that banks can raise cash. they've pulled xdqva■banks, the keep zerofñreserves at the fedto they can have cash. that's fine, but theok mark-to-market on these assets and more importantlyq the negative cash flowçó on these assets is not goingt( to éñ go . you know,óát fed wants to fix this problem, they should basically repurchase every treasury bond,çó and every r mortgage-backed security that wasñixd issuedçóe1 inr they're not going to do qthat, joe. unless we figure out some way of helpingñi banks deal t(with, th they're still staring at 10, 15-point losses on average on these mort■a%jt)q" securities. and by the way, this is whyxd first citizens did not takex#u$r àmgrtgage-backed securities, tht huge pile, from silicon valley bank. >> soñi what's the potential sol5(k=9ñ what couleó regulators do? what could anybody elsexd do? >> prudentialçóq regulators hav their hands tiedr q!m■b f

quantitative that now,w3 right? unfortunately, the only way to fiv( this isi] toxd essentiallyi those banks and buy the securities back at par.q remember, most banks paidr 103, 104 for thatxdñiñi 2w3w3 a that'se1 traded $0.80 on the dollar today. they'rexf3e1 looking atjffá a 2 loss. much like the 1980çós, when the bank gets to the point that they &háhp &hc% flow anymore, in other words, their cost of funds is goingó[o keep going ñiup,çóxd and in ttás and there's even somelp ginnie : so far under water that nobody wants them. the oq them is either a big life insurance company or a central b but anybody whopm■ to price h)!i■ liabilities in the marketplace can't own thec5o cfo securities safely. these securities arei]qxd twoco

current production. this morning the current production fanny, fre> you think the fedq will cut,r needs to cut? what willxd -- they won't. romet( is notlp very goodw3 at their narrative is directly in conflictçzd with the marketplac and what i would say ñ%s, you q know, i worked at the fed. i love these people. 8butçó the duale1 mandate hasçó. '98uzi really needw3r>■3 to fix because if the fed is forced to continue to pursue these two conflicting agend%+z■ñi they're going to destro7c6 the u.s.çó0ñ economy. >> i've been talking about thu got three, it's bankxd styu1%qejìc%dz"é most )áviculateñijfzin the medi thisfá point, but why was itqñi

nobody could ask powell !ú(u question a week ago. >> how do you have a mandate for +á—q going all you can -- >> what are the odds of congress changing that. weñr can talk about what should enough senators actually gettiná on board to change this happening? >> i tell you what, sara, whenx things get bad enoughlp they'll act. as churchillñr said, americans always do the right thing after exhausting all the otbe&■ possibilities. "ñ oft( where we've got to wait until this situation gets so badçó that powell has tor hill ané■t55z for ñi(rp'ges. >> what the heck does that look like? if the situation's getting that >> more bankfá failures.look li- imagine you'rew3 a sq.várp+e bu rkght, they love you. service, but they're worried about your bank. theq treasury's payt 4%. how do you compete wi$yx that? >> yeah. >> all ñiright. supposed to be above rates,çófá

below,ñiv?ç3right? >> i]fáthanksl■ó haven't seen y■ while. good to have you on. >> we're still here, joe, have a good day. >> all right, youfá too.ñi when wee1i=$(njg back, we h more on the news this morning, first citizens bank buying silicon valley's bankfá deposit and lane. we'll talk about that and what the xdfed's next move may be. though, check out this morning's winners and losers in the s&p

welcome back toe1q "squawk b]x." i'mt( dominic chu with yo morning movers. outside the world of banks, we've got some earlyq premarket action on the heels ofñi some analyst calls out this morning. tied to the regional banks, believe it or not. those shares are down 1.5% right now, roughly 7,000 shares of equipment maker is getting ñ÷yñunderperform bylp analysts over at baird.çóxd!u■ they cited, amongst other things, a viewlp that risks on e rise for a slowdown in u.s.

non-residential u6jáu(urjr @r(t% were alreadyt(q here in the u.s and that was already part of the story, but now it's becoming more of a=ñ reality given the+■ regional bank turmoil leading t■ the rippleé@■ effects are being caterpillar shares down aboutfáñ 1%. ro, roughly 30,000 shares of vol is getting upgraded to a positive fromñ neutral by analysts over at q9■oksusquehan. they say they think there's a financial and industryñr estimates. there's an underperformance in ating an n underperformance in attractive risk t(rewardu■ scen and a better long-term n cf1 oá %m%=9■ that @eo shares up qñr< ■&ñ5a■3.25%. finish with a check on cloud salesforce. the dow component is up qxdñi fractionally.lp over the weekend, it and activist investor elliott management announced that the two parties have avoided a5a■ñ ■ elliott willv

nominatingxd directors, salesfá force's board and with a strategic plan tolpxdok cost and buy backñr more of its k(t-9ñ on driving a bit of actionñ5a■ in need relief for tired, achy feet? or the energy to keep working? there's a dr. scholl's for that. dr. scholl's massaging gel insoles have patented gel waves that absorb shock to hard-working muscles and joints, for all-day energy. 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. it's hard to run a business on your own. with shopify, you have everything you need to setup your online store, to connect with customers, and to bring your dream business to life. because when we work together, the future is bright. these days, your customers are not just down

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e1j joining us for a deeper look at the markets, jeremy siegel, professor emeritusw3r# school of hebusiness. i was trying to figure out how )jt the tablev stop. in doing the wrong things. you didn't say that right at the beginning.çó i think you criticized the fed and letting the money supply grow, but then you saidr wrong-minded what they're doimfá how many of theñ of "v!reases, how manyxd do you think they should have done? when should they have stopped? ñow long ago inñi!u■ your view? >>çó oh, yeah, i mean,t( i thino

they should have stoppedçóçóñi d last fall. right. i started pounding the tablexx# actually last fall saying they're ina5■çóxde1xd danger of overtightening, and it(e1 am nor surprised at the ç2evelopments, andçó ñijoe, let's bejfjfe1 qex. because ii] looked at the forect of the ñifed, the fed is forecasting negative gdpç■i kt( over the nextwcie1 three quarte, by the ñiway,q not just r forecasting, saying that would xd desirable -- the mostxd desirable monetary policy. forecastlpxd for the year 2023,% gdp growth. well, the first lpquarter,j+k ww the only way you getw3 to thexd forecast is oknegative, negativ

growth. that's a recession. i mean, this isw3qj■unprecedent and the onlyt( way you?$ú■xd god get negative growthçór xd i mean, over nine months. i mean,ñr çóchairman powell did even mention fáthat.xd no one in the press corps o5upt(fj$uzi] me as oneñi of th frightening forecastaó the fed has ever put out,xd andfá gener not in -- not in4 the economy, we were talking a moment ago about thei] duallp mandate. you know, i've been saying that they basically beat inflation late last year. else isqçó going down. they're done theirlp job there. year, overkill, and i cannot be optimistic until theqr;:■fed,çó

we say, getslpçóe1çó ç sign they doúryet. >> you say táa çó yesterday's -- the fed told usf are goingw3 toxd try to tackle inflation. they made a conscious decision to focus on that side of the dual mó.t(uq thatt( they'relp g more insidious long-term, andlp you've got to get it under they're willing to orchestrate what they hope will be a soft landing. they know that they're doing r that,çó and they fát(clear-mind decided to do xdthat. you don't think -- theigxd difference between youok and thr fed is you thinkxd inflation is already underçóqxd control? you know, weñr do know there's last november chairmanxd powell himself said there's a structural shift in labor. th0 issue. there has to be a rise in real

wages, whiche1 has fallen behin as iw3 pointed out over the thr years that+■t2uz hadñi the pandemic, so they're not the cause of inflation, but because of the drop in the labor qforce you have to havee1 that riseçó labor in order to bring people back t(in, and that's -- you e1, something that the fed is at all designed to handle. they're designedçó toqxd handlef excess1)ñ demand, not a supply e shock. so yes, we're going to get aqsv so yes, we're going to get aqsv little bit more5a■ that servicew3 area, but 60 to-% of the economy is in deflation at the present time, and ii] maybee1 i would have çóhiked, y know, 50 basis points,w#ó but know, 50 basis points,w#ó but because of 20 basis points.lp well,q i havelp known no analys getting in the banking

section -- andxd been listening÷ to how manyxd people this morning talking about the0úntightening of lendii standards, thatw3ñi is much mor thanoát increase in the fed funds rate.ó theylp absolutely should pause ■ pstatement, we're not thinking joe, ólávoq■ that kind ofr you whatjfr jay powell in the face of,ñixdç know, overspeculation in the housingq market. >> don'tñu/s need tolp raise -- >> -- in the financial markets and comm/4u)qjñi soaring in price, he saiup we're notxd eve thinking aboutjf [mqq thinking t i kind of felló[■ off my chair then, and i'm just wondering, oh, my god, he's not evenu■ thinkingj.1ñr about lowering int

ratesr u'" policy?xd u'" f app" >> in thee1 current thought m%z timesxd it was probably in erro >> i nb■mean, if he would have d that, what would the t(market's reaction having, fájeremy? i mean,fá if he came out and sa we may still raise rates, we may said that.w3'c■ you know,ó[■fá we're going to -( know, he said we're -- you t(kn, jz about cutting rates, even saying the -- we know the risk has widenswidened. if the risk has widened, the risk has widened to the point there could bei] a big slowdown and you musti] cut rates to >> i just wonder -- >> you know, he almost closes -- when he said that,lp i mean, i w statement. >> how big of a mistake do you think it is, jeremy?fá i juu

we couldn't stay -- we'rec'ñ noo historically at very highq rate mistake. ■ backing pretty well, p)e you pessimistic aboutq stocks? >> i ■-u notjf optimistic aboute short run until thee1q fed says short run until thee1q fed says you know, we may -- we( eaumpá v!átq's,lp and5a■5a$ñá w may have to lower ñs:báes, and they dou■ lowerq rates. as i sai$.@■ their forecastudyw frightening in the next three negative gdp growth in the next three quarters.e1 no one bró+lbeñ that up toñi hi that maybecicuát)q''t even understandym■ themselves what t wereok forecasting.lp but what they were+■i] forecast was frightening for the economyi >> all right. you, professorqñr seeing siegle when we ll

[ ominous music playing ] [ engines revving ] here we go! ♪ ♪ let's get toçó diana olick, she's been taking a look at the she's been taking a look at the commercial real estatew3

ab6iana, what have you found? >> i think the best wa5÷ to do d this, loc just at the basic numbers. first, most çóimportantly,ç(urpe to understand that commercial simply because higher interestx rates makenb■÷d borrowing costs higher, therebyñi limiting investorç deals. now, fdic-insuredxd banks hold = çót held in i]ccnbs, and most is he at regionalçó and communityp,■ . this year and next, there isok huge pipeline of commercial mortgages hitrr8 need to be refinanced. the big ym■concern,!u■fá of cou of the $270 billio ) p!out 80 billion or 30%ñ office properties, and that'sçó property owners whoq need to rei are up against higherr are up against higherr costs and lower property values■

says everybody's scaling back their riskq appetitew3t( fwreal estate loans.w $40 billion worth ofxd theseçóì% properties are now seen in distress. f lo.=&%uu values andjf of courseq the cur bank stress, several experts ñ essentially ground tocw■pt and the cnbs market is essentially shut down. there is no capital out thereçó foro7o offices.xd others are lessxdqlp0l■ bearish ■ toldxd me if i breath. >> we've heard some concerns, spoken withxd people in#d■ industry about it w3exdçórecent of course we'veqñ all seenñbig companmh&ike brookfield and pimco walking away from some of% i thinkxd in l.a.okqñ downtown was one of the first things that kind ofa5wi÷ñ caught people's yo attention. what happens? what's the solution when you've got higher interest rates, lowe( values? are we going to s!ññ a lotok mo

ofpc7rthat? what would the solutionxd possiy be to try and stem it? >> well,ñiñiw3u■ interestingly, ■g likeçó we saw in the retail sector.ok and that was even before the5a■ and that was even before the5a■ pandemic when e-commerce really. that is that the propertyokxdq9s just keep paying the interest on the loans and the banks because they don't want these asset; put them in cre purgatoryt( while ty refinance the loans orq try to 1édhsure out what to do.s

don't know what hope any of these commerci)4"real estate guyst( have of getting -- >> ñiyeah, and he callsñi it ex and ñipretend,xdñi which is an and ñipretend,xdñi which is an intere+t9u going forward. diana, thank you. coming xdup, news of first citizens bank buying ar citizens bank buying ar chunk of silicon vall@pp'k, eg you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price.

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first citizens bank buyin■■ó largexd chunk,xd $2 billion.xdx% joining is right now is josh r

. >> well, the probably the market. this program only lasts a year, which is my big concern with the fed liquidity program is that if you're lending against assets, at some point, you're still going to have to show up when that program ends. we haven't begun to think about that. >> what should they be doing,

lend being at a 10% air cut in. >> i think you use the market, use a stick rather than give all carrots and force the bank to raise capital and suspend buybacks and dividends, shrink their book. we're doing an extend and pretend without addressing the fundamental problems, these are fundamental problems of a fractional reserve system, the more leverage you have, the more problems we have. >> why did so many banks get into a problem with this? why is it a situation that everybody was allowed to just avoid -- >> that's a good question. that's a good question. because frankly you've got several hundred banks here. i think the problem isn't even they were upside down, it's that they don't have enough cash on hand and in some cases, they have very lump deposit cases.

i don't know that you solve for that by falling for full depos -- deposit on all depositors. >> and that is a problem which would not make its way through congress anyway. >> obviously. you and i had talked quite a lot during the dodd-frank era, we created entities where the deposits are flowing to rather than making them indistinguishable from small and mid-sized banks. now we're talking about extending that safety net. do we really want to end up looking like germany or switzerland. >> josh, we just were talking with diana about commercial real estate, that other people raised questions about where this continues up the chain.

what does it look like? if we were it do what you're talking about right now and make everybody market to market on all of this stuff, what would it -- >> certainly on the health and maturity book it ends up being fairly ugly. again, i'm not saying don't provide liquidity again. i'm saying you still are going to need to find a way to fill the hole. pushing it out by a year reminds me of the old program which didn't get off the ground during the great financial crisis, which if you remember i said losses extend continually. you have to raise equity, deposits, shrink the books. remember, this is not really just a problem of the community banks and the regionals.

several of the gfibs also have healthy maturity books. >> is it a problem if you don't have the lumpy depos snits. >> deposits? >> it's not a problem. we're seeing the problems in the banks work their way through the belly of the snake. we have not even begun to see the impact of the ratetd hikes the loan books. and i think that that is still a year away and i think we're going to have some problems. you can't -- you can't grow the fed balance sheet from 4 trillion to 9 trillion without ultimately, you know, having some misallocation of capital. so now it's starting to feel like that ultimately there's going to be a real problem here where monetary policy is pitted against bank safety. and i think the fed put

themselves in a little bit of a box here. >> are you jumping in, joe? >> you're saying all the things i worry about. the first thing i worried about, josh, was say you got all this duration risk and obviously you're hiding the marks and so then they're going to make more loans based on par, which is the more crappy loan. so those are noncompetitive -- that's trending more money that's being misallocated because of the situation it's in right now. it seems like it adds to the overall problem and it doesn't solve anything. >> i think that really all of this speaks to the realistic problem of i'm not a gold bug, i want to stay on money. >> more money. you're just going to have to open the spigots again to make the money stuff good. >> exactly.

that's my concern on deposits. are you really guaranteeing assets when you go down that path? >> and then, you know, overall long-term goals, gdp will be impacted negative. none of this is free. >> or inflation. we're going to have to recognize that targeting inflation is probably closer to 3%, 4% than 2%. >> thanks, josh. >> coming up, first citizens >> coming up, first citizens bank and >> coming up, first citizens bank and girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

good morning. weeks after silicon valley collapsed, a lender on the other side of the country swoops in to buy a big chunk of its assets. and major averages gained ground every day last week except for one and another headache for elon musk twitter.

sources say information was leaked online. the final hour of "squawk box" on monday begins right now. good morning, everybody. welcome back to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan. andrew is off today. right now the dow futures indicated up by 215, s&p up by about 28, the nasdaq up by 55 and, by the way, this comes after an up week for all three averages last week, they you a gained more than 1%. the 10-year at 3.37.

>> raleigh, north carolina is buying the deposits and loans at a discount of more than $16 billion, about $90 billion of securities and other assets will remain in receivership and overseen by the fdic. the ceo joined us last hour on "squawk box." >> at our core, we are a conservative relationship bank. we see with silicon valley bank a passion behind their customer service and we find we'll have much more in common than not. >> it will take the 30th largest bank and bring it into the top

25 and they add some branches. some reaction in the stock you would think that it is being wholly embraced and other regional like first republic and bankcorp and said the failure will cost the deposit fund about $20 billion, the fdic said that. >> widely followed strategist mike wilson from morgan stanley out with a new note in which he says the recent corporate earnings guidance is looking more and more unrealistic. he points to it as signals that the bear market could be coming to an end with perhaps a sharp drop with pe multiples on tap. joining us is mike santoli.

what do you make of that? >> he is right there's been this very, very bifurcated market. one of the reasons s&p 500 manage to hold together, not threatening the lows with this tumult because mike's point is earnings estimates will be too ugly for even the big caps to withstand that pressure. here's the s&p 500 index fund. you see again it's kind of trying for another one of these little up trends. it's been pretty remarkable, things like home builders. rate sensitive stuff are benefiting. it still feels pretty delicate. just because of the erosion of some of the rank and files stocks. take a look at the split of

size. 100 relative to the 500 and you see how they were nice and in sync here for a while and really just completely going in other directions. now the question is now that the stocks and home builders have protected the index for now, can you get the oversold regional banks that have been so weak to perk up a little bit. maybe it's a lot to ask but that's the kind of choreography. last year of course both lost big. year to date, we're almost a quarter of the way through the year and we're basically up 3%. there's not a lot in terms of rebalancing as the total stock market versus the total bond market. look how much it gave up since the high.

it's a little bit of a delicate balance but we've got rescues and not further failures. that's always at least a net positive. >> just to clarify what mike wilson was talking about, he's saying we could be seeing the end of the bear market but he's saying don't buy, it's going to be too soon and it's going to be a painful and vicious start, the start of the beginning of the end. >> you need the end of the bear market before you get the beginning of the bull. his point is you need another aggressive rush lower in the majority part of the stocks. >> multiples are going to sharply contract. >> he's called it the beginning of the end. very painful admission. >> a painful admission end to the bear market. >> he's saying don't buy yet. >> it's the continuing of before then, not the end of the bear

market. >> he sees it as just a ways off. >> joining us to talk more, mohamed, you've been very hawkish. have the events of the past three weeks gotten to be less hawkish? >> no, they just confirmed the problem we have because the fed was late starting hiking interest rates. it's not you the dilemma of the inflation versus growth, it's inflation, growth and financial stability. we don't have a good way out of it. listening to your show today, joe, you and becky, you kept on pushing your guests and the truth is there is no first best policy response anymore. everything will have collateral damage and unintended

consequences. >> what's the least bad the steps would be taking right now? >> the least bad is the pause after the hike we've seen, make sure the financial contagion is behind us and try to assess the economic contagion, which is harder to counter with policy and then try to resolve, joe, this big different we have between what the fed is telling us is going to happen to rates and what the markets think. we need to resolve this. the longer it stays unresolved, the bigger the problem when it has to be resolved. >> how bad do you think the situation we've seen with the banks. how many basis points do you think it's accounted for?

look, it is going to be significant because of two different drivers here one is banks themselves getting more conservative but, two, it's expecting relations to get tighter. the regulators and supervisors have been embarrassed and the response has always been tighten regulation more, even though this is a failure of supervision more than it is a failure of regulation. >> what's going to happened next in the financial sector, mohamed? what about europe? we feel better given developments over the weekend.

is deutsch good, or are they misleading? i keep hearing conflicting signals from that. >> so i'm with roger. i'm not particularly worried about the banks in europe as long as they don't keep on importing instability from the u.s. so the real question is what about the u.s.? look, so far what we've seen play out is the mismatches, as you pointed out. and when you have a lot of trust and the depos ut side flees, there's nothing you can do about your duration mismatch. that tends to be part of banking. the problem we've got to be careful about is the credit side, the loan book. it's this notion of rolling credit contractions that we're all worried about. so i'm not really worried about the interest rate mismatches. i think that can be sorted out by the fed. i'm more worried about the credit issues and that really

comes back to how badly hampered is the economy because of this mishandled interest rate cycle. >> 8% prime rate. that should -- i would think that some banks could start making some money at 8% but i also think 8% is high enough to be contractionary. >> once you get the interest rate and credit risk behind you, the banks are going to be in a really good place. but you've got to and a half gays this journey. >> it sounds like you were watching the show today. how many quarters of negative gdp do you think we're in for? >> i don't see any reason why we need to have gdp other than a

mistake. this economy has proven to be so resilient. people 100% bringing recession in the first quarter, well, we grew in the first quarter and we grow robustly in the first quarter. so it will all depend on the fed, whether the fed can strike that balance that has eluded it because it mischaracterized inflation as transitory. >> will they cut rates this year, mohamed? >> tough one. i see inflation as more embedded in the service sector. that is harder to get to with interest rate policy so you got to go higher for longer to get the service inflation down. good inflation i'm less worried about but service inflation, we're going to get to 4%

inflation and then the fed will have a really difficult decision. do they crush the economy, do they try to revise up the inflation target, which they can't do, even though it would be worried that long term they can't do it having missed it for so long or do they try to promise 2% inflation down the road and see whether we can live with 3 or 4%. i hope they go for the third option. in that case rates will stabilize and come down. but the first option, would it crush the economy to get to 2%? rates aren't coming down any time soon. >> if you think all of the good options have been kind of run through at this point that anything they do at this point is going to create problems and additional stresses, what do you think happens from here? is it a slow bleed? is it something that we kind of work our way through? >> so it's going to be a bumpy journey. markets will be volatile.

i mean, joe, we're back at the level we betted on. we bet on the s&p 4000. >> we won on four minutes and got to meet joe namath. >> so it's going to be bumpy. it's going to be hard to get clarity quickly. markets have to realize we're not going to get much clarity for quite a few months. >> if you had to bet on a record, do you think res or -- >> on a record what? >> by the end of the year. who will have a better record? >> i got to go with mets. >> how about the jets? aaron rodgers? come on! >> that's just making the same mistake over and over again.

>> we're talking about the jets after all. >> yes. that's what they stand for. >> i couldn't tell if you were talking about the jets or the fed making the same mistake over and over. >> thanks, joe. thank you, becky. >> when we come back, we'll talk >> when we come back, we'll talk about silicon valley ♪ piano music begins ♪ sfx: [golf clubs lightly clattering] sfx: [birds chirping] sfx: [deep inhale] ♪♪ sfx: [tees off] ♪ staccato piano resumes ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management

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all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™. welcome back to "squawk box," everybody. the futures up pretty sharply. the nasdaq up by 42 and this comes after gains last week for all three of the major averages. >> court filing showing pieces of twitter's source code were leaked online. think if you got the source code what you could do with that. whoa. i wouldn't know what to do with

it. twitter issued a subpoena on friday the software collaboration where a user identified as free speech enthusiasts showed excerpts of the source code and twitter is seeking to identify the person and elon musk said they will reval the algorithm. it's not clear if that was included in the material that was leaked. coming up, tim cook returns to china and reported concerns over an upcoming augmented reality headset. we'll talk new apple headlines

welcome back to "squawk box." let's take a quick check on crypto currency. bitcoin just under 28,000, at -- >> apple ceo tim cook meeting in beijing with china's commercial minister today. today he and other top minister took part in the first forum.

they highlighted the symbiotic relationship between apple and china. gene, let's talk a little bit about this. he was walking a bit of a political tightrope. how'd he do? >> he is the master at threading the needle, becky. at this case it was 10% poitics and 90% business. he was upbeat. his language at the china development forum said i'm thrilled to be back in china, a big distant contrast with what tiktok's reception was on capitol hill. and then there was applause. there's the political piece, which cook has been astute with, managing tariffs and then

there's the business side. there is the threading needle piece, a business perspective, apple has 20% of its revenue comes from greater china. that includes hong kong. if you back out hong kong, it's about 15% comes from mainland china. the u.s. is 42% of business. china's a big chunk and his goodwill, his p.r. undoubtedly is good for sales but then there of course is the elephant in the room, which is the production and supply chain. i just want to briefly frame in why this is a thread-the-needing type of situation. in 2020 apple gives these numbers out, they publish them about nine months delayed but in 2020 about 60% of their revenue came from mainland china, was produced in mainland china. in 2021 that number declined to about 55% and i estimate in 2022, we don't have the numbers yet, but it's probably going to be between 45 and 50. so while cook is there with a

smile on his face and meeting with all the appropriate people, his company is moving as quickly as it can to diversify away from china and to put an exclamation point on that is that in 2021, of the 150 new suppliers apple added, 80% of those were from outside of china. so he's playing a good role and he's doing a fantastic job of that. >> how long will it be before it is not so dependent on china? you're still talking about years and years down the road. >> that's the reality of a business that has such massive supply and the number of units that come from china. so, yes, it's years away. but to put some perspective on that, it's declining about 5% to 10% per year. it's never going to be zero but they're just looking for just greater diversity. it's going to be a lot of that pace is going to be with its

partners, foxcon, which is based in taiwan. 70% of their production comes from mainland china. foxcon said on march 15th they want to diversify to be enough from mexico and the u.s. some of that pace is going to be dependent upon how fast foxcon can move. this is going to go to apple with the supply chain that is dramatically more diversified than where it was five years ago. >> all of that, what do you do with the stock right now? i mean, you've got mike wilson out talking about how expectations are too high when it comes to earnings expectations, that you're going to see numbers that have to be taken down significantly, he's not talking about apple, not talking about technology, he's talking abouts s&p 500 overall. just if there's a recession, if numbers have to come down, is

this a good buy? >> apple is going to be impacted, just like any company it will be impacted. i think there comes a question about relative performance. i think ultimately this is still a great place to be, in part because of our dependence on their products. and, yes, they will lose sales in a difficult environment. the street is looking for revenue in the march quarter to be down 5% but a spring back to plus 3% in the june quarter. so that is negative if there is a recession. i think ultimately when things do stabilize, i think these products have just become such the fab ruck of how we live our lives that they will undoubtedly see a spring back and you have new product categories they potentially could get into as well that could further expand the multiple. >> i have some questions brought up over the a.r., the virtual reality headset. there are some questions that apple insiders are asking about. this is months before we get to

the introduction of that. what's your thought on the prospects of it. >> so the issue that's come up and this has been i think the "new york times" reported former employees had talked about concern internally at apple about the viability of a headset and the two things they had pointed out was the initial price to be around $3,000 and separately that there just isn't a market for it. this is out of tune, out of step with how apple goes for big market opportunities. my sense is it's still the right thing for apple to do. the reason is i think there will be a competing platform beyond mobile. that's the question that ultimately needs to be answered. what is the computing platform on mobile? i believe it's augmented reality. eventually apple will get the price down. analysts out there, don't add apple headsets to your models

just yet, that initially will be pretty light. but they got to get there or they might miss a trend. apple doesn't want to miss a platform beyond mobile. >> thank you. >> coming up, the latest on the banking center. banking center. mike mayo will j lily! welcome 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.

welcome back to "squawk box" on cnbc. the futures right now are kind of where they've been. up 200 points now on the dow after a pretty good performance last week given the backdrop. we're paying close attention to the next move in the treasury market. for more on rates, let's bring in steve liesman and rick santelli. do either of you think we'll have a cut by the end of the

year? steve, start. >> i think the fed may be forced to cut. i'm nervous this morning, joe. i know up got -- you got mike mayo coming up about the cost of the silicon valley sale. it's a cost to the fund. what's that joe? >> $20 billion. >> if chris earlier in the show was right -- maybe they didn't take the mortgages, some of the loans it troubles me that the fed and fdic can't resolve these things before the bank fails. dodd-frank made them incapable of going in earlier to resolve the banks, only after they fail. i'm surprised it took two weeks to sell what everybody thought was a good bank that just had a duration mismatch. it makes me a little more nervous this morning. maybe mike mayo coming up will

make me feel more confident. >> it's not always a zero sum game, rick, but first citizen shares are up 40% today. i put in the fdic for a symbol, it doesn't come up. would it be down? >> i think that it probably would be but i also think that there's a whole movement going on here that people are starting to get used to the aromas of how some of these issues are going to continue to play out. so i don't think that the rally that you're discussing today is necessarily going to have the legs to last. i think we're in for a lot more volatility. and as to whether we see an ease in 2023 or not, it's impossible for me to have any type of good glimpse into the clouds of the future. i just can't tell. we've gone from 25% in the quarter to 42, 43% of the kwr at the next fed meeting. the on reason i bring that up is

for the amount of range we can cover on any given day and all the variables that can change so quickly. it was just the 13th that most of this stuff with regard to banks started to surface. i mean, consider this. it was on the 8th of march, the five of year note was the 5.07. the ten-year traded 3.37, 50 basis points below where is settled last year. joe, fdic, no fdic, the fact that we have to be reactionary in the banking system and even if dodd-frank's tentacles didn't reach into that and i'm been reading a lot about that. when do you remember anybody being preemptive to any of the big negatives in the economy? it doesn't happen. once the fed or any part of the government or any agency puts up that flag that there's a problem

somewhere, they see smoke in the distance, you know how investors behave. they start assuming there's a lot more smoke to come. so it's a horrible scenario to get in and all the things that central banks have done have almost forced this type of environment that we're in, this landscape we're in and i don't see it disappearing any time soon. >> you've talked and we've talked about just raising, you know, just having more capital instead of all these -- around the edges, all these crazy things that politicians come up with, all you need is more capital. but if you really did do that, how much does that mean for how much the banks pull back on and what does it do to the economy? seems like it hurts business development, entrepreneurs, hurts gdp. is that a better balance sheet? >> i'm not sure i agree with the

hypothetical in terms of who gets hurt and who doesn't get hurt. let's be fair here. the banks and markets in terms of going to the wealth for capital for many of the large businesses has changed over the years. as far as the community banks and the smaller banks, i do think they have an important role to play but i also think that we are financing every zombie company from here to eternity for way too many years. this is what the other side looks like. i think we need to let it happen. i think less involvement. as to your final question, should we just have the same type of margin requirements that we do for clients that trade for futures at the cme in regard to what bank capitalists should look like, i think it's a tremendous idea and i think it's a tremendous idea to have a flat tax and make get rid of all the other taxes.

these are all great ideas, joe, but they're never going to happen, just like term limits. i do not see congress replacing very well liked loopholes that everyone likes to complain about but they're there for a reason. >> there aes a lot to respond to. >> real quick, i don't think this is what the other side looks like. i think this is what the worm hole en route to the other side looks like and i think there's a substantial adjustment to make, which is there are some changes that need to happen among who hold what assets in the banking system and maybe some of this runs through the fed and maybe some of this runs through low are interest rates, joe, in order to try to create those balance sheets and i think what diana has been reporting on, what rick has been reporting on is there is still the shoe to drop on the value of the assets

on the banks. we haven't had interest on the loans at all. s that that's still to come. >> and it's going to manifest in more printing. if they asked me to lend at par, i wouldn't take that trade. >> joe, i just want to jump in and answer that. what the fend is lend being a the par at when it comes to treasury securities and more government guaranteed paper, that's not at least a lost to the fed and using their ability to hold the security, that's not what bugs me. it's whether or not it gets into the loan. >> it's not a good use of capital. >>6)w,$rpppens after one year? i don't know. they never offered general john q. public the ability to -- hey,

my 401(k) is down 70%, that house across the street looks really sharp. how would you like to lend me 100% of what my 401(k) was, i'll settle up with you in about a year. yeah, i'll take that deal. >> if market forces dictated what was happening, you wouldn't do it. that makes more dislocation. thank you, rick and steve. >> we've got more on this morning's big news. north carolina based first citizens bank shares buying a big chunk of silicon valley bank. at the same time bloomberg reports that authorities are looking at widening a fed lending facility to give the first republic bank some extra breathing room. for more on all of this and what the banking sector looks like at large, we bring in mike mayo,

managing director and senior banking analyst at wells fargo. we'll get to the drinks and why you're so thirsty in a minute. let's talk about what happened with this deal. you have some complaining that the fdic is getting the raw end of the deal, they're stuck with assets and securities nobody wanted and will be left with $20 billion in losses. what does it tell you? >> i was negative on the bank for over 15 years leading up through the global financial crisis. this is not the global financial crisis 2.0. two weeks ago the fed and government reacted very quickly with the backstop to prevent these liquidity issues. a week ago you resolved the credit suisse situation. now you've gotten a major

clearing event. you've had the second and third largest bank failures in history and now they're resolved. the reserves, the fdic reserves were 128 billion at the end of the year. this is a $20 billion hit. that's not great. in the scheme of things, this will cost banks 3% of their earnings over year and higher fdic. and what's really gotten lost is all deposits are not created equal. the average deposit side, the venture capital deposits of over $10 billion is a lot different than your average bank. you're extrapolating silicon valley to the entire industry and that's wrong.

they were forced to sell those unrealized securities losses. they were forced to. you're no longer forced to do that and the fed is providing as much liquidity as possible. there's lots of liquidity that does not want to sell their securities. you have tons of liquidity. so the idea of a forced market to market liquidation value of banks is innumerous. so all these study p studs that show the unrealized security losses, yes, it's visible and you have a value but it's nothing like $50 billion on citigroup's balance sheet during the global crisis. you didn't know what the number was, what they were worth. there's good transparency, good value ace. and you're giving credit for

realized losses and unrealized gains. >> you're talking about the hold to maturity. there have been questions that people have been raising this morning, everyone from chris whalen to josh rossner, what happens when you start looking down the line at their portfolios, when you get to the real estate loans and mortgage-backed security. the fed is not going to offer liquidity at par, are they? >> we have what i call the bank crisis of confidence spurred on by one event. >> i agree. >> we get oaf the speed bump because the government is doing whatever it takes to get over the speed bump, including having a $20 billion haul, which is paid for by the banking industry. >> again, the $90 billion in

asset and securities is not included in that purchase. the fdic has to figure out what to do with that. if it's $128 billion the fdic has, even if it's 3% earnings, you want to stem the losses on this. another example of this liquidity. central bank was dumping this liquidity in for years and now they're trying to take them out with higher rates. or did we just reversus quantitative tightening back to quantitative easing? how do we get out of this big balance sheet? the bank did some irresponsible things in the meantime. not all of them but some of them. >> look, asset liability management is banking 101 and in some cases it's been horrendous. so you have these huge mismatches. also in the case of sill you con

valley, don't keep all your eggs in one basket. pt deposit for the funding framework of these banks is not typical of your average banks. the contagion has slowed. you see even small banks seeing deposits higher. credit quality as a snapshot as of this second has gone from nirvana to just really good. you'll see that with the earnings coming up. we want to look past that. and the ability of banks to control their costs in this environment is still quite good. then we go to the recession scenario. banks have a bank crisis discount, which i think the fed does whatever it can during this period and then we go back to business as usual, what are we going to do about the recession. and in terms of recession, banks have half as much leverage as they did, twice as much liquidity. they derailed of way backward

and forward and you have an annual stress test that stresses real estate down one third or more, stock market down by half. >> didn't stress what happens in a higher interest rate environment when rates rise rapidly. >> in the global santo crisis, the issue was what was the value of the assets. now we're looking at what is the value of the liability or deposits. but not all deposit. consumer deposits are still strong. citigroup looks horrific because all the whole sale funding and half -- you know what those deposits did? i think p said they were failed. when when i said they were failed, their deposits grew by 20%. they're talking about esaliency

of funding even at city group and you can get over the speed bump, then we'll deal with the recession issues. there are more concerns about a credit crunch. if you want to build up capital, you're going to have a few less loans on your books. the idea of a credit crunch, it's what needs to be watched for sure. >> thanks for coming in. we appreciate it and we'll seal you soon. >> lots of liquidity here. no more forced liquidations like we had.

it's going to implode. >> that negative for the economy that can be a positive?;■ for n onlye1i] stocks but for probabl growth stocks, which we've seen a heck oft. zblienchts get down to the new york we have had some opinions all over the+■ map. mike mayo seems liket( things a pretty good about the whole group. you like this deal that was annou.ç áju morning, jim? >> yeah, i think there's a lot similar deals. i seei] first republic trading y it takes the pressure away off that. i was surprised that this bank uninsured deposits, which shows there's a big list of companies that might be able to buy. i also think that there are many people at these banks that are they've got their breath, they

might tcy■ a look at some of these banks. so, yeah, it's a road map is the way i would look at it, a road map toñi get out of the jam. >>i] do you think the fdic --lp should we be concerned? dow3ñi we think that bank fees going to ooz up so muchokokñrñiy are the reason there's going to this that makes the -- whatever the slowdown look like that was fed-induced, is it going to be even deeper because of this? >> no, i think it's prettylp mu what we have been looking for. i've been saying that+■ this whe crisis could be worth a hundred basis points. i do thinklp that the bank'sçówg qb7o be levies with a higher fd and that does hurt the margins. >> and hurt earnings. you could drive a truck through a lot of these estimates, depending on who you have on. chris seemed great. >> i'm not that worried. i am concerned that the bosses are going to hagglet( at the en

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the s&p puts it morefáq firmly positive territ]r[ for theok ye. kpyignals in the charts, katie stockton. she's a cnbc contributor. morgan stanley's mike wilson,xd katie, is talking about some of it could set up for a violent end stage of this fair market that we have been in. do you see technical things that 16sees fundamentall? >> well, the small cap weakness that we've seen isq reflective f the market breadth, right??;■ the breadth has been pretty terrible since early february.t( if you looklp at the percentagef s&p 500 stocks above theirjflp 50-day moving averages, itñi si only around 23%, which is pretty remarkable,q considering that w have had three up weeks in / theq s&p 500 remains belowñi it

50-day moving average. we think that'si] a reliefçó fá it's likely to fail, and along the lines of what mike is saying, we do think there needs to be a greater spike in the vicks or volatility, and that, of course,a5■ would b'yko■ asso with another downdraft thapf perhaps is a bit more harrowing in óg&5m■?;■ of market sentimend its impactr r" that you talk aboutçó bitcoin and crypto. similar commentary, you think, this relief rally is destined to fail as well? >>q you know,xd it's■óq interes that bitcoinhnez confirm its breakouts in the basingçó phase so on the surface,xd bitcoin is pretty interesting now from an intermediate term perspective.çó it's not something that we want exposure to at this time. it is short-term@■(xd6z■extende now the support levels get ratcheted higher with the breakout that we've seen soc9ñ■t formere q resis support going forward.ok

the bitcoin has certainly the longer-term set-up is a bit more neutral, i would say, and i think it seems to be specific to what's happening in thee1 bank sector, ande actualn major breakdowns irláhe banks, and we don't have any funds in downside exhaustion yet. we have a lot of clients that arer to try to leverage a countertrend move, but we think there's really sort of great risk to that because of the breakdowns that have t(occurred. >> wow.ok so,w3w3 sounds like bitcoin is favoriteçó asset here. that's the nicest thing you've said about anything in theu0ó p year. >> you know, weu■ like gold. ■ a breakout. it's a different type offá char. it's anq uptrend. and resistance for gold is -- >>q what about oil? >> -- around 63. oil broke down below some support around $70 so that's what the firm -- the down trend. that's been in place there for several months now.r we had t('@ght $70 would provide a floor.

bounce, which should, of course, 4pdo a bit better f couple of weeks that we're looking for an energylp bounce. >> okay. i'm just looking at the clock,t and i want to get in the ten-year because you -- we were in an uptrend forçó yields. is that uptrend beenñi broken? >> the uptrend's still intact based on our work, but we have been talking about a trading range there, and it seems to have unfolded. the support for ten-year yields is around 3.75%, so it's not too far from that. i recently tested i4 itfáq did become so-called overd near that level, so we'rejfñi looking for an upward bias here, not dramatically so, but within theçó context of more of a neut. that neutral range, you can see in treasury bond etfs like tlt, and that range to use1 itñi -- s improvement over what we saw last year. it does make treasuries even more attractive thanjfjf equitif we were to see that downdraft áv(eat vicks move up into the mid-30 range. >> all right. weq got aboutfá 30 seconds left

katie, so we'll say t(good-bye. that was a quick synopsis of some of the most important things that you'refá seeing.t( not everything's same-old, same-old on that s&p and yields. but we appreciate it. thanks. >> of course. yep. let'sxd get a quickñrokxd f check on the marsbm9 they have been all morning. we've builé■[çó through th%ñájf of the morning. dow indicated up by 210 points. that does it for us. wetyr&l see you back here tomorrow. right now, it's time for "squawk on the street." ♪♪ good monday óopning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange. futures pretty solid as silicoì% valley bankt( finds a buyer for most of itsq assets. two-yearc yield claws it way bak to 4%. our road mape1 is going to begi with bank shares.e1