good thursday morning. i'm carl quintanilla with morgan brennan. setting the agenda, you can get, regional banks, pacwest, and others tanking the ceo of first horizon is going to join us this hour as its merger collapses. plus, a trio of earnings ceos ahead nat gas, hyatt off its best quarter ever, and the commercial real estate crisis with jll. later on, what to expect from apple tonight and the public debut today that could spark the return of ipos. markets are deep in the red right now with the dow going

negative for the year. the s&p right now is at 4059 you have nearly every sector in the red. s can see, the nasdaq is down 0.50% as well. >> let's focus on the regionals, the kre reaching the lowest levels since halloween of 2020 pacwest says it could be exploring strategic options. western alliance is pending, there are reports swirling its looking for strategic options but bloomberg saying that is not the case former fdic williams joined us last hour and talked about the need for confidence in the system right now >> if we can stop the flow of deposits, a lot of them that flow of deposits have stopped, but if we can stop the loss of confidence somehow, that is something that the regulators should be working on and policymakers more so than anything else at this time we need stability and that's what's lacking. >> joining us, kbw thomas show

is with us you said it's an important day and you have some ideas on what it would take to restore confidence. >> absolutely. if we've learned anything, and chairman powell talked about it yesterday hoping the first republic resolution would bring confidence and find stability, i think what we learned now is this turmoil is still rolling. and i think it won't stop until we build some stability into the system and also i think it's remarkable is the regional banks have done very well. last night western -- not their stock prices, but western alliance last night put out an interperiod release saying deposits were up, they're executing on their plan to sell assets, building capital everything the market and investors should want, but that hasn't taken the heat off the stock or off the bond prices, by the way. the bond prices have been seeing turmoil as well. investors are very nervous i think what they're nervous about is the fact that silicon

valley lost 75% of their deposits in 36 hours there's not a bank in the world that could really sustain that i think the market is trying to figure out what happened silicon valley had some idiosyncratic features, if it was going to happen, it could happen there but the market is nervous about the system and talk about the system and something yellen just talked about, which is when congress took the power away from the fdic in 2010 to real-time monitor deposit insurance, it didn't realize the speed at which money can move and it didn't realize how big the gsifis were going to be. now there's the yournd tone of too big to fail, sucking deposits inside the banking system towards the big banks, which will ultimately maybe make us riskier, not safer. that's number one. number two, the whole view of how fast money can leave a bank.

what we need, in my opinion, is the next bill that congress passes, they should put in a clause for a year, give the power back to the fdic, let the fdic create an orderly moment and then let's have a debate on how we're going to modernize deposit insurance so all these regional banks don't have to have these runs that per periodically come at them, whether it's their stock prices. >> that sounds great but we can't even get a deal on a debt ceiling. if we're talking hours or days with confidence in the regional banking sector, what can be done to staunch the bleeding, at least from the stock and bond perspective, right now in the meantime >> in the management teams i talk to, they'll be all in on solidifying their balance sheets, serving their best customers. it's going to be absolutely a factor that continues to bring the economy to a halt. and while that's happening, you're going to see more market share go to these biggest banks and the banks that actually lend

to middle america and main street america are going to have less capacity to do that in several years' time, we'll be really unhappy about what happened it will affect the economy >> really quick while we have you here, tom, on this western alliance report, out of the ft, i think we're getting a breaking statement. let's get to dom chu on that. >> carl, morgan, we have a fact from western alliance bank corp, attributable to a spokesperson at western alliance saying, quote, the financial times report today that western alliance bank corp is considering a sell is categorically wrong in all respects there is not a single element that is true western alliance is not exploring a sale nor has it hired an adviser to explore strategic options. it is shameful and irresponsible that the "financial times" has allowed itself to be an instrument of short sellers and as a conduit for spreading false

narratives about a financially sound and profitable bank. we are considering all of our legal options in response to today's article, end quote we are in the process of reaching out to "the financial times" as well with regard to that report and the statement from western alliance. morgan, carl, that is a formal on the record statement saying western alliance says it is not exploring a sale and has not hired advisers i'll send things over to you. >> thanks. >> at this moment where it's all about confidence, i would encourage the marketplace to listen to what the companies are saying, because they need to be very careful because they need to be legally liable for what they say i would not believe every report that you see on social media about a bank right now. >> well, this is the "f itt," that's not social media. >> that's a big article to write to have the company within minutes come back and say it's wrong. i would encourage a lot of

fact-checking going forward because the ramifications, you saw what it did to the stock price, are severe, severe. >> meantime, you did have confirmation from pacwest they are considering -- we've had confirmation with our own reporting at our own network they are considering their options, including a possible sale right now you had the sale collapsing with first horizon and td this morning. what does all of that say about consolidation and the m&a landscape and what that's going to look like in the midst of all these questions, this confidence crisis and, of course, this idea that the big sifis get bigger? >> i think the first thing is let's talk about first horizon it's great you'll have brian on shortly. the president put an executive order he wanted new rules for m&a. the interpretation of that has been slow everything down and for bigger size companies, it's been very delayed. and i think, frankly, again, that hurts confidence. when you have two well thought

of banks like td and first horizon unable to do something like this, that's an issue i don't know all the particulars and i don't believe the companies have released if there was something, but every other time in history it's been surmountable i think that's a bad fact for the industry and every industry participant i speak to and i agree with is rewarding scale. you're likely to see more consolidation because if you don't we'll end up with four banks. my opinion is, we need those four banks to have more competitors. if the competitors don't get a chance to gear up to compete, then we will only have four. >> finally, our leslie picard reported that the s.e.c. is not considering a moratorium on short selling of banks do you think there should be one? >> we need orderly

i think the fdic fix is the better fix than just going after the stocks i think if you have the insurance fix and you let everybody know that regardless of the size of your bank, you know your money's good at variety, at different deposit levels, i think that would do the trick and you wouldn't need the short sell ban by the way, when everything -- which i do think is solid in the industry, all those shorts are going to have to cover then maybe we should talk that day. >> thanks. a lot to process today, short term and longer term thank you for coming in. >> thank you. still to come this hour, is the energy boom over nat gas cut in half since the beginning of the year but the profits for energy companies has been pretty good the ceo of williams on the other side of this break. an exclusive with hyatt chief executive and brian jordan will join us to talk about the collapse of the deal with td bank that interview is coming up.

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take a look at williams, it's up 1% right now the company handles a third of all natural gas in the u.s., delivering an earnings beat in

q1 and reaffirming guidance for the year ahead joining us in a cnbc exclusive, williams ceo alan armstrong. great to have you on the show today. >> thank you >> we've seen nat gas prices pummel this year, down 55% year to date. does the price actually matter if you're continuing to see output at these higher levels, you're continuing to see storage fill up and, thus, there's the need for all of that gas to be moved through pipelines and infrastructure and the like? >> thank you nat gas drive demand and we're certainly seeing that in april, actually we saw power generation load for the april numbers and power generation load was up about 2 bcf per day, so that's about 8% increase on demand as a result of lower prices. as gas pushes coal out as an opportunity there. so, yeah, lower prices will

create demand. that's what we sell, is capacity and throughput so from a williams perspective, low prices are not such a bad thing. we do have some exposure to natural gas prices, but for the most part, certainly for long-term investors, actually a really big positive for us to see prices moderate, certainly from where they were last year and last summer when we saw prices get to $8 or $9. >> you just mentioned those production assets, the upstream assets do you plan to hang onto those how are you thinking about that? >> that's certainly not our business i'll remind you, we pick those up during the last downturn, particularly in 2020, where we had customers that owed us for expansions so we picked those up through the bankruptcy process we brought in new operators to develop those. we're not actually operating that property. and it's a very small piece of

our overall business and certainly, you know, as we mentioned on our earnings call this morning, the for-sale sign is always open on those assets but we're not in a hurry we have a lot of development to do, a lot of growth opportunity for our operator in the wyoming area to further develop that in the haynesville, they have done a fantastic job of growing volume in haynesville for us. >> in terms of the midstream business and the infrastructure buildout, permitting of new projects has been a key topic for the industry a lot of focus on d.c. and whether we'll see some changes for the better your outlook >> you know, the good news, i think, is we've started to see the administration recognize the importance there was a letter from secretary granholm that came out last week mentioning the importance of natural gas infrastructure, particularly as it related to mountain valley

pipeline we're thrilled to see that that's -- a lot of the input is from a lot of the big utility leaders who are really making sure that the administration understands that for us to electrify a lot of the loads here in the u.s., we are going to have to have natural gas coupled with renewables to be able to drive those incremental loads for electric demand. thanks to utility execs, i think they're starting to point out the need for natural gas infrastructure along with electric transmission infrastructure so, it's getting pretty clear, i think, particularly to the moderate democrats and, obviously, to the republicans. i think it's very clear that we've got to straighten out our permitting reform to take advantage of what the world needs which is low price, affordable natural gas, which can dramatically reduce our emissions right here, right now, and as well provide affordable energy and certainly energy

security for u.s. allies >> that's for sure alan, i wonder if i can get you to comment a little more broadly on the last couple of weeks where there have been peaks at crude, rbob demand going into summer blend season, diesel demand and people arguing it is a giant macro tell do you think it's a legitimate one? >> well, i think, you know, it's hard to make trends out of some short-term peaks but we are certainly showing strong signs of resurgence in demand. we're seeing the same thing on our natural gas systems as well. and so, you know, i'm far from the guy to ask about theoil an crude and refined products business but certainly we are seeing signs of resurgence and demand in the natural gas industry as well >> yeah. of course, the freeport chief facility coming back online is probably going to be pretty positive for some of that inventory getting worked through on the natural gas side as well. alan, appreciate your time

today. alan aarmstrong, ceo of williams. >> thank you. meantime, the ceo of first horizon is coming up later this hour we will talk about the state of the banking system and that terminated deal with td. the stock obviously off this morning. watching paramount, too, plummeting after the steep loss tied to the streaming service. and cutting the dividend for the first time in a decade going down to a nickel stay with us

apple reports earnings tonight. investors are going to focus on its outlook as a critical indicator for tech, not to mention capital returns. that's the focus of today's "techcheck" with deirdre bosa. >> as usual, that's right. iphone services revenue and capital allocation will all be in focus but there's a new story emerging investors will be paying more attention to growth in apple's installed user base as evidence the product flywheel is working.

consumer buys a device, adds a service, rinse and repeat. they point to that flywheel to make the argument that apple's investment case is shifting. 20 years ago it was a hardware company. 10 years ago it was services revenue. now they say there's a new chapter in the investment thesis apple will be seen as a can't live without consumer staples company and a premium one that could help push the multiple higher writing, for apple, it's much more about a user growth story than a unit growth story the flip side, though, revenue is expected to decline analysts expect a similar decline in the current quarter apple has not given formal guidance since the start of the pandemic cook and team do give datapoints, that is critical china is still a question mark key apple suppliers like foxconn, qualcomm have cautioned

about slowing smartphone sales we'll see if it's unique for suppliers or indicative of apple. >> it is a company that has given at least some forward-looking information about its different product lines. is the expectation that we're going to continue to see that weakness coming into further quarters based on the details we'll get after the bell does it even matter if they come out with something like $90 billion in return to shareholders >> in terms of the capital allocation plan, that's a good question, morgan it is balancing that longer term story with the immediate, which is the current quarter and are sales going to weaken further? they don't give formal guidance but they give data points. those will be scrutinized. i do think that probably matters more than capital allocation plan is because we know what the longer term trajectory is. they want to get to a neutral

cash position. that will be key what they say about china and india, that's in guidance, investors will scrutinize that very closely. >> the stock is up double digits since the start of the year. thank you. the hyatt ceo is next after posting its best q1 in history as travel remains hot into the summer season. the stock is off today but it's 26% so far this year we're back in two. ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

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here's your cnbc news update at this hour a jury has found four brproud bs guilty of conspiracy on the u.s. capitol attack proud boy leader is the most prominent men convicted and the jury will continue to deliberate on the additional charges. the suspect in yesterday's deadly shooting at a medical facility in atlanta has been charged with murder and four counts of aggravated assault the 24-year-old gunman is set to appear in court today. less than one day after he allegedly shot five women and

evaded police on an eight-hour man hunte. a semi-automatic gun was used in the shooting. israeli forces today killed three palestinian militants wanted in connection with the death of a british israeli woman and her two daughters last month. the three women were shot driving in the west bank the hamas said the dead militants were members of its organization and claimed responsibility for the shooting deaths of the three women. morgan, back to you. >> thank you the ipo window is beginning to crack open. the largest listing of the year coming today here. let's go to -- let's go post to post with bob pisani for a look at that. bob? >> we're still waiting for kenvue to open you know band-aids, neosporin, johnson & johnson's consumer

product division good price, $172 million, $20 to $23 is the price attack. we don't know where it will open the price was $22, so right now with the way they're building the book, this will have a nice pop. when will it open? i don't know exactly they're selling 172 million shares they often try to wait until you get close to 10 million that are actually going to be offered at the open so, we're getting there. we're about 10 million i'd say maybe another half an hour to an hour. we'll be here talking about all of that, and even the future ipos out there waiting to come right after these, hopefully in the next few months. we'll be back in the next half hour and talk about all of that. guys, back to you. >> good to have you on the floor. bob pisani. shares of hyatt are higher this morning despite its best quarter ever, with hot travel demand a theme we've been seeing across multiple companies this season

visa, mastercard and others reiterating very strong guidance joining us in a first on cnbc interview is hyatt ceo mark hoplamazian. it sounded strong and you specifically pointed out asia. i wonder if you can characterize the rebound we're seeing there. >> sure. carl, great to be with you thanks for having me we've seen a remarkable recovery as soon as the national government in china released the covid restrictions, the chinese population got on the road and it's been very interesting to see the profile of it. so in greater china, we are a little off of 2019 levels. maybe 4% below that. in mainland china we're 10% ahead of 2019 levels that's with 60% decline in inbound international travel into china and it's more than made up for by 30% increase in domestic travel.

these are chinese citizens traveling within china it's been quite a remarkable and fast recovery. >> you've made a point in recent quarters to talk about your differentiated model i wonder if you're expecting weakness in the back half of the year or in '24 and how that's going to shift the priority you give to various brands >> no, you know, our strategy's been focused on the high-end traveler we have durability in their choices to get on the road, especially in leisure. leisure has led this recovery and we're well positioned to do that no, we think we'll see our progression in revpar in the first half to be in the mid to high 20s increase over last year and mid to high single digits in the last half of last year we're lapping some pretty strong results from the last quarter last year. we just reported our fourth consecutive record quarter

so, we are lapping some stronger results in the latter half of the year but we see growth still. >> there have been comments from some of your peers in the lodging space that obviously any kind of credit tightening, and certainly the moves the fed has taken so far is going to have an impact to the degree you're looking for incremental softness, where you're going to find that. >> well, you know, we have a record pipeline for future growth, 117,000 rooms in our pipeline and we've had roughly the same proportion of properties under construction for the last several quarters which is approaching 40% of the total 20% of those hotels under construction are in the u.s. so, the credit tightening actually affects new starts, new development starts the other thing that's true is supply growth has remained relatively low over the last several years. as a consequence of that, more developers are realizing they

better get to work so they're getting more creative about how they can raise capital they're overheequitzing. >> when we talk about more of a macro picture, sticky service inflation, one of those has been within travel pricing and the fact that has remained elevated. i wonder what your outlook is for pricing, especially as that increased capacity does begin to come online. >> what we've seen is our resorts, which performed extremely well in 2022 continue to post rate increases, in spite of the fact that leisure trips have extended to hotels in our portfolio. even as leisure demand has increased, now you're seeing more urban purposes of leisure

into urban hotels and so forth our resorts maintain and have grown their rate realization and in our group business, which is a significant part, 25% to 30% of our total revenue base, we're seeing currently businesses currently being booked right now at a higher level than is on the books for the remainder of this year so, pricing is actually firm and we're really encouraged to see that >> corporate is going to be -- we'll talk about that next time, i imagine, and the way the work week has evolved has gotten interesting for lodging as well. great to see you. >> great to see you, too thanks. after the break, commercial real estate has a growing problem and it's hitting the banks. the ceo of commercial real estate giant jll is with us next following their results. shares are down about 3.5% right now. plus, join cnbc's small business playbook virtually today you can scan the qr code to

register or visit cnbcevents.com/smallbusiness stay with us lila: before i was diagnosed, there was nothing really to worry about. and then when i was diagnosed, there was just such a big weight put on my shoulders. every night, i felt like maybe i won't wake up tomorrow.

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remember, this could be somewhat of a read-through to apple we'll have to see when we get those results after the bell shares of qualcomm are down 5.5% meantime, turning to the growing worries in commercial real estate, we got a new record now for empty office space our robert frank has some numbers on that. good morning, robert >> good morning. those numbers showing manhattan has 94 million square feet of empty office space, an all-time record they can space up 75% since pre-covid. president overall vacancy rate now at 17% there are no signs that this is going to improve any time soon new leases were down 44% over the same month last year and the office occupancy rate that's how many people are actually coming into the office right now, that's been stuck in manhattan at around 48% for the past year. the reits with high concentrations in new york office space seeing big stock

declines vornado trading at a 27 year low. the ceo saying the company will take a breath in its timeline for developing penn station. sl green trading down at 52-week lows other urban markets also in trouble. san francisco's vacancy rate hitting a record in their first quarter with nearly a third of their office space now unleased. this, of course, is perhaps the second blow of that one-two punch for the regional banks >> certainly something we've been talking about we'll continue to dig deeper into robert frank, thank you. let's turn to one of the biggest players in that space. jll with revenue more or less in line the company warning that a market wide transaction slowdown is continuing to impact capital markets activity and prices are falling to reflect that. you can see shares of jll are down about 3% right now.

down 15% over the past 12 months, according to green street that's in terms of those real estate transactions slowing and what that means for prices joining us now is cnbc exclusive is jll ceo christian ulbrich christian, thanks for being on the show with us let's start with that. the fact we are seeing this constriction in terms of capital and what that means for transactions we've been talking about the regional banks, we've been talking about tightening credit conditions what are you seeing in real time >> good morning, morgan. you have seen transaction volumes which have come down very significantly, around globally 60%, but we also see some green shoots. the markets are gradually coming back we see now bigger transaction on the debt side working again. and so we will work ourselves out of that very first quarter this year and you will see clumps of improvement over the

remainder of the year. >> so, in terms of commercial real estate market more broadly, and i realize there's many different buckets here, but it almost seems like there's this bifurcation, whether office space, retail space, et cetera, and everything else. is that the case if so, what does that mean in terms of dynamics more broadly in the real estate market? >> yeah, we have been talking about that bifurcation now for some time. that will be -- that will continue to be a very important trend. we had in '22 a pretty amazing statistic that vacancy rates globally in all the major markets of the world have gone up at the same time, top rents have also increased usually those two things don't work together. we have seen last year, and that will be a trend of the coming years, this is a reflection of the bifurcation of top quality

buildings, where the best companies of the world are trying to get in, and then those buildings are not meeting expectations of today's tenants anymore where rents will come down or they will stay vacant. that has obviously an impact on the investment markets as well where those buildings will continue to trade, which will meet tenant expectations for the medium and long term, and those buildings not meeting those expectations where the upgrading makes no financial sense, they will not trade and values will continue to come down. >> and i want to dig into that piece of the puzzle a little deeper because what happens? if those buildings aren't traded, if vacancies stay elevated, if you landlords that aren't going to put money into upgrades, do they go back to the banks and the lenders? and are the lenders even going to want those on their balance sheets >> first of all, people will try to find out whether you can turn those building into something else you will continue to see offic

buildings turned into residential buildings because we still have high demand for residential space. you will see those buildings turn into hotels and all kinds of usages. but there will be buildings where there is no financial case to turn them into something else, so someone will have to take the pain. the equity will be wiped out, they will go back to the lenders and they will have to take a writedown on those buildings and they'll probably be demolished and something else will happen around those sites but this is a lengthy process. we will see that as one continuum over the next couple of years, but it shouldn't distract from the fact that we have a huge amount of buildings which have a purpose and where there is demand for those buildings on the leasing side as well as on the investment side >> okay. christian ulbrich, jll ceo, thanks for joining us today. >> thank you

the ceo of first horizon is with us in just a few moments. stock is down after terminating that deal to be acquired by td interview after the break. look at western alliance, which is now resumed trading after being halted the company vociferously denying reports that it is exploring a sale dow down 380 back in a couplef nus. omite aycs do their own payroll. - what's paycom? a magic payroll genie? - it's a payroll app. - payroll is way too complicated for the average person. - paycom guides them through it. missing or duplicate punches, pending expenses, unapproved pto, on and on. - why would employees wanna do all that? - this could be a stretch, but i think it's 'cause they wanna get paid correctly. i like getting paid correctly.

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the banking sector in focus. td and horizon mutually calling off their merger agreement unable to acquire a timetable for the $13.4 billion send fir shares plunging on a tough week for some of the regional banks joining us is bryan jordan thanks for being with us. >> thank you for having me good to be here. >> the street has obviously gone over the news release but understandly still hungry for an explanation as to why they couldn't be ironed out >> i don't have any real explanation for you, as we said in our release, we were notified that td was unable to get a time line for regulatory approval and as a result we reached a mutual termination of the agreement any questions about the approval process, unfortunately, td will

have to answer. >> is there any way to make clear whether this was on the u.s. or canada side? >> i don't have any insights, again, td would have to answer that one thing we did make clear it was unrelated to first horizon >> yeah, are you concerned that td is using this as a cover to wigging out of a deal that is materially changed given the massive contraction we've seen in regional bank values? >> no, i take it at face value we have worked very well together for the last 14 months and worked hard to win these regulatory approvals and i take it at face value we were unable to get a time line for approval and we reached this agreement >> so what happens now what's your next step? are you thinking about another deal >> right now we're still in the process of working through this. as you can imagine, it's been a tremendous amount of time talking to our folks this morning. i happen to be located in

virginia where i had the opportunity, we're hosting a ceo summit where i've been with about 45, 50 of our key customers over the last couple of days. we're focused on building our business today we've run the organization, the institution from day one of announcement through today like we have for the last 159 years we never assumed that regulatory approval was a given we always knew there was a risk in this process, and we've continued to build momentum. we will continue to build that momentum we've built strong capital base and i think it gives us tremendous flexibility and we will continue to serve our customers, community and clients and deliver value for them, and we'll see what happens next. >> i'm sure you've got thoughts, though, about regulators and whether or not they are unnecessarily building in uncertainty in an industry that needs to consolidate, right? >> well, i'm not going to take a view on the regulatory

environment. it is a difficult job. there is a tremendous amount of volatility in the market, particularly when you see a tightening cycle like we've been in for, you know, the last year plus, and the base is shrinking so you have uncertainty and volatility i agree with your fundamental principle that you've got to see consolidation over the longer term that economies of scale will be important for a number of reasons, investing in technology and infrastructure but also the act to build risk management systems and really support the regulatory environment so i think your point is well made you're going to have to see some consolidation but, again, i don't have any view as to what impact this will have other than the uncertainty of the time line. >> what do you think of the regional banking landscape more br broadly. it doesn't seem to be one, at

least not now in recent days, with all the selling we've seen across bank stocks including your, it doesn't seem to be one that's necessarily driven by fundamentals this is very much a crisis of confidence i wonder how you see it and what that means in terms of how you're operating at the bank right now, and what could help the sector overall in terms of staunching this crisis of confidence. >> yeah, morgan, i agree there's a certain amount -- there's a tremendous amount of uncertainty about the banking system in total and people are trying to figure out what does this mean at an institutional level. i think it's a real opportunity to articulate a long-term deposit insurance strategy, congress will have to act on that and bring certainty back but i fundamentally believe in the banking system i think it is strong you heard that from chair powell when he spoke yesterday and hear that consistently. the surges from one institution to another have had the impact

of destabilizing many. when i lookat the regional banks like us, where we have extraordinarily strong capital base, some 400 basis points on a pro forma basis well capitalized coupled with strong credit qualities, strong deposit base and deep, broad relationships built over 159 years, i think things will stabilize. it will take time to bring an environment or put underpinnings on the deposit insurance system. >> yeah, are you thinking about risk exposure any differently and just as importantly, have lending standards been tightening at your bank? >> we've not made any significant shifts in tightening our lending standards. we try to be consistent for our clients throughout the cycle and tried not to make significant changes in the way we think about lending standards and we try to be very, very consistent. i would say two things with respect to that, though, one, customer demand, client demand

has continued to drift down as the economy has had this in surge or up surge of uncertainty and at the same time, we are seeing around the margins that contraction is occurring just because of the tightness of financial conditions, so it is clearly tighter financial conditions, but at our lending standards have not changed significantly since the start of this rate environment. we've always been thoughtful about rates were going to go up and believe we've underwritten for a higher rate environment and we don't feel the need to make significant corrections today. >> interesting you know, one of the takeaways from this recent fed postmortem about silicon valley was the notion in the era of digital banking frictionless withdrawal happens a lot faster and deposit data goes up i wonder if you think that's a game changer as much as the report suggests. >> i believe it is

i believe wesaw a real acceleration of online mobile frictionless banking in the start of the pandemic because people had to learn to use those tools in an environment where the -- you couldn't get out. you couldn't go to the bank. you couldn't do a lot of things and that only accelerated as the industry provided better tools and better infrastructure and so i think that is a real phenomena different this time and not likely to recede it's part of what we at the industry and at first horizon will continue to deal with as a more frictionless banking system which in my view is a good thing. it's a great thing for our customers. we want to make banking as easy as we can make it. >> as the industry sorts through this and lawmakers sort through it, is there anything that needs to be done right now immediately to help with -- to help this not become a more contagious effect within the broader market, for

example, it's been floated the idea of a moratorium on short selling. would you be behind that >> morgan, i don't think for the moment -- decisions are good think through this and put a lot on the table where there's regulation, where there's fdic insurance and rules around selling but we need to be thoughtful most times when you change something in short order you push down here, it pops up over there, and we create another issue or problem so i'm not supporting any significant changes in the short run. i think we need to work together with the industry, our regulators, industry groups and our legislators and come up with long-term solutions, which will hopefully bring stability and confidence to the system that it really deserves. >> interesting take. normally in these environments people want quick fixes and you point out that oftentimes that

creates other problem, really quick, can i get you to think about whether or not there needs to be enhanced insurance coverage for even business accounts >> well, i think there's a case for looking at the deposit insurance fund and looking at how it insures deposits. i think if you said we're going to put universal deposit insurance out there it would create other problems but you have to bring confidence more broadly speaking to the commercial and the large deposit holders in financial institutions, and i think that can be done in a targeted way that really takes the burden of risk selection and allows that to be regulated in such a way that it provides confidence and certainty to our depositors, without having a huge impact on the deposit insurance fund long term. >> bryan, appreciate you coming

on obviously it's got to be a tough day but the claritity you're giving us is definitely appreciated by the street. thanks so much >> thank you for having me >> meantime, as we pointed out 4055 would be the lowest close since ape -- >> of course, the dow turned negative on the year down 423 points right now as well i would also mention this regional banking story, we'll continue to talk about it. overtime today we have randy quarles, vice chair of supervision as well. >> let's get to the judge. >> carl, thanks so much, welcome to "the halftime report. this unsettled market following another rate hike and more regional bank turmoil. the investment committee debating all of it joining me for the hour today, josh brown, jenny harrington, steve weiss, let's first check the markets here we are around the lows of the day, dow is down by more than 400 points, we got the fed hike, the regional