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miles away. that's where the web space telescope -- attention of astronomers and space fans everywhere. according to nasa, the star, w r 1 to 4, among the biggest and most radiant stars known, is about to die. before going supernova. supernova's, as you may know, are the hottest, brightest objects in the night sky. the stars surrounded by cooler, glowing halo of gas and dust, a lot of it equivalent to the mass of ten of our sons. the mass comes from the starts off, which now is a mere shadow of its former self. and now only ways the same as about 30 sons. my mind is blown. the news continues. we want to head over to -- what's next for america's money. poppy? >> tonight, a banking crisis leaves more questions than answers. >> we had a old-fashioned bank run. >> did the government step in at just the right time?

>> the banking system is safe. >> or overstep with what critics say just another bank bailout? >> -- >> plus, are more banks in danger of collapse? >> concern spreads to bigger institutions >> credit suisse, under pressure -- >> as bank stocks take a rollercoaster ride. and regulators are faced with a dilemma. >> how did that happen? and asking all the right questions? with keeping an eye out? >> fight high inflation with rising interest rates. >> the fed needs to stay focused on the inflation challenge -- >> or back off to calm down the troubled banking industry. >> you can now be rescuing banks -- >> bank bust. what's next for americans money? on cnn prime time. ♪ ♪ ♪ >> good evening, everyone, i'm poppy harlow. just one week ago, america's 16th largest bank was up and

running, everything seemed fine. tonight, it's collapse and in government hands and hear fears of the broader banking industry are now. global credit suisse, the swiss banking giant, acknowledging material weakness in its institution. that's sent shares plunging to record lows and markets tumbling around the world. investors are very worried about what shoe could drop next. here in the united states tonight, ratings giants s&p and fitch now cutting the credit rating of first republic bank, out of san francisco. there's concerns there about the level of its uninsured deposits. so, the real question tonight? what does this all actually mean for you? your money, your mortgage, your job? your 401k? in this economy -- our top business team is here tonight to help you understand it all. fact -- what does it mean, we have personal finance coach to answer your questions, also former treasury secretary, larry summers is, here along with business owners directly impacted by the close of today's banks. you've heard so much financial

jargon -- we broaden our white house chief correspondent, phil mattingly to help us synthesize it all in two minutes. phil mattingly? >> hey, poppy harlow. it's fair to say there's quite a few questions as to how the banking system is going to be sitting at the edge of collapse, question like what in the heck just happened? i'm sure you would like the short answer, so i'll give it a shot. one industry, one bank, the whatsapp grew group tweet, because, of course -- here is a long answer. this is silicon valley bank, over 40 years it deep -- ties in the texas their sector to become the nation's largest -- know what to do with -- the same moment as historically low interest rates. in other words those deposits, all that money, was not profitable. so the banks executives decided to -- yield -- they want to make money. so they shifted more and more cash in the long term fix rate bonds. this is not 2008. that is the very definition of vanilla banking.

and listen to that low interest rate environment, it gets blown apart by the federal reserve desperately trying to tame four decade high inflation. now svb was sitting on significant losses. like lots of banks -- so, what made this bank different? tech and start-up founders and companies pulling deposits to survive. they burned through them rapidly, and then they pulled more. now, if you're svb, you have a problem. a mismatch between all that customer coinage and all your assets. well they weren't aware of it yet, the government also had a problem. they supported tens of thousands of jobs, payrolls, putting all of it above the fdic insurance cap. now, on march 8th, the bank announced it was signed off holdings that a loss. and whatsapp chats, and on twitter, founders in advances spun each other often appeared to inadvertently socialized the idea of a bank run. but on march 9th, investors attempted to withdraw an astounding 42 billion dollars. regulators seized the bank the

very next day. and as you know, u.s. officials now had a much, much bigger problem. panic. panic was seeping over the entire banking system. and that's what drove a dramatic and emergency response, back stopping deposits for banks, and providing new access to lines of credit. you probably feel like all of this came out of nowhere. take some solace in that feeling. before the end of last week, these folks did not know what was coming either. why did he? but this isn't over. the question is, now that they know, have they done enough? >> phil mattingly joins me now with some of our best business minds who cover this morning, noon and night, and overnight cnn correspondent and anchor christine romans, along with ritchal solomon, julia chatterley. guys, thank you very much for being up late with us on this. people are really scared and i think it's -- what is this and that it's different from. so, christine, i'll begin with you. are people safe? is their money safe? >> if you have money in your

bank, you will be able to go to your atm and get it out. you will be able to pay your bills with your digital app. your money is there. and i think with the white house -- with the fdic did this weekend was trying to assure everyone that you are depositors, we're gonna protect you. shareholders, not so much. they're not gonna bail out management of banks that have made mistakes, and they're not gonna bail out shareholders of banks that have made mistakes. but they have really telegraphed that if you have money in your bank you should feel like it is safe right now. >> i will just say, part of the reason we saw the government step up, in the way they did, which was quite swift, right, they tried to prevent further contagion, they tried to prevent further panic so we don't see this with other institution. >> what do you didn't -- what happens if you are deposits are bigger than $250, 000, which is the big question here. and they, of course, were -- this case and that was the decision that was made, and the big question now is, if you have more than $250,000 in a bank account, then -- more than half the employment

and his country's and small businesses. are you safe? it's not very explicit. it's implied by what we saw this weekend. and that's also crucial for ensuring confidence too. >> this is a really great point. because you figure that the administration strategy. you think about just how dramatically efforts were over the course of the weekend they landed on a sunday -- the positive, and keeping the positive confidence, is the driving force of the entire strategy. to julia's point, they haven't actually said that if another bank fails, and you have a deposit of $250, 000, that we're gonna reimburse you. there's a reason for that. on some level, what the fdic is supposed to do is he's the bank insult to someone else, and the new bank opens on monday. that didn't happen. >> they tried. >> that's what they wanted to do the entire weekend, they weren't able to do it. they needed a response, this is what they came up with. but i think keeping in mind depositors, keeping them safe regardless of the limit, has been the sole focus, driving focus, of everything they have been doing. it's probably not going to change. >> but if you have a small business with 1 million dollars you have it all in one bag

right now? no. that's why you see so many people with deposit out for us. >> the conch of the big guys. >> they're going to the big guys. it's a little ironic -- >> [laughter] >> 2000, we thought these banks were to bank? >> now they're even bigger. they're ginormous. but julia, credit suites -- what is happening to credit suisse and the -- record low for shares, is not what's happening in the u.s., to svb in these others, but it sort of this vortex, if you. well everyone's panicking. explain why credit suisse is different. >> we tried to discuss the technical term, and i think hot mess -- train wreck, actually. primarily self inflicted. it's different from what we saw on the united states. but it's a major european bank. and what you want to do when you get shockingly bad news like that had this week? very, frankly. what they did is played at some terrible news, but all anyone was watching at the moment with

the banking sector. we had this global ripple effect. i do think it's important to separate out these two things. eyes are on all banks now, globally. what are they holdings? this is not yet, at least, 2008, because we have a better sense of what's on the balance sheets. we didn't in 2008. >> i think that race is such an important point. regulators new over this entire year and a half span, that we're raising interest rates dramatically, that puts real pressure on these long term treasury is at the low interest rates that svb was holding the math. it makes them less attractive to the market. we are the regulators and all this -- what happens now with banks like first republic that just got downgraded today because they have a lot of people with money over the 250,000 dollar cap? >> the second question for, us i think first republic is what everyone's looking at right now. certainly, it's viewed as the likely next domino to fall off one is to fall. but it was also viewed as kind of, when you're looking at a deposit base that has a significant --

and you're looking at a need for -- because we have that mismatch, so, i am getting jargon -- >> and it does -- >> but what's important -- >> with the 70 billion. >> and we can't underestimate the importance of one of those decisions that was taking this weekend. to allow these banks -- they don't have losses, they're sitting on what's called paper losses. they can now -- whatever the value of those debt pieces that they have on the ballot sheet, they cannot say, look, i think it's worth 100 percent of what we want to be in the end. go get some money. that's -- >> people and paying as much attention to the fed lending window, and -- way more. it's been a slap in the face. but that's a huge piece. the deposits of the sacred -- central focus. >> explain in layman's terms the other part of what the government did this weekend with this landing facility. >> right. everybody focuses on deposits for good reason. the positive flows are driving huge problems, not just for all these regional banks -- that's what they need to stop. in the midst of that, these

banks needed to be able to take the securities, long term treasuries, 30 year mortgages, that were underwater, and be able to say, to the federal reserve, this is collateral. we'd like alone. you have one year. we're gonna pay you at par. not market market. and market in market is not a layman's time. i apologize. the idea is, they have open lines of credit. fascinating thing is, the day after the fed window was put in place, jpmorgan said they had a line of credit available for first republic. that was a huge sign. and the next day, of a sudden, regional bank started to come back. it's -- >> remember essential saying, okay, right now -- all you've got for it. but, we the government, i'm gonna give you a -- we can give you a chance to remain whole. >> that's exactly what it's like. but one thing that's interesting to me that a banking expert told me earlier is that some banks may actually think twice before doing that, especially because piggybacking off of what julia said, everything is so sensitive

right now. if -- that line of credit, it almost signifies -- >> don't talk about it like -- >> it almost signifies a level of desperation. >> we learned that during the financial crisis. that people are afraid to use these facilities, because there was -- >> and that stigma still exists. -- >> they're gonna talk to the big banks -- bank of america, the, say guys everybody -- >> really quick, these assets are actually good. >> that's the huge -- >> these are very exotic -- >> -- these are long term treasuries that are essentially -- >> the safest. >> right. the majority is off in the distance, and they're underwater right now. >> that's a problem. they didn't manage the interest rate. >> yes. they got caught with the pants down. while the ban could do that in an interest rate environment like this. >> the point for our viewers to understanding this is how unique the situation was, actually. at silicon valley bank.

they have this exposure to the tech sector, and we've seen the value of all these companies, the big ones, amazon, apple, tumble over recent months. plus, you have the situation where they but all these so-called safe assets that lost value because the fed raised interest rates. when people start to put the deposits out, like, we have to raise money. so they sold a lot of those, crystalize a loss, and then had to go to market and say, look, guys, we need a bit of money here. and then the panic ensued. -- >> a lot of crypto exposure, now we're talking about first republic. so -- >> this is the point i'm making. so, they want a situation where they had to sell and crystallized alas, and also had to go to market and say, look, guys, we have a problem. now, what would happen for the rest of these banks -- that facility -- that go to the federal reserve and get help. that should -- what they've done this weekend, underpin everything. >> i wanna go to a viewer question that came from aaron invented, missouri. let's see what he asked.

>> banks fishing themselves in a similar position as they were in 2008? >> well, then allowed to. the metal add to any more. to your point, they don't have all that garbage, that junk on the balance sheets anymore, because they're not allowed to. you have to have better capital. you know, capital set aside, and the big banks have to go under stress tests. this is where the vote decide on the controversy. whether some of the smaller banks were allowed to not partake and all of the job frank regulations, and maybe that left more exposed? certainly more exposed than european banks, which still are very stringent restrictions. >> another thing that's different from 2008 is we're not talking about bad loans here, right? we're not talking about credit risk in a more traditional sense that we saw in 2008. we're talking about duration risk. we're talking about interest rate risks that perhaps as we'd be in hindsight, 2020, did not manage well. but it's a very different type of risk. >> perhaps. perhaps they didn't manage fall. >> we don't know what we don't know. >> it's a good point.

>> there's a fear factor here that i think is interesting. julian on we're talking about it yesterday. it's about fundamentals -- stability in the banking sector, today was about fear. -- reminding us that we have banks that are at a higher interest rate environment, and some banks that have mismanagement problems that have other problems as well. it just spooky. >> we have a lot ahead. we are gonna -- >> they'll be no breaks. we're gonna keep talking. >> we're gonna talk about -- you still have to fund these programs. let's get a quick break in here, and we'll talk about the fear of what's ahead for the markets tomorrow. everyone, stay with us. remember, the bank run in the movie it's a wonder life -- people look at how contagion actually works. plus, more insight on all this from former treasury secretary larry summers. does he think the government has handled things well so far? what does he think the fed should do next week? he's with us. ♪ ♪

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it■s hard eating healthy. unless you happen to be a dog. >> don't look now, but there's something funny going on over there at the bank, george. >> i never really seen one. but that's got all the earmarks of being a run. >> the classic scene from it's a wonderful life dramatizes the panic involved in a run on the bank. it happens when there's a loss of confidence in the bank. and that leads to large withdrawals. the bank can't pay everyone who wants their money all at once, and it fails. during the great depression, thousands of banks failed. 9000, to be exact, taking seven billion dollars worth of customers assets with them.

that's why the new deal included laws to ensure deposits and boost confidence in financial institutions. the federal deposit insurance corporation, the fdic, was created in 1933, and today it covers up to $250,000 per depositor at fdic insured banks. actual bank failures still happen. there were a lot during the great financial crisis of 2008. but in recent years, just a handful every year -- and then, in 2021, and 2022. the danger with a bank run is that panic can spread to other banks. it's called contagion. >> there were one, there were two people, then four, then 16 -- in four months, it's a billion. that's where we are headed. >> so, what starts out a problem at a single bank can quickly turn into a crisis for the entire system. that's what happened during the great financial crisis of 2008. and it's why the collapse of silicon valley bank, the second largest u.s. bank failure of

all-time, has wall street on edge. >> christine romans, with a look at how this all actually works, like a run on a bank, as we're seeing. how do you prevent future bank failures? as the government doing too much, too little to restore confidence in the system? -- help answer american questions. the decline that invitation, but let's bring in former treasury secretary larry summers for his insight. secretary summers, thank you very much for being with us tonight. and i just want to begin with your level of concern. i mean, we have more banks tonight on the brink. what should the american people be preparing for? >> i don't think this is a time for panic or alarm. this is not 2008, where people need to be worried about whether they could get their money from the atm machine. it absolutely is not that.

there may well be concerns at certain banks. and they may even be more bank closures. but the government has made it clear that it is determined to ensure that all depositors will be able to get their money promptly and in full. that is what it signaled with its actions at svb, the silicon valley bank, and signature bank, and with the support that it provided to the banking system more broadly. it is not just people with insured deposits under $250,000 who will be able to get their money back. it's people with money over $250,000. so, there are real issues here. there are major failures, the financial regulation. but this should not be something that causes panic or consternation or fear among

your viewers. >> you know, it is so significant, though. -- who worked in treasury during the clinton administration, deputy, while you were there, he called it to us this week, breathtaking, with the government has done there, stepping in in this way. and now the question becomes, secretary, what does the fed do? what does the fed do next week on interest rates, given their dual mandate is maximum employment and price stability, but they know, whatever they do if they raise rates, will really impact bank stability right now. >> look, i think the fed has no choice but to remain focused on the inflation issue. if inflation goes up and inflation is not controlled, we are going to have higher interest rates and higher interest rates are going to make these problems more serious. the judgment the fed is going to have to make is that because of what's happened, there are surely going to be somewhere

deductions in the supply of credit. and so, in a sense, without the fed raising interest rates, monetary conditions have tightened. and the question the fed is going to have to ask itself is, have monetary conditions tightened sufficiently that we are responding to the inflation threat without any further rate increases or without a further rate increase this month? and i don't think we can know the answer to that question with confidence. and every day, we are getting new information, as we see what happens to banks, as we see how businesses are responding to these developments. certainly, the 50 basis points that i and others thought was a viable option before all of this financial difficulty, that has to be off the table. but i would be concerned with

if the fed were to stop all together raising interest rates, that it would be selling a signal that it was quite alarmed about the economy, and people would feel that if the fed was alarmed, they should be alarmed. and it could be counterproductive. so, i don't have a clear view right now. my instinct is that if they can find a way to safely raise rates by 25 basis points, that's probably the better thing to be looking for. but that's not a judgment that one can confidently make right now. >> that's a great point. they sort of have to get it right, like goldilocks decision here. -- christine romans, as you know, the former head of the fbi -- after sec should pause -- >> she's not the only one who said they should pause altogether. and i'm wondering, a week ago, inflation was still issue

number one for the typical american family. tonight, issue number one for the typical american family, if you look at google search trends, is my money safe? should i move my money? a lot has changed in the past week. talk to us, secretary summers, about the inflation fight and how that should still be in the forefront of what the fed is trying to do, in your view. >> look, americans money is safe. americans money will be safe if they don't raise rates at all -- americans money will be safe if they do raise rates by 25 basis points, because the government has indicated that it is standing behind bank deposits. and as that message is repeated and becomes clear, as people see that those who have deposited money, even in the banks that failed and even in the people who were not insured

are getting their money back in full -- but we are still also seeing very substantial rates of inflation. and if there was substantial rates of inflation continue, they will erode peoples purchasing power and their ability to spend. they will be incorporated and in yet higher interest rates, which will mean further financial strains. so, i think fed has to tiptoe very carefully through what is certainly a minefield at this point. but again, inflation is a real threat. not being able to get your money out of the bank is a fear. but it is not a realistic possibility, a realistic threat that americans are facing. >> phil? >> one of the things that i have been trying to figure out through the course of this week, speaking personally, was stunned by the scale and the speed of which the government reacted, and coalesced around

the systemic risk of exception and using 133 for the fed facility. what else did they have in the chamber, using that analogy? when you are thinking about what might happen next, if something happens next, what else can they do? that should give people confidence that there is more left? >> they have a huge -- they have done a huge thing. it is a major source -- if somebody was prepared to loan money against a 300,000 dollar house, they were prepared to loan $400, 000, that would be a major source of support. and that is, in effect, what the government has done by saying it's going to lend against all these bonds at par, not against their current market value. so, with the government -- the main thing the government is going to do is show that it is money good behind its words.

and i think that will be reassuring on the question of deposits. ultimately, one could imagine extending an fdic guarantee and a form away on all deposits. i would be very surprised if that was necessary at this point. i don't think the real concerns here are about deposits. they will get paid. the real concerns here are that the banking industry is under considerable shreds, that they were too bold, that they are going to be regulated more heavily, that -- and how we do that without precipitating a credit crunch that generates a recession, that is the very serious

concern that we have here. and so, i am much more concerned about a continuing strong flow of credit in the united states and around the world than i am the health of depositors. >> secretary summers, thank you so much for helping everyone understand the risks i had, but also what is safe tonight. we appreciate your time, very, very much. so, what is it like to run a business, have all your money helping one bank, and then it collapses? and you can't access that money? how you are going to pay your folks? how you are going to keep the business alive -- that happened to so many people this weekend. we are joined by one of those business owners ahead. ♪

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>> welcome back to our cnn primetime special, the stunning collapse of silicon valley bank, threatening the entire future of small business owners, like our next guest, vanessa. she ceo and founder of a cooking sauce company -- when svb collapsed on friday, she couldn't access the company's money. any of it. she pleaded for help in a now viral linked in post. did she keep her business afloat? she joins me now. you are smiling. so, the answer is, thank goodness, yes? >> yes, yes. >> this really felt like, in your words, an existential threat. i wonder what it was like to live through it. >> a true rollercoaster. tons of uncertainty, trying to make clear headed decisions in the face of a lot of lack of clarity and a lot of fear.

candidly, i feel like i felt that at the beginning, i could really see the business and what we can do to get through it. and i felt like there was a lot of challenges. we had to manage our product and we had to operate the business and fundamentally, those funds were the lifeline of the business. so, it was very challenging. >> a number of start-up founders that i talked to in the last six days have told me, the deal was, if you want to get a line of credit from svb, you had to hold all your cash there. so, all their money was tied up. is that the experience you had? i don't know if you had a line of credit from them. >> we did not. but i have seen that that can be true in some of the details that i've heard of. but i don't know if that was true across the board. >> so how did you tell your nine employees -- i don't know if i can make payroll? >> luckily, i did not do that. because i was very committed to ensuring that we were going to take care of our team. >> even if you couldn't access these funds?

>> yes. i was going to find a way to do that. and, of course, with the 250 k that was insured by the fdic, that was going to be the first order of business. so, i communicated that my team on friday. but beyond that, i did not really know much else. and so we started actively planning around the worst-case scenario just to be as prudent as possible. >> has this changed how you run your business now in terms of where you keep your money? you split up among various banks? >> yeah. so, as a first time founder, it's been an incredible learning journey. >> of course. >> and this was probably the biggest one of them all. i think, going forward, we are absolutely gonna be thoughtful about how we're storing our funds. so, diversifying -- >> so you are thoughtful. this is the last thing you think could happen, right? >> i mean, i have never even imagined that this would be something i imagined i would worry about. when i deposited our funds into svb, i did not blink an eye. and it was the recommendation of so many investors and other

founders in the space as well. >> it makes you think about things so definitely, right? >> absolutely. -- >> i'm glad you guys made. it got your. but i can imagine the stress all weekend. thank you for sharing the story. >> thank you for having us. >> we are going to turn things over to you, the viewer. your questions next. this time, money coaches are here to answer them. also, former jpmorgan trader on what we all need to know in these uncertain times. we will be right back. when you have chronic kidney disease. there are places you'd like to be. like here. and here. and here. not so much here. if you've been diagnosed with chronic kidney disease farxiga reduces the risk of kidney failure

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>> welcome back. we have heard from so many of you today with questions about wall of this bank chaos means for money, and your family. i am joined now by the ceo of ask the money coach. -- more than 2 million followers on tiktok. ladies, thank you so much, we are so glad you are here. i think people are freaked out and they need to know if they should be freaked out about what and why, or if all will be okay. let me get to the first question. this one is for you, it comes from a computer systems engineer from iowa, we will listen. why is it that banks in account holders get special treatment to be made fully hole, when the rules are the accounts are only in short for $250,000? how does this inspire confidence in our system, where

if a smaller bank fails in the future, will they be given the same special treatment? >> lynette? >> well, he raises a great question. it is one that i raised on social media. i think that there is a moral hazard here. the short answer in terms of why this bank, or these two banks, actually, silicon valley and signature, get quote unquote, special treatment, that's because federal regulators deemed them to be in the category of systemic risk. so the granted an exemption, as -- special set of circumstances, for these institutions because they didn't really want to have a domino effect. they were trying to avoid financial contagion and the spreading. that is the short answer. i frankly agree with eric's question in terms of the theory behind it. like, why these particular special banks, you know we could debate and argue about the extent to which they really are systemic, but that

is a short answer in terms of why. >> it's so fascinating. because the way that the small, medium sized banks got this rolled back in the 2018 bill, is because they lobbied and were deemed to be not systemically important. >> not systemic. >> but okay, they are obviously. vivian, i want to tense or the question that is coming to us from this strategy consultant from philadelphia. >> my wife and i are looking to purchase our first home. do you foresee mortgage rates increasing or decreasing as a result of the fallout? >> what is your thought? >> he asks a very wonderful question. i think realistically, from what we have heard from the fed, interest rates likely will continue to rise. on top of that i think that a lot of folks are feeling very concerned about, hey, if i am saving up for a down payment, is the bank a safe place to put that money? and similarly to how there has been a general consensus saying that we should diversify our investment

portfolios, people are starting to think about diversifying their checking and savings account as well. so they are not keeping more than the current limit in any one place. so buying a home right now, i can certainly understand why he is concerned. >> this question comes from jonathan durham, a student at an american university from drexel hill, pennsylvania. he did previously interned for the biden campaign, we will listen to his question. >> as someone who was a child through the 2008 recession, and now a college student, how could you ensure that my generation will have the economic stability it truly needs to thrive? >> a very good question that so many people have. >> sure, we know that there is skyrocketing costs of college and frankly, you know, gen z is very much worried about the future financially. i think that there is a lot up in the

air, and i don't think that anybody can guarantee that this current generation is going to have the same level of financial success, or economic prosperity that perhaps previous generations had. that is why you see, unfortunately, we have had a sharp decline in the college going rate in america over the last several years. at first we thought it was a pandemic live, but more recent data has shown that so many more people are opting out of higher education, saying it is just not worth it. >> i wonder if this whole situation just freaks out people that want to be entrepreneurs and want to take that risk already. you know, it just adds another layer. this next question comes from matthew howard from san francisco, here is what he asks. >> the interest rates trending the way they are, do you expect to see new trends in the market? >> do you think this change is broader markets? >> i think, of course, any sort of interest rate trend is going to change how people are spending. that will eventually change how the markets react influx. obviously, with

interest rates getting higher and higher, the hope is that inflation comes down. however, i am sure as you probably noticed at the grocery store, things still feel quite expensive. and on top of that, we are also starting to see this slew of layoffs. so broader market trends, i would say that there is going to be a continued focus on more staples, versus discretionary brands. and those that provide those services. >> ladies, thank you so much, such helpful insight, we appreciate it very much for joining us on our special tonight. we cannot predict what is going to happen next, but we are going to talk about what may happen at the opening of markets tomorrow, more with our experts coming up. ♪ ♪ ♪ w many rooms are in there? should we go check it out? yeah. we get to stay here all weekend! when you stay at a vrbo... i call doing the door code! ...the host doesn't stay with you. it looks exactly like the picture. because without privacy in your vacation home... it's a full log cabin guys.

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i think that's the only thing. >> -- but them in the drier. jargon. >> what we saw was the swiss national bank coming out in giving a whole load of money to credits with, i think we can argue that's probably -- i think will help sentiment and actually -- it's a case of wait and see, i think. it literally is hour by hour, day-by-day. i think if you can see the deposit movements forcing settle down, some of the fears come out of this, people recognize that, look, we're gonna start getting the data tomorrow, even, if the window, the federal reserve lending window -- we start to see banks using that. i think things will settle down, and i think that's the important point. for now. i mean, all bets are off. we've got -- >> 9:51 pm. >> yeah. >> a lot can happen between now and -- >> anything can happen between that in the. >> yeah, i think it's early

days for sure. look, what the fed did, with the treasury department, sort of clean this up, tidy this up. but i think it's early days. i certainly hope that things are contained, but moving forward, we will probably be answer for some really rough swings. even think of the type of volatility we have seen this week. we saw some wild swings of, some wild swings down. we could be seeing more of that, especially until we hear from chip powell next wednesday, and the secretary sort of touched on this. like if they don't do anything with interest rates, if they keep them where they are, that could further spooked the market. so i think what they do, i think that it may be more importantly what they say, and it will be very important. >> there are two things here to look through, one is the prism of policy makers, and banks. they're looking for uncertainty and contagion. and if you are looking through the prism of a real person, here is what you should know. maybe you can go to another bank and can get a higher interest rate on your money that is sitting in the bank account. thanks might have to raise the money -- and that is not good for investors. it is not good for investors of banks but it is good for customers of banks. for customers, for depositors, i think you are okay. investors are the ones

who are really, we talk about the stock market right now, investors are the ones who are worried about what is happening in the banking world. but i think that customers of banks are in fine shape. what do you think happens in washington? this is your beat, and the biden administration doesn't want anyone using that word. bailout. there's a lot of argument over that. the question is, do you actually believe that congress will act in a bipartisan way? >> no. i don't even know what you're asking. [laughter] >> to reenact some of the financial reforms that were rolled back in 2008. >> i'm pleased to tell you my previous answers to my answer at this point. i think there's a couple things here. >> democrats have said that -- whatever solve this. >> so, we've had a lot of discussions about this. but what i've been using is, it's not clean. and its sense of, if that had been in place, svb wouldn't been able to build the book that they built, or put

themselves in the position -- >> we don't know that. yeah. >> now. when there have been more supervisors that? when they have had more regulatory stress tests? with there been a general sense on the regulatory side of things that they just -- from a vibe perspective, feel very in touch with the youths -- but that regulators were playing close attention to things? perhaps they pulled their feet off the gas when they realized, all possible. when it comes to new regulations, it's not just those divided government. your point, i don't think you could have a democrat that -- small banks are extraordinarily powerful. regional banks have a lot of power to. >> democrats voted to hold back. they're standing by the position now. >> and you talk to them, or if money raju, our colleague, is chasing them down the hallway, the vast majority of them are not saying, i have huge regrets. because it was bigger than just this. however -- >> there was a tiny -- i read the whole bill. those a tiny part of the whole thing. section 401. >> really got to the section? i love that about you. it really wise -- that's why.

i was being serious! as being serious. >> i had this week on friday, there was 81,000% increase in mentions on social media of silicon valley bank. i think -- really small. so nevermind congress -- about we talk to the social media companies and they flag when they see, i don't know -- 15% increase? not 81,000% increase, as mentioned. they call the regulators and go -- let's use 21st century technology, innovation, data to assess this. >> first what iran -- >> is right. nothing hyperbolic. -- >> patrick mchenry tomorrow morning on cnn this morning. i need to go to sleep now. because i need to be on that show in just a few minutes. a few hours. thank you all for tonight. very much. phil, christine, rahel, julia, we appreciate it. thank you for your questions, being with us. we'll continue to bring you the facts, even on the volatility. that's it for tonight.

thanks for joining us. we'll see bright and early on cnn this morning, beginning cnn -- cnn's coverage continues now. (vo) red lobster's finer points of fun dining: at lobsterfest, whether you're a sea-foodie or a lobster newbie, there's something for everyone. try one of six dishes, like new lobster and shrimp tacos for $17.99. and leave completely lobsessed. welcome to fun dining.

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