prison camps. we are hoping to sure those. it is in our interest d in turkiye's interest and something i needed to do. it is perfectly appropriate for the chairman to check on the forces. >> secretary austin, general milley, thank you very much concludes the time we have available today. thank you ray much -- very much. >> today, pentagon officials testify on civilian and military programs. the hearing will focus on quality of life, childcare and

the jrotc program. watching live at 3:00 p.m. eastern on c-span, c-span now or onli at c-an.org. >> this is michael davis draining as. a professor to talk about the international banking regulations protecting with events last week -- particularly with events last week. can you tell us how you look at the events of last week compared to the rest us or lehman would look at it --layman would look at it? guest: i spent a lot of time thinking about how the government interacts with business and regulation and i have writtenbout banking regution. host: for thepecific events of spv, --sbv,svb -- what you think

abouthe government's thoughts about it? guest: there is a loof stuff that we don't know and there is alwa a tendency to think there has been a dister and let's find seone to blame. i am finding -- about finding someone to blame b i am not sure who that is. all of us need to take up -- a deep breath and think about what is going obecause this is too important to politicize. the other thing abou this mess, that contradicts wt i said that we don't know what is goi on, we know th if we had required banks, all kinds of banks to carry out -- a higher level of capital, that would have given us something to protect against the downfall so

whatever the solution is, i am convinced it is going to be requiring banks to carry more capital. host: we have seen back early on -- someone -- something was supposed to take care of a lot of things scifically with making and including their fiscal a liquidity ability. do you think the law protects something like this or is it a relevant? guest: it didn't work. we had a ban fail. there were mistakes made and we can geinto the weeds here and we should. but there is some obvious mistakes made by the bank and the fact regulators do not pick up on that, we have to figure out why. host: the top mistake would be what? guest: ok, i promise i won't get my powerpoint off in the lecture? -- lecture.

banks have to acquire funds and investments -- invest funds. there's a lot of risk with the acquisition of funds and there is risk associated with where you invest and a lot of banking is risk management and svb did a turn -- a terrible job with risk management a they did not manage the risk on the deposit side and they did not do a good job managing their risky vestments. whatever the regulations in place work, they d not work to force a bank like svb to clean up their act. host: one of the requirements was to have pital and pretty

requirements a that -- in that. guest: the capital requirements, all i have to do is going to what happened last friday. the requirements were not adequatend the other requirements are liquidity les. why didn't th work? i don't knowhe ansr to that. i will be -- when congress or oever has hearings, i want c-span to broadcast them. host: alrdy announcements from capitol hill calling for -- for hearings. guest: i think fbi is a victim in some ways --fdic is this -- a victim in some ways. the insurance system was designed to otect small deposits.

there's a cap, $255,000. deposits up about that are -- deposits above that are supposed toe insured. on sunday evening, it was announced all the deposits at svb would be covered in the -- anti--- d the fdic, that wasn't supposed tbe covered. there is a guarantee in place. st: hashe fdic acted in this matter before? guest: they deal with these failures all the time and we have many commercial banks in the u.s. and sometimes they fail. you mostly never hear about them because the banks that they'll

usually are smaller banks but when they fail, thedic swoops in and they usually arrange the sale of a failed bank to another bank. host: as far as cering deposits over $250,000, have they acted in this matter before? guest: we have seen in the fecteau --defact sense, they have. they will come in and arrange the sale of the bank to another bank and the big depositors usually don't see a difference and they don'have to take a haircut. that is the way the system is supposedo work. it hasn't worked well in this

case. the less i read and you can tell mef i missed e memo, they are trying to auction off svb. host: our guest is with us at 10:00 and if you have questions about svb, you can call at (202) 748-8000 four democrats, (202) 748-8001 four republicans and (202) 748-8002 for independents. you can tt at (202) 748-8003. e there ripple oense -- affects to the events last wk? guest: there are tsunami effects. i've been seeing where we are with the marketshis morning but thank -- bank stocks are down. instors are sayi, whatever the government is doing, it has

not solve the problem and there is an issue with banks -- a potential issue with banks and the stocks are taking big hit. the other thing that is scary is how this will affect what the federal reserve is going to do with interest rates. can i take a minute and explain why am thinking about it? host: please do it. guest: of course, we know the fed has been raising interest rates rapidly in order to control inflation and we know that ilation is not under control and we got the latest inflation numbers yesterday or monday. showing that consumer prices are rising and the inflation rate is above 6% and core inflation is around 5%. that is not good, so the federal reserve under normallass --

times would say we wil incree interest rates and that is what they would do in the meeting next week and the problem with svb, when interest rates go up, that squeezes commercial banks. svb would not have failed if we had the interest rate environment we had 18 months ago. i am shari for the long-winded answer but -- i am sorry for the long-winded answer but it is something the bed is work --fed is worried about host: our guest is michl vis. we start with ann. call: thanks fotaking my call. i want to say i thought in 2018, theyhange part -- changed part

-- so keep parts would be less oversight for banks andhat is causing these things to happen agn and for them, risk fo money --more money bause they have less oversight. it is not that the issue -- is not that the issue? guest: that is something i have been thinking about and in 2018, some of the rules surrounding got frank --re relaxed and that was more a less a bipartisan movement -- more or less a bipartisan movement. there were democrats -- it is true that svb was a big advocate

of that regulatory reform and that looks fhy. this g is saying, don't want all this regulaon and five years later is bank -- his bank fails. maybe there is something to that and maybe if the rules hen't -- had been changed, weouldn't have this oversight in this mess with svb -- and this mess with svb when -- >> one-size-fits-alle

rules just do not work and community banks and credit unions should be regulated the same way. they should be regulatedhe same way with safety is in the past when they were vibrant and strong, but they should not be regulated the same way as the large, complex natural institutions. that is what happened. date were being put out of business and they are not lending.