a documentary series about the future of food the great debate this week on t w ah ah, this is deed of the news live from berlin, president joe biden attempts to reassure the american people and markets after the collapse of 2 u. s. banks global stock markets were largely down monday, trading but by an urge confidence in the financial system. americans can rest

assured that our banking system is safe, your deposit and recovery efforts in malawi as site loan. freddy lashes the southern african country with torrential rain and high winds. ah i'm told me a lot well welcome to the program. the u. s. president has promised to do whatever is needed to strengthen financial institutions. after the collapse of both signature bank and silicon valley bank, joe biden has told americans that their banking system is safe, even as years of another u. s. bank in crisis rise. the 2 bank failures are the 2nd and 3rd worst in u. s. history and they've taken their toll on global markets. the news sent bank

stocks tumbling in the us, asia and europe with investors fearing the biggest us bank failures in 15 years might trigger a ripple effect around the world. e. u or 30 say they are monitoring the situation, but do not expect the us failures to cause long term problems in europe. we take note of the swift under side of reaction by the us authorities within the ear. there is a very limited presence of silicon valley bank. of course, we are in touch with the relevant national competence authorities. that message was echoed by e u. finance ministers, including germany's christian lindner, the status of a referral. note i have frequent generally brought in the us the failures have brought back painful memories of the devastating meltdown of 2008 in a bid to lessen uncertainty and divert further. bank runs. u. s. president joe biden hurried to reassure the public. our customers who had deposited these bank

can rest assured, i am rest assured they'll be protected and no have access to their money as of today. biden stress that unlike in the past, irresponsible behavior by banking executives would not be tolerated. the management of these banks will be fired if the bank is taken over by f d. i see the people running the bank should not work there anymore. that are the president's tough words enough to convince depositors them money is safe. california's 1st republic bank is under particular pressure and has seen increased withdrawals, but most customers seem to be keeping their nerve. i'm really not that worried about it. um, but i'm just being a little cautious. i don't think people need to panic at this point. i'm transferring some of my money out of this branch to another branch i have, but at the end of the day, it's about panicking. everybody perm external, it's like a domino effect. so i don't wanna panic necessarily, but i just want to take some precautions. biden says he wants to make similar

failures less likely in the future by asking congress to strengthen banking rules are rules that were introduced after us bank sparked a global financial crisis in 2008 by aggressive mortgage lending. they were partially repealed in 2018 under then president donald trump. in the coming days that decision is likely to be in the spotlight. enjoy now by william shut and an associate professor of business administration, a texas state university. welcome to deed of the news professor. now, you sum up for us. what went wrong in this back? for silicon valley banks were really 2 things that went wrong for the one is they had a very nice supply and tell him that they service the high tech and started sector during the pandemic. the sector was a good customer base and that they had

a lot of cash coming in, flooding the bank with the positive. but this led to a problem for the bank in the sense that they couldn't linda all those the public. so instead they invest in what's normally considered safe us treasury security 2 years ago, one year ago, that may or may not knowing that interest rates are going to increase as quickly as they did. and so with the increase in interest rates, the investments they bought were now worth less than what they paid for them. same time, you've got the tech sector having cash flow problems. and so there withdrawing their cash. and at the end of the day, on thursday, silicon valley bank simply did not have enough cash to pay their depositors. and they tried to raise money by selling $21000000000.00 worth of the securities. but since they were at a loss, they've lost $1800000000.00 on the sale. they were hoping to sell stock to show up

. but the stock price plummeted. and then we ended up at friday where they had to be shut down. right? masses collapse, as we've seen, they kind of response from around the world. could we see this spilling over to other banks? believe we're going to see this going any further that really has, although we did have another bank failure over the weekend with signature at new york, it really is a different reason, a different story there. you had lots of customers that were in the crypto market and as we know the crypto market has not been doing particularly well. so that's why the secretary fail. but this is very different than during the financial crisis where you had, for example, with lehman brothers collapsing. lehman had lots of interactions with lots of other financial institutions. and in this case, both of these banks are relatively isolated in terms of the clientele. right?

so i don't think we're going to take effect, particularly now that the sci fi has said that all deposit will be covered, even what we can do traditionally be considered uninsured deposits. right, so that should put folks and we've heard president biden responding to the situation. is he taking the right steps? i think so, and i think the regulators, families what's called the bank trust funding program that will allow other banks to borrow against the full value of their security. so rather than selling them if they need the cash at a loss, they can borrow against their full value and the federal reserve will fund that for . and so they'll be a source of liquidity for banks that might find themselves in a similar position to silicon valley bank actually. but again, most banks are going to be in that position. they were very unique in that as well

over 95 percent of their deposits were uninsured. so they had, you know, relatively speaking a small number of customers with lots and lots of deposits. okay. professor williams, and then that's all we have time for, but many thanks for your insights. thanks very much for now to the latest from the ground in ukraine kit and moscow are both suffering heavy losses as fighting intensifies in the eastern city of battled. the commander of the ukrainian forces, the situation about which remains difficult, but that his soldiers are repelling russian attacks. the fight for control over the city is reduced to ruins. over the weekend ukraine's president the lensky said more than 1100 russian soldiers have been killed. in the area, but the head of the russian mercenary wagner's group insists his troops still

advancing. even though the situation was, as he put it, very tough. and we've got an update from our correspondent give nick connelly about the situation in backward. i think there is a counter offensive in the offering, at least that's what i was talking about here in here. i think ukraine is desperate to show it's west and back is that it can push the russians back further. those last big victories, were it lost or to mean for song and how to give. and basically there's a sense here that the west is going to force your brain to negotiating table on some kind of russian terms. if they don't prove that they can win. but i don't think that content is going to be anywhere near back. more right now. the ukranian forces are really tightly surrounded by russians there. there's just a very small bottleneck connecting the city with ukrainian held territory to the question i think now is whether the ukrainians 1st have to leave by moot as it seems most to nato and us talk bras would want them to do. or if they can keep

going about try and draw russian attention russian resources to their position their back while looking account of somewhere else and kind of do both the same tommy, that's the question right now. and that does seem to be a difference of opinion. there between here and certainly the us. now let's take a look at some other news stories making headlines around the world. russia has agreed to extend a deal that allows ukraine to export its agricultural produce. it follows talks with the united nations, but the extension is only for another 60 days, not a $120.00 days is expected because the kremlin once changes to how the arrangement works, the deal aimed to prevent a global food crisis. the biden administration has approved a controversial oil drilling project on alaska north slope supporters of the willow project by the energy giant cannot go. phillips say it will be an economic lifeline

for indigenous communities. but environmentalists had urged by them not to approve such projects on public lands. the head of iran's judiciary says more than 22000 people arrested and reason anti government protest have been pardoned by the countries supreme leader. thousands took to the streets and a rare challenge to the regime. following the death of beth in custody of a young woman arrested for allegedly not wearing her veil problem. nearly 100 people are confirmed dead in malawi after cycle on friday slammed into the south eastern african to southeastern africa with a torrential rain and high winds. this is the 2nd time in a month that freddie has made landfall in southern africa. having earliest rock, madagascar is one of the strongest and longest lasting storms to ever be recorded in southern hemisphere. some way under these washed off roads. and my, lovey,

our people rescue workers like trust on chica footwear are trying to find them. lyla miller, living so far we have recovered 30 bodies. but we're not yet done. mama go and we're still looking for more victims. amusing miss ho to at least find someone who will call cyclop. freddy has wrecked houses in the city of blunt here and created rushing streams that residence of struggling to cross many of the injured have been taken to hospitals, but others hostile missing minute what young women in her mother was so bad in the night doing that when jarvis, yvonne, now that it's day time, i can feel the loss that you didn't of it was a gun 0 buddy. i've never seen something as terrible as this would be. knew by my

neighbors. homes are gone month and their family members are gone. ah, in some cases the father is alive, but the wife and the children are missing. another extra fact on freddy killed several people in mozambique before making its way to my loving scientists say such tropical storms are getting stronger due to climate change. they want that phoebe a veto, like this will only become more frequent and less polluters drastically produce carbon emissions. t v presenter gary lenika is to return to his hosting duties on the b b. c for bushel match of the day. a former football i had been suspended following a tweet, criticizing the u. k. government immigration policy and comparing the british home secretaries language to that of nancy era, germany, the decision to remove him had sparked widespread outrage as well as walk out from staff after a weekend of crisis at the b. b. c,

which saw football pundits, commentators and even players refusing to take part in the broadcasters coverage. gary lenika is back and he seemed like he was in no mood to continue talking about the situation. i've already said what i'm going to say on if i say, just encourage you to do that with an in his tweets the long time match of the day host expressed his delight in finding it in to the impasse and thanked those just stood behind him. but he also reiterated his support and empathy for refugees. the decision to suspend clinic are led to accusations that the politically neutral b, b. c had bowed to pressure from the conservative government, but its director general tim, davy said on monday the suspension of the former england captain had been appropriate. we did take action, which we thought was proportionate. and as the baby say,

we believe we did the right thing. i think i did the right thing. having said that, i think you have to look up the balance here and act fairly mifflin enough. the broadcaster said that as a condition of his reinstatement, linux had agreed to stick to current editorial guidelines until a new policy for social media could be formed. and business news is up after a short break. with more on the bank failures that have rocked the financial markets, my colleague steven bentley, we got the latest off from wall street. there's more news on d, w dot com as usual, and told me on logical i forget what secrets lie behind these will discover new adventures in 360 degrees and explore fascinating world heritage sites.