maybe say we believe we did the right thing. i think i did the right thing. having said that, i think you have to look at the balance here and act fairly refill. and if not, 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 stephen beverly, we get the latest off from wall street. there's more news on d, w dot com. as usual, i've told me on logical i've enough. ah ah, what secrets lie behind these walls? discover new adventures in 360 degrees. and explore fascinating world heritage sites. d w world heritage 360. get the app now.

the only way i can be on top is to create my own empire, discover stories full days with just a click away. majority the destination, right? find out this documentary is 13 with the full fry. now i can then treat ah, president biden's as the american banking system is safe as regulars regulators raised to contain the fall out of the 1st bank failures in the country in 15 years . in part by making all depositors hold in washington. ward off other failures will have latest. also, on our show,

germany's economy minister visits brazil and calls for a green bridge of sustainable trade between europe and south america. i'm seeking fiercely in berlin, welcome to our show. a markets remain on edge after the collapse of 2 u. s. lenders triggered fears that other banks might follow. a government's are rushing to reassure citizens that their money is safe. after the u. s. sought biggest bang collapse at the global financial crisis. silicon valley banks demise was closely followed by that of new york based signature bank. the u. s. insists a repeat of 2008 is not in the cards. president joe biden thought to assure depositors saying they had nothing to worry about today. thanks to the quick action my administration. over the past few days, miracles can have confidence that the banking system is safe. your deposits will be there when you need them. small businesses across the country, the deposit accounts at these banks can breed easier knowing they'll be able to pay

their workers and pay their bills or not. he ends quarter on wall street. yes, we heard the words of by there were investors reassured, even it was definitely no coincidence that biden gave those remarks before the market to open to the new a week or their remarks definitely didn't hurt, but i would say it was more the action that we've foreseen from the if the i see from the federal reserve, partly also from the government to a guarantee, all did deposit specially also the m uninsured one. so that's helped and everybody had tried to talk down the crisis to prevent a bank run at the broader market that worked. if i look at some of financial and stocks that didn't really do the trick, i'm, if you look at 1st republic, for example, a regional bank, i'm out in san francisco. that stock dropped 60 percent on monday, a loan or a western allianz alliance, and other at banker losing

a good 50 percent in value. you know, why is it that these regional banks, we keep hearing regional banks? why are they being more punished by investors than others? well, partly it depends who their clientele is. if you look at the startup community, for example, we've seen over the past couple of months that they have an increase the need for cash. so that when they go to their bank, them and, and to ask for their money back and so to speak. so that those 4 things, some of those banks to sell assets for a loss, then that could actually fill leads to a bank run fcc. and with silicon valley bank, if you look at some of the big bang, for example, i mean j. p. morgan is such a big player so that what is happening is not so threatening as to see in the smaller player. so we definitely have to wait and see if the, what the federal reserve is doing that the,

the trick. and there is one positive thing out of the financial crisis of 2008 because we learned a lesson or 2 how to deal with bank runs. that maybe that is helping this time around that this banking crisis is not turning out into a big financial crisis or a young quarter falling all the turmoil in new york masri thanks very much robbing fuel those fears. were midsize lenders is the concern that like silicon valley bank, others may be sitting on undervalued assets, due to recent interest rate hikes. now, when interest waits, rates were low, banks deposited funds into long term bonds. it seemed like the smart thing to do at the time, but interest rates have climb dramatically over the past year. and those bonds are now significantly undervalued. well, that's not necessarily a problem. if the bank can sit the problem out and wait until those bonds are to be repaid. but if the bank is forced to sell bonds early,

as in the case of silicon valley bank, it's gonna take a loss, accompanies with deposits in week in week banks, a could get nervous or begin withdrawing money to be sure that they'll have enough to cover costs and that actually makes the problem worse. the banks need money to cover these withdrawals, so they keep selling bonds and their losses in turn mount spooking, even more depositors right router bachmann is professor of economics at the university of notre dame in the state of indiana in the u. s. and he joins me for more. a professor bock when you're watching this happen like the rest of us. how concerned should we be about further failures? can you give us any sort of idea? well, that would be speculation that this could perhaps fail a few more of these smaller and regional banks. but i would say with the action today with the decisive facts of the day of the i, c r, which you know, it's not very palatable because again, we have to bail our banks. our deposit is where it's questionable that we would

like to do that. but you know, the regulation is what it is and it could have been different, but it is what it is. and now to prevent these are these cascade effects is contagion effects. we did that, they needed to do what they had done. and i think i'm reasonably optimistic, precisely because of what you said, because at the big banks don't seem to be affected, that this will be more or less content that does not mean that, you know, the occasional other regional bank might fail. as you said, this is not very politically palatable solution. i didn't emphasize that management of these banks to be fired, but unsure depositors would be made whole. and this was a medium sized bank we're told, or regional bank. do we have to redefine what is system system system relevant? i can barely get that word out because we were told that these banks shouldn't be as relevant to threaten the system as, as those larger banks. now we seem to have

a new idea of this. well, i mean in the sense, as you said, the mechanism is if, if the, if a lot of these bags basically are hit by the same problem afflicted by the same problem, maybe they invest that they didn't quite know what to do with their assets in the low interest rate era, they all went into this longer term government bonds. and so in some sense then they all kind of have a similar disease, a quotation marks and you know, now they all the same effect by the, by the fit with heights. but they all have this problems that they, you know, have these long term bonds that, you know, have a much lower market value that is on their books. and so if someone wants to withdraw it deep, this can happen then too many of these regional banks. and if it happens to be a small but you know, then it becomes a standard time. we know that these are these, these medium sized banks that, that, that the thresholds for what was considered a says systemically, as a risky bank,

was, was raised considerably so that these mid sized banks should actually been exposed to a lot more stress test to liquidity requirements. isn't it fair to say that the that the streaming has been taken off of them? yeah, probably, and we will have to recalibrate, but this is no, you know, no exact science bank regulation because the shocks are never quite the same. and this is again, a very particular combination of things that we, these long term government bonds, very strong interest rate hikes by the, by the fed at so, you know, with the regulators are always trying to catch up. the question is, you know, again, was there something and as talk i hear in the community that you know, some in that they actually lobbied for less regulate for less like really precisely the small and medium sized banks or even in the trump administration. so i don't

know where the novaire it is, the plans from administration, but there were certainly relaxations, the loosening up of regulation after the financial crisis. and that will be after left to be looked again, or whether we can do something. but you know, in the end, right, not a rocket signs are the exact sign of it, but it's a moving target for sure. the of these things like are happen the through to go to university of know today i'm sorry of the struggle really to leave it there. we have to, we have to move on, but thank you very much. rigor bachman ever submitted him. thank you. i, we go to brazil, now we're germany's economy minister says he wants to launch a new chapter in bilateral relations, especially when it comes to trade in climate policy. oh, but hubbard said there should be a green bridge across the atlantic. he's joined on the trip by german agricultural minister, urge him, or as the mayor, you can see him, they're wearing sunglasses, in part because brazil's farmers have been growing biofuels for years. now, having said brazil had enormous potential for green hydrogen production. the 2

measures also called for negotiations to resume work on a free trade agreement with the south american confederation macros, or of which brazil is the largest member. or we go now to correspond him at his ebert in rio de janeiro for more mathias, german ministers for economy and agriculture sank. brazil and columbia are really ideal partners for sustainable to trade. what exactly do they want from these countries? what do we say? yeah, both sides, he confirmed that they are yet can cooperate with sustainable energies together to produce these energies because the potential is really high. he and brazil am, for example, in the solar energy sector and as well especially air for wind energy in the north of brazil. there are many states like man, yog, sierra and re grunge, are not she, where there's a strong winds for 8 months a year, at least so ad there can be produced, green hydrogen, m,

because the potential is high for offshore wind parks. and that could cause that a green hydrogen from brazil could be a source of clean energy for german industry in the future. we know that critics of closer ties point, chris, chris, of closer ties between europe and south america, often point to environmental concerns, especially when we look at the the amazon basin as reason not to further expand these ties to what extent that make a difference for expanding ties when that's exactly what these german minister seems seem to want, yet the concerns are that agricultural exports. they may increase with an agreement, as for example, regarding soybeans and meet an sugar. and yet that could effect the different deforestation rates, which are already high. so there is a lot of critics in the civil society who reject and possible agreement. all right, that's mathias. a. birds are correspond in rio de janeiro. thank you very much.

all right, here's a look at our top story. government have been reassuring citizens that their financial systems are secure, falling the clamps of 2 bank in the us, silicon valley bank and signature bank. we're close by regulators after falling into a liquidity crisis and to run on deposits. us treasury insist it will not be a repeat of the 2008 financial crisis. right, that's our show for more check us out online. he will be dot com slash business. we're also on youtube or the data be news channel. periods like watching no one does coastal protection better than the dutch small wonder because large parts of the netherlands lie below sea level. the threat of flooding has long instilled, a spirit of innovation here, making the country

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