dot com. ah ah, how much do you trust your bank? 15 years ago during the financial crisis, you had every right to respond, what trust, massive public bailouts regulation reform stress test. they barely saved us from banks that were too big to fail. for the past 4 days have shown is that size is not all that matters fridays shut down of silicon valley bank is now the 2nd largest bank collapsing u. s. history. and it's not the only regional bank to tank to day trading in baking shares, and wall street was suspended a shock strong enough that you as president biden address, the american people, his message, our banking system is one that you can trust. i'm broke off in berlin. this is the day, ah,

with the banking system is safe, the man down, i can don't. we want to make sure it's is to troubles desist at one bank. don't critical to kill chin busy in the seat that the american government and financial institutions have acted decisively. hobbin you are. it said everyone should be word. that's how capitalism works. also coming up a 1st at the oscars. michelle jo has become the 1st asian woman to win the award for best actress. i found with my daughter, i keep telling her you will win that i'm vision it for you. you know you're going to stay on stage with the golden man. ah. but to our viewers watching p

b. s in the united states into all of the around the world. welcome. we begin the day deep in the red stock markets. here europe suffered their biggest losses of the year on monday of the shock waves from a major bank collapse of the us spread around the globe. on friday, the silicon valley bank a regional obscure bank, tanked after its spooked customers with plans to sell its own shares to cover losses. in the span of 48 hours, the fear of contagion, forced us bank regulators to shut down another big new york based signature bank on sunday. the speed of social media plus the cryptic impact of crypto currencies. both factors in this government intervention, or monday, trading in some banking shares was temporarily halted on wall street. and it came after you as president biden attempted to reassure the public. this is not another financial crisis in the making. if not, then what is we begin tonight? with his report, the news st. bank stocks tumbling in the us,

asia and europe with investors fearing the biggest us bank failures in 15 years might trigger a ripple effects around the world. here or 30 say, been monitoring the situation, but do not expect the us failures to cause long term problems in europe. we take note of the swift undersized reaction by the us authorities. within the u, there is a very limited presence of silicon valley bank, and of course we're in touch with the relevant national competence authorities. that message was echoed by e finance ministers, including germany's christian lintner at the arb mike in the out. we have our own authorities in europe, and in germany for example, we have our own financial regulatory body, which is continuously monitoring the situation. these institutions have no doubts whatsoever about stability institutes. young kinds, why had forgotten the status of africa. i have faith in general, but 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 us president joe biden hurried to reassure the public. our customers who had deposited these bank can rest assured, i want to rest assured that will be protected and they'll have access to their money. as of today, no losses will be borne by the tax payers. instead, the money will come from the fees. a banks pay and the deposit insurance fund 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. i'm going to ask congress the banking regulators to strengthen the rules for banks to make it less likely this kind of bag failure would happen. again. those rules were

introduced after us bank sparked and global financial crisis in 2008 my 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 room here . the big table now is my business colleague, stephen beard's, the stephen, and we, people are asking how does a relatively obscure regional bank as the b suddenly become the 2nd largest bank collapse us history. yeah, because the question of what system risk really is, right? this was a debate that we had 15 years ago over and over and over. it was the debate we had again in 2018. and now like you said, regional small to some extent compared to some of the other big banks. but it's worth think this wasn't really that smart. he was the 15th or 16th in terms of total overall assets. when you look at all the banks in the u. s. and the region was actually very important here. this was the tech had regions. we both know at this point, as many of our viewers have heard, and that meant that it went,

boom or bost, with this specific branch. and as we may have noticed over the past few months, it's been a tech branch, has been hit more and more a by the economic downturn, many lay offs. and what the bank said was that it's cash burn rate had increased so much. in other words, it's deposits had fallen so much other him immediately threw it out of whack and the rest of it went from there. but the people in charge of the way they should have seen that coming right with inflation and with rising interest rates, i mean, this stuff didn't happen overnight. yeah, this is one of the biggest criticisms, right? is that this wasn't a surprise that came out of law. phil, this wasn't even based on a questionable security like a mortgage back security that dot, that, that dominated really the, the last financial crisis was very questionable. sort of collateral collateral sort of gimmicky sort of product that the banks were sharing with each other. this is really based on a long maturity treasury bills. and so they should have been able to see the writing on the wall seen that interest rates rising thing, hair values are falling in assets and we're heavily dependent on a branch is going to be hit especially hard. we need cash when we need liquidity. do we have it weren't the banking reforms that resulted from the financial crisis

15 years ago? were they supposed to prevent what we're seeing right now? they were, but again, it goes back this question of what is, what size of bank is really systematic risks? and that was something that became a political football. another piece mentioned donald trump, in their forms of 2018, in which basically those reforms that initially came out on the obama administration deciding or defining the size of a bank. that was a risk to the system. it changed that definition and it changed it and raised the requirements much higher than anything below $250000000000.00 and assets was not a systemic risk essentially. and would have less scrutiny than those above that well, they should less regulation, fewer stress test, less liquidity requirements, there couldn't be a sudden liquidity demands or capital proof that was required of them like 4 banks that had more assets, for example. so. so yes, there will be lot of questions about this. was this the right decision to make in 2018 at the time? those were in favor of this a look. these institutions, small, medium sized banks,

they need more flexibility to lend, to get money out there to the economy. it's going to go back into a political discussion. i'm in now that regional banks, all of a sudden are now suspected the united states. and we've heard for people today asking people in united states, will this wipe out my retirement, or if not my savings, if this continues to grow? yeah, i mean, i think it's early to say that this isn't the same kind of system wide kind of threat that we saw back in 2008 in which the larger banks in particular were being hit. there's of course, deposit insurance will protect most people savings, but of course some pensions and larger pension institutions. investors are likely to be involved in this as they were in the british liquidity crunch. we saw last year and that could affect some people more than likely the should stay around the regional banks. that's the hope. but again, the such a psychological aspect to this. so that could cause trouble in the days ahead in. that's exactly what biden and administration going to try and prevent, but to what extent are they going to promise to make the positive whole?

it gets into this whole issue of moral hazard. it's really tricky situation. the business is always needed. thank you. he was procedure by today he stepped in to reassure americans at the banking system. there is safe. how do you feel about your money? dw news went out on the streets of los angeles to ask exactly that question to customers of the next bank. that's under pressure, the 1st republic bank. i'm really not that worried about it and, but i'm just being a little cautious. i don't think people need to panic at this point to depositors. they could have sat, they could have waited. i don't think there was that much urgency to really take it out immediately. but you know, they gotta be safe and sound. so i understand what they did, but i think i personally think it could have been avoided. it's, it's horrible. i don't understand how something like that happens. but then i also know when he puts on an office was incompetent and he relaxes, you know, rules and regulations that put bags in place that can i had those happen?

so i guess this was coming. so yeah, i am blaming trump for the his well, i wouldn't say worry, but i want to take some precaution. that's what exactly are you doing? i taking money out or i'm transferring some of my money out of that branch to another branch. i had that at the end of the day, it's about panicking everybody panic, then it's like a domino effect. so i don't want to panic necessarily. but i just want to take some precautions on my next guest as well, place to judge how what happens in the us can have knock on effect right here in europe. nicholas veronda is a senior fellow with a think tank. brutal in brussels and at the peterson institute for international economics in washington, d. c. and he joins me from washington tonight. it's good to have you with us. you know, 15 years ago we were promised no more bank bill out because the banking sector and regulators in the u. s. europe had learned their lessons or their parallels that you see the 2008. i mean, as the b seems like a bank to small to obscure, to,

to fail. now, i mean, what's different this time? i'm not even sure where to start, because there is a lot of blame to be apportioned. a boost in terms of the supervisory failures of failure of assorted to properly regulate and supervised taken valley bank so that this wouldn't happen. and then in terms of the crisis management, i think it hasn't been very convincing, at least on the basis of available information. maybe it's are better arguments that the authorities haven't disclosed yet. and i think at the end of the day is a big decision that was made to guarantee all deposits, no matter how large or beyond the insured. a deposit limit of $200.00, which into us is $250000.00 per account. that decision was announced yesterday, and i think it's massive overkill, which we'll have a detrimental consequences in the future in terms of moral hazard into his banking sec won't. so i think there are lots of a lot of questions here. nicholas talk to me about this moral hazard,

because at me as i understand that the only reason that they can, they can guarantee all of the deposits it, s v b is because we're only talking about one or 2 banks. but what would happen if we had 30 banks that were to go belly up the f d i. c does not have enough money to guarantee every one's deposits. does it? well, you know, it doesn't, you know, it doesn't. so either johnson, your question is if we have 40 bank that will do the same because at this point i cannot afford to do anything else, or at least that's my reading. now how is it going to finance it? that's been communicated? yes it is. i wouldn't be what is called interview as jargon than us and special assessment on the u. s. bank, which actually means a levy are asking for banks to pay, asking all the other bank, the ones that are better run. yeah. pay for the failure of secret valley bank and signature bank. and to a certain extent, you can do that because the u. s. banking sector is big, but it's not what you would like to see and they're gonna pay, they're gonna just pass on these extra fees to their customers. right?

exactly. so when joe biden says there's no cost to the taxpayer, you may be technically right, but talk to caveats. one is that there is a special assessment which means basically a cost being passed on to the u. s. economy, anybody who uses banking services because of banks on the going to absorb those are caused by themselves. they can pass some of it on at least. and the other thing is that if things really go bad and the i c can no longer are basically finance to guarantee of deposits. so living money from the banks, vendors to you as government will have to guarantee it because, you know, there's no ways that you as government and ledger, if you fail and everybody knows that to let you know that the taxpayers are providing the ultimate guarantee for this and that's a pretty scary, and this is a chance where may be president biden, and the u. s. government, they're missing an opportunity to show some tough love with the banking sector. would you agree? i mean, i know that silicon valley bank,

they are connected startups but on main street the plight of. busy silicon valley bank is not going to matter much to people. they're going to be worried about their retirement accounts or their savings accounts. and yet it seems that this silicon valley bank is there getting a free ride here was specific. he's a customer's us, she can valley bank, so president biden said, you know, they're shareholders and one holders and management of see can body bank. they're losing everything and buy lots. that's cool. but then that sink of their shareholder and management, the whole just thought of that had their account. that secret valley bank we're doing completely incompetent treasury management. we're not managing 0 financial risk properly. some of them didn't even have a certain bank account anywhere. that's not very competent, and these people are shareholders of managers who have been built out that's been out of state can valley. now everybody loves silicon valley. maybe it's good that we bid them out. maybe it's not. you tell me where you,

where you tell me what do you think about the start up executives, should they have done their homework better and, and maybe put their money somewhere else other than with as b, b, i me don't, they carry some responsibility here for what they do with their money. i think the rate, i would say, you know, venture capital and start a business, that's the business of making wrists. and so very concept that these entities have the right to being bailed out by to do with government. but because that's what happened yesterday is some things that i think figure a lot of to be because it means before we run out of time, european stocks, they suffered some big losses today. should europeans, should they be worried that this is just the beginning of something that will not end well on this side of the atlantic as well? i don't think so. i mean, of course we'll see what comes with the next few days. and i've been surprised that you the truth on friday. i didn't expect that big failure because frankly, i showed you as supervisory system as a fed. we're

a doing their job to prevent that kind of thing from happening. so, you know, at this point, i don't know what to think, but i think the structure of a banking and supervision in europe is very different as a technical term for what went wrong with sick mistaken valley bank. his interest rates risk into banking book, and that's been in the area focus for european banking supervisors for several years. so nobody knows. but at this point, i'm not for expecting a lot of contagion to europe beyond the normal and predictable moment of fright in the stock market. i think a lot of people are hoping that you will be proven right nicholas veronica, appreciate your time and your insights, and i thank you ah or not to the oscars. an unconventional science fiction film is taken home. the top honors at this year's oscars. the comedy drama, everything everywhere, all at once. that is a total of southern academy awards, including the coveted gong for best picture. the german film,

all quiet on the western front. it picked up for oscars. ah, one film dominated the show on hollywood. biggest night. the wacky and wonderful sy fy, click everything every we're all at once. swept stephen oscars to rapturous applause . ah, with michelle yo, who was malaysian making history as the 1st asian woman to win beast actress for all the little boys and girls who look like me watching to night. this is a beacon of hope and possibilities. this is proof that dreams dream big and dreams do come true. and ladies don't let anybody tell you. you are ever past your pride. oh hughes. co star key white one made

a remarkable come back to claim. be supporting actor following a 20 year acting hiatus. my mom is 84 years old and she's at home watching the mob. all he does while in oscar includes dad jamie lee curtis, when be supporting actress it was brendan fraser who's awarded beast action for his role in the whale itching out to oscar. fail, brett austin, butler, this is all to move elsewhere. the were one impact all quiet on the western front took for awards. the most prizes a german film has ever won at the oscars. got this means so much to us. a year

on from the infamous oscars slap and which will smith hit present to chris rock on stage host. jimmy kimmel poked fun at the incident. but this year, the show was remarkably drama free. with the attention back on the glimmer and golden statues in the morning, i want to bring an entertainment journalist k j matthews in los angeles. and if you follow the jail social media, you will know that she looked fantastic. yesterday i saw those pictures of u. k. j, amazing looking good girl. let me ask you this. sure. let me ask you, were you, were you radiating because of the winners? were your winning picks yesterday? oh, you know, i don't want to pat myself on the back brand, but i'm going to say i pretty much nailed, almost all the categories. i think that was 80 percent correct. i knew there would be almost a clean sweep for everything everywhere, all at once. the men i saw them,

i said this is going to be an academy favorite and i was right. they walked away with best picture and most of the acting knobs as well. so i want credit myself for that a little bit. well, what, what surprised you? what didn't turn out the way you expected? you know, honest, although i love the germans, them all quiet on the western front. i thought it was great. i did think that you know argentine in 1985 would when i know it obviously won the golden globe and i was thinking that it was kind of closer to winning the oscar and it didn't win. so i was a little bit surprised by that, but the other categories i thought much dessert, a one. i like the fact also that they included all the categories behind the scene categories that they took out last year. he was complaining that the show would well over 3 hours, we don't need to announce every single award and people complain. and so now they're back in, or one asked about elvis, lot of people saying that they expected elders to bring in at least best actor that

didn't happen was, was there maybe, you know? yeah. what, what do you say about that? yeah, i did not pick up. i did not pick austin butler for. yeah, i was, i liked the film. i well that austin butler did when a golden glow. however, if you see the film the well, and you see the way that actor brendan fraser has completely transformed himself, is to being an obese guy who's suffering after the loss of his partner. you will see this is the, the role of a white time. and he really deserve the best after statue on that night. but what was it like being there last night? i mean, we have to say there was no face slap last night. yes, yes. but you know, that was the big elephant, right. all of us walked into the oscars thinking. ok, what are we going to expect from this? they're going to have to address what happened last year, mainly because even chris rock is still talking about is, you know, we just have

a special a week ago, a netflix. so he's still talking about it. and according to him, he's still mad. so the academy had to address, i thought that jimmy kimmel the hose, set the tone perfectly. he didn't be elaborate, he talked about it, but he also pointed fun and other people and movies. and when i didn't make it the center of the night, i like the fact that he pointed, he kind of slap the academy on the wrist saying, you know, if you get out of hand tonight, the academy will reward you with a best actor statue. and you can be like the audience and do nothing just like they did last year. you know a funny thing. we are having an a morning quarterback thoughts in our head. but at the time that that incident happened. no one did anything with him a would you say that he said the oscars and ceremony because, you know, we've talked to several years today about things going, jumping the tracks for various reasons, but last night, almost felt i don't want to say boring, but it was it was an eventful in

a good way. yes, it was an eventful and a great way. and even he noticed that now if you saw on one time, right before they went to a commercial break, he goes back stage and he stops at this thing on the wall. the says number of years of without incident at the oscars. and they had one, he was keeping tally, basically saying it only happened last year. let's make sure it doesn't happen this year. so i think people like to tony said, but i think that the ratings might actually be a little bit higher because i think there were a lot of people tuning in to see how jimmy kimmel would handle the year after the beginning. and what about ratings before we have to let you go? i mean, do we have numbers? i mean, were people watching? there are a lot of people watching the final nielsen numbers are not in yet, but i think last year they have something like about 166000000. don't be to be honest with you. we talked about this before every year. all of the award shows have been going down mainly because of the fact that people are get renewed online and are watching streaming platforms. that's to be expected. i think what people in

hollywood the academy want it, they're going to lose just not lose that big of an audience. that's what they're hoping because they still a lot of money. millions of millions of dollars off of the shows. all right, katie matthews, in los angeles, one of the big stars on the red carpet or i should say champagne carpet last night . kitchen is always good talking with you. thank you. and it was also a notable i for indian cinema, the elephant whispers one, the best documentary short category of the story is about 2 people assigned by an indian government agency to care for an orphan baby elephant. the filmmakers spent 5 years at the elephant forest and reserve ending up with more than 450 hours of raw footage. that was at the down to 40 spectacular mit i. yeah, let me run it by the other wiley level on

that in the middle with the best original song went to the ear worm not to not to a slight beating up music by rianna in lady gar, from film such as top gun maverick, the frenetic song and dex dance number is had audience is cheering and dancing and theaters around the world. not part of nobody i with ah, there's no way you can listen to that and sit still. that is for sure. the day's almost done. the conversation continues online to find us on twitter either at the w news. you can call me on twitter. the brent golf t v. i remember whatever happens between now and then tomorrow is another day.

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