. i'm margaret brennan in washington. this week on "face the nation" -- america's economy got a jolt late last week. we'll speak heexclusively with treasure secretary janet yellen about how the government could head off a potential crisis we haven't seen since 2008. shockwaves are expected to hit when the global markets open following friday's collapse of silicon valley bank, the biggest u.s. bank to fail in 15 years. what were the missed signals about the bank's stability and how could svb's failure impact the jobs and inflation outlook in the u.s.? president biden was upbeat friday morning, following an employment report that showed strong job gains. >> it's not just good numbers. people can feel it. >> but his administration has been hunkered down since then, dealing with what could be a se

contain the fallout. plus, democratic congress man ro khanna represents the california district that's home to svb. we'll ask him about the impact on the tech sector, america's hub for innovation. house foreign affairs chairman michael mccaul will be with us and new jersey's democratic governor phil murphy. and finally, we'll take a look at the power of women in the face of adversity, as they fight to overcome new roadblocks to gender equality. it's all just ahead on "face the nation." ♪ good morning. welcome to "face the nation." government regulators have been working through the weekend to contain the spillover from the collapse of silicon valley bank. but reverberations have already

been felt overseas, from europe to israel. back home, the concern is especially acute in america's technology sector. president biden spoke last night about the government's response to svb's failure with california's governor gavin newsom who has emphasized the need to protect america's innovation ecosystem. the turbulence comes at a complicated moment for the u.s. economy. cbs news senior correspondent mark strassmann is in atlanta with more. >> reporter: help wanted. nearly 11 million open jobs in a labor market that's still sizzling. more than 300,000 hires last month. one winner the leisure and hospitality sector, two-thirds of its employees women. for the last four months, women have out gained men for new jobs. >> i think all this matters. it's no accident. it means that our economic plan

is working. >> reporter: but economists also need help. they're trying to solve this muddle of a post-pandemic economy. inflation stubbornly above 6%, despite the fastest rise in interest rates in four decades. more signs of these inflationary times, rises in total mortgages and total household debt. the fed has a lot to think about. >> i think inflation definitely hits different areas of the economy in different ways. >> reporter: just like the impact of interest rate hikes. california's silicon valley bank poorly hedged, has collapsed. depositors panicked in the biggest bank fail since the 2008 financial crisis. rising interest rates hobbled loans and investments. the fdic has taken control, but a worriried wall street ended down on friday. >> the market may be fearing more contagion risk of financial instability. >> reporter: the law of

unintended consequences, one more consideration for the fed mulling over interest rates it as a whip to tame inflation's lion. >> if the totality of the data were to end dhats faster tightening is warranted we would be prepared to increase the pace of rate hikes. >> reporter: looking for more clarity, patience, at least for another couple weeks. the latest numbers from the consumer price index come out on tuesday and the fed will meet again next week to consider raising interest rates yet again. margaret? >> mark strassmann, thank you. we go now to treasure secretary janet yellen. madam secretary, good morning. >> good morning, margaret. >> i want to get straight to it because the markets will soon reopen for trading. intervene and take emergency measures because of svb's failure? >> well, let me say america's economy relies on a safe and sound banking system that can

provide for the credit needs of our households and businesses, so whenever a bank, especially one like silicon valley bank, with billions of dollars in deposits fails, it's clearly a concern. from the standpoint of depositors, many of which may be small businesses, they rely on access to their funds, to be able to pay the bills that they have and they employ tens of thousands of people across the country. we've been hearing from those depositors and other concerned people this weekend, so let me say that i've been working all weekend with our banking regulators to design appropriate policies to address this situation. i can't really provide further details at this time, but what i do want to do is emphasize that

the american banking system is really safe and well capitalized. it's resilient. >> can you say whether these problems were unique to silicon valley bank or can you say whether there will be other region bank failures? >> well, look, let me just say that we want to make sure that troubles that exist at one bank don't create contagion to others that are sound, and goal always of supervision and regulation is to make sure that contagion can't occur. >> your counterpart in the united kingdom has said that government there has ruled out a bailout of the uk arm of silicon valley bank. have you also ruled out that kind of government intervention?

>> well, let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we're certainly not looking, and the reforms that have been put in place means, that we're not going to do that again, but we are concerned about depositors and are focused on trying to meet their needs. >> do you expect a deal or something to happen that can reassure the markets before asia opens tonight and u.s. markets open tomorrow? >> we certainly are working to address the situation in a timely way. >> now, i know you know this rgion of the country so well because you served at the san francisco fed years ago. the tech sector has already been suffering from layoffs and it's

already under pressure, and this is really the hub of american innovation. be for t innovation?consequences >> i think its depends on how this situation is resolved, but i'm well aware that many start-up firms have deposits and venture capital firms have deposits at this bank that have been affected by its failure, so this is something we're working to try to resolve. >> you know, when you look big picture at this, this bank had massive exposure to this one particular industry. how did government regulators miss that risk? >> i would say that although the tech sector has been suffering from a downturn and has had some significant layoffs, the problems of this bank, from

reporting about its situation, suggests that because we're in a higher interest rate environment, assets that it holds, many of which are treasury assets or mortgage-backed securities that are guaranteed by the government, lose market value and the problems of the tech sector aren't at the heart of the problems of this bank. >> do you foresee what's happening now as maybe making it harder for fed chair powell to continue with the kind of rate hikes he's indicated he plans? >> the federal reserve is independent and charged with making judgments about what the appropriate course of action is to address financial ris andali

nogoing to comment on what the appropriate response is for them. they will be evaluating this in the days and weeks to come. >> would you be open to a foreign bank coming in as a white knight to help stabilize the situation with silicon valley bank? >> so this is really a decision for the fdic, as it decides on what the best course is to resolve this firm, and i'm sure they're considering a wide range of available options that would include acquisitions. >> madam secretary, i'm told you are tight on time and i have to leave it there. thank you for your time this morning. >> thank you so much, margaret. we're joined now by congressman ro khanna, he is a democrat who represents the california district where

silicon valley bank was once headquartered. good to have you here. i wonder, what you make of the treasury secretary's remarks? i know you've been in contact with the white house, with treasury, and with fdic? >> i have great respect for secretary yellen, but i think we need to have more clarity and greater strength in what treasury is saying. first, the principle needs to be that all depositors will be protected and have full access to their accounts monday morning. >> all depositors meaning those with accounts bigger than $250,000, which is the cutoff for insurance right now? >> yes. all of them. there's precedent for this. chair powell, when he was at treasury in 1991, the bank of new england collapsed and chair powell said that treasury, coordinated with fdic, and with the fed, and they ensured every depositor then. why did they do it? they didn't want a regional run on the banks. here's what i'm hearing from people in my constituency. they're getting notes pull out

of regional banks and all will be consolidated in the top four banks. we don't want that as a nation. some of them the payroll companies involved. some have 400,000 people they won't meet payroll if they don't have access to deposits. >> you wanted to hear from the treasury secretary a statement that said the u.s. government will guarantee all depositors? >> yes. just like they did with the bank of new england. now here's the thing. it's not going to cost taxpayers money because if you look at the financials of svb, they have the assets, they have the assets there. they don't have the liquidity. what happened is they had the long-term treasury bonds and then the fed hiked interest rates very, very fast, we can debate the wisdom of that, and they were -- this was the cause. the assets still have value. we need the liquidity. there may have been mismanagement and we can get into that, but right now the key thing is for the depositors to have access to those accounts.

>> so the treasury secretary also said that acquisitions are an option here. that indicates perhaps a private sector option with another bank or other banks, buying up these assets and taking these on. are you comfortable with that? >> yes. that would be the ideal situation, and our delegation that talked to the fdic last night made that clear. but to have that happen -- >> is that what fdic is working on? >> that's what we urged them to work on. they said they're working on it. to have that happen you need fdic and treasury involved. because these assets are not liquid, and they may pay off ten years from now. i don't think you're going to get a private seller without the treasury department and fdic being actively engaged in helping liquidity with these treasury bonds. >> you know that's not happening? >> whether they're -- i think they need to be engaged. they say they're engaged. theyresolve this by monday morning and i think the wae is opleill have acc t accounts.

the bargain in our country been fdr, investors and shareholders lose. but the depositors are protected. let's talk about who these depositors are. they're not just the payroll companies. these are climate startups, these are startups that are helping cure cancer. >> yeah. >> these are companies in the wine industry. these are companies that are dealing with a.i. and defense to keep us ahead. there's 50,000 of them and employing americans across the the country. they didn't take risks. they just had their money in the sfwhoonk the president apparently spoke with the governor of california last night. do you think the president understand the gravity of what you're laying out here if you don't think the treasury is addressing this? >> they need to take decisive action. >> time is ticking. >> by monday morning. i would just urge chairman powell to look at what he said in his speech in 2013nd the the bank ondou t ll it was goo

ha w a regnal tink the u.sbanking is secure and i don't think this is a systemic risk. here's what's going to happen. every person in these tech companies is getting e-mails, pull your money out of the regional banks and put them in the big four. >> is it political will or concern there will be blowback for the administration? why wouldn't there be the immediacy or are you indicating you know chair powell is opposed? >> i think right now things move at the speed of twitter and they don't realize what the problem could be and how fast money is moving and the challenge this could be. there is no systemic risk but there is a risk on consolidation. progressives shouldbe the most concerned. if you don't want it to be jp morgan, citibank, wells far gor -- >> it may have to be. >> if the government doesn't step up. it's not going to cost taxpayers because the assets are there. >> who is why you're saying government bailout is not what

you're talking about you to be clear here. you tweeted yesterday the government also needs to investigate short sales by corporate executives, betting stock price is going to go down. bloomberg also reported the ceo of svb bank gregory becker sold $3.6 million of stock the day before the company collapsed. what exactly do you think occurred here? >> well, first of all, we need all the facts. i think money should be clawed back and used for places like silicon valley community center in my district -- >> clawed back from the ceo who you know? >> clawed back from the ceo who i've known, but whether there was something nefarious or not, you know 10-b-5s where they have to make the sale years before -- >> regulatory filing. >> or a month before. i don't want people to jump to conclusions but all that money should be clawed back and given to the depositors. >> to the depositors insured or otherwise? >> insured or otherwise. >> what do you think the big picture impact is or could be on

the heart of american innovation? the tech sector is very important to american >> i means that the companies that are looking for cures to cancer, companies doing the climate work, companies that are keeping us ahead of china on a.i. and defense technology, all of them are at risk. some of them will go under. some of them are going to be laying people off. people aren't going to be able to make their rent. here's the point, all of the legislation we passed in congress, the ira to tackle climate, the chips act, it relies on the innovation pipeline, it relies on the tech pipeline, and that is why this is such an important issue. what is being -- what is hurting them, the rapid rise of interest rates and now this systemic risk and it's going to hurt the innovation pipeline and it's going to hurt ordinary people. >> well, we are going to watch carefully what's happening in your district, congressman. thank you for coming on and giving us insight. we wish you luck. >> thank you. >> the annual gridiron dinner in

washington is traditionally an opportunity for politicians and journalists to take aim with humor at each other. but at the end of his speech last night former vice president mike pence put the jokes aside and issued his strongest condemnation to date on president trump and his role in the january 6th attack. quote, president trump was wrong. i had no right to overturn the election and his reckless words endangered my family and everyone at the capitol that day. history will hold donald trump accountable for his actions. pence also addressed recent attempts to sanitize january 6th indirectly criticizing fox news' tucker carlson. pence said that, quote, it was not, as some would have you believe, tourists visiting the capitol. tourists don't injure 140 police officers by sightseeing. tourists don't break down doors to get to the speaker of the

house. he also added that it mocks decency to portray it any other way. when we come back, we'll have a lot more "face the nation." stay with us. udit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create i got this mountain bike for only $11. dealdash.com the fair and honest bidding site. this kitchenaid mixer sold for less than $26. this i-pad sold for less than $43. and this playstation 5 sold for less than a dollar. i won these bluetooth headphones for $20. i got these three suitcases for less than

$40. and shipping is always free. go to dealdash.com right now and see how much you can save. we turn now to the chairman of the house foreign affairs committee, texas republican congressman michael mccaul. good morning to you, chairman mccall. >> good morning, margaret. >> i have a lot to get to with you today, but i want to start where i left off with the strong remarks from mike pence last night. do you want to associate yourself with what he said? >> let me just say vice president pence exercised moral clarity and judgment that day by doing his constitutional responsibility, authenticating the votes and counting them. he avoided a major constitutional crisis that day. as you know i voted for certification. that is our constitutional role

not to overturn state-certified ballots. i agree. look, it was a dark day and i think people will b -- history will judge everyone by what they did that day. >> it was a pretty strong condemnation of donald trump, who he hasn't directly taken on like that before. but it's also back in the news very much, chairman, because it was the speaker of the house who gave the 41,000 hours of surveillance videoed access to f fox news, which has used a recasting of the events, trying to sanitize it, and trying to whitewash history. do you think it was a mistake for republican leadership to strike this deal with tucker carlson? that is who mike pence was talking about. >> i know kevin mccarthy has turned all the videotape over to

fox news. he has given me assurance he's going to turn it over to the entire media. i think -- i believe in the freedom of the press and the american people deserve to see all the footage from that day. all the footage is not going to be, you know, tourism at the capitol. it's going to show a very dark, tragic day, that i witnessed firsthand that included our capitol police being assaulted, 140 of them injured, two pipe bombs, one capitol police officer killed, and a protester killed. that's not a good day. i think it should have been prevented, had we had good intelligence that day beforehand, and look, i support law enforcement like the d.c. crime bill we're passing, i support law enforcement everywhere, especia at th united stateol i w to ask you oee of ancoming commercial bre abo the hearing you just held on

afghanistan, but before i do that, i want to quickly ask you about what we've been talking about with the treasury secretary saying no government bailout for this silicon valley bank. but they are trying to take some action, she didn't ge give a lot of detail there. austin is a start-up hub in your home state of texas. how concerned are you about spillover here? >> yeah. we do have south by southwest this weekend. a lot of tech. i am concerned. i hope it's more of an isolated event, because the assets were very, you know, it was all just technology sector, and it wasn't diversified. also, as the secretary mentioned, these low interest bonds. i think part of the problem, margaret, in this inflationary time, the reserve, the federal reserve, now is raising interest rates and that, i think, is part of the problem as well. we want to make sure this is an isolated event and not a systemic event that could impact things like in 2008 when we did

bail out the financial sector. >> all right. i've got to take that break now and we'll come back and continue our conversation in a moment. ♪ it was time for a nunormal with nucala. nucala is a once-monthly add-on treatment for severe eosinophilic asthma that can mean less oral steroids. not for sudden breathing problems. allergic reactions can occur. get help right away for swelling of face, mouth, tongue, or trouble breathing. infections that can cause shingles have occurred. don't stop steroids unless told by your doctor. tell your doctor if you have a parasitic infection. may cause headache, injection site reactions, back pain, and fatigue. ask your asthma specialist about a nunormal with nucala. a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next.

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. welcome back to "face the nation." we want to return now to our conversation with house foreign affairs chairman michael mccaul. now, chairman, i mentioned that you held this hearing on afghanistan this past week and it was pretty emotional. >> yeah. >> you're really coming chaotic withdrawal from that country and you had a marines corps sergeant injured in the suicide bombing who testified he was an eyewitness and actually saw the suicide bomber before the attack. he testified he has never been interviewed as part of the u.s. investigation. how was this overlooked? >> i think it's very -- well, first of all, very powerful testimony, very emotional, but very devastating and damaging to the administra.