welcome back to "face the nation." we continue our conversation now with former trump economic adviser gary cohn. gary, i want to pick up on where we just left off. in terms of stopping the bleeding that continues to be happening for some of these mid-sized banks like first republic, is there a white knight? does this only end when one of the big banks buys it up? >> margaret, most likely that will be the scenario. at the end of the day, the banks that are most qualified and have the most secure and soundest balance sheets that can afford to kabsorb some of these larger regional banks are the largest in america which is the last thing that regulatory and

congress wants to see, but that probably will be the likely a w? >> you know, it could be, but then warren buffet would become a bank holding company and the restrictions on bank holding companies are fairly dramatic and he would have to understand what that meant to his everyday core business, what he could do, what he couldn't do, and all the regulations and restrictions he would have upon himself after having become a bank holding company. it's not a simple decision. >> well, part of that decision has to also be, you know, is this going to hurt me in the long term. larry fink, you know, runs the world's largest asset manager, told investors a few days ago we could see more seizures and shutdowns coming. he said, you could see something like the savings and loan crisis in the '80s and '90sre nden disappeaitat

>> no. i think larry i overstating it. this is a crisis of confidence right now to some, tent extent. bank runs are a problem of confidence. they put in backstops for two banks we know are in trouble. the banking industry is trying to help a third bank putting depositsinto that bank. we know the remedy is for three banks. there are thousands of small regional banks in the united states, this usually just doesn't stop after two. we're going to continue to go and investors and depositors will evaluate each bank and one by one, they will start saying, which -- what is the next bank that is least secure that i most likely do not want to have my deposits in. >> and you know trading world well that moves like this, so fast. it takes a lot longer for congress to act or do anything. >> look, these bank runs, because of the way they've been

digitized and everyone has online banking or on telephone banking, the bank runs can happen in minutes. not like you're going to the bank anymore and standing in line at the front door and slow it down. you can't slow down digital banking. >> you have called in an op-ed for common sense regulation. you do want congress to act, you say, with smaller bank oversight. you say the role of board of directors should be evaluated because of what happened at svb. apparently they didn't have a lot of experience on it. the $250,000 limit on deposit insurance should be raised. elizabeth warren hit the same number as you did, 2, 5, $10 million. >> yeah. >> doesn't that trickle down to customers and make their costs go up if that kind of insurance extension happens? >> you're right. former chairman of the sec clayton and myself wrote an op-ed, you have to have a board that haslificaons and understand banking. how can a board oversee a bank

they don't have qualifications. expand insurance. you could have tiered pricing, one price for deposits below 250,000 and tiered pricing as your it deposits go up and want them insured it will be more expensive to insure the deposits. the key here is, we need to keep deposits in the u.s. banking system. it's imperative that we keep deposits in the u.s. banking system because that's how we grow our economy by allowing banks to relend those deposits into consumers to consume, to buy houses and cars and go to college. >> right. >> there is an alternative, an important alternative, we talked about in our op-ed. u.s. treasury bonds or bills, they pay a higher rate and they have a tax advantage to them. the horrible outcome would be if people take their money out of banks in the united states and put them in the u.s. treasury obligations would have an impact on slowing down economic growth and the economy. >> the federal reserve meets this week.

they control interest rates. given the anxiety that's happening, can jerome powell, the chairman of the federal reserve, go ahead with the hike he has planned or are things so bad out there he can't do what ? >> he's in a tough spot. we still have inflation. we're starting to see some positive signs that inflation is coming down. inflation hurts consumers as well. i think jerome powell is going to need to raise rates 25 basis points and then in his statement and press conference he needs to talk about how the fed understand the cumulative effect the lags effects of interest rates and that they're going to be acutely aware of watching for the cumulative effects, lags effects and very data dependent as they move forward. i think he'll leave himself a lot of room in the forward meetings to do whatever they need to do, which may be pause, may be cut, or may be increased, depending on how inflation is going in the united states.

>> all of this will have an impact on the broader economy. >> all of it. both the banking side as well as what the fed does in policy. >> we know there's political ramifications too. pull all the threads together here. thank you for your analysis. we'll be right back. als? the plan we created can withstand uncertainty. lately everybody has opinions about the economy, but i count on personal financial advice. my ameriprise advisor understands the markets and me. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still on track. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about.

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restick. choose from dozens of sizes, frames and styles. go to mixtiles.com, upload pictures, pick a fancy frame and voila! buy 10 and get 10 for free. and we're back now with the co-host of the pivot podcast, kara swisher, joins us from san francisco, and scott galloway, who joins us this morning from miami. and in the interest of full disclosure we want to nhat galloway is marketing professor at nyu and directly or indirectly involved with several firms who have had funds at svb bank. none are facing liquidity issues due to failure, he tells us. scott, with that, i want to start with you here. what is the broader impact to america's ability to continue innovating in the wake of this failure? >> good to be with you, margaret. look, the modern u.s. banking system is a miracle.

it takes short-term deposit and terms them into long-term loans so we can grow the economy. do we have what marjorie taylor greene asked for, the u.s. splitting in two and it's not between red and blue states, it's between what i would call venture capitalists in silicon valley trying to find a constructive solution and venture catastrophists, who appear to have an interest in the weakening of the u.s. banking system and the u.s. dollar. a letter trying to facilitate a transaction signed by vcs, what is more interesting is who was not on that list, people with a large interest in crypto who have seen crypto go up 20% since there was huge insecurity injected into the system by, again, this kind of constant catastrophizing. do we have two americas in silicon valley? i think lawmakers and americans are trying to ask should we be backstopping americans or agents of chaos? >> who are you thinkig of?

who are the agents of chaos? >> people who post the social media algorithms in all caps saying chaos will ensue, there will be lines around the banks, some will get their money out, most not. large venture capital firms who have tens of billions invested in crypto do not share a collective interest in the health of the banking system and individuals on the way up see america as a cross between the hunger games and capitalism and on the way down believe we should be denmark. capitalism on the way up and socialism on the way down is neither. it's cronyism. >> kara, you so many start-up firms relied on this silicon valley lender to get their business and get their business going, and they can't necessarily go to bigger banks. there is a knock-on effect where we see the huge part of our economy crippled?

>> well, no. there's money for them. there's always money for them. they used to say there's not enough rat holes to shove all the money in silicon valley down. i think they will get money. this bank was particularly attuned to them, including giving them personal mortgages, personal loans, using collateral that was, you know, just the stock or the fact that venture capitalists invested in them. they had a harder time with traditional banks and this bank catered to them and it was a creature of silicon valley. they had advisors from silicon valley and every silicon valley start-up was in this bank in some fashion and then spread it around to events and other things. it's a bank that's too niche to one group of people and then it's also a group of people that reacting really quickly which is why the bank runs happened when they realized they couldn't sell these treasury bonds. >> what is about to happen here in washington with this hearing this week, tiktok's ceo is going to be called in to testify. kara, cbs has confirmed reports

that the justice department is investigating that company for spying on u.s. citizens, including american journalists, by looking for their location data, and reportedly some of the people doing this were based in china. the parent company says they're no longer employed. does this kind of surveillance happen at other social media firms? >> well, in a different way. they're selling you advertising, because we have no national privacy bill in this country. whatever these companies want to do they have a lot of power to do so. i call them information thieves. that's for a different reason. to sell you advertising. in this case it feels morern hasaidhese are rogue actors but the fact that they can do it, means they can do it. meaning if china wants to do it they can do it. that's the big worry here is not only surveillance but propaganda. and so when facebook's dishing it out or meta, they're doing it for business reasons, not great either, by the way the

government could come in there, any government, and so we have to really be careful about what all of these companies get, but particularly worried about state actors. >> it seems that news development really throws some sand in the gears of progress on what bytedance and tiktok were proposing as a way around the issue, which was something they called project texas. they don't want a ban. they don't want to be forced to be sold. how, scott, does this end up getting resolved? >> well, america is waking up to the fact that there's a nurle jack plugged into the heads of america's youth who spend more time on tiktok than any other streaming media platform and we're understandably weary of the ccp who would be stupid to not put their thumb on the scale of content and raise american nonprofit and business and military leaders that feel

incrementally worse about america. how it gets solved is straightforward. the ccp was hoping we wouldn't get out of our own way and there's evidence they might have been right, but they would like to maintain the world's premier propaganda tool an hundreds of billions in shareholder value and on the eve of the ban they will decide if they can't hold on to both they will hold on to the dollars and agree to a spin. >> kara, what do you see here? it was amazing "the washington post" had huge ads tiktok placed here in the local papers. >> yep. >> and the commerce secretary was asked about a possible ban and gina raimondo says the politician in me thinks you're going to lose every voter under 35 forever. that is the political element here. how does this play out if it's on the devices of 200 million americans? >> well, there is that. there's that issue of people using it, and it's popular. there's been some advances made by other services now, so it's a

little less of a grip on teenagers. i don't think there's going to be a giant protest by teens. the issue you have to think about is, what happens if they ban, what happens to the money? a lot of u.s. investors in this company, let's be clear, and a lot of u.s. investors interested in the decline of tiktok, so that's going on behind the scenes at the same time. it's very popular for politicians to use this as an anti-china twi twhich they do. it's bipartisan. it's also mark warner, even as it's josh hawley. three or four years ago i wrote a piece saying i love tiktok, great product, i'm using it on a burner phone because i don't trust the communist party. this is a tool of propaganda and the question is what do we do about it? why aren't u.s. companies allowed in china? so it's very complex. i'm not sure -- i'm not way down with the ban with scott who has been calling for it for a while. i think there are ways to protect people, but it's very difficult, if it's not an

utterly u.s. owned company or somewhere else and that's going to be difficult for this company. >> i just want to -- >> now at this juncture. >> i want to underscore, you said, for years you have said you don't feel safe using this device -- this on a device you carry with you. >> yeah. >> you use a phone that you don't take anywhere with you because of the risk level here. this is in the pockets of millions of americans. hundreds of millions. >> yeah. yeah. i don't use facebook either. that's me. i don't trust any of them. i really don't trust the communist party of china more than mark zuckerbeg. low bar. >> just -- wow. quickly, scott, you know, we are looking at the potential indictment of the 45th president of the united states who is back on social media platforms. have there been any measures put in place that would limit the ability to use this as an organizing tool or in a dangerous way as he calls for

protests? >> not that i know of. i find it kind of borderline comical this hollow debate around first amendment or speech or pretending these -- these organizations pretending it was a difficult decision. it's straightforward. an organization or an individual adds shareholder value to these companies, they create engagement through enragement or awe or spend money on the platform. about the time president trump was about to become much less enraging or have less content about a few days before biden's inauguration, meta found their backbone and kicked them off. about the time he's about to spend another billion or billion and a half they decided he should come back on the platform. my understanding is the president -- president trump has called for protests and the last time he called for protests we had an insurrection, so if they've ever wanted an excuse

not to put him on the platforms they have it. this is about what drives shareholder value not any fidelity to the commonwealth. >> on that note we will leave it there. scott and kara, always good to talk to you. we'll be back in a moment. (male) there are many voices in today's world. everyone is voicing their opinions about everything, and jesus is no exception to that. what if there was a clear voice telling you exactly who jesus is? (male announcer) join dr. david jeremiah as he teaches who jesus is and what that means for your life. tune in to dr. jeremiah's new series, "christ above all", on the next "turning point", right here on this station.

we turn to former national security adviser retired general h.r. mcmaster who joins us from i wanto . china with you, but first, stability in this country,al f protests. how concerned are you about security and what it means for the country? >> well, of course, margaret, what i'm hoping for is americans come to their sen senses and recognize we have strong institutions and have confidence in the due process of law. nobody is above the law. i hope americans really recognize that what's not -- not appropriate at this stage is any kind of violence, but really, to demand the best from our institutions, to ensure that they're insulated from political interference, but to have confidence, you know, that if the president is, you know, as

rumored to be indicted, that he will have the opportunity to defend himself against these charges. >> and we will be following that. when it comes to your wheelhouse on the national security front, we just saw these images of vladimir putin defiantly traveling to ukraine. his first known trip to the occupied donbas region of eastern ukraine. the kremlin made a point to say he visited children centers. this is days after an arrest warrant was issued on charges of abducting and deporting ukrainian children, forcibly to russia. how do you interpret this? >> well, i think this is a moment of clarity. i mean, look at just the brazen cynicism associated with him going to sebastopol which he illegally annexed in 2014 and then to marry yople at night,

visiting few sites that haven't been rubbled by the russian military as they inflicted murder on innocent people in mare yople. he's been indicted by the international criminal court for kidnapping tens of thousands of ukrainian children and, of course, this is all on the eve of xi jinping visiting putin. i think what you're seeing is really quite clearly this axis of authoritarians who are a real threat to freedom and to civilized people around the world. >> china, we should also note, is accused by the u.s. government of actively conducting genocide against minorities in country. do you think it gives any pause to xi jinping when he boards that flight to moscow that vladimir putin was -- just had the arrest warrant issued? >> you know, sadly, margaret, i don't think so. remember it's really ten years ago, almost to the day, that xi jinping made his first visit to

moscow and they declared their special friendship. since then, they've just continued to double down on this relationship. remember, just before the beijing olympics last year, just prior to the reinvasion of ukraine, on february 24th, they professed their partnership with no limits, and he's visiting moscow at a time when it's become clear from u.s. government reports and investigative journalists that china is supplying weapons, munitions, all kinds of other support for putin as he continues this onslaught against the ukrainian people. this, of course, is economic support. china has increased their purchase of russia oil by 60%. they're buying more natural gas. they're providing all sorts of technological capabilities that are important to sustaining russia's war-making machine. >> the u.s. government admits they know surveillance footage or things used for enhancing targeting of the battlefield sold by chinese companies, but

say no lethal support yet has happened. you're saying you don't believe that? >> i don't believe that. i think what you're going to see in the coming days and weeks is more and more evidence of chinese support. china doesn't want to get caught doing this, right, because at the same time as they're helping the russians murder ukrainians, they're saying, china is open for business and trying to appeal to american and other investors to continue to prop up their status model, even as they commit genocide, even as xi jinping just in the recent people's congress last week, he gave really four speeches essentially preparing the chinese people for war. i mean these are speeches. he also made it clear that security economy is going to dominate, you know, over the free market over or the tech sector, so i think it's time for us really to assess the degree to which we have been over many years underwriting in many ways

our own demise with investments in china and really not doing more to shore up, you know, fragile supply chains. we've given a regime power over our economy much like europe did with russia -- >> i want to ask you about republican governor chris sununu wrote an op-ed saying some in the republican party have lost their more capas evidenced by president trump who once called putin's invasion genius and savvy the governor of florida said similar things that appear to be diminishing the importance of the flict conflict. the top two contenders in the republican party are pushing this? >> i think it's sad, margaret. why not just focus on two things, look at how valor russ the ukrainians have been fighting for their own freedom. that should restore confidence, maybe n our own nation and the gift that we have of being free

and having freedom of expression and freedom from fear. you know, i think also, look at the atrocities that have been on the ukrainian people. also recognize that it's in our interest. where does it stop? putin went to sebastopol to get annexed in 2014. >> yeah. >> and, of course, there's a direct line between that and the reinvasion. >> there is. i've got to -- >> if we're not strong, you know -- >> i've got to leave it here but appreciate your analysis. we'll be right back. i got this mountain bike for only $11. dealdash.com the fair

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y nt tt call jacoby & meyers, justice for you since 1972. york. >> announcer: this is the "cbs overnight news." good evening and thank you so much for joining us. u.s. presidential history could be bemade this week. that's if former president donald trump is indicted by a manhattan grand jury following an investigation of hush money paid to women who alleged sexual encounters with him. in social media posts this weekend mr. trump referred to the allegations as old and fully debunked. he