news th reed cowan. watching your wallet on a monday. first it was a bill

out, now bay area-based bank taken over completely. what thi means for the banking system an you at home. >> so far, have been very good to me. so i will cross my fingers, and give my money in there. a lot of fingers crossed there. good afternoon everybody i'm reed cowan. first republic bank is now formally a part of j.p. morgan chase. the second biggest bank failure in u.s. history. nicole diantonio join us from capitol hill, and the big question for our audience is, what does this mean for consumers? >> reporter: that is one of the big questions here. we know thi is the third bank to fail in th u.s. since march. but, today, president biden, reassuring americans that the banking system is safe. he spoke in th rose garden today and also wanted to reassure those customers at first republic ban that they are safe as well, their deposits are protsan

franci. j.p. morgan chase now runs all 84 branches of the failed bank. >> i am upset and angry. that helpeus, we have been there for us a great deal. >> customers have full access t their deposits, but some depositors were disappointed to lose a trusted lender. >> this bank was so wonderful. they were nothing but generous. >> reporter: regulators seized first republic early monday morning, and then sold all its deposits and most of its asset to j.p. morgan, the nation's largest bank. >> depositors are protected. >> reporter: president biden says he wants to make sure this does not happen again, and reassured americans, taxpayers will not be on the hook. >> these actions will make sure the banking system is safe and sound . that includes protectin small businesses across the country who need to make payroll. >> reporter: the president is

also calling on congress to giv regulators the tod banking executives accountable for a collapse in the future. >> reporter: first republic faltered in march after rising interest rates devalued some of its loans and investments. depositors polled more than $100 billion out of the bank. now, the fdic is suggesting a new policy which ins accoor mo the currt $250,000 limit. the coressional approval. >> reporter: the fed is also dealing with high food and energy prices and is expected t raise interest rates for the 10th time this upcoming wednesday. on capitol hill, nicole diantonio, back to you. >> thank you so much.'s we are hearing from a lot o people with a lot of questions. joining me now is real estate professor thomas gorski, thank you for being with us. to the person who has their money in first republic, right off the top, you heard from one of our viewers saying i will keep my fingers crossed. are they safe?

>> first republic depositors ar safe. their deposits are guaranteed, so they have nothin to worry about. if anything, it is the deposits of other banks that would potentially worry about the banks. >> what do you mean other? what are the other worries? >> silicon valley bank and first republic bank are not really isolated incidents. there are at least 200 banks at similar risk of ur surepo migdecide toey. why is this the case? well, the fed raised the interest rates, the assets of the banking system to client by about $2 trillion. there is significant number of banks wit a current value asset , less than the value of their liabilities. in the u.s. system, we are talking $9 trillion of bank funding that i insured. so that has not been fully resolved. >> the question is, if rising

asset interest rates cause devalued assets and they could go up again, is that to say tha similar fate could befall other banks? >> they could. if you look on the index of regional banks, there were failures today , so they continue to fail, and as i said, there is at least a coupl of banks subject to similar risk. and, this does not take into account the potential ris going forward from commercial real estate defaults. places like san francisco and new york are half-empty or less than half-empty. other real estate assets have the potential risk and as these banks collapse, the position might be more precarious. >> i want to nail that down s

cohousing san francisco has a lot of buildings. you say if yo own a commercial building and sentences go in this climate, b prepared? >> yes. especially , you know, the value of office buildings. if you look at publicly traded real estate investment trust, the value of real estate buildings is at least one thir less than it was before covid. if you are a person especially with an office building, it could be a small one financed with a loan, you might have a hard time refinancing your mortgage. and most of the commercial real estate loans ar short-term. so, it would be really hard to refinance. likewise in california and new york, a lot of homes are expensive. if you are a homeowner with finance acquisition of your home and you want to refinance your mortgage, it might be harder because these loans are usually issued by banks and banks are now under significant pressure. >> i offit who say

have heard nothint repu and nothing om che. when can pr m expect to get a what's next email or phone call from either chase or first republic? >> if you are a depositor or you have a loan at first republic bank, i would so you have nothing to worry about? they will take a few days to sort it out but you will get information , where to pay your mortgage or accessor deposits. for these customers, i think yo have nothing to worry about? if you are a customer at first republic bank. >> not so confident if you own commercial real estate which many people do here in the bay area but how can the people who own buildings like that protect themselves? >> at this point, you should tr to hold as much cash as you can there will be some borrowers that decide to abandon buildings. we saw blackstone working away from an office building, a growing number of deep-pocketed investors making the decision saying the

building is worth much less tha it was. the credit conditions are much harder, the cost of financing this building , in some cases, more than doubled. it is time to walk away and abandon it. >> when you talk about it, commercial buildings can be anything from hotels to clinics number of places where people do business and th trickle-down thgsto think out, we continue to dig into thi very important story. devin fehely is talking with a bay area nonprofit, asking what is next for them. their money is i first republic bank. so, if thomas is right, they don't hav a lot to worry about. it is th people who held commercial properties or those jumbo loans we will try to get you important answers coming up tonight at 5:00. today is the start of asian-american and pacific islander heritage month. we begin with a sobering story for three suspects have been

arrested for allegedly targetin aapi communities in a targeted string of robberies throughout the bay area. the story comes from san jose where police arrested suspect last month. on of those arrest came during a string of car burglaries of the largely vietnamese grand centur mall over in san jose. police say the three suspects are responsible for 13 robberies . not talking about simple robberies, arm and strong armed robberies, as well as five gran theft, countless car burglaries apparently they could between december and january but now they are caught, it phasizthne protect each other and be aware. starting today, the national guard and the chp are hitting the streets to address sentence goes publicized eventual crisis the dole goal here is to stop deadly fentanyl from reaching open air drug markets. here is the political angle. governor gavin newsom walked through th tenderloin last month, and he i talking about a plan for the tenderloin.'s office says the additional boots on the ground they're planning to send down ,

they will not criminalize peopl struggling with drug use, substance abuse and addiction issues. but, they will focus on what the governor's office says is disrupting the fueling fentanyl crisis by really hitting them at the supply-chai level. so, the deployment coincides with this , this is a community proud of the tenderloin. in fact, it is called i love tenderloin week the plan to beautify the tenderloin, it is only part of the tenderloin arts festival which is the celebration to keep the neighborhood violent through art and community. vibrant through art and community. >> the second densest communit for seniors, people come to live here , to have new starts here, it is the home of a lot of immigrants who come here to escape from wherever they are coming from, right? it is a place of second chances. >> a rally in march from sentences care, may day celebrates the gains of the

labor movement. activists were out celebrating the ongoing fight for labor rights for all. they gathered at 16th and mission before marching to city hall. >> they are demanding fair wages, safe conditions, and healthcare for society's most vulnerable. on document immigrant workers but they are also advocating for senate bill 628 which would promote development opportunities for creative workers. a road win, and boy did we need it. how the warriors soared past the kings in game seven, looking ahead to the hug california matchup. plus, near record temperatures that made u where t-shirts and tank tops, t this? paul, this is in contra costa county? >> weather whiplash, feeling more like early march them the first day of may. we take a look ahead

around one check for the warriors advancing to round two of the nba playoffs. they will be back at home at chase center starting tomorrow facing off with another california team, the lakers. vern glenn shows us the remarkable road when in sacramento.

>> steph curry put the team on his back and curry kept them in the game with 20, then took over in the second half as the warriors grabbed the lead. curr dropped in 30 points in the second half, finishing the game with a record 50, as golden state one on the road 120-100 t set up a second-round matchup with the lakers starting on tuesday at chase center after a legendary performance from number 30. >> 50 points from our best player, holding up to 38% from the field, 26% from three. sounds like a pinch of dna to me. when you do it four times, esal o has be therd done that. game seven. th wh you have ons, ,

>> putting up 50 points is incredible. is not going to le us lose the game, we follow his lead and he took us home. >> who can stop steph curry? >> hopefully we never find out. >> the warriors looked quicker than the younger kings team. 25 assists and only seven turnover total in the game. >> no excitement out there, right? that understatement of the year. the warriors were on the road, doug nation was in full force, there they are cheering, that is what communit looks and feels like, everybody the place turned into a party a our warriors pulled away and got the win. lots of smiles there. we will be there as fans pack chase center and drive cit for game one against the lakers traveling up the freeway, we will take you to the lakers.

turning the page from round one with the kings, this bed was made on the morning show. our friends at our sister station i sacramento made good on their bet with our morning team. yes, their anchors are wearing our colors. they treated this picture of themselves wearing warriors blue and gold. they made good on it. they put up a fight, but it feels good, right dubbs fans are gearing up and ready for this next round against l.a., tweeting their pitchers and their shout outs. you can share yours, too. just to make sure that we see it, us the hashtagkpix. rain in the forecast, i've already had to push back somebody coming to my house to do some things because of the rain. >> it's weird for the beginning of may. this feels like early march with this type of weather

patterns shaping up at this is what we will be dealing with fo the next two days. the proximit of the storm system in e level return , fuy wet ster the nexta fost. that isword for tomorrow because not only d we have a good chance of showers, we also have a chance at some of the showers will gro into thunderstorms. the cates w storm prediction center has outlined the potential for what they call general thunderstorms this means nonsevere storms. th type that we typically get around here. even those nonsevere storms bring the threat of crowd to glatt cloud to ground lightning and possibility of small hail. righ now what actiinthe sacruz mountains. dental thunderstorms will likely develop during the day tomorrow. showers are sparse this evening becoming widespread through tonight into early tomorrow morning. it is about a 50/50 chance to allow for time for the morning commut to/through puzzles. action fro late morning to early afternoon we will still be quite chilly for early may. it will be warm enough at ground level that the atmosphere becomes thunderstorms developing over the higher elevations into the

east bay, thunderstorm activit roles over the higher elevations, heading for tomorro night into early wednesday. still and unsettled forecast, but the rain chances will be 50% to 60% tomorrow. lower than that on wednesday, and even lower than that on thursday , though we cannot complete the rule out the possibility of pop-up showers even a gradually and calm direction through the weekend. future cast, generall up to a quarter inch. models are highlighting some areas in blue for a quarter or half inc of rain. that is the upper limi of what we could see unless those downpours decide to set u camp for a bit longer. low-impact rain event overall what it is rain in early may, not what we expect. right now, you can see the camera bouncing around a bit. temperatures are cool across the board, middle

and upper 50s to the warm spot at 60 degrees right now in san jose. tonight we drop into the middle and upper 40s. that is normal for early may. but, high temperatures tomorrow, way belo average for this time of year. only upper 50s and low 60s. doesn't really matter if you ar along the coast, everybody is going to be staying cool tomorrow and it is a slow warm-up which gradually kicks in for the rest of this week. so, unsettled weather for the next few days and then we shoul be gradually drying things out, and clearing as we go to the first weekend in may. temperatures will be below average even when we do start t warm up a bit by early next wee but at least we will be closer to shouting distance of normal by this time of year, by the time monday of next week rolls around. keep the umbrella handy >> thank you so much. he saw a need in his community and did what but he risky move. >> i figured if i will get myself into

we often hear that owning a restaurant is tough. naturally, what we don't here is restauran owners going out of their way t give away what they worked so hard to make for free. we take a look at a bay area bridgebuilder who took a big risk to help his neighbors. >> reporter: most diners in america make money by serving up hearty meals .:duran, the

owner of the homemade cafe in southlake might be the only restaurant tour giving a business it all started two years ago when coli decided to do something rather unusual in the restaurant business. offering anyone who i famished a free breakfast. >> if you guys are hungry and need food we will feed you. >> reporter: when the pandemic hit, the need grew so much, colin made it official, callin it the everybody eats program. all you have to do is grab one of the coupons on his bulletin board and sit down. the only payment required is a thank you >> the typical everybody eats meal is our basic two egg breakfast. two eggs cooked however the customer likes it. they get aside of our delicious home fries and toast.

>> reporter: neighborhood resident samantha aikins has been relying on food assistance programs to get by. being able to eat, free of charge at the cafe, she says, has been a godsend. >> finding people that can help out, financially. >> reporter: paying customers can help by adding five dollars to their bill, something many o his regulars, like susan are more than happy to do. >> that just touches me right here, in my heart. >> collins's program has become so popular he is now giving awa about 200 free meals per month >> there was a bit in the back of my mind, high volume of meals, but i figured if i wil get myself into trouble it will be good trouble. >> reporter: natalie did you no get into trouble, his business grew by 15% , a huge margin for any restaurant.

>> customers have reacted positively and even if they don't always contribute five dollars to help pay for meals, they like the fact that we do i and they choose to come here more often. >> reporter: now, he hopes others will follow his lead. >> able to try to bring -- sorry if i am tearing up, what i think is important , to be able to , not only do things that i love, and make nice and delicious food, but to do it in a way that is socially responsible and try to make the world a better place. >> reporter: making the world a better place by adding compassion and caring to his menu. >> what a beautiful story. thank you. >>

will come back. ed shearin is taking his next u.s. tour to some smaller venues including the fox theater in oakland. he says he wants to play the new album the entire way through with a full band in an intimate setting. he will be in oakland savimbi 15th, but the tour does include larger venues, like lev stadium september 16th, tickets go on sale tomorrow. i like tha he is making it nice for east bay and then down here in san francisco. >> yeah. i like his theater shows as opposed to arena or stadium shows. getting a more personal perspective. it was

produced. cbs evening news is next on kpix 5 ♪ ♪ >> norah: tonight, the deadly dust storm pickle multiple le are kild d spitized after a multica pileup tshut dnor interstate. here are tonight's headlines. strong winds make for a dangerous situation in illinois. although his visibility caused a crash involving as many 80 cars and trucks. cap the dangerous tornadoes causing major destruction. with a massive manhunt for the man accused of killing five of his neighbors including a 9-year-old boy. what led to the massacre as we learned the suspect had been deported from the u.s. at least four times. >> regulators have seized first republic bank and a chosen jpmorgan chase to buy most of its assets.