question of the day, bruce richards. this is bloomberg. ♪ this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. alix:alix: pac west securing $1.4 billion in cash from atlas partners. this at the same time as it saw 20% deposits fleeing in the last couple weeks. customers handing over 20 -- 20% of deposits. billions of dollars. joining us, bruce richards. great to get your perspective on this. what is your take on this deal? bruce: well the news is still breaking but pack west can go to the fed to borrow money and undoubtedly have, given the huge deposit outflow

bruce richards, his takeaway from the fed and clues about the credit markets. >>> and we got former wellsgo ceo reacting to the banking crisis and where the fed lost the plot. >>> first up, take a look at stocks this morning. s&p is off by 0.50%. strength in utilities, real estate. defensive, even though it's had a horrible week. >> we were -- within the 7:00 a.m. hour we thought we were going to open down 300 some points, maybe 400. we've gotten back a considerable amount of momentum from the session lows so far, sara. like you point out, it's some of the weirder pockets. it's a weird mix. it's not straight cyclical, straight defensive. this today is going to play out. >> what's amazing is the s&p is up 0.3% for the week. >> for the week. >> the nasdaq is up 0.10% for the week. month to date, strong in communications and services and financials are down 15%. >> it's shaping up to be, by the way, a tremendous quarter for technology overall. so, a huge reversal from the consensus just six to nine months ago where people said, it's going to continue to be energy, continue to be some value s

alix: we were talking to bruce richards and he said something similar.ked about the golden age of credit and 10% default rates. he was looking at bank assets because they will need funding so they are going to have to offload assets. he did not like things like commercial real estate. is that the landscape? marc: the reason he doesn't like commercial real estate, but i would say to you just look at new york city. you have a number of buildings where people have a fixed rate mortgage two or three years ago of about 2%. today of that loan came to, you will not be able to lend at that same level so it will be around seven, 8%. the capital for everyone is going up and it will create issues. whether it becomes a 10% default rate i don't know but it will be a higher default rate or banks will have to end up just rolling of those loans. there are going to be issues within the system over the course of the next couple of years because of that. guy: just to go back to the conversation we had with bruce. he was actively talking to banks and having conversations wi

bruce richards, his takeaway from the fed and clues about the credit markets. >>> and we got former wells. s&p is off