so with the outline was some concern around getting approved for a public bank through the fdic.e thinking was, we go the route of a non deposit tory bank to build a little bit of equity to bring that conversation in years to come to the fdic to get approval on forward deposit tory bank. >> how do you raise the capital for this? you need money to lend out? you need to get the capital. >> that's a great question. >> i can also answer some of the questions as well. >> feel free to jump in. >> commissioner adams, to answer your question about the who is the regulator, the bill says they be fdic insured so the insurance which does provide some regulatory authority as well as the required to be have a state regulator, which is now the dfpi, formally the d.b.o. >> ok. and do you know -- how would you guys -- since you are not going to have deposits because that's how most banks do it, how would you raise the funds? >> one of the recommendations in the d. l.a. report was operator redirection of earnings on the city's investment pool that would have to be authorized by the board of super

former fdic chair sheila behr weighs in on gamestop next good morning! where everything started. the four way is engulfed in history. you're sitting in the place where giants ate. the four way is the heart and soul of the community. ♪ - [narrator] grubhub perks give you deals on all the food that makes you boogie. (upbeat music) get the food you love with perks from- - [crowd] grubhub. >>> welcome back i'm rahel solomon and here is your cnbc news update this hour. the texas power grid is set to come out of emergency this weekend. the focus of the crisis now shifts towards distributing bottled water to the 7 million people still under orders to boil tap water and in washington six capitol hill police officers have been suspended with pay and another 35 are under investigation in connection with the deadly attack on the capitol on january 6. >>> researchers have taken a step to protect species in danger of extinction this black-footed ferret is cloned from an animal that died more than 30 years ago, the first time an endangered species has been cloned. eli

finalized a rule substantially revitalizing the community reinvestment act, which the fed and the fdic did not sign. in september 2020, the fed proposed its own update. with the change in administration, do you expect the fed to reengage with the fcic on the cra rulemaking? and do you think there is an opportunity for a harmonized rule among all three agencies? chair powell: i think there is an opportunity for i harmonized rule among those three agencies -- for a harmonized rule among those three agencies, and we continue to be engaged with the fdic and the uscc. rep. velazquez: do you have a timeline? chair powell: i think we are just getting started. there will be a new comptroller. but nonetheless, we are working on it. it will be one that has broad support among the community of intended beneficiaries, which was always the fed's test and my test for what it would take for the fed to support cra. rep. velazquez: that matters, especially at this time when underserved communities, minority and fema businesses and all of that have been impacted by this pandemic, and cra is the way to l

with a changed administration, do you expect to reengage with the occ and the fdic on cfcra rule 19?harmonized rule amongst all three agencys >> i think there is an opportunity for a harmonized rule amongst agencies. we are engaged, partly engaged and continue to be engaged with the updated occ and we are working on that very thing >> do you have a time line >> i think we are just getting started. there will be a new comptroller. nonetheless, we are working on it by the way, it will be one that has broad support among the community. which was always the fed's test and my test for what it would take for the fed to support and perform a cra. >> especially at this time when under served communities, minority and female business and all that have been impacted by this pandemic and cra is a way to lift up the community of color particularly chairman powell, lastly, governor boehner gave a speech on the role of financial institutions in tackling the climate challenge. in her speech, she stated and i quote, climate change is already boasting substantial economic costs and to have a profound

because unlike fdic insured deposits, these are not, they don't have the same kind of protection right now so if robinhood were liquidated, that would be a big problem for 13 million customers, david. >> yes, i don't think they fully understood the risks inherent in their business, leslie and the first lesson of course, when you have a liquidity problem, is never admit you have a liquidity problem. and that's, you know, that's one, two, and three on the list. don't ever admit it. because when you do, then you do then you got an even bigger problem. and so you could expect that mr. tenev would have danced, whatever dance he needed to avoid that question at the time, in question, but there is no doubt they did there is no doubt they did they had not anticipated, of course, as few could have, what went on during the course of those few days and they clearly needed a lot of money and they needed it fast thankfully, they were able to get it >> yes he called it at one point 1.135 event. a five sigma event, something that was rare, unexpected. i don't know, david. i don't know how statistical

last year in april, the federal reserve, the fdic's eased capital requirements for financial institutions by allowing bonds to exclude u.s. treasuries and deposits help the slr. this was a welcome policy which helped stabilize the treasuries market and gained flexibility for financial institutions and a time of uncertainty. i know with respect to your answers to ms. wegner, as well as the senate -- to ms. wagner, as well as the senate, you are deciding what to do in that area. but i will ask you a more general question. if regulators do not extend the slr relief, do you think additional capital requirements will have a meaningful effect on the banks' ability to lend into the recovery? chair powell: i am just going to say again, if i start answering these questions and get pulled down that slope, you know where i wind up. that is something under consideration right now, and i will just have to leave it at that. rep. perlmutter: let's take the flip side. i know that a number of institutions are interested in expanding their dividend program. is the federal reserve considering allowing banks

kathleen: this is a study that was done by the federal reserve, the fdic, and the office of the comptroller of the currency. they are the three main regulators of banks in the united states, and what they are warning about, the red flags being waved on all of these companies who are carrying a lot of debt who are hit hard by the pandemic a, they say that companies it hard by the virus are holding $1 trillion worth of debt, and there is a portion that is at the risk of defaulting. in terms of some of the specifics of this study, it is interesting that nonbanks are holding the disproportionate shares. in includes firms doing leverage lending. problem areas in particular for these kinds of owns. the industries got hit hard by the pandemic, right? bancshares of the weakest loan, are now up to 45% and that was 45% a year ago. banks are much better capitalized now. to carry any kind of load like this at any of the ramifications that could occur, but it certainly shows that they are watching for signs, even as the fed gets more optimistic on the economy watching for some of the weak spots. syndica

that relief expires in march it was partly fed, partly fdic, partly occ should that be extended beyonde regulatory world right now in terms of whether it should be extended or not. that's in the hands of congress and others but that said, the banking sector, what we saw in this crisis is the banking sector went into it in a strong position and that's really benefitted us. so we don't want to -- i'll give you a basic principle. we don't want to relax regulation to put it back in a bad situation. and this is one where again the specifics i'll leave to others but i'm a little worried about changing too many things right now the middle of a crisis let's get through this and then we can start to talk about those things. >> all right we'll leave the conversation there. patrick harker, the philadelphia fed president. thanks for joining us today. >> thank you very much >>> aurora cannabis reporting. frank holland with the numbers. >> shares of aurora up over 6.5% after reporting their earnings we're not making a call on eps overall revenues increased 11% year over year medical sales up 42% con

created out of the market, federal reserve, fdic, i can go down the list. best interest to create the next generation of joe kernen and kevin o'leary. we've got to create a new generation by educating them in the market with the market >> all right that's good. we're going to end it there. we only need one of each of us, though i think that, we can all agree on and great discussion, you guys we love having you on together and i'm sure there's going to be something to talk about next week, to get both sides from you gentlemen. thank you both john hope bryant and mr. wonderful, kevin o'leary andrew >> thanks, that was a great conversation >>> when we come back, the report that willing to go public, churchill capital, details after the break. "squawk" returns after this. how do we ensure families facing food insecurity get access to their food? we needed to make sure that, if they couldn't get to the food, the food would come to them. we can deliver for food banks and schools. amazon knows how to do that. i helped deliver 12 million meals to families in need.

there's 13 chinese banks on the top 50 list globally, only four american fdic banks on that list.e going to have to deal with that. but back to the question of public versus private banks. look what the government did with the ppp program. they used the private sector banks to distribute those monies. the sba couldn't do that as a government agency, distribute over $600 billion to small businesses. they used the banks because the banks have the infrastructure and the knowledge to do so efficiently. so, look, this is the greatest system ever created by man and womankind ever in the history of this earth and let's use it. let's use the greatest banking system that we have, maria. maria: all right alex, good to see you this morning. thank you so much. alex sanchez. we'll be right back. my retirement plan with voya keeps me moving forward... even after paying for this. love you, sweetheart. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way th

the sec, fdic, all of these people came into place because of a crisis.s a regulator who comes in to their credit by the way, robinhood called me last october i believe it was to ask for advice and this is one of the pieces i gave them only thing i criticize them for, they should have embedded financial education. i like the innovation and the new ideas and the way it's fascinated people. there was a rap song out about spacs. let's do it in a responsible and intelligent way. i don't think anybody is malicious at robinhood or charles schwab but you live in your own bubble and the rest of the world is not there let's give them a safe passage into your bubble by giving them somebody to talk to and education that empowers them. >> john, good to see you this morning. we're out of time but i'm sure we'll talk again soon. >> thanks for having me. >>> coming up, senator ben cardin is going to join us to talk small business relief and the latest out of washington on stimulus negotiations. >>> later, don't miss our conversation with billionaire investor sam zell ta