looking recently at the five member board at the fdic and what happened there, there the fdic, five member board, overturned 88 years of tradition and independence with biden political appointees led by cfpb director choap a forcing out the fdic chairman before her five-year term was up strictly for partisan reasons. this incident causes me to worry that an activist block at the reserve board could sideline you. exert their authority while excluding the full fomc membership. my question for you, mr. chairman, is the fed vulnerable to similar, unfortunate, politically motivated high jacking of an organization like we witnessed at the fdic? what could this committee do to prevent it? chairman powell: first, you'll know that i don't have any comment at all on the recent events at the fdic. at the fed regulatory -- monetary policy is conducted by the open market committee which includes the 12 reserve bank presidents and in total there are as many as 12 voters. we'll always have a balance of governors and reserve bank presidents. regulatory policy is the business of the board of governors. the

and what happened there there at the fdic, a five-member board overturned 88 years of tradition and independence with biden led employees, forcing out the fdic chairman before her five-year term was up, strictly for partisan reasons this incident causes me to worry that a block at the federal reserve board could sideline you, they could assert your authority while excludeing the full membership. so my question to you, is the fed vulnerable to similar unfortunate politically motivated hijacking of an organization like we witnessed at the fdic and what could this committee do to prevent it >> first, i don't have comments about the fdic monetary policy is conducted by the federal open market committee, which includes the reserve presidents, in total as many as 12 voters. so we'll always have a balance of governors and reserve bank presidents regulatory policy is really the business of the board of governors and there are as many as seven governors and the majority is four we have a history at the fed of working clollaboratively of coming together and getting consensus on issues. that i

the fdic's says in general counsel opinion 8867, that an entity is a depository institution if it is creating deposit liabilities out of customer assets and is characterized by state law as a bank. as you know, chairman powell, i'm terribly concerned about the manner in which wyoming's special-purpose depository institutions are being treated by the federal reserve. we have discussed this. what is your reaction to this? chair powell: as we discussed, there are novel charters and the fdp i's are one of them. we want to be careful because they are usually presidential. . they are very important from a presidential standpoint. we have been looking carefully at this. i would say there are good arguments for viewing as pdi's as depository institutions for this purpose. and i think we are looking carefully at it. i do think we will make progress on this. we can talk about it more off-line. i think you do understand that we start granting these, there will be a couple hundred of them pretty quickly, and we have to think about the broader safety and soundness implications. it is hugely presi

. >> i can't speak to the fdic.an tell you've enjoyed working with jelena, continued to work with chair mcwilliams on issues such as community reinvestment act. we have a very different institution. and it is a very collegial institution. it is non partisan. and i can tell you a little bit about how i work in that institution to give you a sense. >> very limited on time here. you commented on jelena mcwilliams and i appreciate that and i do understand you have had a good working relationship with her. but i think -- i would suggest and ask you to reflect on what happened there. and i think it is relevant. the fed as you know is also a multi member agency. it has prided itself on operating free from political interference and following norms of governance for many years. that used to describe the fdic and unfortunately it doesn't anymore. and there are people on the left and in this administration who want the fed to become more political. to become advocates for the causes and agenda that they support. and i have wa

that used to describe the fdic and unfortunately it doesn't anymore. there are people on the left and in this administration who want the fed to become more npolitical, to become advocates for the causes and agendas that they support and i have warned and i am concerned the fence dalliance with those issues are totally irrelevant to the dual mandate will undermine the fed's credibility and its independence and i think that's very important . let me move on to climate risk. as you know the fed has stated there are two categories of climate related financial risk, the first is physical risk and the second is transition risk. the actual data shows physical risk, that is severe weather events do not threaten financial stability. this week carmen powell said the possibility of financial stability disruptions from physical risks doesn't seemlikely in the near term . that's obvious as a recent report from new york backs this up. according to the report weather disasters from the last quarter century had insignificant or small effects on us bank performance so

the federal reserve and the occ and the fdic all have a responsibility to protect our banking systems to protect consumers. we think it is critically important to do that as well we wanted to make sure that we have the right regulatory over sight and the right capability to better serve our members so getting over the bar and granted the license to open a bank is a huge milestone for us as a company. we'll be able to serve our members much better. our goal is to be a one-stop shop for all of your financial needs for all of the major financial decisions and the days in between and this license will allow us to do that. sofi money will go from an account to our own sofi checking or savings account and so we'll give a higher interest rate and do that with no fees, we'll be able to provide overdraft protection, the ablts to pay with your phone, pay with your card, pay your friends, person-to-person we just ask you to do direct deposit against that back drop so that is one big differentiator and as you mentioned, we'll offer more loans at lower interest rates. >> this sounds too good to be

not just the fed, fdic, other agencies. how is that going to change our economic system? >> well i think that anything that is done to appease senator warren is a move in the wrong direction. i think it means more government management of the economy. and whether it is on the fed or the office of the comptroller of the currency or the fdic, the potential for abusing the financial regulatory powers of those institutions as part of the federal government is worrisome to me. charles: these are folk a lot of them believe in modern monetary theory or lean toward that way. and in their hearts i probably believe the agencies are involved in should push us in that direction. so, i mean we should brace for some major changes in policies and mandates, right? >> i'm afraid so. but, i would say beware of a magnanimous fed. it is, it is the desire to be benevolent that ends up actually hurting individuals i believe. the modern monetary theory as you just referenced it would say that the federal government has no limits to spending things that are -- our central bank has no limits to p

when i served as the fbic head of -- the fdic head of consumer protection, i witnessed the consequentof irresponsible lending with hundreds of banks across the country closed and a record number of homes went into foreclosure. i saw how the borrowers who received unsustainable and predatory loan products were devastated and the downturned, and historically underserved and disadvantaged communities were hit especially hard. years of progress in closing the homeownership and wealth cap -- alix: you have been listening to the senate banking committee confirmation of lael brainard for vice chair. you can continue following along on bloomberg tv . we will also bring you part of that q&a at a moment. we did want to go live to kennedy space center in cape canaveral, florida, where a spacex thousand nine rocket with numerous satellites for commercial customers, is ready to go live. joining us as bloomberg's ed ludlow. this is basically bring a lot of stuff into space. ed: yes, imagine uber pool, but for government agencies, private sector companies who want to send satellites into space.

fdic's test and general counsel opening 8867 that an entity is a part depository institution if it's creating deposit liabilities out of customer assets and characterized by state law as a bank. as you note, i am terribly concerned about the manner in which wyoming's special-purpose depository institutions are being treated by the federal reserve. we've discussed this. what is your reaction to this? >> as we discussed, there are novel charters and fpd eyes are one of them and we want to be careful because they are usually presidential, important from the presidential standpoint so we been looking carefully at this, there are good arguments for viewing as pdi's for this purpose. we are looking carefully at it, i think we will make progress on this i think you do understand we start renting these, there will be a couple hundred of them and we had to think about the broader safety and soundness implications, it's usually presidential, that's why we've taken the time and we appreciate you bringing it to my attention so we can continue to talk about it. >> it's been well over a year and i

according to a report by the fdic, approximately 7.1 million households -- in 2019. as we move to a cashless economy, what happens to people who are low-income or homeless or undocumented? how do they pay for things that they would need in a stable coin world? do stable coins actually give them more freedom and access? or does it become another barrier? could you help me answer this question? advocates for stable coins argue they provide access for small businesses and unbent people. what do you think about that argument and how exactly does stable core work for someone who doesn't have a checking or savings account? >> again, because stable coins are not widely accepted for goods and services, you need a bank. that only do you need a bank, you need an account at a crypto currency exchange in order to buy stable coins in the first place, at least a top to -- top two ones. there are not many financial inclusion benefits the stable quinn because it is using the rails of the existing baking system. it is a big if -- if we see mass adoption of stable coins as a way to ac

the gig there's been a ton of regulatory change, boring stuff under the hood of the market that the fdic and others may want to pay attention to bertha, see you in a few minutes, thank you >>> let's get back to the markets and another record breaking day for stocks to begin the year your first guest says while it can be an emotional time of the year, especially this year, now is not the time to be emotional about investing. following the rules and follow your goals joining us is kevin simpson, founder and cio of capital wealth planning. welcome. it depends on what those goals and rules are. everybody is different but is there anything kind of hard and fast we should adopt as a financial resolution, if you will, this year? >> yeah, good morning, brian i think it's day four of 2022, so if you stuck with your resolutions this far, congratulations. if you pro cambridgcast nated a bit. as with most things, exceptional and predictable results are fuelled by unique, strict and structured discipline. we implement the three rs, brian, rules, risk, returns. it's those practices that govern everyth

. >> a lot of big regulatory moves on the scenes behind the fdic and other agencies as well appreciategetting up early for us steven take care. >> thank you. >>> more from the capital of capital, that's washington d.c. and not wall street. and senator bernie sanders picking another fight with corporate america. ylan mui joining us with the details on this. what's going on? >> reporter: brian, senator bernie sanders surely has never been afraid to throw a punch, and this time it is bernie versus black rock sanders told me he wants blackrock's ceo to step in and stop the protests. workers there have been on strike for otver a year >> we have perhaps the largest private equity firm in the country managing $10 trillion in assets, making billions of dollars of year in profits, saying we can't intervene to make sure that kids, children of the miners don't go hungry that's the pressure that has to be placed on the ceos and large corporations. >> it's a strategy that bernie sanders has used before, he called on warren buffett to intervene last month at a steel union. and then there was the bee

that's expected to close in a couple weeks and like a lot of other fintechs sofi has partnered with fdic loans and cash accounts while it handed the sleek tech interface side and customer growth. sofi can cut out the middle man. get a larger slice of transaction and lowers the cost of capital ceo anthony says it can lend at competitive rates for one and offer yielding accounts which often helps drive user growth. as webbush said in its coverage initiation this morning it should boost sofi earnings from $200 million to $300 million ancallyially through the next three years and holding deposits for other fintechs possible area of growth there. banks amid rising interest rates and moving away from the high multiple tech names. sofi stock one of the biggest laggards and the rally did wipe out some of the year to date losses but down double digits so far in year 2022 dee. >> come a long way from student loans, kate. thank you very much. >>> we'll turn now to acti vision blizzard. if it goes through it will top dell's purchase of emc for 67 million back in 2016 new reports cover activision bli

really don't have a final version of regulation where silvergate, they are oversaw by the fed and the fdicof the those onerous regulatory environments any financial company can have when we talk about them doing well in a tult multitude of crypto environments, i think you have to understand where their growth is coming from. that's really institutional adoption. >> yeah. >> their customers are all institutions you know, they have 1300 customers today. on coinbase prime today there is almost 10,000 institutional customers. we think there is a runway of growth for silvergate that has a strong effect in the naysent crypto industry. >> you have a 225 price target, 75% upside michael, thank for your time today. >> thanks, kelly. >>> ahead on this show a whole new ball game. apple making a bid to stream the mlb. what this means for the live sports arena plus, the shipping surge rates cen hed an all time high i dember with no signs of relief those stories and more when "power lunch" continues here on cnbc you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need t

mybank is proudly not backed by the fdic because we don't need no stinking government sniffing aroundur loot. void where prohibited. mybank not be responsible if your money is stolen or wet. so send all your dough to mybank. we're not clowning around. >> clowns? >> no, juno, no! [ cheers and applause ] >> jimmy: i like it. we are learning more about what went down in the aftermath of january 6th. this little nugget tells you all you need to know about the dum dums who stormed the capitol. on january 7th, the day after the riot, some of these wingnuts started calling, of all people, nancy pelosi, to see if she could help them find stuff they left behind while ransacking her office. [ laughter ] this is true. according to congressman jamie raskin of maryland, some of the rioters called the capitol offices to ask whether there was a lost and found because they forgot their phone there, or they left their purse or what have you. [ laughter ] so raskin said law enforcement officers got on the phone, took down their names, addresses, social security numbers, and then used that information t

, or whether it's a kind of new added step of a threat from a fintech company getting that type of fdicnsurance and backing. >> there are two types of questions. but the key question is if somebody does an activity that relates to financial services for consumers or companies, it takes deposits, makes loans, holds money, they have to be regulated. that's why we have the banking regulation we have so i think anybody coming into that brings most are and more under the tent, so to speak, as they call it and that's a good thing, whether it's mortgages, whether it's securities accounts into the sec registration and broker/dealer registration, investment/manager when things go on outside the system that's different. in terms of any competitor, we're very comfortable with our position we measure what we do against all those different types of competitors. our new account growth is strong 525,000 new accounts that is multiples of what's going on out there and then the average balance of all the accounts is well over $100,000 it's growing fast. so, all competitors we pay attention to and try to

mcwilliams announced her resignation from the fdic.ck for a lot of policies president biden wants to put out there. so now that she is out of the way, what does it mean for the banking industry, maybe even the economy? >> yeah. i don't, i'll not trying to pick a fight with any particular politician here but elizabeth warren and bernie sanders, a lot of the progressives have wanted to move the banking system into the federal government. they want to us write checks from our federal government account rather than having a private banking system. "the wall street journal" had a great editorial about this today. unfortunately "the wall street journal" was also a huge supporter of the tarp bill. that was that big 7, 800 billion-dollar bank bailout. ever since then the banks have been on their heels. they have been on their the defensive and the government has attacked and attacked and attacked, and this is just the latest round of that. i, it scares me to know end to think that the federal government would get its fingers that deep into the

it so he plays fdic with the thief on the police movement, he has not called them out, he was asked point this network, are you going to call out the liberal d.a.s? and she said no, we will not. so they have done nothing to stop this crime wave and you say throw a little money and talk about it at the administration, i'm sorry, that is not an adequate response. >> leslie: putting in legislation and meeting with the mayors to see what the problem is and proceed in the individual cities, the problem is that same across-the-board when it comes to crime, los angeles and new york are two different cities. >> harris: there d.a.s are very similar. >> kayleigh: is a year and, this is the number two issue to voters, so all of a sudden you see the crime wave and it's going to go to new york city, i'm sorry, you had 13 months. >> leslie: i don't agree with that. spew on this is the same president called for a couple of days to abolish i.c.e., he has been absolutely missing in action, they have yet to see one red cent, but it's a drop in the bucket for the last support they have on all levels. unfort

her term short, after warning of a, quote, hostile takeover of her agency by democrats, the outgoing fdic jason chaffetz is here to react. jason, should we be worried? >> yeah, we should. these are the kinds of shenanigans that go of on behind the science where we've got somebody appointed to a five-year term so they're not subject to the political whims and the swings of the pendulum based on a new president but behind the scenes she is dealing with a five person board, the majority of which are biden apointies who are trying to get rid of nearly 100 years of precedent and do some things that are very concerning. and she lays it out be in had this wall street journal journal op-ed and i think makes a very compelling case. lawrence: why is this different than any other time in history? new administrations come and go. each side disagrees with the way the other side is operating. but it seems like she's stating that this is much different, they're trying to make historic changes in the agency that shouldn't be political. >> yeah, when you get into banking regulations and those types of thi

for fdic insurance, it is not necessary to address risk where a stable coin issuer is properly regulated. reserves art short-term liquid assets, and they have at least 100% of the power value of the stable coin. second, things are subject to leverage ratios and risk-based cap ratios. but they assume, relatively easily, a liquid risk to your assets then cash or cash equivalents. unless congress recalibrate these ratios, the stable coin business model would be uneconomic. congress should consider an optional header -- federal charter for stable issuers. at this time, stable coin issuers and digital wallet providers are largely regulated by the states. that is under money transmission regulations to state trust company authorities. there is an expanded federal law. it is appropriate and useful. i would close by thinking the committee first focus on these important issues. while i do not believe that stable coin issuers should be required to be insured banks, i strongly support the commonsense regulation for stable coins in a way that takes into account the risks and benefits. i am optimisti

administration and a lot of former staff of senator elizabeth warren are getting into key positions like the fdicc and maybe sarah raskin becomes the vice chair of supervision for the fed. to he me, that's the risk. when you look at the other fundamentals, banks are going to play into the cyclical call. maria: i mean, i think you make a great point. i actually asked jamie dimon about that as well, these new positions that biden is nominating likely to nominate sarah bloom raskin who is a progressive and let's not forget, ken, this administration is making climate change a major bank supervision topic. what does that mean in terms of how these banks are going to deploy capital, how these banks are going to face higher fees, all in the name of climate change. >> well, i think the first thing is that for the fed it may take their eye off the ball which is really watching to your first point inflation and being aggressive if they need to in terms of tightening monetary policy. it's not just rising rates. but getting from a 9 trillion down to 4 trillion or maybe eventually 2 trillion on their balance

. >>> well, fdic chairman mcwilliams announcing her resignation.f a, quote, hostile takeover of the agency by the democrats. mcwilliams made no mention of the board fighting in her letter to president biden. she will officially step down february 4th. verizon and at&t moving forward with plans to launch a new 5g wireless service despite calls from federal transportation officials to delay it. interstate regulators say the purpose is to confuse safety systems. the carriers are operating the new service for six months. that gives u.s. officials more time to study the more powerful signal's effect on air traffic here. the companies' plan would have been for wednesday. we'll see what they did. and finally are, peter parker kicking off the new year with another box office victory. spider-man: no way home grossed an estimated $52.7 million over the weekend to bring its three week total to about $610 million. that ranks it tenth for all time for north american box office numbers. worldwide it's made $1.37 billion. the number 12 highest grossing film globa