the fdic does not know how to. by its own admission, 15 years after 2008, it still doesn't have a plan. in terms of where congress goes with this, it is not just on the banks and therules 2155, and i think new living wills improvements are vital, but we also need an agency that has thought hard questions through on its own. >> i am not convinced this would have been the right use in this particular one, but i do think that there are learnings from the bridge bank experience. there is a testing capabilities, not only in the private sector, but maybe operational capabilities testing for the fdic staff in bringing together a number of on the ground, you know, having been in both bridge banks, a number of on the ground learnings helpful for the next crisis. john: wanting to get a few more topics. a few other things i heard during the speech, and the vice chairman talked about interest-rate risks, uninsured deposits, and the s2155 bill. let's start with the s2155. what exactly is in1 s255? what were the debates around i

the other is the fdic to take over and turn it into an fdic run bank for a while. out after that were to go. abigail: what happens with the government? today say it is a systemically important bank and they can go win and potentially make the depositors holding a politically might be difficult. >> they could do that a genetic is necessary. -- think it is necessary. this is a bank the fdic could be able to take over well. there are ways to do with the depositors. we did some of those things with the 1980's. for example it is possible take care of the large depositors in a way that we did in the 80's. to do a partial payoff of those depositors up front and more later. i think they have a lot of tools they can use. i think what you want to do in a bank failure is not have the two disruptive. they. have to be mindful of that. taking care of the uninsured depositors for sure. taking care of of the insured depositors for sure and the uninsured taking care of them as best as you can about causing a lot of disruption. taking care of his is not losing the business accounts,

>> the fdic makes him independent judgment. has the bank ever previously been on the fdic's list of problem banks? >> the reason i hesitate is we don't put the aggregate assets on the problem list. we don't indicate to the individual institutions. >> i believe i can come back and answer your question if i may follow-up for the record. >> the answer is yes. >> we will come back with any answer for you. >> thank you for your testimony. i still think there are lots of questions regarding what happened here especially with silicon valley bank and i appreciate your time and yield back. the gentleman from new york for five minutes. >> thank you mr. chairman. let me thank you all for your responsibilities and the duties for which you've done. a lot of folks talking about dodd frank but if you were here in 2008 that was a crisis. we are a long way away from where we were in 2008 and the banks system is much stronger now than it was and i think thank god that we have dodd frank at that particular time so let me ask feist chair as a part

in addition, the fdic's chief risk officer will undertake a review of the fdic's provision of signature bank and will also release a report by may 1st. further, the fdic will issue in may a proposal rulemaking for the special assessment for public comment. the two bank failures demonstrate the implications that banks with assets over 100 billion can have for financial stability. the potential regulation of these institutions merit serious attention particularly for capital liquidity and interest rate risk. resolution plan requirements for these institutions also merit review including long term debt requirement to facilitate quarterly resolution. recent efforts to stabilize the banking system and stand potential contagion from the failures of fsb and signature have ensured that depositors will continue to have access to their savings and small businesses and other employers can continue to make payrolls and that other banks, small, medium and large, can continue to extend credit and serve as a source of support. the fdic continues to monitor developments and is prepared to use all of it

in addition the fdic chief risk officer will undertake the review of fdic's signature bank i will also release a report. further fdic will issue in may a proposed rulemaking the special assessment for public comment. bank failures and demonstrate the implication banks with assets over $100 billion after financial stability the institutions merit serious attention, practically for capitol liquidity and interest rate risk it also the consideration of long-term debt requirement to facilitate orderly resolution. recent efforts to stabilize the banking system and stem potential contagion from these failures have insured depositors will continue to have access to their savings, and other employers continue to make payrolls and the other banks, small, medium, and large can continue to extend credit to borrowers and services for support. the fdic continues to monitor development and is prepared to use all of its authorities as needed print at the i see is committed to working cooperatively with their counterparts that are regulators as well as a policy properties institution measures can be ta

the fdic already asking other banks for potential bids. now, if this happens, this will be the second bay area bank to be taken over. you remember just last month, the fdic stepped in after silicon valley bank collapsed and ultimately arranged a buyout. so what does this mean for your money? joining is david barsen with barsen financial planning. nice to have you back on the program. at this point, just reading the tea leaves here, is there any way the government does not take over first republic over the weekend? >> i mean you always have -- hi, raj. good to see you. sorry. yeah, you always have the possibility that, you know, a white knight comes in and saves the bank. it doesn't look likely based upon where the markets are going and what we're seeing in the markets right now as far as first republic stock is concerned. but it is always a possibility. >> what are you telling your clients or any other people watching tonight that bank at first republic? what do you say these next 48 hours, 72 hours to them? >> it depends on how they're ba

the fdic saying the fdic could have been more forward-looking and forceful in its supervision as it pertains to signature bank. the outcome of all of this as we have been talking about, are the supervisors and regulators saying that not only can the existing rules change, they are prepared to staff out more and change the culture and processes in which they oversee these banks. more regulation ahead, not only for bigger banks but for these smaller business banks. kriti: max, the federal reserve supervision chief specifically calling for extensive reevaluation in the aftermath of not just signature but svb. what might that look like? >> one thing you talked about was how the fed currently does not require more liquidity or capital than is necessary under rules. they could rethink that for banks that are not showing the appropriate planning and preparation around those capital levels. essentially what the fed is saying, they need rules that are more stringent and more thoughtful when it comes to banks that are having trouble that do not have management or leadership or risk management in place

the fdic would prefer to sell in its entirety than the pieces.t will likely happen, the if, dic will seize control and resell the asset to the successful bidder. i think that will happen some time later this afternoon before the markets open in asia this evening. >> this will be a faster process than what happened with svb? >> it will be a much faster process. we've been going down this process for the last two weeks or so as first republic continues to be under pressure and continues to lose deposits. unfortunately first republic reported this week they had a massive outflow of deposits over the last quarter. >> if first republic is sold then the acquirer would take on the deposits, so what do you think about the conversation we had earlier with congressman khanna about whether congress needs to do something here? because it seems like we're just going into emergency mode now for three banks. >> yep. >> does there need to be a broader change to the regulatory system and to the laws? >> well, it's an interesting question. so look, i don't agree w

first republic bank, shares are sinking another almost 50% 48% in the afterhours headlines that fdic is getting ready to put the troubled regional into receivership the stock, worth more than $26 billion in february now has a market cap of less than $400 million let's get more on the latest headlines from leslie picker. >> yeah, the flight of capital here reportedly making a private market rescue deal for first republic untenable at this stage. reuters reporting a fdic is preparing to place first republic into receivership imminently that's the word they use, citing a source familiar with the matter now, the report said that the deterioration in first republic's position does not allow for more time to find an alternative solution through the private sector this mirrors or david faber reporting. first republic and the fdic did not immediately respond to our request for comment this evening, but you can see just the massive plummet in shares there, which really started in earnest earlier this week. of course the stock is down 97% this year, but have been more than cut in half this wee

, but the fdic is funded through assessments by big banks. if first republic fails, the fdic could assess that cost to the banking sector the biggest banks pay the largest percentage of that the other issue that banks have is $30 billion, the 11 biggest, have $30 billion in deposits in first republic the calculus of the recent bank failures and fdic backed all deposits you can see that is the negotiating thing from the fdic at this point. you know, if this fails, not only will we assess you, but you could be out $30 billion in deposits >> that hits the top and bottom line of the banks that put money in first republic. is this happening? >> the consumer impact would be if this sparks more concerns say first republic fails and a certain portion of deposits are not insured, then it is a concern for other banks and that drives up what those banks have to pay and to try to keep deposits and we see acceleration of the bank run. >> a systemic risk. >> possibly. banks are saying who is in trouble and do i have counter party risk that makes them nervo

their deposits are fdic insured. they have ample liquidity. revenue is up. about where their deposits come from they added over 1 million new brokerage accounts when the cash slows down, i think the deposits will grow rather than dip. they'll be in a good position. >> one of the other names is peloton. do you think people should take a flyer on this one? >> no. this is one that would be an undrafted free agent there's a few reasons why. new management is starting to focus on subscription revenue, which could be good, but it's going to take a while to play out. the profitability will be extended for a while liquidity is looking less ample as well for peloton. this is one i would stay away from. >> downward dog. there you go >> the 2023 stock draft, a lot of new faces this year. >> a lot of new faces and interesting stocks to choose from it's one of the best days of the year for us. >> it is. >>> still ahead, a tobacco gntia agreeing to a settlement for during business with north korea. we have the information on "power lunch." disciplined risk management are

i think the fdic is behind the scenes making sure the bids are in.ust to be clear, the bids they're making are binding. reported jp morgan, pnc in there in the mix, they could potentially not bid enough. if you think about it from the fdic perspective and the government perspective, that is the best case scenario to make sure -- massage and make sure somebody gets it. at the end of the day, if the fdic takes it other the government is involved, it's more of a loss. it's kind of a negotiation this aspect. obviously the bids are in. if you're on banking side, making the bids. bids extreme what if they take it? banks want to take this to add -- >> ryan, i'm sorry. i want to interrupt you there. we have to go to san jacinto county for the man hunt for the person who allegedly shot and killed five. >> have thrown in 5,000 for a total of $55,000 so far for this suspect's arrest. today is -- tonight is going to be the texas police officer's memorial. we had a constable die in our county about a year ago, maybe a little over. and i was supposed to walk his w

the fdic admitted that they, the fdic itself, did not properly supervise them. they blame staffing shortages. >>> oakland unified school district teachers could be hitting the picket lines soon as negotiations continue between the union and the district. >> but while they were busy around the negotiating table, the rank and file were getting ready to strike and john ramos was there. >> artwork always inspires and keeps us hopeful. we're also using our skills to, you know, send a message to the community and to ousd. >> reporter: at the headquarters of the oakland education association, union teachers and sympathizers gathered for an art build to create the picket signs they'll use in the event a strike is called to shut down the school system. >> it feels energizing to see my colleagues here. >> reporter: ebony acng for eas threat this close to the enof the term will not be well received by some. >> i think it's the perfect time to strike. unfortunately with testing, we have a lot of things going on, but we have to send a big message to the district we're not go

in, lest what the fdic had to pay out on losses and the fdic has to pay out $250 billion this time or300 billion, they just assess the banks more and they don't do it in a very business-like manner because the public has the impression that the fdic is the united states government and so on and, of course, they do appoint the people, but the costs of the fdic, including the costs of their employees and everything else is born by the banks. so banks have never cost the federal government a dime. but that -- the public doesn't really understand the whole fdic and the comments of public officials confuse it and the issue enormously fdic was set up to operate on, i think, january 1st, 1934, you think someone would have gotten through writing what is the essence of this fdic, which is -- a fantastically good -- of the new deal 2,000 banks failed, and i don't know whether 1920 or '21, i don't know, something less than 5,000 banks in the united states and, i mean, it was a paralyzing thing to have a bank failure in this country and my dad lost his job in 1931, he lost his savings, and the ba

history, with an estimated cost to the fdic insurance fund of $2.5 billion. kelly?you know, to say we didn't have enough people is a pretty interesting way of evaluating this did they say anything about crypto specifically? >> crypto in the report was mentioned, of course, as being the -- something that they should have been more aware of obviously, contributed to the just massive growth that they saw. and then the fdic says that they weren't equipped to keep up essentially with that fwgrowth it's something we also heard from the fed, just this idea that these firms were very fast growing. regulators are used to slower, sleepier firms to regulate so kind of the nature of their clientele, the nature of their customer base. and then the low interest rate environment where things were go, go, go they just weren't set up to handle that, especially in a resource challenged, labor channeled environment. >> thank you, leslie the fed out with its report on the collapse of silicon valley bank, and they seem to be pointing the finger somewhat at themselves steve liesman has t

the company is likely heading toward fdic receivership. now, many case you don't know -- in case you don't know, a court appoints an independent receiver or trustee to manage all as pecks of a troubled company's business. it's not bankruptcy. the goal is to return a company to profitability, but a that may be much easier said than done as the walls close in on the california bank which at one point was the 16th large bank in the nation. the brain drain is now picking up steam. royal bank of canada is confirming at this hour it has hired four of first republic's advisers today today alone. the web site financial planning is also reporting that top brokers began jumping ship two weeks ago heading not just to rbc, but to morgan stanley and jpmorgan as the bank looked more and more unstable. let's go live to edward lawrence. he's at the white house and has been following every single bit of news that's hitting the tape or at least what you're hearing about this possible rescue. edward. >> reporter: yeah. and government sources are telling me h

i think we want to wait to see what the fdic report lays out. i think, again, 's a little bit unfair if some banks, the biggest ones, if it feels like they are getting free insurance for big limits. i think there's a very good argument that if we are going to be ensurin it, people should pay for it. and when i say people i think bank managers should pay for it. i am open thinking through the various options but this will require congress to act. thiss one of those iues that thregulators will not be able to do on their own. >> you raised e question of security, and obvious the, it's a huge issue on people's mind, the bank failure. it's not just svb it's a couple others that went down, credits we spelled out -- credit suisse, buildout in switzerland. -- bailed the out switzerland. if you are at home watchin i'm not sure how many people desit more than $250,000, how can we think about the health of the banking system right now? >> right now, we have a lot of families across the country, querying and searching on the cfpb website about positively en

fdic says those of amounts of $250,000 or less. do we expect the fdic to step in and stick with that $250,000 cap or are all depositors going to be potentially rescued here? >> yeah, so what the law actually says is that all depositors all ways are guaranteed to be safe up to $250,000 and then under special circumstances the deposits can be guaranteed to higher levels and there are two aspects of this. there are kinds of deposits used for transactions and these are like meeting payroll and stuff like this and i think there's a bipartisan agreement that those deposits should always be safe when the bank gets into trouble. there's a separate issue of people who went to a bank because they were getting a high interest rate and the high interest rate was being offered in part because the banks were not paying fdic insurance premiums and so, that's partly what happened in silicon valley bank. they were paying roughly .6% higher than all of these competitors and a bunch of people went in and put deposits in excess of the $250,000 guarant

the fdic is looking over bids for san francisco-based first republic bank.eral regulators set a 1:00 p.m. deadline today for banks to submit their best takeover offers. according to yahoo! finance out of half-dozen banks including chase bidders t an me. last month the fdic took control of silicon valley and signature banks both of which were failing. customers concerned about first republic's health began withdrawing more than a billion dollars worth of deposits. that has led to first republic's stock plummeting 75% since last monday. ♪ city of belmont hosted its largest community event of the year today. school forces celebrate the music festival raises money to keep music programs in schools. the festival showcases local bands and performers plus musicians from local belmont redwood shores schools. coming up a windy cooler day as we take a live look out side at our emeryville camera. you cannot tell from this vantage point it is windy. we have abc7news weather anchor frances dinglasan up next. >> the warriors in a their playoff lives. stephen curry is here

do you think that was the game plan of the fdic >> i do.out of that weekend with svb and signature bank, there was a belief frc was in a very precarious situation, and we know it was given how much it gcarried, how many deposits it lost no fault of their own in the sense, melissa, it's not like they made bad loans. they just made loans at far lower interest rates, to very well heeled clients. many of whom are expected to keep their balances at the bank because they got a great mortgage then when rates start to move up and you can get 3%, 4%, 5%, that dynamic changed. meanwhile, they have many loans and securities on their balance sheet that are far underwater. that was what we went through with svb and signature and to your point, it felt like this may happen very soon with frc, but it didn't >> they're hoping to push those underwater assets onto the balance sheets of a bank that will step up that's not going to happen at this point if it goes into receivership, it's on the government's books if somebody pays for this, is that a point where

the bad assets would be absorbed by the fdic. an assessment of course, would come the way of the banks themselves, a significant one, and then if you were the highest bidder, you would walk away with the customer base, what's left of it, the branches, and although the receivership, you're able to break leases. if you are a bank that's near a first republic branch, you wouldn't have to have that one, but you would get what you want from it, and of course, that's the question as to what are you willing to pay for it. there still seems to be a perspective that there is a good amount of value there in terms of the customer base, although again, as we've reported, you have had a lot of wealth managers exit the bank in recent days and weeks as their clients spoke up, mike, and said, hey. we're not necessarily comfortable with you being at first republic first republic playing out what's been over a number of weeks here, really more than a number of weeks, six weeks since we had that essential mini crisis as i think we like to call it o

. >> the fdic's, those reserves about one and a quarter% of deposits.here is no way to keep doing this. it shows the fragility of our economy. >> the banking system is not anywhere near collapse the way it was back in 2008. silicon valley, first republic their less than 1% of u.s. gdp. they could be completely annihilated in our economy would not crash requested a fox news poll shows eight in 10 americans believe the economy is only in fair or poor shape. a number that is not changed much over the past five months. the economy is sluggish 1.1% growth in the first quarter have some economists and c level executives bring a recession is looming. the state of the economy continue high inflation and questions about the presence of age are some of the reason president biden's approval rating sent to an all-time low after announcing his reelection this week. gallup's new poll shows just 37% of americans are prayer of the oldest president in u.s. history the lowest is a start of his presidency. gallup also found 59% of americans disapprove of the job biden has

they have a lot of deposits above the fdic at 250,000 range and so they are in trouble as well. we are waiting minute by minute for exactly what happens to these guys. >> svb collapsed over the weekend. could we say the same time line for first republic. >> a lot of analysts are saying the same thing might happen, over weekend, that's how the fdic likes to do it. they may take first republic over. they have a couple of weekend days to try to find out is there another bank interested in buying them and what to do with those deposits. come monday morning, once again, we could see a big scramble surrounding that bank. >> if i'm not at wells fargo or b of a or big banks, and smaller regional banks, am i getting nervous here because it could be my bank next. >> nervous in terms of we may need to move our money. don't worry about losing our money if each account has $250,000 or less. that is insured by the fdic new york city matter what happens to the bank, it may take a couple of days to get the money. your money is going to be okay. the larger concern is if we do see not one but two

you're protected by the fdic. but there are a lot of companies and some venture capitalists like svb that have trusted first republic with more money than that. right now they're sweating. >> i'm cynical. everyone says fdic will come in, everything's going to be fine. but what's the s pro? 90 days? 9 days? 9 hours? what if i want my money? >> nobody can answer with a definite time. i wouldn't how about on asap. this is still going on. svb dragged out for quite some time. eventually you'll be able to get that money but it could take time. there were people that showed up at svb and walked out with a check that day. there were others that had to wait weeks. so i really -- i was trying to get an answer exactly how long this takes, and there is no exact. >> svb was bought by a bigger company, a bigger bank. what happens with tures republic? what are some of the options? >> one of the options is it stays independent. it did say it was going to lay off 20 to 25% of its staff to cut costs. another thing, a big bank could

. >>> at the same time, the fdic asking any and all banks interested in submitting their final bids for first republic bank to have them in by tomorrow. regulators got interest in j. p. morgan chase, pnc financial, bank of america, and others looking to take over the struggling bank. they're hoping the interest will make this a more streamlined process than what happened with silicon valley bank earlier this year. the bank's stock plunged yesterday, sinking to $3.51 a share. that's down 95% from earlier this year. it's market cap is now just over a billion dollars. >>> speaking of svb, friday, the federal reserve released a much anticipated report that detailed the mismanagement as the reason for the collapse. but the fed also placed blame on itself. they said the bank failed because of bad management because of silicon valley leadership, but also government regulations and supervision. it said supervisors were unwilling to crack down on bank management, and the fdic also released its report into the failure of signature bank. they say it was due to bad management as well. they say the

so as long as you don't have more than $250,000, that money is being insured by the fdic. i think the bigger means for th broader economy, right, because credit is really enomy. it makes the whole economy run. and the more nervous bankers get, the less likely they are to extend credit to all of us, right? so that could mean more expensive mortgages, more expensive credit cards, harder to get car loans and small business loans. and obviously that has an economic impact. so u.s. officials, for the last seven weeks, they've been scrambling to try to prevent a full-blown credit crunch because that is something that would really slow the economy or, jim, could even cause a recession. >> right. they don't want to see one bank following another down this path. not where any of us want to see this go. matt egan, thanks so much. really appreciate it. >>> coming up, growing demands for a real code of ethics for supreme court justices after controversial financial dealings among some of those justices on the high court. >>> and later, the united kingdom gearing up for its first coron

the white house -- fdic, obviously, is focused. >> it's not good >> you know, i know that's not a lotwe may have more as the morning goes on to share, but at this point, they have not gotten what they hoped would be leadership from the government in terms of really getting those banks together >> without leadership -- >> to do this private market solution >> they're just going to -- fdic will assess everybody, and then we move on >> then we move on the thing is, who comes out with the prize? you're not going to have to pay above market for it. you're not going to have to take the hit to book value for it that's the question. >> someone's going to get the debt -- >> it will still be valuable >> but the big -- their big groups that they have, remember, they are one of those companies that has really the talent can go out the door. >> a lot of it has, and that's also part of the problem >> what do you get fine art >> meantime, we are expecting the reports from the fed and the fdic on sivb and signature we're watching these capital one comments about unemployment going to 5% by year-end.

now, this auction is being run by the fdic, the source says, the fdic is the agency that's in charge of seizing troubled banks. and final bids, according to this source, are due at 4:00 p.m. eastern time today. now, as you mentioned, "the wall street journal" has previously reported that jpmorgan chase and pentagon are among the big banks that are vying to potentially buy first republic. we have not heard from jpmorgan. pentagon is declining to comment. the fdic has not commented yet, either. now, here's why that is a big deal. first republic is not some tiny lender. this is a major regional bank. as of the end of march, itted a $233 billion in assets. so that means that if the fdic does step in to take over this bank, it would be the second largest bank failure in american history. as you can see on your screen. that stock chart shows all of the concern about first republic right now. it's down 97% since march, when this banking crisis began. and the stock took another hit last week after first republic revealed that 41% of its deposits fled the bank last quarter. that worked out, f

fdicrship, this could limp along as a blank -- as a bank with a clear hole in its balance sheet. at this point, we have reported a few times now that some banks involved in the rescue have -- prefer and fdic receivership. the fdic deposit fund has taken a massive hit of more than 22 billion dollars tied to the rescue of two prior banks, two failed banks. this whole is a $30 billion hole and been some. the exact amount is not quite understood. it is a large one. no matter what happens to this bank, it is a costly situation for the banks that are in and around the situation already. the government itself and of course for the shareholders that are remaining for fric. ed: i think the idea is the investors are struggling to understand what are the many possible scenarios is most likely to happen? there was talk in the market that now a u.s. takeover is the most likely outcome. sonali: that is what i was trying to convey. this is very much a search for things to come together. getting a consort

signature bank failed because of bad management according to a different agency, the fdic. it says many of the staff members don't really understand crypto currency which made up 20% of its deposits. the fdic admitted it did not properly supervise them and cited staffing shortages as part of the problem. >>> teachers in the oakland unified school district could hit the picket line soon as negotiations continue between the union and district. while they were busy around the negotiating table, the rank and file were getting out ready to strike. jon rahm most was there. >> artwork inspires and keeps us hopeful and we are using our skills to, you know, send a message to the community and to ousc. >> at the headquarters of the oakland education association, union teachers and sympathizers gathered for an art build to create the picket signs they will use in the event a strike is called to shut down the school system. >> feels energizing. >> reporter: ebony has been teaching for 20 years and understands that a strike threat this close to the end of the term will not be well recei

a standoff between potential buyers waiting for the stock price to become more attractive, and the fdic unwilling to go into receivership to take on the losses themselves. the argument is it would be less expensive for the banking system as a whole, for a private buyer, then the receivership option for fdic. in receivership, shareholders get wiped out, they chop up the loan book, and take on the losses themselves. there unwilling to do that because of $30 billion of losses from the first three bank failures. it is well past the time for the fed to widen its emergency lending facility, for a liquidity in addition to first republic. they don't want to give additional help. we had reporting that the fdic is looking at downgrading them to cut them off from using the fed's discount window. dani: what impact will this have on the fed and economy? >> yesterday's stock price plunge did not drive a broader move in risk markets. that was welcoming to see, but the issues facing first republic are facing a lot of other regional lenders out there. they are not profitable with a fed funds rate at 5%

$30 billion at the bank to try to bolster confidence you know, jpmorgan alone is about 11% of the fdicnsurance fund, so if there's an assessment, it gets assessed 11% of whatever that is. >> david, how about the, let's say, flailing offer that first republic's giving these banks to -- you can get some equity, maybe get something going on, if you give us more money is that just good after bad? >> their feeling is, listen, you don't get the assessment you otherwise will if we're actually taking over. you don't deal with the risk of another bank failure and what that will mean to the system by the way, you're a depositor here, and it is going to require the fdic to essentially change, you know, its definition in terms of -- it's going to require them to make a systemic exemption to allow all deposits to be covered. i mean, will they actually say, no, they won't unlikely >> set a precedent for these guys how about the loans, which nobody would want, i imagine, because they're offering mortgages at terrible rates for the bank and great rates for the rich >> well, the bank -- that's other si

the fdic was expected to take the rains but what will happen next in the bidding?frederica, the next few hours are going to be critical, both for first republic and for this broader banking crisis that is really casting a shadow over the american economy. the fdic is running an auction as we speak trying to find a bidder for first republic. that's according to a source familiar with the matter. final bids are expected -- are due at 4 p.m. eastern time. that's just 40 minutes away. it does seem likely that u.s. officials would want to announce something here this evening. i mean, in past crises, we've seen that u.s. officials have tried to announce a solution, certainly before u.s. markets open monday morning but often even before asian markets open. the clock is ticking because trading starts in asia at around 8 p.m. eastern time tonight. now, why does all of this matter? well, first of all, you know, first republic is not some tinny bank that iran into trouble. it's a very large regional bank. it had $233 billion as of the end of mark. if they do step in to seize

yellen: this is a question for the fdic rather than me. but i know that the fdic look for buyers in a merger or acquisition is certainly something they were hoping was a way to resolve the issue. >> on the ld ec agreement it seems to me that the treasury is pushing for congress to approach its approach to the odc negotiations. it's already giving support to around the world to tax u.s. profits that would be an contrast with u.s. tax treaties. am i correct in that? sec. yellen: 137 countries signed this agreement and see it as a way to put a floor on taxation of corporations and multinational corporations and stop the race to the bottom. the european union has adopted similar to the global minimum tax and future restrictions moving forward. it's in the u.s. interest to adopt this. >> my time has expired and the chairman is trying to get me to wrap up. i want to make one quick statement. i would like to express my concern about numerous proposals that we won't have time to get into here today. last year, the treasury did not provide answers

that means above the $250,000 limit that the fdic insures. and a lot of bank customers, day got very nervous after silicon valley bank collapsed last month. we saw that first republic lost 41% of its deposits in the first quarter alone. that translates to a loss of $72 billion in deposits. jim, now we are just waiting to see if a big bank will come to the rescue of first republic. and if u.s. officials are able to stop this bank crisis from spreading to other banks. >> yeah, that's certainly something that they have got to get to the bottom of. and get a handle on quickly, because these things, as you know, we've seen this before. things can spiral out of control quickly. all right, matt egan, thank you so much. appreciate it. >>> the fed is set to meet this week and it's widely expected to raise rates another quarter of a percent, which could complicate the sale of first republic and add to some concerns there on wall street. joining us is katherine rampell, she's an opinion columnist for "the washington post." katherine, great to see you. w

and so a question becomes, is the fed or treasury or fdic willing to say, you need to do this right now that does not seem to be the case, tyler so it's very much unclear that first republic is going to be successful in any plan to rid itself of many of these loans and securities that have contributed to what i've reported for some time, as much as a $25 billion hold n its balance sheet. if it's unable to do that the next few days as we said this morning are key, then you have to wonder whether the fdic will move to take night receivership. that's where things stand right now. kind of a fighter against the ropes, waiting for the referee to call a technical knockout, that being the fdic, hoping perhaps they have one last punch to get them out of their corner. >> people would say this isn't whether first republic becomes the latest bank failure, the question whether this will push the administration back into making explicit or not the deposit guarantee and/or their willingness on the policy maker side of this to step up and help facilitate or take losses on some kind of acquisition none

reports say the fdic is scrambling to find a buyer for the troubled bank following a disclosure thatustomers had withdrawn more than half of its deposits. shares of the bank have tumbled by more than 97% this year. renewing concerns that the banking crisis may not yet be over. here with us to discuss, better markets president and ceo dennis kelleher. dennis, good morning. thank you for joining us. tell us about what's going on. i mean, is this crisis at first republic different than is the silicon valley bank and signature bank? >> well, the good news it's similar to silicon valley bank which had unique characteristics which caused it to fail and required regulators to take over that bank. signature bank also had some similar characteristics. first republic looks very much like silicon valley bank. frankly, not that much like most of the other banks in the united states. it had an enormous amount, something like 70% of uninsured deposits and it had an asset mix that was highly sensitive to interest rates. so when the fed raised interest rates, its value of its assets plummeted. so th

yellen: this is a question for the fdic rather than me. but i know that the fdic look for buyers in a merger or acquisition is certainly something they were hoping was a way to resolve the issue. >> on the ld ec agreement it seems to me that the treasury is pushing for congress to approach its approach to the odc negotiations. it's already giving support to around the world to tax u.s. profits that would be an contrast with u.s. tax treaties. am i correct in that? sec. yellen: 137 countries signed this agreement and see it as a way to put a floor on taxation of corporations and multinational corporations and stop the race to the bottom. the european union has adopted similar to the global minimum tax and future restrictions moving forward. it's in the u.s. interest to adopt this. >> my time has expired and the chairman is trying to get me to wrap up. i want to make one quick statement. i would like to express my concern about numerous proposals that we won't have time to get into here today. last year, the treasury did not provide answers

the fdic barring finding a buyer, the fdic would have to take this bank over. it's just not going to be able to stand on its own two feet here anymore. the stock is down 97% from before that banking crisis began -- banking stress, i should say, that began in the beginning of march. part of the problem here, jim, this was a bank that really caters to wealthy clientele and so small businesses, medium-size business and wealthy people who had more than the $250,000 insured maximum deposits there. so when things started to look a little iffy, people started to pull their money out. we know from last week's earnings report, $100 billion walked out of the door of first republic to go to other banks and that's just really been a very difficult blow to get over for this bank. so a lot happening behind the scenes. i'm pretty sure we'll have some sort of resolution before the opening bell on monday. and if the past is any guidance for us, the fdic steps in here and makes sure that insured deposits, people will be able to access their money right away, one way or the other

the fdic and the federal reserve did not immediately respond to email requests sent hours after. back to you. >> we'll have to wait and see what happens there. thanks for the very latest. >>> 6:08 now. let's take a live look out at the golden gate bridge. don't be deceived. the temperatures are still going to be warm in most places around the bay area. just not in san francisco right now. >> that's the saving grace, the fog that's going to keep the temperatures there, as well as in the coastal areas a lot cooler. but as we make our way inland, it's still going to be a warm day today, as well as tomorrow. the coastal temperatures will be in the 60s, the bay temperatures in the 70s, and inland will reach into the mid to upper 80s today. by sunday, our temperatures will be dropping and we'll have rain and wind ahead. now, we're looking around the bay today, temperatures ranging from 87 in santa clara, another hot day, but pacifica will only be 63 degrees, and for vallejo it's going to be warm, reaching 86 degrees. we'll take a closer look at all of those temperatures in our microcli

you're backed by the federal government and the fdic. the concern here, at least for first republic, are there vc funds, start-up funds that are perhaps millions of dollars and will that be protected. but your money, the you and i kind of money we keep in banks is $250,000. that's 100% protected no matter what happens to the bank by the fdic. >> say you were at a start-up and made a little money, if you break it up into smaller bits you're also okay. >> $250,000 per account. >> per account. we learned that lesson. it's going to be kind of a stressful weekend for a lot of folks. >> it may be. we'll watch it closely. >> we know you will. thank you very much. >>> just into the newsroom, firefighters are on scene of a possible explosion at a san francisco home. it happened about an hour ago along 26th avenue near central richmond. firefighters say a possible propane appliance exploded. one person is being treated for minor injuries. the incident is still under investigation. and we have developing news in two separate shootings in oakland th

let's get to the banks as we mentioned the last half hour, the fdic reportedly getting ready to put first republic into receivership shared falling more than 40%, halted for volatility several times. despite this, the kre ending the day today about where it started the week, unchanged. what does this tell us about the price of first republic, regionals and the banking sector as a whole what does the options market think? in today's session in particular, carter, it was strong. >> right, so the big debate -- obviously discussing it at the top of the hour. is it a one off or four off or is it really something systemic? i think there will be more, but what we do know is it is not a j.p. morgan problem, and it's not a bank of america, not a citi bank, not wells fargo so you start to get into where we are in relation to the plunge and what's important is a matter of trading is this -- again, markets are not efficient. an efficient market theory is preposterous, frankly. but they're very efficient in rerating a security or a group quickly in response to news. so you can see on the screen here t