the fdic is looking to work with the occ and federal reserve defined -- later this year. the fdic remains committed to engaging with the public, industry stakeholders and members of congress -- apologies. on the issues outlined in my testimony could i look forward to answering your questions. >> the gentleman, gentlelady yields back, and now the chair recognizes dr. gibson for his oral remarks. >> chairman barr, ranking member foster and members of the subcommittee, thank you for the opportunity to discuss the federal reserves supervisory work related to the financial risks of climate change. the federal reserves responsibilities with respect to climate change are important but narrow spirited responsibilities are tightly linked to our responsibilities for bank supervision and financial stability. because climate change could pose challenges for the financial system, it is important we better understand these risks. our primary focus is to evaluate whether banks operate in a safe and sound manner and manage all material risks including climate-related financial risks befo

fdic deposits and assets.ans, then, 75% of the market is going to contract or continue -- >> people are going to lose access to credit? >> people will have access. it will be more expensive and move outside of the banking system. what that means then, and here is the real opportunity for regulators. and i feel like i have the david bowie song "we could be heroes" in the back of my mind. you have 75% of the market control market share with 34 institutions. that means 25% of the market is controlled by 4200 institutions. and so as the banks get smaller, the small banks have to get larger. and what i did in this report is talk about what's different today. so there's no existential credit threat. and for the smaller banks, and i picked the best small banks to be the consolidators within the industry, and they also interestingly, very well executed, they've all done m&a before so they have the skill set to do m&a and integration successfully. they all have high loan to deposit ratios, which is the opposite of the

what's really compelling due to several regulatory reforms that we advance in the fdic program, reform ensure that sba could effectively provide matching capital to vc funds. so we provide a loan to a fund to match private capital. since it's a long we don't take any profit which can make the return profile more compelling. there will be opportunities for funds that are focused in this area to apply for licenses under the fdic initiative and not only get funding from us which could provide downside protection to the funds and approve the return but the get value add support to the relationship with the defense department and access to subject matter experts and phds in the department that are focused on trusted ai. i think that really is an elegant and exciting solution that we are seeking to advance for businesses that are getting funding from vcs in this area. it's a broad partnership with lots of stakeholders, but that way the vcs and the company set of connectivity into the federal government and the defense department to understand the ways that we're thinking about advancing thes

even if the fdic has good reason, couldn't they wait until after we got in hand? the last thing we need is the government working to push up prices. thank you so much, the head of the fdic. now let's take a step back for a second. remember, september tends to be a terrible month. in part because many big funds have large gains. december's close enough to tend of the year that a lot of the managers will just take profits and go on vacation. or a semi vacation thanks to the september environment, all news gets magnified. particularly the bad news. we heard the chinese government might be saying to their employees they can't bring their iphones to work. what does that mean for an amazing market for apple? shoot first and ask questions later. that's what it means. governments are angry at making caps. don't debate it. bottom line, the real crack we saw today and what we saw yesterday is why i hate september. too much goes wrong. hence why the mortgage is down for the month. the good news, maybe we'll start running out of downside soon assuming the cracks in this marke

we won't see runs on banks because of fdic insurance. we've gone off the gold standard, and the gold standard was severe discipline, a lot of people, if you are on the gold standard, were forced into a depression from time to time. if you go off the gold standard you can rate your money, you can do a lot of things to protect yourself against the great depression. and number three is, big government. he argued the argument that government is big and provides a lot of built in stabilizers. in other words, during a great depression get unemployment insurance, you get welfare, that keeps the economy going and pumping money into the system and so forth. so it's a built-in stabilizer. and last but not least, he said the fed has learned its lesson to inject liquidity if there is ever a crisis in a -- and a collapse in the economy. >> at 10:20 p.m. lillian talks about her biography on cesar chavez and his rise as the labor union leader. >> was an importantly -- important community organizer and ran a group which was almost exclusively in califor

the fed, together with the treasury and the fdic, took decisive action in march to protect the u.s. economy and to strengthen public confidence in our banking system. the recent bank failures, including that of silicon valley bank, and the resulting bank stress, have highlighted the importance of ensuring that we have the appropriate rules and supervisory practices for banks of this size. we are committed to addressing these vulnerabilities to make for a stronger and more resilient banking system. we understand that our actions affect communities, families, and businesses across the country. everything we do is in service to our public mission. we at the fed will do everything we can to achieve our maximum employment and price stability goals. thank you. >> thank you, chairman. i now recognize this hold for five minutes. chairman powell, as i laid out in my opening statement, inflation continues to be broad, based, and persistent, both of which are concerning. last week, the federal open market committee decided to pause rate increases, and at the same time, the committee alluded th

regulator painted a mixed picture on the sectors health area the fdic described the group as resilientr after a very stressful start to the year which included bank failures. at the same time, the fdic noted there are 43 banks on its so-called problem bank list which is not change since the first quarter. matt: we should note that is a tiny fraction of the total number of banks in the u.s. which numbers in the thousands. stephen bigger is the director of financial institutions research. let me ask about your confidence in this report. is the u.s. banking system still sound and resilient? >> yes, i think today's report card was a bit of a relief for the banking industry. we did see the profitability was flat with the first quarter when you back out some of the accounting items for the failed banks and flat with the fourth were as well. that's not a bad outcome considering all the industry has been through. some of the highlights, deposit -- deposits were down for the fifth consecutive quarter which is no surprise. clients are very active in seeking out higher yielding to bank deposits.

we will not see runs on banks because of fdic insurance. number two, we have gone off the gold standard. the gold standard was always a severe discipline. if you were on the gold standard, you are forced into a depression from time to time. if you go off the gold standard, you can print money and do a lot of things to protect yourself against the great depression. number three is big government. he argued the keynesian argument that government is big and provides a lot of built-in stabilizers. in other words, during a great depression you get unemployment insurance. you get welfare. that keeps the economy going and pumping money into the system and so forth, so it is a built-in stabilizer. last but not least, he said the fed has learned its lesson, to inject liquidity if there is ever a crisis in the economy. for those for reasons we will never see another great depression in our lifetime. i asked him about this article from time to time as we knew each other in the 1980's and 1990's when we were facing serious problems. he said we have gon

number one, fdic insurance. thank collapses are history. we will not see that again, runs on banks, because of fdic insurance. number two, we have gone off the gold standard, and the gold standard was always a severe discipline. if you were on the gold standard, you were forced into a depression from time to time. but if you go off the gold standard, you can print your money and do a lot of things to protect yourself against the great. number three is big government. he argued kenzie and argument, that government builds and a lot of stabilizers. you get unemployment insurance and welfare, that keeps money pumping into the system and so forth. it is a built in stabilizer. last but not least, he said the fed has learned its lesson to inject liquidity if there is ever a crisis and a collapse in the economies. >> at 10:20 p.m., miriam powell talks about her biography on cesar chavez and his rise as a labor union leader. >> he ran a group called the community service organization, which was almost exclusively in california, and was the first par

tom: sheila bair, former fdic chair.nd it is not pretty. lisa: people say banking crisis averted but not for people who own those shares in terms of valuations. what sheila was saying there is at a certain point there needs to be a reckoning that has not come to the for. people have been pointing to commercial real estate, including some big bank executives. there has been a lot of threats but it has not come to the foree yet. tom: we will have to see. coming up here on bloomberg radio, phil cap rally. young ferro is in london on the site meant. i-- i londonn -- in london on assignment. this is bloomberg, stay with us. ♪ ¡se fue la luz! pero todavía tenemos wifi para hacer las tareas. ¿y eso es algo bueno? wifi y estudiar. buenísimo. wifi y pedir una pizza online sería buenísimo. presentamos storm ready wifi. solo de xfinity. ahora puedes mantener una conexión confiable durante apagones, con datos celulares ilimitados y batería de respaldo de hasta 4 horas para mantenerte conectado. obténlo solo con xfinity. el hogar del

latino business owners have grown by 44% in the last decade but they faced challenges, according to the fdic. they remain is one of the largest under banked groups in the country. shawn chitnis with a story on how hard work and perseverance has paid off for one latino business owner. >> reporter: alicia villanueva is never forgotten about the journey she went on to get to this kitchen. originally from mexico, she came to the u.s. in 2000, eager for the opportunities it presented her. >> we come to this country because, we are looking for a better life and a good education for our kids. >> reporter: working two jobs with a family, she started making tamales at home, selling them on the street and by knocking on doors . she knew she had something special, but needed help to make it a success . >> everybody has a dream. and in business and in everything. just work hard and find the resources and it will come through . for sure. >> reporter: accion opportunity fund gave her a crucial first loan so she could start deliveries while coaching her along the way. >> frequently she was shot out of the

we are not going to see runs on banks because of fdic insurance. number two, we have gone off the gold standard, and the gold standard was always a severe discipline read if you were on the gold standard, you were forced into a depression from time to time. if you go off the gold standard, you can print your money and do a lot of things to protect yourself against the great depression. number three is the government. he argued that government is big and provides a lot of built in stabilizers. in other words, during a great depression, you get unemployment insurance and welfare. that keeps the economy going and pumping any into the system and so forth, so it is a built in stabilizer. last but not least, he said the fed learned its lesson to inject liquidity if there is ever a crisis in a collapse in the economy. >> at 10:20, we discuss cesar chavez and his rise as a laborer leader. >> he ran a group called the community service organization, which was almost exclusively in california. it was really the first part of the mexican american civil rights

we won't see runs on banks because of fdic insurance. number two, we have gone off the gold standard and the gold standard was always a severe discipline. if you were on the gold standard you were forced into a depression from time to time. if you go off the gold standard you can print your money and do a lot of things to protect yourself against the great depression. a number three is big government. he argued the keys he had an argument that government is big and -- keysian argument that big government provides a lot of stabilizers. you get welfare which keeps the economy going and pumping money into the system and so forth. it is a built in stabilizer. and last but not least he said the fed has learned its lesson to inject liquidity if there is ever a crisis and a collapse in the economy. >> at 10:20 miriam powell talks about her biography on cesar chavez and his rise as they were leader. >> he was an important organizer. his organization was almost exclusively in california. it was a first part of the mexican american civil rights mo

when answering your questions about funding from sba and talking about a partnership under the fdic cortical technology initiative, trusted ai is one of the 14 critical technology areas called out in this initiative. what's really compelling is due to several regulatory reforms we have advanced in the program. reform to ensure that fda could effectively provide matching capital to vc funds. we provide a loan to a fund to match private capital that is invested in the fund. we don't take any profit which can make the return profile more compelling. there will be opportunities for funds that are focused in this area to apply for licenses under the initiative and not only get funding from us which could provide downside protection to their funds and improve the return profile, but they get value and support through the relationship with the defense department and access to subject matter experts and phd's in the department. that is an elegant and exciting solution that we are seeking to advance for businesses in this area. it's a broad partnership with lots of stakeholders but that way, they can

earlier this year the banking committee passed legislation that would actually authorize the fdic to claw back compensation from senior executives that failed banks. now, that legislation hasn't cleared the committee. we're still waiting to see if senator chuck schumer will actually bring it to the floor. but certainly sherrod brown striking a bit of a combative tone ahead of this big hearing. >> emily, it brings up the question of how much congressional work continues if, in fact, we are in the midst of a government shutdown. >> lawmakers always like to say they can walk and chew gum at the same time. the fact of the matter is that after sunday, when a shutdown does begin, the pressure begins to build on lawmakers. that can often change some political dynamics, move people in certain directions. i think it's going to be very interesting to see how the tech tonic plates in congress shift once a shutdown is in place and once americans feel the pain that results from the government not being up and running. >> coming on a week where at least one firm, goldman, talked about the prospect

>> for korea, with the fdic has said is they are happy with the way things are progressing.he korean government has kind of made progress is a withholding tax issue as well as opening up its foreign-exchange markets more. the reforms they have said will come into play in 2024. easier access for foreigners. which will help for facilitating the process of inclusion. the one area which the ftse index has flagged and the withholding tax will be more comfortable with coast odeon's handling information rather than brokers. for india it is more neutral in what it says. more work needs to be done in terms of foreign registration facility easing about process as well as helping out more on the other things like taxation incentives for india. haslinda: what does it mean if are the bonds in the countries? >> writes. -- right. emerging-market deals have been under pressure. the korean household debt has been a matter of concern. as well as the yuan depreciating which has prevented the bank of korea from going ahead with any potential rate cuts. this would be an incremental negative. the

one of the products our checking and savings account, provides 4.5% interest, the ability of fdic insurancemportant after the demise of two banks. you can spend as much as you want with no limit. >> you're a creative banker, none of those things is going to hurt your earnings. they're all going to be added because the number of clients you bring in. i'm going to ask this, you don't have to say, i speak for the other guys. your bank has real growth. they seem to be content with not growing their account base. how is that possible? >> we're able to grow because of a couple of reasons. one, we're going after a demographic that's been largely under served and we're giving them products that are going to meet their needs for the major financial decisions in our lives and the days in between. we can save them a considerable amount of money through personal loans to offset credit card debt, which is rising and interest ratings, and the amount. and student loans at a lower rate if they qualify, and of course giving them great options, we also offer ipos and access to products they wouldn't otherwis

. >>> want to bring you headlines from the fdic.loss of market and depositor confidence. they add the downgrade of first republic to problem bank effectively eliminated its ability to borrow from the discount window. finally, they say bank supervisors were, quote, too generous engaging the banks' liquidity levels. wonder if there are any surprises -- >> i don't think so. i think we've been talking about that for months. i guess putting a finer point. the regulator is still looking into it. >>> the ceo of kroger is next on the latest quarterly results. their proposed deal with ttme tayns and how its opioid selentod could hit future earnings. i may be known for my legendary football career, but truth is, i love a bunch of sports. the only trouble is knowing where to find them. that's why i got xfinity. so, i can easily find and watch whatever sport i'm into all in one place without missing a thing. even if it's football, australian football, or football football. in a word—it's fitz-credible. i got to trademark that one. this season,

that's according to the fdic. shawn chitnis is live now in san jose with more on the impact and of course the community help it can have on small businesses when they need it the most. >> reporter: hey gianna, good morning. yeah, and we are seeing that spirit of entrepreneurship right here at this business district. we do want to emphasize though some of the challenges you were talking about when it comes to not having the banking resources for latino businesses in some cases it's just because they have a short credit history. they don't have all the documentation. or just don't have enough knowledge about how the financial institutions in the country work. that's why those who have made it work for themselves want to continue to bring awareness for the need to have more resources and support for other new businesses. alicia villanueva has never forgotten about the journey she went on to get to this kitchen. originally from mexico, she came to the u.s. in 2000. eager for the opportunities it presented her. >> we c

i saw the gdic quarterly -- fdic quarterly report.now, of course, you look at the stock chart, the stock chart of these stocks are starting to break out. you feel like you've got another leg down that could retest the lows. so i know, again, you know, some are saying those numbers aren't really a lot of run -- money, jim, in the grand scheme of things. but it feels like combined there's something of a red flag to to me. >> no, they are definitely a red flag, you're right. the bank walk continues. why would you keep your hundred in a bank account when it's the earning you half a percent when, here's my phone, you spend two minutes, transfer to a brokerage account and and get 5.5% in a money market fund. so money deposits continue to leave the banks. yeah, you might call it a drop in the bucket, but banks have deposit ratios they have to adhere to in order to hand out loans. and the primary purpose of a bank according to the federal reserve is to hand out loans to feed the economy. and if they're being impaired because money's leaving b

number one, fdic insurance. he said bank collapses the history. we're not going the see that again.number two, we've gone off the gold standard. and the gold standard was always a severe discipline. a lot of people -- if you were on the gold standard, you were force into a depression. you can print the money. you can do a lot of things to protect yourself against a great depression. and number three, is big government. he argued that government is big and provides a lot of built-in stabilizeers. new orleans, during the great depression, you get unemployment insurance. you get welfare. that keeps the economy going and pumping into the system and so forth. it's a built-in stabilizer. and last but not least, he said the fed has learned its lesson to inject liquidity if there's ever a crisis and a collapse in the economy. >> and at 10:20, maryam powell talks about her biography on cesar chavez. >> he was an enormously important community organizer and and ran a group called the community organization and it was really the first the sort of part of the mexican-american civil right moveme

that's according to the fdic. shawn chitnis is live in san jose this morning with more on the impact community help can have on a small business when they need it the most. good morning, shawn. >> reporter: gianna, good morning. and no better example of the spirit of entrepreneurship than where we are. this is one of the businesses districts throughout the bay area here in san jose where you can see a collection of latino restaurants and shops here that celebrate exactly what we're talking about. but there are still some challenges despite the growth that you mentioned. when we talk about the issues related to banking, we're referring to specifically just having a short credit history as well as not having all the documentation or knowledge of the financial system that is holding back more businesses from enjoying that growth. so when we have the chance to speak to someone who has seen success, they wanted to be an example to emphasize how there's still a need for ongoing support and resources. >> alicia has never

$250,000 when that bank blew up in california everybody is let's have unlimited fdic. i notice that last deal you talked about with mccarthy, the farm state senators and reference ran down his office don't you dare take away the $40 billion in ethanol substances. and one last thing about the border. you talk about america's foreign policy. mexico is barely two steps above a narcoterrorist state and you have the ignorance to talk about america's foreign policy. what a joke. host: patrick talking at the beginning about disaster relief the white house and senate democrats have said that this short-term c.r. needs to include not only funding for ukraine which they have a price tag of an additional $20 billion for ukraine, but $16 billion for disaster relief aid. ronald in north carolina, republican. ronald, lets turn to you. caller: yes, i have called in. i think if they keep sending money to ukraine, ukraine is going to keep sending money to joe biden's organized crime family. i think you need to stop it. host: we are talking about spending negotiations this morning. wash

we will not see that again because of fdic insurance.standard was always a severe discipline. if you were on the gold standard, you were forced into a depression from time to time. if you go off it, you print your money and you can do a lot of things to protect yourself against a depression. number three is big government. he argued the keynesian argument that government is big and provides a a lot of built in stabilizers. in other words, during a depression, you get unemployment insurance, welfare. that keeps the economy going and pumping money into the system and so forth, so it's a built in stabilizer. and last but not least, he said the fed has learned its lesson to inject liquidity if there's ever a crisis or collapse in the economy. >> and miriam powell talks about her biography on cesar chavez and his rise as a labor leader. >> he ran a group called the community service organization, which was almost exclusively in california, and it was the first part of the mexican american civil rights movement. he went to san jose and started

fhfa partners with agencies, including those represented here today, hud, fdic, the federal reserve, and the occ to form an inner agency group, the property appraisal and valuation equity task force. this task force is cochaired by the secretary of hud, and ambassador susan rice. we at fhfa are supporting a element of a database to ensure agencies have the data they need for their oversight, enforcement, and research functions. this database will build on the fhfa's october 2022 uniform appraisal aggregate statistics derived from more than 47 million appraisal records. the publication of this data is significant because as within the appraisal process, the first step in solving a problem is to identify it and determine the scope of it. next is the data collection and analysis. the data here leaves no doubt that appraisal bias is not just a rare anecdotal blip in the world of housing finance. fhfa is sharing its extensive appraisal data with hud cfpb and the department of justice to make sure we hold that actors accountable for biased appraisals. we are undergoing an extensive redesig

a pity, fdic insured banks and cds. money set aside. >> obviously that's easier said than done. you want to six months of a question to start. because of the kidnapping that captivated the nation 30 years ago. polly klaas was abducted from california, lodging a two-month search. examining the case on tonight's 2020. >> polly klaas' case sent a chill down the nation's spine. the 12 year old was taken from her bedroom during a sleepover while her mother's lap in the next room. it's been three decades now and her case is still impacting the justice system and how kidnappings are investigating. >> a parent's worst nightmare. pick a middle-aged man abducted 12 year old polly klaas at knife point. >> please let somebody know that she's okay. >> reporter: hundreds of volunteers combed the area for clues. >> we had worked pretty hard and it was discouraging not to have a solid lead and then came the find on the 27th. >> day najafi was a woman who lived miles away. two months after the kidnapping, she discovers a scene on a moun

created the fdic to ensure our bank savings and prevent the run of bank failures that confronted hims amazing to me that this story has been so long obscured. now, of course, fdr had a very long term, and he ended it leading us topowers, so there'so tell about fdr, but this story is one we need to remember. because the old guard hasn't given up. they're still trying to deregulate and will be trying for the coming years, so it is important that voters understand what's at stake. >> mike? >> diana, part of what you're writing about, a large part of what you're writing about, is an era in american history, in the american presidency of franklin roosevelt, to '38, where the thought of things happening today is unfathomable, given what he did. not only the s.e.c. and the renovations he provided, but also, you know, the tennessee valley authority, things like that. social security. could you imagine? have you thought about why this country seems to have lost its sense of history? >> well, i don't understand why democrats are not more eloquent about claiming this heritage that you're talkin

number one, fdic insurance. bank collapses's history. we will not see that again, not runs on banks because of fdic insurance. number two, we have gone off the gold standard. the gold standard was always a severe does -- discipline. if you were on the gold standard, you were forced into a depression from time to time. if you go off the gold standard, you can print your money and do a lot of things to protect yourself against a great depression. number three is big government. he argued the k enseyian argument that big government keeps money pumping into the system, welfare and unemployment and so forth. fourth, the fed has learned its lesson, to inject liquidity if there is ever a crisis in the collapse of the economy. >> and at 10:18 p.m., the biography of cesar chavez and his rise as a union organizer. >> this organization was exclusively in california and was part of the mexican american civil rights movement. in 1962, he went to san jose and held house meetings, where you invite a few people over, talk about their concerns and their