>> that's a concern that the fdic probably undertook.he bidders with the regional banks, maybe some of the regionals did not take all of the assets and liabilities of first republic so that has something to do with it potentially. and the structure of the bids may also have had something to do with it. they have been reported to have partnered with private equity and asset managers in conjunction with that bid. it may have created a more complex transaction which may be the fdic was not that attracted to. sonali: we thank you so much for your time. we will bring in another big voice to discuss the banking industry with the former fdic chair sheila bair. something that's been fascinating about what's happening in congress is you have both democrats and republicans frustrated with the fdic and the federal reserve. is the focus shifting so much on the regulators that it's almost leaving the big banks? >> that's a good question. the figures last spring, those were badly managed banks and the responsibility rests with the management of those

so why did the fdic close them down? i don't know.re bank pledged the real estate portfolio to arrange a loan that would have met the capital ratio requirements. >> i'm glad you corrected me. when i said loans that went bad, the concern with a lot of these banks after everything was then loans that could go bad, but that wasn't the precipitating issue, you're right. it was more crypto related and then a deposit flow. so i guess the new piece of information then would be the fact that when they went to sell this portfolio and sold it at steep losses, what does that tell you about commercial real estate and some of the loans that were on the books going to way back when. >> there was no reason to be taking these discounts. i can give you specifics on each piece of it there. but they're performing loans, very profitable. and why the fdic took this step, they probably should. have shut down in the first place, we can argue about that. but why was this different? you would normally get a bigger bank like washington mutual, that could unwin

this is something i learned at fdic. we saw the ills of the path through the c great recession where irresponsible lending took place. people hadad loans they didn't understand and banks failed. people lost their homes. you thinked about access to credit. we have zero percent down. it's just irresponsible. when you have people that have loans they don't understand or can'te afford, they lose their homes. services lose. investors lose. they havece to move out of their mhomes and lose their families. it's not a positive outcome for anybody. we can have affordability and accessibility. it must be in the boundaries of safety and sound. we can't have people that don't have the ability to repay the mortgage they took out. at the end of the day, i think, everything we do has to be based on safety and sound. if you go, strictly on, you know, never having a loss or making sure everybody has perfectha everything. you never make a a loan or might make one or two. there arere judgements to be made. especially times like today, when

kennedy: the fdic's said they did not know. they were doing whatever else they were doing at their gomorrah of carnal abuse over there. >> i think you are making a good point that some of these rules were put in place, and some folks mentioned here pushing business outside the banking system, and to point out exactly what that is, it is almost 80% of the mortgage business today. it is half of the leverage lending business today. and it is a bunch of things which people don't actually see about the plumbing of the system. i think it is adding risk without transparency. sen. kennedy: let me stop you, because i'm going to run on uptime. how is this even legal under west virginia the -- v. epa? you have bank regulators borrowing standards from other regulators in switzerland, imposing them on you without clear directive from congress. it clearly falls under the major questions doctrine. why doesn't this violate west virginia versus epa? you don't have to know a law book from an l.l. bean catalog to see that. why does it violate the

since you have been a director on the fdic board, were you ever made aware of the july 2020 fdic office of inspector general report on sexual harassment charges that were happening at fdic? >> i can't recall, but i did review, prior to coming to the board, all of those reports that the inspector general and others had. >> had they run you through those in the board? who made you aware of those? >> well, prior to being confirmed, i personally reviewed all of those for the cfpb and others as well, to prepare. i do have periodic discussions with the inspector general about that. with respect to implementing any recommendations, the executives of the corporation do file periodic reports about where things are, so we try our best to ascertain where the issues are. >> are you alarmed by the fdic and oig's findings of underreporting and fear of retaliation in the fdic? >> yes. and in fact, at the cfpb, we implemented new steps to make sure that there were many ways for employees to report these issues ask a risk management perspective, you want to make sure you get these complaints. every agen

which is blemished at the fdic. your bank is not broken, but we are going to tell you how to fix it. do you find that ironic? they will tell you how to fix it based on standards put together by bureaucrats in basel switzerland. do you find it ironic? isn't that kind of like a given a gun safety advice for alec baldwin? >> should i answer the question? the major risk of those banks was hiding in plain sight it was known to most people who could read a balance sheet and read their financial statements. >> the fdic said they did not know they were busy doing whatever else they were doing at their carnal abuse. >> you did make a good point, some of these rules were put in place and some folks mentioned here, they are pushing business outside of the banking system and to point out what that is, it is almost 80% more business today, it is half of the business today and a bunch of other things that people do not actually see about the system. i do think it is risk about transparency. -- >> let me stop you because i will ru

fdic, the fed, the treasury department, did they do the right thing? oh, i don't think they had any choice at that point. i actually i was on when i worked at w ross. we rescued probably 15 different banks. and after the crisis and i was on a couple of the bank boards in the us actually virgin money in the uk and it was a failure of the regulators and we had too many regulators and you know, the fed, the fdic, you know cc state regulators in, you know, sometimes they get in the way of each other. but i think it was very much governance failure. i cannot imagine that the boards of those two institutions and actually know the chairman of the signature bank pretty well i can't imagine that when the fed and is mainly silicon valley started to say that there were problems, that they didn't do anything about it, that that was a big failure on their part, but it got to the point that it there was no other choice. and, you know, that happened in oh eight. you know fannie and freddie and it happened with a lot of banks in 0809 or ten and 1010 2010. you know i'm

john kennedy questioned jamie dimon about government regulation and the fdic's plan. >> mr.g to you and saying you know our track record, which is blemished at the fdic, your bank isn't broken but we're going to tell you how to fix it. isn't that kind of like being given gun safety advice by alec baldwin? >> should i answer the question? major risk of those banks was hiding in plain sight which is interest rate exposure. that was known to most people who create a balance sheet and read their financial statements. maria: mark, this is also part of the administration's climate change agenda. look at all the new rules coming out of the securities and exchange commission, they have to come up with climate risk, this is all costing huge new expense. >> and esg scores and all that stuff. as relates to the fdic and the bank failures we saw earlier this year, i am happy that all a of the depositors were made whole. they went above their 250 you 250,000maximum and made deposits whole. i'm glad nobody stepped in to save the banks. maria: silicon valley glangs specifically silicon vall

the committee will take under advisement the proposal to take over the fdic. sen. fetterman: i would have loved to have more time because i would love to have you explain why we should -- why democrats should support nikki haley for president. chair brown: thank you, mr. . the senator from georgia is recognized. sen. warnock: thank you so much, mr. chair. before i asked the questions i set out to ask, i have to respond to the senator from ohio , who apparently takes great voltage to the words or letters sent by the leaders of these institutions responding to the voter suppression bill that was passed in georgia. i know a little something about voter suppression in georgia. today is in fact the one year anniversary of my election in georgia. but my election should not give people the false impression that there is no voter suppression in georgia. it should not give us any misunderstanding about how bad the law is. in fact, i had to sue the state of georgia because at the beginning of my run off ago, they decided folks would not be able to vote the first saturday of

alex: if you read the journal at all you know they have done a deep expos say and fdic being a toxici use that times 100. >> that is why this becomes more urgent. any kind of staffing challenges the agency fails to address work place the "wall street journal" report alleges this boys culture and sexual harassment and female staff passed over for some important rules in load leading bank kpeurs and criticized for not having experience. the fdic says it hasn't identified sexual harassment sings 2020 but anything like that is contrary to its values but it underscores the urgency that it is struggling to retain talent and hire the best talent it will have an issue with workplace culture. guy: fantastic story, goes to what we are debating when it comes to bank regulation. let's see how the european markets are. stocks no really action in the stoxx 600. the dollar is catching a little bit of a bit. euro down a little. gold up between the two is down. gold down and is that the last element of the everything really rally. in this is bloomberg. dear moms and dads, what you have achieved here

morgan jamie dimon about government regulation and fdic's plan to overall how banks operate and manage> in my judgment they went broke because her management did really stupid stuff. because fdic's and the regulators who were in charge of keeping them from doing stupid stuff sat there like bumps on a log sucking on their teeth and watch them do stupid stuff, don't you find it ironic the fdic's is now turning to you and saying you know our chalk record which is blemished at the fcic, your bank is not broken but were going to tell you how to fix it, do you find that irenic. >> the major risk was hiding in plain sight. that was known to most people who can read a balance sheet and read their financial statements. maria: joining the independent advisor in lyons chief and that's it officer, chris zaccarelli, thank you for being here. your reaction in the new proposal for new regulations of the new banks? >> thank you for having me back, the new proposals are going too far, ultimately the big banks are very well regulated and plenty of new regulation and laws targeting them we have strong ba

as a board member of the fdic, will you commit to fully cooperating with any request made by the fdic inspector general regarding their investigation? >> of course. and of course, i would cooperate with all sorts of inquiries on this. >> will you commit to fully cooperating with congressional investigations at the fdic including promptly turning over any requested information and document? >> as always, we will work with you to accommodate your requests. we have the cfpb. i'm a board member. we will do our best to accommodate that. >> thank you. and director chopra, have you ever been investigated for workplace misconduct? >> i have never been the target of an investigation, but there's a lot of other investigations where we cooperate, but i've never been a target. >> do you believe that consumers should have the financial freedom to make their own financial choices as long as loan terms are clearly disclosed? >> yeah. i think that's right. i think we want consumers to have lots of choice and to be able to compare one with the other. i think in the digital economy, there are new issue

. >>> coming up, former fdic chair sheila bair will lay out why she says wall street's optimism is toojeff rolrome pow news. >>> and some big moves in the pharma space. moderna surging as eli lilly and novo nordisk head lower. where you should be in this trade, when "fast money" returns. ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. >>> welcome back to "fast money." stocks keep the good times going after yesterday's big rally. the dow climbing more than 150 points. the s&p and nasdaq both with modest gains. the major indices now on a six-day winning streak. shares of citi getting a boost today, up 2%. wells fargo bank analyst mike mayo named the stock a top pick in 2024, and that wasn't the only bank action worth noting. kbe bank etf erasing all of its losses since the svp collapse back in march. the kre also closing at its highest level since march 8th. and clearly, with rates coming down, it makes their assets look a

no fbi in see insurance if we are talking about the credit side -- fdic insurance. yes, the pressures will be there. some things will prove to be un economic potentially. those of the things we're trying to guard against. we want a balanced proposal. we think there is way to get a balanced proposal. this was never about capital, higher capital or lower capital. it was about measuring risk in a way that is consistent across all the large banks who operate globally. jon: we highlighted some of the challenges due to the interest rate environment for regional banks. there was the idea of the bigger banks possibly getting more business or getting bigger. when we talk about it from the capital requirements standpoint, how do we think about the largest banks and the regional banks? kevin: 37 institutions are covered by this proposal. our institutions have the greatest impact associated. it is not an insignificant impact for the rest of those institutions as well. our institutions have scale. half of them are highly diversified in terms of the activities they perform. we ha

. >> the fdic estimates that 4% of americans are unbanked, meaning they don't have a checking or savings account at wells fargo. data suggests the numbers are similar. in alameda county, the unbanked are often stuck with high cost alternatives like check cashing and payday loans and a disproportionate number are people of color. operation hope hopes to level the playing field. >> financial literacy is something that is overlooked in marginalized communities, and our program focuses on that and provides you the tools to understand how to create a budget. reducing debt and increasing your savings. even though this collaboration with wells fargo bank. >> operation hope doesn't have to use wells fargo financial services or programs with its clients in oakland, anser hassan abc7 news. >> what a powerful thing. it's so easy to take that for granted. checking out something so simple but terrific to see that kind of help for people. >> certainly. all right. let's turn to our weather now and a little more rain today. yeah, we did. >> abc seven news meteorologist sanjay patel is here. hi, sandy. >

the government needs to create an insurance fund, something similar to the fdic the united states, to reassure people if the developer does not deliver that at least they can get their money back from the government. if you look at the 25 biggest cities in china, new home sales over the last three quarters have been down 20% compared to 2019 in square meter terms. existing home sales are actually up 13% compared to that period. so people are shifting to buying existing homes even though they would rather have a new one, they are just worried about delivery and lack of confidence in developers. rishaad: two things to pick up. we were talking about the housing market, all about the wealth effect. it is about stabilizing the housing market as our previous guest said, if you re-create a boom in housing you went up in the same position you find yourself in now. the second is about ensuring people, something they have not consistently done. what do they need to do to get that to feedthrough and make it a fundamental tenet? andy: i think that the situation of volatility in the regulatory env

a lot of us got a lesson on diversifying investments and looking for the fdic guarantee. in late march bay area radio listeners mourned the death of jv. he was known for letting so many laugh, he was also open about his own mental health struggles. >>> april began with the stabbing death of bob lee and his accused killer currently awaits trial. in may disgraced theros went to a texas prison camp. summer kicks off with the bay area's first national women's soccer league team bay fc. they say bay fc will be ready for play in the 2024 season. elon musk wasting no time in rebranding twitter. in july twitter became x which elon musk says represents the evolution of the social media platform into an everything app. since then he's been accused of allowing hate speech to go unchecked on the platform where a growing list of big companies stopped advertising. ♪♪ and before taylor swift was in named "time magazine's" person of the year, she was named honorary mayor of santa clara where she rocked levi stadium drawing fans who couldn't get tickets to the parking lot to trade friends

a lot of us got a lesson on diversifying our investments and looking for that fdic guarantee. >>> in late march, bay area radio listeners mourned the death of dj of wild 94.9. though jeffrey vandergrift was known for making so many people laugh, he had been open about his own mental health struggles. >>> april began with the stabbing death of cash app founder bob lee and his accused killer, nima momeni, currently awaits trial. >>> in may, disgraced theranos founder elizabeth holmes reported to a prison camp to begin her 11-year sentence for defrauding investors with blood testing technology that never worked. >>> summer kicked off with the bay area's first national women's soccer league team, bay fc. the four u.s. olympic gold medalists turned founders say they will be ready for play in the 2024 season, which begins in march. >>> elon musk wasting no time in rebranding twitter. >> reporter: in july, twitter became x, which elon musk says represents the evolution of the social media platform into an everything app. but since then, musk has been accused of allowing hate speech to go un

front of congress -- washington in front of congress talking about severe regulation coming from the fdicrestricting capital more. so the message in washington this week was if you tighten regulation for the banks, that's going to hurt the u.s. economy. that's very significant because the banks were really the large global banks were the ones who came to the rescue to some of the smaller banks back in march. maria: great point. ken, it's good to see you. we appreciate your time on all of this. thank you. >> thank you. maria: ken leon joining us this morning. we'll take a break. when we come back, congressman jamaal bowman getting some retribution for the fire alarm stunt. we've got all the details on the other side of this break. stay with us. ♪ maria: next week on "mornings with maria," monday, we're spotlighting the top young conservatives who are making a difference, she's using new media to drive real world conservative policies, hanna cox is here. tuesday, tommy laran on why she is taking the stand on social issues that matter most to americans. wednesday, caroline levin on her conse

the fdic reports afterwards talked about first republic bank had a one rating for liquidity before it failed. you are 100% right. it was a bank run. and the changes that are being made have nothing to do with the failure. the one way to fix it is deposit insurance reform and in may, i testified in front of congress, really believing that the targeted approach to change deposit insurance to reduce the too big to fail thinking so depositors don't run like that, that is what we need, and that -- that effort is stalled in congress. i'd love to see that change, and that is what's needed. that would fix what you just said. >> a couple things. i'm married to a private credit guy, so, i hope there's at least room for one. but the other thing is, i feel like banks are going to push harder, push back harder on this than almost anything i've seen in a really, really long time. and i think they also feel like they're going to be heard somewhat and that they will find some relief with -- versus the worst case see naur owe. >> this is the real deal. when i started in this business, there were 14,00

the fdic estimates that 4% of americans are unbanked, meaning they don't have a checking or savings account. >> wells fargo data suggests the numbers are similar. in alameda county, the unbanked are often stuck with high cost alternatives like check cashing and payday loans and a disproportionate number are people of color. operation hope, hopes to level the playing field. >> financial literacy is something that is overlooked in a marginalized communities, and our program focuses on that and provides you the tools to understand how to create a budget, reducing debt and increasing your savings. >> even though this collaboration with wells fargo bank operation hope doesn't have to use wells fargo financial services or programs with its clients in oakland, anser hassan abc7 news. >> residents of a san francisco neighborhood are taking action to quote, fire a shot across the bow of the us navy and today they served notice they intend to sue the navy and the epa over cleanup efforts and the hunters point naval shipyard superfund site. this action comes just days after the navy announced that it

there's fdic insurance, tier 1 capital, that all sounds safe and secure, but in the end, when you're, you really have no idea where they're putting your money. you have some concept that they're investing it to earn revenue and produce earnings, but really, depositors have no idea where that money is going. >> right. >> in the world of direct lending and private credit, these sophisticated investors know where they want those assets to go. they know it's into credit. the idea of regulating that is going to be a bit of a policy challenge. i personally don't see what policy objective would be and i thinkit's a pretty tricky area of regulatory world. >> andrew bednar, thank you so much for joining us today. ceo of perella weinberg. really appreciate it. sara, i'll send it back to you. >> thank you for bringing us that interview. >>> as we head to break, video game maker take two, one of the biggest losers on the s&p this morning. find out why and what a leaked trailer has to do with it. don't go anywhere. . >>> shares of video game maker take two outperformer on the year by far, up over

sheila bair ran the fdic for many years, we have not seen the smaller mid-sized bank to go under.. we've moved from this acute liquidity problem at these banks where they don't have enough cash to meet their withdrawals, to this kind of slower-moving earnings problem, you have zombie banks out there now having to pay up for deposits, which they didn't have to do before, and they're having these loan problems where loans are going bad, fewer new loans being written at more profitable rates, and they're just getting massively squeezed and you're going to see some real problems there. >> two more quick ones, i'm contractually obligated to mention anthony scaramucci. i'm more centered in what sharon block, former biden administration official has to say about the rise of unions, we saw unions had a huge year in 2023, auto workers just one of them. she goes so far as to say that tesla may be unionized this time next year. >> that was the most interesting prediction to me, you sad auto workers, u.p.s.. >> hollywood. >> hollywood, obviously, and some of that is the luck of the calendar,

in terms of valuationsrelative to before march of this year when we had the svb, you know, fundame fdicholidays. see you very, very soon. >> happy holidays. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business. interest rate decision from the european central bank. stay tuned. you are watching "squawk box" on cnbc. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. (♪♪) business can happen virtually anywhere. (♪♪) but there's nothing like being there. at national, you can skip the counter... and choose any car i

collapse of local lenders like silicon valley bank, signature and first republic, or received by the fdictheir demised reduced to credit availability. >> a daily battle is being waged in supermarkets all over this country. >> from the postwar economic boom in the 1950's. to its high point in the 1980's. interest rates have always fluctuated with the times. at the near zero rates the last 15 years following the great financial crisis have hardly been the norm. >> the financial crisis was obviously unique in and of itself at this time around banks are much healthier. >> when it is difficult to raise money clearly more companies will fail. >> virtually for companies on the brink this time default is not seem quite so far. >> it is definitely not 2008. it is not on the same scale. >> the problem is when companies are not put off by higher rates and keep borrowing, it may be assigned the fed has more work to do to bring down inflation, which increases the odds that someone will get caught up sides and left to take the hit. ♪ paul: that was sonali basak with a fascinating report on what we are