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

and who went to work for the fdic. the chairman told us recently that yes, he knew about it, it happens, and he wasn't the chairman yet. and they didn't have that authority to stop it. the fdic is now turning 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. they will tell you how to fix it. do you find it ironic that they are telling you this and proposing this? and isn't that like being given gun safety advice by alec baldwin? >> should i answer the question? so the major risk of those banks is hiding in plain sight, which is known to most people who committed that balance sheet and read the financial statement and that is true. >> they were busy doing whatever else they were doing at their abuse over there. >> and also i do think that you will make it a good point that some of these rules were put in placeme and some folks have mentioned that here, pushing business outside the banking system and to point out what that is to

it's the head of the fdic.i will say under the law the fdic is required to accept the highest bid that reduces fdic losses as much as possible. on the details of what the bids were. >> the worry small medium and large banks you have my concern here we did not care about concentration how that transaction manifests itself. analyze that with concerns about concentration or is it because you had the tools and didn't use them? i share your concern to have a diverse banking system. there's a number of bids different banks. and for first republic. and as i said i believe under the law fdic is required in a bid that results in the smallest losses since the deposit insurance fund. >> thank you. it has been 14 years, 14 years yet 10 states including georgia not fully expanded medicaid. let me be clear, close in the healthcare gap it's also the smart thing today. it's good for our economy. a recent report from the council of economic advisers concluded that medicaidce expansion increases the disposable income ofle those

. >> i want to applaud your excellent work and the fdic to act last spring to contain the damage forhe failures of the valley bank in my state and signature bank and first republic bank and getting out of control and to a costly financiale crisis and recession and corresponding layoffs and foreclosure and lost savings for millions of people. warned about trump's deregulation efforts and trump's regulators used to reduce capital and other requirements for regional banks like svb and in fact allowed silicon valley bank to opt out of maintaining nearly 2% more capital for their book of securities that had a large amount of unrealized losses when the federal government raised interest rates. when svb was forced to sell those securities and stable off, it alarmed customers resulting in the fastest bank run in the united states history. republicans triedes to testify that it wasn't due to capital. i'm so happy our federal banking regulators have issued proposals to fix this issue and otherwise strengthen capital requirements for the largest banks. the financial stability oversight council

secretary chairman, i again want to applaud your excellent work and that of the federal reserve and fdic to quickly act last spring to contain the damage of the sudden failures of silicon valley bank in my state, signature bank, and first republic bank. that could have spiraled out of control into a costly financial crisis, a recession, and corresponding layoffs, foreclosures and lost saving for millions of people. of course, some of us warned about trump's deregulation efforts in s2155, a republican bill that trump's regulators used to reduce capital and other requirements for regional banks like svb. in fact, it allowed silicon valley bank to opt-out of maintaining nearly 2% more capital for their book of securities that had a large amount of unrealized losses. when the federal government raised interest rates. when svb was forced to sell those at a state loss, it resulted in the fastest bank run in the united states history. since then, republics have tried to claim that capital had nothing to do with the bank failures, but their own witness, margaret testified that svb's capital shor

the fdic and other agencies are being very thorough right now. the last thing they want to do is allow a merger to happen and the resulting institution wouldn't be strong, so we were gratified after all of the work they did that they saw fit to approve our transaction. >> correct me if i am wrong, this is your first move into banking in california. the question is why this bank in particular? why did it take you so long to make that leap into california? what was holding you back? wafd is big in the pacific northwest. idaho, even down into the southwest part of the country, but never california until now. what held you out of california, and why this bank? >> yeah. for us, it was about finding the right opportunity. as i mentioned earlier, we are conservative from a credit perspective and as you know, california has a history of not always being conservative from a credit underwriting standpoint. when we found luther, we found a lender that is uber conservative. their average portfolio on a majority of their loans is 54% loan to value. think abou

how you back up the fdic and how the fdic backs up banks. you need to decide do you want mortgage out of banks? does that create more or less risks? how important is market making. market making is a critical function. somehow the way the regulators treat it sometimes is like a hedge fund. it's not. we buy and sell $2 trillion a day, and we do not lose money, and transparency, risk and controls creates the primary market, and you can't have one without the other. it's a wonderful thing. america is the best in the world. if you want to add 60% capital, you better think through what that does to farmers that need to hedge, to oil -- to airlines that need to hedge. you know, to most derivatives are exposures protecting companies from those risks. do you want it to be more expensive or less expensive? these conversations never took place. >> it's an election year. does a change in leadership at the white house change anything for the banking system? >> look, you know, my job somebody to run jpmorgan chase. whoever is president, we are going to j

the fed, the fdic and oh cc declined to comment on the lawsuit.say the modernization is necessary to bring access to credit to underserved communities. bill bynum leads a credit union an advocacy group down in the south. he said discriminating lending practices are quote, still unfortunately rampant and strong modern rules that account for the ubiquity of mobile banking are needed to close that gap. he said that he found a lawsuit quote, hard to reconcile. >> cra is designed to make sure that banks reinvest in communities where they extract profit. historically, based on where you had a branch. wolf branches are not, no longer the primary way people access the financial system, then you have to modernize. and i think regulators have done a reasonable job of doing that. >> the banking groups say to comply with the final rules in the first 12 months, that cost could exceed $600 million. tyler. >> interesting how the change in the way that we bank is changing this kind of regulation. >> yes. >> branches are closing. everywhere. >> yes, they are. and

under the law, the fdic is required to accept the highest bid that reduces losses as much as possible. you will have to consult with him. >> i guess the worry is, i'm very worried about the future bank system in our country. small, medium and large banks. i also want to help the sector below the -- and my concern here is we did not care enough about concentration and how that transaction manifested itself. and the simple question is, is that because you didn't have tools to analyze that transaction with concerns about concentration? or is it because you have tools and just didn't use them? >> let me first say, i share your concern. i believe it's important to have a diverse banking system. i believe there were a number of bid by different banks for svb and for first republic. and, as i said, i believe the fdic is required to accept the bids it results in the small -- smallest losses. >> the gentleman from georgia is recognized. >> thank you, it has been 14 years since the passage of the affordable care act. yet, 10 states, including georgia have not fully expanded medicaid. let me be

look at the balance sheet, it seems vulnerable because one third of the deposits are insured by the fdic has been relying on broker deposits to beef up liquidity. apparently a lot of the money is demand deposit accounts which can be with john without any notice. another thing we are closely watching is any activities in the bank's balance sheet management, meaning is the back going to selloff one line of business, or does the credit risk transfer with private equity or hedge funds that can help them inject some capital? annabelle: annabelle: want to track pretty closely. u.s. regional event reporter diana li in new york. another tracking closely is new york traded shares of ubs, they found the most in 11 months overnight even as the lender announced a billion-dollar buyback with fourth-quarter earnings missing estimates. the bank is willing to sacrifice growth in order to prove returns, of the merger with credits concludes, says the ceo. >> is a pivotal year, because if you think about the journey, the first six months, they are very intense. go through the merger, ubs and credit suisse

john: my sense is back in june of 2023, the federal reserve, the fdic and oec issued forward guidanceg with credit worthy borrowers. i would encourage them to continue with that policy and reinforce that policy. it is important to the industry as a whole. credit worthy borrowers should not get hurt through the process. the federal government is the one that sent people home. the federal government is the one that should mandate people come back to work. all other countries, people are back to work except the united states. i am dumbfounded why we cannot get people back to work. it is proven we don't have much -- as much productivity at the end of the day. if you think about entitlements, i live in massachusetts. there was a referendum about density. the town worked against the referendum and did not want density. what is happening is you cannot support affordable housing because of the restrictions on entitlements. we need to soften those and we need more support from the government. the last thing is people don't realize they are adding 6% to 11% construction costs, electrification,

the form he fdic's share, this might be an isolated incident, some folks go back to what you were deftlyandling to prevent it spreading. what do you make of that? >> reporter: real estate is a problem. there's expansion or, with regional and smaller banks. interest rates are a factor, this is more about changes in this yearly market that shift remote work, with increased office vacancies, lower rents, interest rates are a factor for those who refinance this year. they have trouble meeting higher rates, they may just walk away. it was primarily last year which they've known about for some time, and provisioning against it but this would not be a big crisis. neil: that could be the case here, with regional midsized ranks, there would be a sort of cutting and merging one to another, bigger banks happened last year, not in large volume. what happens this year? >> when banks look for investments. there's additional consolidation. among regional banks to get bigger by acquiring regional banks. there will be more consolidation the, we need regional banks. they are an important lender to small e

. >> as treasury, including fincen or federal banking agencies like the fed, fdic, occ, instructed financialtitutions to search americans' legal transactions in attempts to surveil their purchases. >> well, we received a letter from you, i believe, on this topic, and we intend to investigate fully and to respond. >> are they instructing financial institutions to search americans' legal transactions in attempts to surveil their purchases? >> i promise a thorough look into everything. >> this is really concerning. >> laura: yeah. you think? well, why would any of us ever expect maligned motives on the part of this administration? it's not like they have ever given us any reason to doubt their good faith, not surrounding january 6th. not in targeting parents or traditional catholics, well, according to the house usual jerry committee federal investigators asked banks to search and filter customer transactions using terms like maga and trump as a part of a january 6th investigation. banks were warned extremism indicator wo could be the purche of books including religious text look out for the bi

. >> there was a moment, shannon -- >> we suspended the limits of fdic insurance. >> the fed came toors. it didn't emerge into a full-blown earthquake, but there were some pretty good tremors. as i said, look, your former employer, svb, in the wealth management division, albeit, so i know this hits close to home when we talk about these issues. how are you thinking about this? >> the point here, big banks can digest loan lost provisions to offset commercial real estate losses. the smaller banks don't have the earnings power to do that consistently. that to me from an investment perspective is the concern. >> josh? >> yeah? >> i mean, where does this rise on your sort of radar of concern? >> i agree with what everyone says. my only core holding in the banking sector is and has been jpmorgan, which i don't trade. not only do i hold it, the dividends get reinvested and i buy more. i wouldn't do that with any other bank. and i agree with stephanie's point. this is like part of the sector. not only do they go away, these banks, but they often merge and get bought out. and there are thousa

united states is in big trouble predict delinquency rates have tripled in 2023 now just this week, the fdic came out and said that of the u.s. banks, major u.s. banks ratios arnaldo the thing amount of delinquent commercial real estate so something to really keep an eye on. >> monitored with the audience, human adding to j.p. morgan, microsoft, and solid names sway stuff in your were just as better and better thank you is been too long. >> see you soon were going to continue to focus on nvidia, look at this, having this is mind-boggling of 15 percent of her 100 points, and guest is coming up, who really has very dire warning you gotta take over the sky is credited with sniffing out one of the biggest investment scams anybody hear what he has to say next. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. shopify's point of sale

. >> has treasury, including fincen or federal banking agencies like the fed, fdic, occ instructed financialearch americans' legal transactions in attempts to surveil their purchases? >> well, we received the letter from you, i believe, on this topic, and we intend to investigate fully and to respond. >> ainsley: there has been outrage over allegations that banks were told to search accounts if extremism indicators were spotted. key words like trump, maga, cabela's and bass pro shops. yellen is due on capitol hill in about an hour and a half. we'll continue to keep you posted on that. brian, over to you. >> brian: all right. meanwhile, fox news alert. a live look right now at the supreme court where just hours from now justices will hear arguments in former president trump's push to get his name on the colorado ballot. one of the toppings we will be talking about fox news legal editor kerri kupec urbahn joins us now. kerri, what do you expect today, some people believe this is going to go in the president's direction. are you one of them? >> i would hope so, mainly because the way things are

even more ironic since nycb acquired part of signatures balance sheet from fdic receivership after that bank failed last march. the question now is whether and why see the's issues are isolated to that one bank or if it is broader systemic risk at. play analysts say the regional banks all of its likely overdone, quote, given idiosyncratic factors tied to nycb. the firm notes that nycb crossing 100 billion in assets threshold after acquiring signature kid subjects into a whole host of additional costly regulations. however, b f a notes that higher losses tied to commercial real estate, cra office exposure, faces of in loans had two multiple cnre our minor of ongoing credit normalization that we are likely to witness across the industry. and of course, yesterday's fomc meeting, pushing back against rate cuts being imminent, served as salt in the woods for this already battered sector. guys? >> leslie, what does this mean for basel three regulations and these looming higher capital requirements? >> another great question, courtney. on one hand, some of these losses are tied to compliance w

. >> has treasury, including fincen or federal banking agencies like the fed, fdic, occ instructed financial search americans' legal transactions in attempts to surveil their purchases? >> well, we received a letter from you, i believe, on this topic, and we intend to investigate fully and to respond. >> carley: that's a dodge. apparently it was recommended that banks search the accounts of, quote: extremism indicators that were spotted include words like trump, maga and bass pro shops because if you like to official you are going directly to jail apparently. now to incredible footage of semi-truck driver and passenger in ohio getting out just before a freight train plows through their vehicle. the driver and passenger and all the crew members on board the train thankfully were not hurt. authorities are investigating this crazy incident. those are your headlines, ainsley. how about that video? >> ainsley: the truck driver wasn't inside, right? >> carley: just in the nick of time they all got out. >> ainsley: thank you, carley. 29-year-old chef from michigan, 29 years old is dead after battli

small institutions, and, you know, do it -- you want to get the most money for the taxpayer when the fdic gets involved. you don't want to create even more too big to fail, but you also don't want to create new messes in these newly-large institutions. liz: got it. nick, stay with us. i want to bring in gary with kaltbaum with of kaltbaum capital management because this is the market, the equity piece of it. gary, nobody's worried. i mean, we are now within 2 points, i'm watching this, 4998, a second ago, of 5,000 for the s&p. the dow is about to hit yet a new record. well, it already is there intraday. does any of this concern you, or are you saying, you know what? don't fight the tape, let's go into some of these big tech names. >> the regional a banks are weak, and they're not affecting the rest are of the market. the nasdaq's been narrow aring in how many stocks are going up, but the stocks going up are en fego. nvidia broke out of a 6-month range, we bought the heck out of out. it's up 200 points in a month and change. that led e to amd, facebook, microsoft, and it's leading to other

about how seriously the fdic community protection. and by the way, think it's your field office in atlanta, and special agent farley for the work that they have done to help reassure my constituents as well. >> so, we are working in those cases both through our terrorist taskforces. but come on the criminal side through our civil rights program as hate crimes. so, we have both engines, if you will in the fbi focused on it. i created in 2019 a domestic terrorism hate crimes fusion cell. try to anticipate where the threats are going. we have opened i think 60% more hate crimes investigations post october 7th and we had before october 7th. i think it was escalating pretty fast before october 7th too. and we've got all of our field offices, as you mentioned. not just pushing the investigations, but engaging in a lot of outreach to affected communities in their areas. both to reassure them, as you say. but, also to raise awareness. hey, we're here. if you see something, we want to know about it. because there's things we could do to help.

the fed and fdic and occ declined to comment on the lawsuit.the modernization is necessary to bring access to credit to under served communities. phil bynum leads a group in the south and saying discriminating lending practices are still rampant and strong accountability rules are needed to close the gap. he said he found the lawsuit hard to reconcile. >> cra is designed to make sure the banks reinvest in communities where they extract profit. his tatorically where you have branch. if branches are no longer the way you access the system, you have to modernize with the cra. i think the regulators have done a reasonable job of doing that. >> reporter: the banking group says to comply with the rules in the first 12 months could exceed $600 million in costs. guys. >> it's really interesting. i'm thinking how you should do that. it definitely is one of the effects of what we have seen with banks. >> they closed the branches i used to go to. >> you think of "it's a wonderful life." it used to be a place where you go and part of the community. it had

signature bank one of thefailures in the spring and it raises a question, carl, as to whether the fdic a closer look at the ability to take on those assets. >> watching it in the coming days >>> let's drill down on big earnings snap and uber. uber seeing a profit check out snap, falling short of expectations facing competition in the ad space. that's where we begin with our next guest, rob sanderson. great to see you you make the point you were looking for greater momentum in the recovery and there was a sort of budding enthusiasm for a recovery, yes? >> yeah. this is -- the snap quarter was -- it was basically in line with consensus, mostly inline outlook but big expectations missed rerated up about 90% since the third quarter results. strong market with the s&p up 20%. had big changes early in the year, disruptive for large advertisers. looking to ramp it back up but remember, this is the same medicine that meta took a year ear earlier. revenue declined for meta for three quarters before ramping up slowly that's what snap is hoping for in their future but definitely a disappointment

banking, but it also helps you to fortify your opportunity because your institution is supported by fdic is the key to driving the banking business overall, and, of course, we would like to be regulated less. who wouldn't? but i think there's a good balance in the system, and as i said, we have to be careful not to get caught up in the sauce and worrying about the things, for example, things like the current interest rate environment and what you're going to do or what you're not going to do. what you better be thinking about is the big wave you face by the challenges technology creates in terms of how people want to receive banking services. so you have to go from a transformation of the community banking model to what they would call a more financial technology model because people are not going to go stand in line, no matter how good your doughnuts are. they want to look at their phone and look at their computer and be able to engage with banking services. >> how have you transformed your business to meet that change in the way people bank? >> by doing exactly that. for example, we ad

you want to put your savings in an fdic high yield savings klt so you're getting paid 5% instead of .5%. linsey? >> 0% interest sounds like a good idea for so many. >> a lot better than $21.5. >> you are so right on that. rebecca jarvis, thanks. now to a gm a health alert. a new study published in gama neurology found the mediterranean diet may be one aspect in protecting the brain from signs of alzheimer's disease. our chief medical correspondent dr. jen ashton joins us with more. it feels like whenever we're talking about diets with the potential benefits, mediterranean tops the list. how does it figure into this study? >> it does top the list. this study, the real headline here is that it's not just one thing. it's a combination of lifestyle factors. mediterranean dash diet figured very prominently. let me take you through it. researchers at rush university looked at a combination of adults eating a mediterranean dash diet, exercising at least 150 minutes per week and followed them over time and found they had better cognitive function, less data protein in their brain on autopsy, wh

incredibly generous subsidy to property developers, but banks are able to use the credit to show the fdicgulators, that they are socially conscious, they get a little bit of a benefit there as well. there are some anecdotes i've heard about this. and by the way, an accounting firm puts out an explanation of the tax credit. tax credit by itself kind of makes your eyes glaze over. people wonder where paper work comes from. the accounting firm that puts it out devotes 100 to an explanation for a credit. even if there are other things you like, you should know if congress is passing a program that 1,400 pages to explain, you know it's a bad program. i think by the way, it's complicated on purpose, so you can confuse congressmen into voting for it. because the government, not surprising, is paying for 70% of the cost of that apartment, that apartment in general cost 30% more than an apartment would if it was built in the private sector without having the government muck around. so right off the bat there's a big problem there. i know a property developer in wisconsin who builds normal apartmen