after careful analysis and deliberation, the boards of the fdic and the federal reserve voted unanimously to recommend and the treasury secretary in consultation with the president determined that the fdic could use emergency systemic risk authorities under the federal deposit insurance act to fully protect all the depositors and winding down svb and signature bank. it's worth noting that these two institutions were allowed to fail. shareholders love their investment, unsecured creditors took losses. the boards and the most senior executives were removed. the fdic has authority to investigate and hold accountable the directors and officers of the banks for the losses they cause and for any misconduct in the management of the institutions and the fdic has already commenced these investigations. further, any losses to the fdic's deposit insurance fund as a result of uninsured deposits insurance coverage will be repaid by a special assessment on banks as required by the law. the fdic has now completed the sale of both bridge packs to acquiring institutions, your community bank for signature

federal reserve staff who examined s.v.b. and fdic staff who examined signature identified problems at the banks. for example, between 2018 and 2022, the federal reserve issued 10 matters requiring attention to s.v.b. for liquidity and risk management problems. likewide, fdic issued matters requiring board attention and other recommendation for similar problems. however we found the federal reserve and fdic did not adequately escalate their superviedzry actions. the fdic was largely positive in ratings of s.v.p. from 2018 to 2022, rating them as satisfactory. when s.v.b. moved from the federal reserve regionalling or neenyization they began to downgrade. yet despite serious management problem, the federal reserve didn't issue and enforcement action before the bank failed. likewise, fdic's ratings of signature bank found its overall condition was satisfactory from 2018 to 2021. fdic staff told us they were considering escalating supervisory actions in 2022 including taking enforcement actions. however, despite stig in ature's

, he told me, that the federal reserve is being forced to continue raising interest rates because of the spending on fiscal side not agreement in terms of taking down inflation. when you've got the federal reserve the only one in town, trying to raise interest rates to tame inflation, and fiscal side of the house, continuing to recklessly spend money so he is going to join us in about 25 minutes, to talk about impact there, but in the face of all that, congressman the white house is touting the economy, saying president biden has had a great impact on the economy, watch what happened yesterday, watch this. >> unemployment is at lowest level in more than 50 years the share of working age americans in workforce is highest in 15 years historic recovery falling inflation thanks to, in part, because of president's work what he has done over the last two years. maria: congressman your thoughts, you just heard karine jean-pierre saying the president has done everything, to get us into this great employment situation. >> i would encourage her up encourage the president to go to real ameri

>> congressman, the federal reserve was -- we covered a lot of different areas. so we are responsive to the feedback we received, including areas around the quantity, governance, controls, and the hem mria and m mra that we received with interest rates. >> the reason why bring that up, is because the start of the pandemic when svb collapsed, the fed didn't mention interest rate risks in any of its reports to congress. were you aware that the federal reserve has suspended its remittances to the treasury last october because it took similar losses -- or your bank? >> i was not aware of that, congressman. >> i find it curious that the federal reserve, having experienced its own losses, did not recognize or realize the barn was on fire that created. mr. jean, mr. loeffler, how forceful were they an emphasizing the interest rate risk as the priority and the supervise a shunt of your bank? mr. shay? >> i met with the regulators as chairman of the board, so i can't speak for their communications or other communications with the bank. >> roffler? >> maybe just a couple p

further, the federal reserve report also says that the federal directors and risk management experiencecapabilities were lacking for a bank of 200 billion dollars. not only did you fail to hire a chief risk officer in a timely manner, definition of timely manner is within several months, you went without a chief risk officer in place. that challenge exacerbates the situation that americans came to realize. to me, it sounds like a recipe for disaster. sadly, in part, that is why we are here today. even more concerning, the federal reserve's report stated that, with respect to both liquidity and interest rate risks, your management team of more focused on chasing profitability that stability. sounds like greed. perhaps this is why your institution had 31 open supervisory findings when it failed. about three times the average number. 31 notices that you received. flashing red lights. something is desperately wrong. let me say this. svb was an anomaly. your lack of judgment, mr. becker, shows that you should not have been running the bank. to the american people, our true regional instituti

failures by the federal reserve. i will outline how we can strengthen both a regulation supervision based on what we have learned and based on the federal reserve existing authorities. on that regulatory site svb's failure to confirm the importance of strong levels of bank capitol. while a proximate cause of svb's failure it's a liquidity around the underlying issue was concern about solvency. stronger capitol will guard against the risk we may not fully appreciate today and will also reduce the cost of bank failures. in addition we need to reconsider our prudential requirements. these include evaluating how we treat available for sale securities and capitol regulations. how we supervise and regulate advanced management of interest rate risk, follow supervise regulate liquidity risk how we oversee incentive compensation practices. any adjustments to our rules would of course go through normal notice and comment rulemaking have appropriate transition periods i also plan to improve the speed, force, agility of supervis

chairman jay powell is at a record row for any -- low for any federal reserve chairman.will do the right thing for the economy. joining me now is the former president and ceo of the dallas federal reserve bank, robert kaplan are. so i know that you kid not -- did not agree with raising interest rates at this last meeting. you do not think the federal are reserve should raise rates at the june meeting, and you also were not buying that inflation was transitory when the chairman told us it was. why do you believe thed fed should take a pause? >> the fed's raised rates now ten times, fed funds rate's 5-5.25. the issue is at this point as the fed is raising rates, the yield curve actually is getting more inverted, not less inverted. what i mean by that, the gap between the 1-month and 3-month treasury and the 2-year and the 10-year is widening. big companies borrow based on the yield curve. they don't tend to borrow based on the fed funds rate. small, mid-sized companies and small, mid-sized banks rely very heavily on the fed funds rate. and what i don't like about the curre

former dallas federal reserve president robert kaplan on where the economy is headed from here. and then you can add another name to the long list of people fleeing california. why actor scott baio says he has to leave the state after 45 years. but first, this is the scene along our southern border this weekend. as thousands of people are pouring into the country marking the end of title 42. more than 10,000 migrants a day have been caught illegally crossing every day this week. >> i want to be very clear, our borders are not open. people who cross our border unlawfully and without a legal basis to remain will be promptly processed and removed. maria: but a key part of the biden plan was the mass release of migrants into the country without court dates or ways to track them. they would have had 60 days to report themselves to i.c.e., but a florida federal judge has thousand blocked that from happening. -- now blocked that. joining me now is tennessee senator marsha blackburn. senator, it's good to see you. >> maria, i think it's so important that we do have a judge that will blo

former dallas federal reserve you got this. let's go. gobble gobble.'ve seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. and i remember kind of thinking like, "oh my gosh, i think we could be sisters." because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we had the same birthday. yes. it's really unbelievable when you think about it, because it's been, like, really over 20 years that you were my mother and father's banker, you became my banker and now fran is in her third year of college and you're her banker. it's so unbelievable because i'm just 20 years old. [laughing] maria: welcome

further, the federal reserve report also says that the federal directors and risk management experiencecapabilities were lacking for a bank of 200 billion dollars. not only did you fail to hire a chief risk officer in a timely manner, definition of timely manner is within several months, you went without a chief risk officer in place. that challenge exacerbates the situation that americans came to realize. to me, it sounds like a recipe for disaster. sadly, in part, that is why we are here today. even more concerning, the federal reserve's report stated that, with respect to both liquidity and interest rate risks, your management team of more focused on chasing profitability that stability. sounds like greed. perhaps this is why your institution had 31 open supervisory findings when it failed. about three times the average number. 31 notices that you received. flashing red lights. something is desperately wrong. let me say this. svb was an anomaly. your lack of judgment, mr. becker, shows that you should not have been running the bank. to the american people, our true regional instituti

since march of 2022, the federal reserve has adjusted interest rate to address high inflation. the fed will meet in june to decide if there is another hike or not. this is about 50 minutes. ost so she's very comfortable on stage, very comfortable -- >> [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> i guess we can get started. thank you all for being hear, hear it is a true honor today to have chair jay powell and former chair and nobel laureate ben bernanke with us today. thank you very much for being here. i very much been looking forward to this conversation or i'm sure our audience has come to, so let's just get to it. this conference as are the windows is to the memory of -- order this morning we heard some personal reflections on working with thomas from secretary janet yellen, also former chair on the fed, and from president john williams. and both of you worked closely with thomas as well. i would like to you both an opportunity to share your own thoughts about his contributions as an e

the digital the federal reserve is also considering a cbdc the digital dollar. there are many downsides to a digital dollar, including significant primary embassy concerns and making all transactions visible to the federal government. it would the fed's power and vote its already balance sheet as massive new deposits are added to its books offset these deposits. the fed would have to invest in assets which raises the potential for it to invest politically favored industries and allows it to cut off credit to industry that are out of favor at its most extreme. a digital dollar has the potential to nationalize the banking system and to make private banks obsolete. it would be hard for private entities to compete with the government, which does not have to show a profit despite these problems. alex i think that the desire of the fed protect the dollar from competitors like the digital yuan would eventually drive it to recommend a digital dollar to. congress. worldwide creation of cbdcs would lead to the delicious irony that cryptocurrency, a medium established as a

can you explain how supervision by you was conducted jointly by the federal reserve? i want to show -- >> we will assign dedicated examiners, in this case there were two dedicated examiners. we meet with our regional federal partners, and we become involved in the scoping and planning of exam, segmenting the different areas and in this particular batter we took the areas of governance and management from enterprise perspective -- i.t. review and asset review. more enhanced reviews as they related to capital and liquidity risk. they were taken primarily by our federal partners who did the review. but we are in collaboration with our regional federal partners when it relates to larger banks. when we say larger banks, banks that are over ten billion in assets. and when the banks reaches a point where it's over 100 billion in assets, it even goes to another level of review under the large foreign bank organization. >> thank. you >> your report states that from late 2021 throughout 2022, dedicated examiner in charge highlighted the need for additional resources to review as

right now the federal reserve is offering over 5%, money market buys an asset federal reserve, sellst back. and so, in my mind, i'm wondering if the fed knows this, can they make this number lower, can they do something to curve the outflow of depositors from money market funds, rather, this is too enticing for anybody in the business to give up. irony as long as it is this high people will charge out of these bank accounts, make these banks wobbly? >> yeah. that is the interesting part. the federal reserve is an active factor in this competition between money market yields and low yields on bank deposits but i think that the federal reserve will not be very eager to do so for example, by lowering yield it is giving on reverse repo facility, basically you choose sides. also a question why don't these banks not increase their yields on these deposits to i have got depositors? when you say i will lower it, you give competitive advantage to the banks and not to the money managers. i don't think that the federal reserve would want to do that. don't want to take sides. so i think in the l

>> this problem resides with the federal reserve.but this fed raise rates much more than the forward guidance suggested. they put those rates way above where the market suggested last summer based on the inversion of the yield curve and the banking system and lending system doesn't work when you have a higher short rate versus the long rate. the yield curve is not only a predictor of recession but causes recessions in the fed will now regulate the smaller and medium-sized banks when it was fed policy that caused the crisis. given the tightening and lending standards we saw in january before this svb situation arose, banks were already tightening lending standards and small, medium and large banks at the fastest pace since previous recessions. i can imagine that when we get the data week from today, that's going to show further tightening and lending standards and that's unambiguously bad for the economy. lisa: you just set a number of things to dig into. if you are saying that they raised rates so quickly that the banking model did n

the us federal reserve raises the cost of borrowing again — to a 16—year high. has it finally done enough to tame inflation? also coming up — more controversy in the pipeline as oil giant shell announces another multi—billion dollar quarter. plus — deserted by a changing economy. the towns and villages in rural spain that are battling for survival. hello, i'm sally bundock with the top business stories. and we start in the united states where the central bank, the us federal reserve, has raised the cost of borrowing for the tenth time. the quarter—percent rise puts the fed's main interest rate at between 5 and 5. 25% — the highest it's been in 16 years. but has it done enough to tame inflation? or with banks struggling and recession looming, has the fed gone too far? our north america business correspondent samira hussain reports from new york. inflation remained stubbornly high, to try to get the cost of living back down to more normal levels the federal reserve has raised interest rates ten times in a little over a year, now it seems it may be ready to perhaps

can you explain how supervision by you was conducted jointly by the federal reserve? i want to show -- >> we will assign dedicated examiners, in this case there were two dedicated examiners. we meet with our regional federal partners, and we become involved in the scoping and planning of exam, segmenting the different areas and in this particular batter we took the areas of governance and management from enterprise perspective -- i.t. review and asset review. more enhanced reviews as they related to capital and liquidity risk. they were taken primarily by our federal partners who did the review. but we are in collaboration with our regional federal partners when it relates to larger banks. when we say larger banks, banks that are over ten billion in assets. and when the banks reaches a point where it's over 100 billion in assets, it even goes to another level of review under the large foreign bank organization. >> thank. you >> your report states that from late 2021 throughout 2022, dedicated examiner in charge highlighted the need for additional resources to review as

the federal reserve is slowing its role.. >> tremendous report. let's talk again soon before the week is out. thank you. the latest on pac west. when you have this number at fincher deposits totaling 75% at pac west, if that is the case, does the shift in the fdic's seem to mean anything to our profile? >> is not about that. it's about, as he was talking about, the commercial real estate. the best chart out there is from chris whalen. i can't remember where it was, but it shows the market has a loss summed across the banking industry, and that is not why -- i am gloomy and without hope, but the answer is, i look at this conversation, and a guy hasn't slept in three weeks. let's start with that. the answer is, people like him are trying to sort out things, what the banks don't want to talk about or don't want to avail you. that is the key thing. >> one target to the next. it is brutal stuff. we need to talk about the bond vigilantes. going into banks right now, one to the other. in the first republic we go to pac west. and th

jonathan: the federal reserve a little bit later.s anticipated more policy firming will be appropriate. how do you expect the language will change in this statement? >> i think it's going to change to be more equivocal instead of talking about additional policy firming, they should talk about any additional firming will be dependent upon and talk about the economic conditions as well as the assessment of financial conditions. it will be an equivocal hawkish bias but not point directly to tightening. it will keep the conversation on the possibility of tightening. lisa: do we have a sense of the balance of risks in terms of inflation re-accelerating versus a financial market crash with lag effects just starting in the regional banks? >> as you noted, there is a lot of risk here with inflation that still elevated and showing quite a bit of persistence. there is stress in the financial system. i think we should mention that everything that we see is telling us we have underlying, strong private sector. this is not a private sector that i

can you explain how supervision by you was conducted jointly by the federal reserve? i want to show -- >> we will assign dedicated examiners, in this case there were two dedicated examiners. we meet with our regional federal partners, and we become involved in the scoping and planning of exam, segmenting the different areas and in this particular batter we took the areas of governance and management from enterprise perspective -- i.t. review and asset review. more enhanced reviews as they related to capital and liquidity risk. they were taken primarily by our federal partners who did the review. but we are in collaboration with our regional federal partners when it relates to larger banks. when we say larger banks, banks that are over ten billion in assets. and when the banks reaches a point where it's over 100 billion in assets, it even goes to another level of review under the large foreign bank organization. >> thank. you >> your report states that from late 2021 throughout 2022, dedicated examiner in charge highlighted the need for additional resources to review as

>> in the federal reserve in the state in the fdic. >> mr. shea -- shay, same question. >> and i will chairman, i don't recall ever meeting somebody from the cfpb. >> mr. roffler, same question. >> i don't believe it with anyone from the cfpb but they did periodic exams in visits to first republic. >> and you think that the cfpb, mr. roffler, could've been more helpful? and helping you avoid -- >> i think the cfpb, along with other regulators, interacted with, we ensured that we had a very professional relationship, and we shared with them what the bank was up to and with the strategy was and how results were, and they did a thorough examination, and so we responded with feedback. >> mr. becker, did you steal, convert, or otherwise effect and if you stop in the 12 months proceeding? >> i sold, there is no stock that was sold in 2022 -- >> into the mic, i can't hear you well. >> there was no stop, and so many stock in 2022, and in 23 i sold after earnings release, after was reviewed by our legal team myself that i did not have inside informati

on the cd side, , beginning with his work with me, he had a tremendous input into the federal reserves framework come working on inflation, targeting, work on the more recent fed framework that he did work on sure john williams talked about his work with thomas on the natural rate. he worked on the effects of deficits on interest rates, again another contribution. a person made a lot of intellectual contributions that are important but as a person he was just a very warm, kind, friendly, helpful person and he was just a joy work with, and i'm glad to be here to say this about him. >> thank you. >> thank you, trevor. so first of all of you say this conference is a very fitting tribute to thomas and really honored to be part of it. let me add my thanks to those of us who made all this happen here today. i first met thomas when it joined the board as a governor in may 2012, almost exactly 11 years ago, and in preparing to join the board in the early years of the board i was very focused on developing a deeper background in macroeconomics and monetary policy. many people here at the board

on the east coast, today bracing for impact as the federal reserve announces its decision on interestates today at 2:15 p.m. eastern time after another session of confidence shaken in the banks. were expecting a quarter-point hike, the tenth consecutive rate hike since last march from the federal reserve markets are higher, u.s. future indicated again in 40 points, the nasdaq and 46 and s&p hundred higher by six and a quarter right now full analysis all morning long the wall street journal chief economics correspondent is here as well as give the city reserve president thomas hoenig this as regional banks are rock by rocket turmoil finishing at the lowest level since 2020 despite the first public takeover. although stocks lower after the close more earnings on the way cbs and kraft heinz coming up over the opening bell, qualcomm is coming out "after the bell" tonight we are also standing by for apple out tomorrow we have a preview, a snapshot of the private sector job as we get the april adp number this morning at 8:15 a.m. eastern and head of the april jobs report coming out on frida

stress about it in case of the worst case scenario and this is something that the efforts of the federal reserveresolve. {eek reserve and the government in march didn't resolve.- march didn't resolve. 0k craig, aood to march didn't resolve. 0k craig, good to see — march didn't resolve. 0k craig, good to see you. _ march didn't resolve. 0k craig, good to see you, we _ march didn't resolve. 0k craig, good to see you, we will- march didn't resolve. 0k craig, good to see you, we will see i good to see you, we will see you again soon. let's get some of the day's other news. the uk's financial watchdog has announced plans to shake up its rules in a bid to attract more companies to list shares on uk stock markets. the financial conduct authority said its proposals would simplify regulations to make the uk "more competitive" with stock markets abroad. the move comes after british tech firm arm and other businesses have shunned the uk and chosen to list in the us. the chief executives of alphabet and microsoft will meet with american vice president kamala harris to discuss key artificial intelligence iss

is right way and the federal reserve is right to take a break after the last rate hike and seeightening play out and it seems on these numbers that we've seen over these numbers that we've seen over the last few months that things are responding to the tightening cycle. ole gunnar solksjaer say the fed might waitand ole gunnar solksjaer say the fed might wait and see and see how the filters come through it but it takes time for it to happen and it's not an immediate response. when you announce rate hikes part of it is psychological and you see a visceral reaction to the news that cost is going to be more, but it filters through the mortgages and what it does to the housing market whether it is businesses holding back on investments they might have made because they can't get loan so cheaply. there is a time lag, and that's why the fed has decided perhaps it might pause, see how things play out, the more hikes are warranted. there's been a lot of debate and conversation and questioning of the fed because they were wrong and how they initially characterised inflation is transitor

the reason the national debt is so high now is because of the federal reserve system. the fed is a private corporation. when john f. kennedy was president he repealed the federal reserve back to replace it with the u.s. treasury. when lyndon johnson became president he put the federal reserve system back in effect. most of the national debt is money owed to creditors because of the federal reserve system. if you can get rid of the federal reserve all over again and replace it with the government such as the treasury, the national debt would evaporate. host: ok can. -- duncan. appreciate those thoughts. daphne, alabama. mark is on the independent line. go ahead, mark. caller: good morning, c-span. i have been listening to the callers on hold here. the main thing i see with regard to this is that the politicians in power up in washington have no desire to do the right thing or fix what we perceive is wrong. they have a desire to stay in power and enrich themselves and their friend, whatever they call themselves. republicans or democrats, it does not matter. they are star

between 2018-2023, federal reserve sent your bank 68 matters requiring attention. mras and matters requiring immediate attention, which highlighted the liquidity and risk management sufficiencies of svb and building upon my colleague across theis aisle. were you aware of these supervisory notices yes or no? >> i don't know the numbers you're -- >> yes or no. you're a very smart man. yes or no? >> i was aware of the 31 regulatory findings. >> svb was aware and you and your executives repeatedly ignored them. you failed to address the notices points in the painted out year after year after year and it's not your fault for what happened ultimately and failure to address supervisory notices uand unacceptable and your pay rocketed and the benefits for mismanaging your risk and maybe that's why you're not as uncomfortable as i think you should be today. you're sitting on $1.5 million bonus. as well as $1.5 million bonus in light of your failure to mitigate the risk and do you feelel you mitigated the risk? >> congresswoman, the numbers with the incentives that were set u

under section 16 of the federal reserve act, the fed can issue, quote, federal reserve notes, end quote. but cbdc's are not federal reserve notes. the law restricts reserve notes printed by dyes including a detailed process that clearly does not apply to digital money money. the federal reserve says it cannot do this without congressional authorization. they published a report in 2022 and said it would not issue a cbdc without, quote, clear support from congress, quote, in the form of a specific authorizing law. fed chair powell has personally affirmed that view on multiple occasions since the report was published. for example, last september he said during a panel discussion on digital finance that the fed would need approval from both the executive branch and congress to move ahead with the central bank digital currency. although the fed understands that it cannot issue a cbdc from congress, some commentators continue to suggest that legislation is not necessary. they are wrong. the framers of the constitution understood the importance of a strong and stable national currency which is

the us federal reserve raises the cost of borrowing again to a 16 year high. and we'll look ahead to the euroipean central bank decision expected shortly. welcome to world business report. here in the uk the competition and markets authority is launching a review of the artificial intelligence market. it will include the models behind popular chatbots like chatgpt. ai industry has faced scrutiny from regulators lately, over the pace at which it is developing technology to mimic human behaviour. the uk watchdog will assess whether or not ai provides an unfair advantage to companies that are able to afford the technology. let's speak now to stephanie hare, who's a tech expert. what will this review focus on? it will focus on may two things. because this is the competition authority, it will focus on ensuring open competition and consumer protection. that is very different from what we have been hearing leaders in al worrying about, which is a existential threat to humanity. it was only in the last few weeks that the godfather of ai quit and he talked about the d

>> and the federal reserve the state and fda seat. mr. shay same question progress in my role as chairman i don't recall ever meeting anyone from the cfpb. >> okay. mr. roffler same question progress i don't live i've met with the look from the cfpb but they did periodic's exams and visits to first republic. >> okay. you think this cfpb could have been more helpful in helping you avoid? >> i think this cfpb along with our regulators we interacted with we had a very professional and open relationship. shared with the bank and set up to what the results were. they did thoroughat examinations and respond to feedback. >> mr. becker refute sell, convert or otherwise affect any of your stock in the 12 months precedingou? >> there's no stock that was sold in 2022. >> into the mic i cannot hear you. >> there was no stock i did not sell any stock in 2022. and in 23 i sold after our earnings release after it was reviewed by our legal team and myself i did not have inside information. i put a in place in january that was sold as expiring stock optio

i think what the federal reserve is locked into is more a function they really don't want to go back an and chew their tobacco twice. i know it's old school, but if you turn the gas down and it starts to choke, you crankit back a little. can't do that with the economy if you overtighten, it isn't a matter of just going back half a turn on the screw. what it means is you have to go back and try to save face because you went too far >>. >> kristen, we've seen the dow fluctuating between gains and l losses the real fireworks come at 2:30. >> we're going to be watching that press conference closely. the comments about that something is going to break. there are things that are clearly breaking and so i think this commentary around the fact it opens up the potential for a pause, that is what we were hoping for and expecting i know some people are looking at equity markets, but q4 earnings, we have seven out of 11 sectors in a -- we know about the breadth of this equity market rally where you have sechbl companies comprising the gain >> jim, is this the pause you were looking for when they

and then we get the lending rate over 5%, which the federal reserve less money to banks. they mark it up and they want to corporations and the lead to you. and i was very likely that that's going to happen even though we start to see inflation coming coming down quickly. so george, even the fed of admitted that it was not keeping his eye on the ball with some of the issues about surrounding the silicon valley bank. so, you know, that makes people nervous. what is your advice for? >> regular people, again, who have their cds in these smaller regional banks and now wondering if the big banks are going to honor everything that they thought they had before the collapse. well, regular people don't have more than $250,000 of cash laying around to be put in the bank's. it's really more the big businesses. >> that a 50 million dollars for payroll and that sort of thing. and so that's where, you know, the risk really is. but for the common people out on the street banks that are fdic insured, have that insurance of the government, not just the bank, but the but the but the insuran

i mean, how can a bank be hurt by a federal reserve interest rates higher? i mean, i'm surely isn't an interest rate as something but banks pass on to that customers . so oh, that is absolutely true. i mean, what tends to happen of cost is to interest rates a high, then what you owe are on the way up, what banks do is that they charge a lot more on the loans, but they don't necessarily increase deposit rates, interest rates, as fast as that so they make a big a margin. so if you are a normal retail bank, which is diversified, then you do reasonably well, but interest rates go up. you don't just so well, but interest rates are low. and the trouble is, of course, according to the bank. so we're talking about but also why the, if you look at what happened over in europe with credit risk is that you have a retail bank. you have the commercial side of it, which of course lends quite a lot to businesses which may be great to difficulty because of the higher interest rates themselves. so they have to pay on the loans. and then you've got a wealth management divisio

you're just meddling with the independence of the federal reserve.posed on the independent of politics, independent of the political branches. >> well, briefly what i would say is politics isn't the only thing that can capture an institution. managerial bureaucracy can too, a bunch of rogue bureaucrats in the late '90s kid the same thing. what i'm talking about is leadership, principle for the american people, not the kind of corruption that you would worry about with the president offering leadership and vision. paul: if all right. vivek ramaswamy, thank you for that provocative take on the fed, we appreciate it. >>> when we come back, treasury secretary janet yellen warns that the u.s. cocould rub out of money to pay its -- run out of money in a matter of weeks as democrats are refuse to negotiate on spending reductions. so who will blink first in the debt limit showdown? ♪ the first fda-cleared at-home skin tag remover clinically proven to remove skin tags safely in as little as one treatment. that the . could run out of i'll always take care of y

the federal reserve hikes rates to their highest level in 16 yea rs. we look at the impact on the us economy, and beyond. plus, from pakistan to ethiopia, how the cost—of—living crisis is taking a toll on the elderly around the world. hello, and welcome to asia business report. i'm monica miller. we begin with the federal reserve�*s decision to raise interest rates for the 10th consecutive time injust over one year. america's central bank increased its key interest rate by a quarter percentage point and that is a move that was expected. the cost of borrowing is now at its highest in 16 years, but is the fed finally done with rate hikes? the bbc�*s samir hussein reports from new york. inflation remain steadily high. to try and get the cost of living back down to more normal levels the federal reserve, america's central bank, has raised interest rates ten times in a little over a year, and now it seems it may be ready to perhaps take a pause. the committee will take into account the cumulative tightening of monetary policy, the legs with which it lacks i