>>> breaking news this morning first republic bank is the third major u.s. bank to fail tin the past two months. the regulator set to have jeff penno -- jpmorgan chase take over >>> the monthly jobs report and earnings it is monday, may 1st, 2023. you are watching "worldwide exchange" here on cnbc >>> good morning welcome to "worldwide exchange." i'm frank holland. let's chkick off the fumorning f the futures. jpmorgan chase taking over first republic we will continue to watch futures. the bond market this morning the 10-year treasury at 3.46 the 2-year treasury still above 4% something to watch as we continue to watch the market action today >>> let's get back to the top story and breaking news. california regulators seizing first republic bank in what is the third u.s. bank to fail in the past two months. the second largest ever to fail in the united states the fdic says jpmorgan chase will assume all deposits in a statement, jpmorgan chase's ceo jamie dimon saying our government invited us to step up we did our strength and business model allowed us to de

. >> regulators sooegdz first republic bank this morning, first republiced so many or has been sold to jpmorgan, jpmorgan going to seem all first republic deposits by buy most assets jpmorgan will assume all first republic 92 billion dollars in deposits by most assets, including 173 billion in loans, 30 billion in securities on the books, first republic shares halted in premarket we showed you stock before, obviously, in red but halted. i spoke to capital group achieve financial straightest dick bove listen. >> you can expect to see going forward, is that entrepreneurs will continue to attack banks seeking other witnesses to drive into bankruptcy it is a highly profitable effort to do so. the government is going to have to shore up its -- major massive weaknesses in terms of bank regulation, but going in, and increasing the real equity of the banking system. >> joining me now strategic wealth appearances investment strategist luke lloyd your reaction to what dick bove told me earlier in the show. >> i had radio on not kidding another one bites the dust came on that was perfect song for

you have first republic resolved. operator with strong capital, that allows them to do the transaction. it's going to be rare. it really was caught by friendly fire. jonathan: that's the latest on the mess between the banking sector, jp morgan, first republic. jp morgan acquiring first republic bank in government intervention. jp morgan will host a call on this. call will take place after that at 830 a.m. eastern time. that will feature jamie dimon and the cfo. this line here, just over one month, svb was the second largest bank failure in u.s. history. now that title goes to first republic. we have the number two and number three biggest bank failures over the last couple of months. the s&p rallied in march and april. lisa: the fbi see encouraged big banks to deposit $30 billion with first republic and nothing came from that. the stopgap measure didn't work. it is still forcing them to come to the table and share the losses in this acquisition. jonathan: the stock is up by 3.7% in the premarket. let's get to david, t

>> first republic depositors ar safe. their deposits are guaranteed, so they have nothin to worry about. if anything, it is the deposits of other banks that would potentially worry about the banks. >> what do you mean other? what are the other worries? >> silicon valley bank and first republic bank are not really isolated incidents. there are at least 200 banks at similar risk of ur surepo migdecide toey. why is this the case? well, the fed raised the interest rates, the assets of the banking system to client by about $2 trillion. there is significant number of banks wit a current value asset , less than the value of their liabilities. in the u.s. system, we are talking $9 trillion of bank funding that i insured. so that has not been fully resolved. >> the question is, if rising asset interest rates cause devalued assets and they could go up again, is that to say tha similar fate could befall other banks? >> they could. if you look on the index of regional banks, there were failures today , so they continue to fail, and a

pretty flat after failed first republic is sold to jpmorgan. we'll monitor that. >> and take a look at this. this adorable little bear cub going viral for just doing his thing. we're going to show you why whe we're going to show you why whe we come banck our cucustomers dodon't do what thehey do for likes s or followewers. their papath isn't for ththe casuallyly curious. and that's's what makekes itit matter ththe most when t they find i it. the e exact thining ththat can chahange the wowo. some s say it's whwhat ththey were boborn to do.... itit's what ththey live toto . trinet s serves smsmall anand medium s sized businines. soso they can n do more of whahat matters.s. bebenefits. papayroll. comompl. trtrinet. peopople matter.. ♪♪♪ inner vovoice (kombubucha bre: ifif i just ststare at these payroll foforms... ♪♪♪ inner vovoice (kombubucha bre: my b business' p payroll taxs will calcuculate themsmse. ♪♪♪ inner vovoice (kombubucha bre: right?t? uhh.h...nope. right?t? intuit q quickbooks s helps u manage y your payrololl tax, right?t? chcheers!

first republics.ilure has prompted political questions this morning about the overall health of the banking industry. f d i c ah, those reserves are about one and a quarter percent of deposits, so there's no way to keep doing this. it just shows the banking system is not anywhere near collapse the way it was back in 2008, silicon valley first republic, they are less than 1% of u. s gdp. they could be completely annihilated in our economy would not crash. never again all depositors and customers. mortgage holders of first republic bank, nothing changes for them, they'll still be able to access all of their accounts. the losers in this arrangement, however, our first republic shareholders and debt holders, they will not get anything as part of this arrangement live and walnut creek ali rasmus ktvu. fox two news, ali. thank you. school is in session today across the oakland unified school district , as negotiations continue between the teachers union and district district sent a note out to parents and f

first republic branches across the u.ee behind us. there's people working here, so we've talked to a couple of customers who come out so far this morning. they said that everything was well done. everything was professional. they had no problems. taking care of their finances this morning, even though this bank is now owned under new management, this is jpmorgan chase has agreed to take over first republic bank affective overnight. the f d i c announced that first republic is no more the bank collapsed. its failure is the second largest in u. s history, second, only to win washington mutual failed in 2008 now like silicon valley bank and signature bank, which also failed earlier this year. first republic was played by a lot of the same problems, mainly depositors withdrawing a lot of their money in a short amount of time. almost 70% of depositors at first republic bank have a lot of money here above that, $250,000 fbi see insurance threshold, so when they pulled their money out, the bank was in dire straits first republic

it includes a majority of first republic assets. including $173 billion of loans and $30 billion of securities. specific terms for first republic underwater assets are not known yet. we will learn more about that in the next few hours the fdic and jpmorgan chase entered a loss share agreement and recoveries from the first republic single family and residential and commercial loans if purchased jpmorgan chase will assume $92 billion in deposits. that includes the uninsured deposits from the ma march agreement to contain any contagion from silicon valley bank and signature bank. jpmorgan chase will repay the deposits from the large banking peers. first republic will go down as the second largest bank failure in u.s. history. that is bigger than silicon valley bank. in a statement out earlier this morning, jpmorgan chase's ceo jamie dimon said the government insicitsivited us to step up. we did we executed the transaction to minimize cost to the deposit insurance fund fdic estimates the cost to the fund is $13 billion as a result of th

now, the authorities in the states say they have seized first republic bank. it's been closed.ionalfinancial regulator, the fdic or the federal deposit insurance corporation, has been appointed as the receiver. now, the fdic says thatjp morgan will now assume all of the deposits and substantially all of the assets of first republic bank. and the two are going to share the losses, although it's not clear exactly how much of these losses each party will take, nor how much jp morgan paid to take over the failed bank. now, this is the third us bank to collapse this year after of course silicon valley bank and signature bank collapsed just about two months ago. but what differentiated first republic from other banks is that many of its customers lived on the coast and were high net—worth individuals. now, what this means is that they wouldn't necessarily be insured by the us regulator, which only automatically insures funds up to about $250,000, and that they were watching instability in the banking sector and therefore they were quick to withdraw their funds when things looked conc

regulators seizing first republic bank and agreeing to sell it to jp morgan this morning, first republicd largest bank failure in u.s. history. shares of first republic halted in the premarket. a treasury spokesperson telling fox business treasury is encouraged that the institution was resolved with the least cost in the he deposit insurance fund, 13 billion, you can give your opinion on that the banking system remains sound and resilient. joining me now, texas congressman, roger williams, member of the house financial services committee. congressman, your reaction to the now takeover, the absorption by jp morgan of first republic. >> well, i think it's good news, actually. it creates a calming effect for main street america, the small business owners and big investors. so i think it's the right thing and we don't have the people bailing someone out again, the bank stepped up and looks like they made a good investment. i think it's a good deal, it's good news this morning. cheryl: you think it's a good deal. we'll see if other banks follow. we've had strategists come on saying they're co

. >>> at 11:00, a historic takeover of first republic, the biography buyout announced overnight and what experts are saying about the money in customers' accounts. >>> first, we are following breaking news. firefighters in alameda county at the scene of a fire at a commercial building. this is happening around teagarden street in san leandro. we are still working to learn what led up to fire. of course we are asking those questions about what's going on there and we'll have those later for you throughout the show or online at nbcbayarea.com. if you're in that area, you are asked to avoid that area. >>> good morning to you. thanks for joining us for our midday newscast. i'm marcus washington. >> i'm laura garcia. now to our other top story, another major bank going down, being taken over by federal regulators. san francisco-based first republic has been sold. >> nbc bay area's pete suratos joining us live from outside of the mill valley location with details on that sale. pete, this is a major transition. what do customers need to know? >> reporter: some customers were aware of the sale,

now they own first republic corp. there anymore first republics out there? what is banking regulation going to look like going forward? are we growing to going to have series of forced mergers which essentially is covering -- essentially saying deposit insurance covers everybody's deposits if you keep merging these things, your bank goes under you do have an out if you can find a buyer with total deposit insurance and these are big questions that regulators will have to ask going forward but right now this is in jpmorgan's hands and there is a debate whether there is more left out there. back to you, liz. liz: which we have talked about a lot. charlie monger says problems ahead, not necessarily about that but something that could trigger it, would be commercial real estate loans going bad, who knows. >> right. liz: thank you, charlie. the regional bank crisis notwithstanding one of the most widely followed investment strategists on wall street is bearish on stocks for some key reasons. for right now, speaking of the b

as you can see, there is the stock of first republic, 46% decline but again, as of this morning, all se is heating up. gerri willis has all the details. good morning. >> tim scott teasing a major announcement about this intentions for 2024. listen. >> two more years, it's going to be hard as a dickens to suffer through. six years, somebody give me a seat. [laughter] >> lord have mercy. can't do it. to no way. no how. that's why on may 22nd you should be in north charleston, talking about solutions. >> the republican senator launched his exploratory committee last month. armed drones and navy ships are resrescuing hundreds of americas from war torn sudan over the weekend. brunswick arrived to assist with the efforts. two americans have died in sudan since violence broke out the in the country. several attempts at a cease fire have failed. back here state side, new york city b planning to hand out 500 free apple air tag trackers in an you attempt to curb carjackings. they will be distributed to neighborhoods hardest hit by rising crime. in san francisco, employees at a whole foods repor

francine: talk to me about the first republic deal.ou could either say this pu ts the turmoil behind us, or jp morgan now has 15% of u.s. deposits. >> from a short-term perspective, it suggests the banking crisis that has been rumbling on for a while should be over, at least the acute phase. no surprise that the regular picked a bank that could take all of first republic off of its hands, that is why j.p. morgan was chosen to run that pain. -- thing. for jamie dimon, jp morgan gets bigger and bigger. tom: headcount is being trimmed at morgan stanley, 3000 additional. does it signal there are further cuts to come through? >> the most interesting thing from that story is that cuts will not be part of morgan stanley wealth management. that has been excluded, but it will be hitting their trade and banking arms. from the outside, the investment bank will be getting hard-hit. these are big numbers. it is interesting to hear noel quinn and the citi ceo. francine: adjusting is the new work. tom metcalf with the very latest on banks. ibm plans

jpmorgan has acquired all of first republic's deposits and a substantial majority of assets after firstepublic became the second-largest bank failure in u.s. history. this happened even after a group of major banks poured 30 billion into save it but since no rescue plan was agreed upon, federal regulators had to seize it, and then sold it to jpmorgan which ironically gets even bigger. treasury says the banking system remains sound and resilient and americans should feel confident in the safety of their deposits. jpmorgan ceo jamie dimon just said the first republic deal has not changed the odds of a recession, so it doesn't seem to be panic in the market today. stuart: right. lauren: the federal meet this week with this in the backdrop and likely going to hike by 25 basis points. right now it seems contained, although some pockets are very nervous. stuart: and the reaction in the market thus far this morning has been the big banks, their stock price is going up. smaller regional banks, stable- to-lower. lauren: to lower. stuart: that's the net result of where we are this morning. lauren

two silicon valley banks and now first republi- and now first republic there were amoni the and nownow first republic there were among the 20 biggest _ and now first republic there were among the 20 biggest in - and now first republic there were among the 20 biggest in the - and now first republic there were among the 20 biggest in the us. | and now first republic there were - among the 20 biggest in the us. and ou sa among the 20 biggest in the us. and you say that — among the 20 biggest in the us. and you say that hopefully the last but i'll be seeing some kind of chaos here in the overall banking system? what we are seeing here is a combination of two things, very rapid rise in interest rates and the fed expected to raise rates again this week for what will amount to five full percentage points of increases since last march but also, increases since last march but also, in the case of these banks that failed, and idiosyncratic loan, these are highly risky loans and in addition to that there was a small group of depositors and what we saw in all three cases was social media —induc

first republic taking on portions of the loan book and deposit base and a deal negotiated with regulators. jp morgan higher by 2.7%. let's get more details from first republican, bringing in embarq's -- bloomberg's sonali basak. bring us the details on the jp morgan deal to acquire first republic. >> we are watching the biggest u.s. bank gets bigger as we know there are other bidders behind the scene. we had reported that apollo and blackrock had supported, for example another bank to buy the company as well. jp morgan emerged as the biggest bigger -- better and most successful, the cost of the fdic was the least under the jp morgan acquisition. any other politics a come up by on this is up for debate. the question here, does the stem the banking crisis? we see california lenders going through a series of struggles, some have failed. this is another major deal. it certainly gives jp morgan an even more attractive base of customers. high net worth individuals. when you look at first republic there had been a lot of fleeing already. this deal is a coup for jp morgan. ed: going back to when

saved by the bell — jp morgan takes over troubled first republic bank, averting another banking crisisor the time being. elsewhere in the banking world — no troubles for hsbc, as europe's largest bank announces pre—tax profits of almost 13 billion dollars for the first quarter. and australia at a crossroads — environmentalists want more to be done to reduce the reliance on fossil fuels, but energy companies insist they are still needed. hello, i'm sally bundock with the top business stories. let's start in the us where some of the worlds leading money managers are warning the collapse of another american bank could lead to a credit crunch and an economic slowdown. constrained lending as a result of stricter banking regulation could stifle credit to the us economy at a critical time. we'll get an expert view on this in a moment but first here's my colleague samira hussain on the collapse of first republic. as of monday, first republic customers turning up at their bank are in fact customers ofjp morgan chase. the signs above will soon change. first republic had been under pressure since

first republic was plagued by a lot of the same problems, mainly depositors withdrawing a lot of money in a short amount of time republic had more head wealthier clients. 68% of its deposits with $250,000 or more so, of course, it's understandable that people that have more to lose are more jittery. first republic disclosed it lost $100 billion in deposits last quarter. that's more than half of all the deposits it had at the end of last year. in a statement this morning, jpmorgan chase's ceo described the takeover of first republicans modestly beneficial to his company. it estimates it will make about $500 million in profit every year as the new owners of first republic. jpmorgan chase was already the largest bank in the u. s before this takeover. under federal rules, no bank is supposed to have more than 10% of the deposits across the us. jpmorgan has that but was allowed to buy first republic anyway. they probably have been required to make an exception. the jp morgan offer old old was the best deal and under the circumstances. uh it was better to make that exception in order to be a

all weekend, we've been waiting for word what would happen to first republic.knew it couldn't continue as a concern here. fdic would have to step in. and you went to bed thinkiing first republic is your bank, it's now jpmorgan chase, right? >> yeah, christine, all 84 branches of first republic will reopen this morning as branches of jpmorgan. this is different than silicon valley bank which was taken by regulators and stayed there for more than two weeks. this happenmuch more quickly over the weekend with that auction held on sunday. several banks bid it. it seems they reached that deal with jpmorgan. this will be the second biggest bank failure in u.s. history. the third bank failure since the beginning of march be but the biggest of three of those, and the biggest overall since the collapse of washington mutual all the way back at the beginning of the financial crisis. the great financial crisis. so the way this deal is structured, it's not your typical commercial acquisition because it came after that auction by the fdic. but jpmorgan will assume all of the

, if you have a mortgage through first republic, if you pay your small business payroll through first republic, what do you need to know? you're fine? >> you're fine. you're fine. in fact, all depositors in the united states today are fine. >> the new policy -- >> the new policy is first all deposits up to $250,000 are and have for a long time been guaranteed by the fdic. second, if your bank is threatened, becomes shaky, the federal authorities in recent weeks have made clear that they will protect all the deposits regardless of size. effectively, if the bank is sound, your deposits are fine. if the banks sbecome shaky, the deposits are fine. >> the two things we learned that help lead to this failure of first republic, two-thirds of the deposits were uninsured. if you talk about paying a payroll for a company of 100 people, a weak payroll, two weeks is going to top the fdic in the amount of $250,000. they have a lot of uninsured deposits. they also have a loan to capital ratio way bigger than most. they had more loan out than they had deposits in the bank. can you regulate against t

breaking news overnight, first republic bank is no more. the company took the bank over the weekend and sold it to jpmorgan. scott mcgrew joins me here. you say for first republic customers it's going to be business as usual. >> not even a hiccup. they were first republic customers and this morning they're chase customers. it's as easy as that. federal regulators took control of the san francisco regional bank over the weekend. this is the second largest bank failure in u.s. history, and it comes a few days after first republic said it saw a billion in withdrawals from nervous customers following the failure of another regional bank, silicon valley bank. chase the one of america's strongest banks, well familiar with first republic. chase ceo jamie dimon had worked with other banks on a rescue plan depositing hundreds of millions in first republic to help it out, but it didn't work. he said this morning, our government invited us and others to step up, and we did. >> so all the deposits in first republic are safe? >> 100%. accounts under a q

source tells cnn treasury secretary janet yellen had been in touch with regulators all week as first republic was teetering. jpmorgan says more than 800 of its employees were doing homework and due diligence on first public trying to get this deal done. ultimately first republic becomes the second biggest bank failure in u.s. history, second only to 2008 failure of washington mutual, but they are breathing a sigh of relief in washington and on wall street about how this deal gets done. the fact that jpmorgan is stepping up with a private sector solution is certainly better than a situation where the government had to control this bank and rescue uninsured depositors. john? >> matt egan, appreciate you kicking us off with the clear expla explanation. gina supply lek of the "new york times" is with us. matt describes this is allegedly the way the system is supposed to go. this is ben harris, economist for vice president biden, he said the system worked here, don't worry, listen. >> we got a very well-established bank obviously taking the bank over from the fdic which is exactly how the system i

first republic has failed in the us but it has been rescued and of course there are concerns about the wider banking industry and another us bank has collapsed and that has caused shock around the world. first republic will be taken over byjp morgan in a deal orchestrated by regulators and it has been under pressure for weeks as customers withdrew cash over worries about its future amid a rapid increase in interest rates. these coming just after the collapse of silicon valley bank. first republic has seen the deposits it held full sharply by more than $100 billion of the lost confidence in the bank and the rescue deal now meansjp morgan will take over $203 billion worth of loans and other securities from first republic. amid concerns about the health of the wider banking system, thejp morgan boss said this has helped to stabilise the system which in his words is a good thing. we can speak to our correspondent in the us. just when we thought the spotlight had shifted from banking, another bank is in the spotlight and another last—minute rescue deal? fin is in the spotlight and another la

this morning, another race to rescue first republic bank regulators sees first republic and quickly struck a deal to sell most of his operations to jpmorgan chase , marking the third major u. s bank meltdown in less than two months. the f d i c will share losses, with the bank agreeing that it's insurance fund would take a hit of the 13 billion in the deal. the f d i c announcing 84 1st republic bank branches across eight states will reopen the this morning as jpmorgan chase bank branches, francisco based first republic saw its stock plunged 75% last week after revealing account holders withdrew 100 billion in deposits during the recent banking crisis deposit flight was greater than expected. the u. s financial system still aching after back to back bank failures starting march 10th with the silicon valley bank collapse two days later, signature bank failed, and by march 16th as investors raised red flags about first republic 11. major banks supply the $30 billion cash infusion, sources telling abc news jpmorgan ceo jamie dimond, treasury secretary janet yellen and fed chair jerome powell

isolated to first republic.bank that went under in march, their business tied directly to the tech market. when you look at other regional banks, they're not necessarily serving the same consumers and they're not facing the identical issues. many of them according to the treasury are in a much more sound place. >> will this have an effect on those who don't bank there? >> reporter: it can have a liple effect. one of the biggest concerns is not a 2008 style financial crisis like what we saw previously, but an issue with access to mortgages, access to credit. when banks face issues like this, because of the risk they took on, consumers who want to do more banking, who want to take on a loan to get a car, buy a house, take out a loan to expand a business, can face a more uphill battle because banks are tightening up. they're restricting some of that lending. so that could be an issue. so could some of the regulations that come along. that could end up in more fees down the road. but again, these are not things that

will nobody is crying over first republic bank.ou don't want chaos and turmoil to spread to the rest of the banking system as well. >> do we think there is going to be more chaos in the banking system as a result of this? >> i've been talking to a lot of people over the weekend. you call this unfinished business. they think what happened with the -- all that money that was the life line that went six weeks ago -- >> yeah, the $30 billion. >> that bought it some time. it calmed down market fears. it bought time. it allowed the industry to be able to find a way to manage this problem. will there be more banks? no one knows for sure. i mean, three big bank failures in a couple months is really remarkable. but for the most part, most banks are perfectly healthy and will be able to manage this interest rate risk. >> can we talk about the fdic report? this is the root cause and what happened. the report said that because they have so many staffing shortages, that led to part of what we've been seeing play out with the banks. >> that fed

first republic stock is a zero it's preferred as a zero the debt, zero sorry.e tried to tell everybody last week, jim. >> you did on friday >> maybe i should have made it clearer. yeah >> you couldn't have made it clearer. >> for most of the week, really. i mean, yeah >> i made a joke with david that when david said it's worthless, the stock was at $5.30 and then it jumped to $5.50, which demonstrated the power of faber. the thing was worthless, and the media is worthless, away from david. >> listen to me now, believe me later. >> david says it's worthless and the stock goes up? who is doing this, the same guys who bought bed bath at $17, i guess. >> it was kind of -- yeah, it was a lot of different things going around last week, but i think we sort of had the story right, thankfully, from the beginning. i'm floating that private market -- that private solution that obviously then we reported was not looking like it was going to happen. but certainly nothing we take -- >> reporting does matter, david. it's easily ignored and the other guys have louder voices. b

federal regulators have stepped in to rescue first republic bank. it has been sold to jpmorgan chase after losing nearly $100 billion of its deposit this is year. the takeover insuring customers have access to their uninsured deposits. the third major bank to go under this year. this comes after the federal reserve in a scathing report on friday took much of the blame itself for the collapse of silicon valley bank in march. joining me now, cnbc senior markets correspondent, dominic chu, monica alba outside the white house. what does this takeover mean? how are the markets reacting to it? does this end the crisis or just another step in spreading crisis? >> those are all good questions. and i'll start with it by saying to try to answer all of them that this deal for jpmorgan chase to require them to buy after they held an auction where some other banks participated as well to see if they would want to buy those first republic assets. now, jpmorgan will get all of those deposits and substantially all the assets at the bank as well. now to put that in

might crop up for the banks. >> julianna, the first thing is the amount of deposit outflows in first republic was extremely high for the first few months of the year $100 billion you have to question if this will draw a line under a lot of the banking stress as we witnessed in the u.s. banks. does this put an end to it number two, this will resonate with geoff and steve, and you talk about concentration risk. usually one allowed to control r bank on a lot of people say this create s a too big a bank to fail geoff and steve, we are in a similar issue. the combined entity of ubs and credit suisse will have a combined shared deposit of 30% of the market share. >> yeah, the rules seem to be changing quickly as we were commenting on in "squawk box," we came out of ''08 crisis with a set of rules that we thought would be forever rules. they are being reworked on the hoof i'm not sure anybody thinks it is a great idea to have the concentration of deposits in a single entity. i'm not sure anybody thinks it is a good idea for the fdic to guarantee deposits of organizations 100% here. as much as the el

about $173 billion in first republic's loans.t does all this mean to people who have money at first republic? i think the key here is that your money is safe. those funds are just moving from one bank to another. officials say you're going to have full access to all of your deposits, even above the $250,000 that the fdic ensures. now, i think the bigger question, though, here, is what does all of this mean for the broader economy and the risk of a potential credit crunch? now, during a call during -- during a call today with reporters, jpmorgan ceo jamie dimon expressed some confidence here that this banking crisis could be wrapping up soon. >> getting near the end of it and hopefully this will stabilize everything. the american banking system is extraordinarily sound, you know, and obviously going forward you have recessions and, you know, rates going up and stuff like that, you will see other cracks in the system. that's to be expected. the system is very, very sound. >> now, i asked dimon if the first republic failure raises t

san francisco bay's first republic folds. we'll break down what exactly happened. >>> also, oakland teachers ready to strike. when they plan to walk out and the one thing that could stop them. >>> and everyone's still talking about steph curry's history-making game seven, but we've got to move on. next up, beating lebron james. we're joined by our warriors insider, monte poole. >>> good evening. i'm raj mathai. we're going to get to all those stories in just a moment. but we start with gray, windy, and really just gloomy. here's something we don't often say in may. rain. take a look. a lot of green. this is a wide view of our radar. let's take you outside now to the golden gate bridge. the clouds are moving in, so what could we expect in the next few hours and going into tomorrow? let's bring in our chief meteorologist, jeff ranieri. happy may. >> it's here. >> we had a great weekend. then all of a sudden, we're here on a monday and there's green. >> flashback to february kind of temperatures. we got this system out here off

jp morgan is buying first republic bank. are saying it takes risks away and it is a reminder we may see more issues ahead. in terms of possible downside moves people are saying the equity market is extremely hedged and we may not see a big downside moves. yields higher, two year treasury yield 1.1%. the euro-dollar up, but europe is on holiday and liquidity is an issue. oil falling, debbie ti 1.1 7%. we will get back to oil. let's look at thanks. jp morgan higher, kbw bank index higher. other regional banks still under pressure. we have heard from they jp morgan ceo saying we are getting closer to the end of the banking crisis. the cfo is reassuring investors this is far from 2008. but the question is as we get closer to the federal reserve meeting today, let's look at this chart which shows what market is pricing in. investors expect another 25 basis point rate hike. the biggest question for the market, will those small banks be able to handle higher interest rates, tighter financial conditions? let's look at prude market a

the first bank of republic is no more. following the collapse of silicon valley bank. this is the second largest failure of bank in u.s. history. we go to scott with the latest. in theory, scott, no one losing their money, correct? >> yes, with the takeover and the sale of first republic bank, all of the assets are safe and like before, guaranteed up to $250,000 per account, but like silicon valley banning, some say they are missing the personal touch of the smaller regional bank. >> reporter: a new day and new owner for first republic bank after weeks of struggling to stay afloat and worried deposit holders. >> it is a little disappointing and a little scary. >> we knew it would happen. >> nothing to do and it. >> reporter: first republic was seized by federal regulators and then sold to jpmorgan chase, and a simple switch for the first republic accounts. >> now they won't have the deposit with first republic, but with jpmorgan. >> with all 84 first republic branches and the accounts inside becoming part of the much bigger bank. >> and the depositors with $250,000 or

you look back at the great financial crisis 2008— 2011 you had over 400 bank failures so, yes, first republicficant. it is the first since washington mutual in 2008 but is this indicative of a more systemic problem? i suspect not yet obviously at the margin there are some original players which are feeling a great deal of pain right now. mil feeling a great deal of pain right nova— right now. all right. brilliant. _ right now. all right. brilliant. thank - right now. all right. brilliant. thank you | right now. all right. i brilliant. thank you so right now. all right. - brilliant. thank you so much for your analysis there. let's get some of the day's other news now. uk transport secretary mark harper has accused the rmt transport union of "cynically targeting the eurovision song contest" by calling strikes on the day of the final. rmt members are due to strike on 13 may after the union rejected the latest pay deal from train operators. the rmt said the rail delivery group, which represents the train operators, had torpedoed pay talks. adidas is being sued by investors who claim the firm knew

michael roffler former ceo present first republic bank. we thank each of you for big taken the time to be here for you each be recognized for five minutes giving oralro presentatn of your testimony without objection each of your written statements will be made part of the record. mr. becker you are now recognized for fivel minutes. chairs, bar and ranking members of foster and green and members of the subcommittee. thank you for the opportunity to appear before you today. my name is gregory becker i was the ceo of siliconem valley ban. i am here today to answer your questions about what happened at my memory.best of at the outset i want to be clear and never envision myself being in this situation. i was an employee for svp for nearly 30ea years and ceo for te last 12 years until his taken over by the fdic. i believed in the bank at its mission and cared deeply about our more than 8000 employees and their families. i was committed to our clients and helping them succeed whether they were well-known tech companies or small business founders

michael roffler, ceo of first republic bank. we take all of you all for being here, you will all be recognized for five minutes to give an oral presentation of testimony but without a objection, all of your written statement will be made part of the record. mr. becker, you are now recognized for five minutes. >> huizenga, ranking members green and foster, and member of the subcommittee. thank you for the opportunity to appear before you today. my name is greg becker, and i was that ceo of silicon valley bank. i'm here today to answer your questions about what happened at svb to the best of my memory. at the outset, i want to be clear that i never envisioned myself or svb being in this situation. i was employee for svb for nearly 30 years and ceo for the last 12 years until it was taken over by the fdic. i believed in the bank and its mission and care deeply about art more than 8000 employees and their families. i was committed to our clients and helping them succeed, whether there were well-known tech companies or small business

first. republic bank has been so yeah, it happened in the overnight hours. the bank was first seized by the government and then immediately sold to jp morgan lots to cover this morning. kron four's will tran standing by live. >> in san francisco will you covered the collapse of svb now first republic. yes, this is the second or 3rd, i should say collapse of a midsize. >> bank in the past couple of months, he talked about silicon valley bank than their signature bank. and now first republic bank. the signs will need to be changed because as of this morning, they are now owned by jp morgan chase. after over the weekend, there was a bidding process. many banks. they put their bid in. and then late last night, it was decided that jp morgan chase with own first republic moving forward. first republic bank. here's what you need to know. if you have about $250,000 or less, you are guaranteed. no problems. nothing will happen to your deposits. the bank. they mostly cater to the wealthy and a very powerful, including facebook's mark zuckerberg. they give him loans. it

in 2018, first republic spent $370,000 on lobbying. this was the highest lobbying spending in the bank's history. he recall what legislation might have been of interest in 2018? >> thank you. i was not ceo at the time. i was not at the bank and there were two topics that came to mind. one is what you referenced before, as 255, the other was around tax deductibility around student lending and contributions to student loan forgiveness or student loan repayment plans. >> you were urging congress to rollback the dodd hank standards for regional banks? >> i believe they were speaking with congress about the rules as one of the panelists mentioned. at the time as i mentioned, i'm not entirely familiar with all of the communication. >> where you at the bank at all? >> i was. >> we are not privy to discussions about your lobbying efforts? >> not always, no. >> it seems to me you are lobbying for the changes that may have resulted and some of the failures but thank you for that response. the federal reserve stated that it issued multiple issues

first republic is the biggest us bank failure since 2008.man brothers and bear stearns and the global financial crisis that followed. industry experts say the causes this time are very different. it's about two things, it's about the speed with which interest rates had to be hiked and the monetary excess which really preceded it, which is quite different to what happened in say 2007. for the biden administration, the 11th hour rescue package is a win. all depositors are protected and the taxpayers are not on the hook. these actions are going to make sure the banking system is safe and sound, and that includes protecting small businesses across the country. despite assurances that the banking system in the united states is safe, three lenders have failed in less than two months and as the us economy seems to teeter towards its slowdown, there are fears here on wall street that more banks could fail. samira hussein, bbc news, new york. with the coronation of king charles around the corner, details are being released about the extraordinary his

joining us hours after jp morgan agreed to buy first republics.he conference was getting underway in california and we spoke with vince who told us it's in everyone's best interest that there be a safe and sound banking sector. >> we stepped back and look at what has happened over the course of the last months. a lot of focus on a small number of banks. struggles from asset liability management. we have seen a resolution of this chapter. i think that is great. first republic, signature bank becomes that small footnote in history. not systemic, no contagion. but there is concern about how this has affected lending standards, the appetite to lend and business activity overall for banks that are now looking at regulators and the potential that there could be i guess more of an umbrella when it comes to the regulatory environment. >> it is in all of our interests to have a safe and sound, trustworthy reliable banking sector. that is important and it powers u.s. growth and gdp at the end of the day. it is to no one's benefit to have an unsafe sector an

first republic clients to your point, steve. started to panic they took out $100 billion in deposits. >> steve: do you blame them. [first bank silicon valley bank nobody lost any money. all of the depositors were paid in full. keep in mind, we you always see that sign fdic insured. that means your account censured up to $250,000. half a million two names husband and wife or something like that. here's the thing. these deposits will not be paid in full. they will only go up to 250 or 500,000. monday morning when you go knock on the door and at the 84 branches, that have now got a temporary jp morgan chase sign on the door they might have bad news for you. >> ainsley: 84 different offices and 8 different states. they are going to open today under jp morgan chase. so if you need your money can you get it. >> brian: fed is going to decide whether to raise rates or not. does this figure into it 1% growth a slower economy. people being a little unsure what is going on. president made a speech on it with some substance would help doesn

regulators are trying to clinch a sale of san francisco-based first republic bank. several banks are bidding in what is likely to be the third u.s. bank to fail in two months. so who will be the buyer? nbc bay area's marianne fafb roe is in the newsroom. >> we know citizens financial group, pnc, and jp morgan chase are among the bidders fighting for first republic bank. late sunday customers wait to learn which large bank the fdic will select to take over their deposits. banking experts say the move will likely help first republic customers. >> having a closure, whether or not it's jp morgan or pnc or any other banks taking over should provide some comfort that a bigger bank is taking over and will stabilize first republic. >> reporter: on "face the nation" sunday morning, bay area congressman ro khanna called for guaranteeing all bank deposits. >> this is what a modern bank run looks like. let me tell you what companies in my district are saying. they're saying that payroll companies are telling them move your deposits out of first republic, you're not going to be

. >>> regulators weigh bids for first republic as they try to avoid what would be the second biggest nk failure in u.s. history. plus, the crisis in sudan. the first u.s. evacuation ship is expected to arrive at a saudi arabian port very soon. and a live report on the fighting and dire humanitarian crisis in and around khartoum. >>> live from cnn center, this is "cnn newsroom" with rosemary church. >> thanks for being with us. a small texas town is in mourning and on edge after a deadly shooting in which 5 people were killed. this man least his wife and 9-year-old son in the shooting. meanwhile, more than 200 officers from multiple law enforcement agencies are involved in the manhunt for the suspected shooter, and there's an $80,000 reward being offered for any information leading to his arechltrest. an fbi told reporters sunday they had quote zero leads on the suspect's whereabouts. tracking dogs had initially picked up the suspect's scent, but now authorities don't know if he's still in the area. cnn law enforcement contributor, steve moore, says the first 2 had ho24 hours are criti

. >>> overnight jpmorgan chase took over ailing first republic bank.been only three months since silicon valley bank failed. first republic is even bigger, the largest bank collapse since 2008. the president speaking moments ago saying people shouldn't worry. >> let me be very clear. all depositors are being protected. shareholders are losing their investments. critically, taxpayers are not the ones that are on the hook. >> here to break it down is nbc's brian cheung and cnbc's hugh sung. what does this mean for first republic customers. >> what happened is over the weekend the government recognized that first republic may not have made it to monday morning. the government was going to step in, take ownership of the bank and sell the assets at the same time to another bank so come monday morning it would open under new management. they found the best bid from jpmorgan chase, able to open up first republic locations and atms as chase branches and atms this is the second largest bank failure in history. it underscores the issues happening in the banking

first republic becomes the second largest u.s. its assets. what

if you were a first republic depositor, you were a first republic depositor, you can breathe a big sighou are under 250,000 us guarantee level, you didn't have to worry anyway, but if you had more than $250,000, as of now, you have that deposit with jp than $250,000, as of now, you have that deposit withjp morgan chase, the largest bank. first that deposit with jp morgan chase, the largest bank.— that deposit with jp morgan chase, the largest bank. first republic was known for having _ the largest bank. first republic was known for having a _ the largest bank. first republic was known for having a big _ the largest bank. first republic was known for having a big mortgage i known for having a big mortgage lending business and a large stable of wealthy clients. as interest rates soared, it was full to borrow at higher rates and were seen as vulnerable. it is the third mid—sized bank to collapse this year following the failure of silicon valley bank and signature bank. there have been fears this is the start of another financial crisis. if we look back at 2008, it started with one bank, no

now, deposits for first republic dropped by 40% in just the first quarter.o safer banks switching after the failures. first republic was carrying many fixed loans with long-term interest rates. these lost a lot of value due to interest rate hikes. some experts believe this is a good move for first republic customers with a big bank like jpmorgan coming in to stabilize the situation. now all bank offices have reopened today. they will be become now jpmorgan chase branches. we haven't seen any signs changes. customers shouldn't expect interruptions to services. >> thanks so much, pete. >>> the bay area still buzzing after the warriors pulled off a hard fought playoff series victory over the kings. they got it done thanks to steph curry. he set an nba record for most points in game seven, putting up 50 in a dazzling performance. after the game, he gave credit to the entire team for coming together when it really mattered. >> focus on the details, what you're trying to execute. you trust each other and everybody out there on the floor. we had great energy off ou

. >>> regulators weigh bids for first republic. >>> plus the crisis in sudan. the first u.s. evacuation ship is expected to arrive at a saudi arabian port in the hours ahead. you will hear from those who managed to escape the fighting, and what they endured. >> live from cnn center, this is "cnn newsroom," with rosemary church. >> thanks for being with us. well, a small texas town is in mourning and on edge after a deadly shooting in which five people were killed. this man lost his wife and 9-year-old son in the shooting the meanwhile, more than 200 officers from multiple law enforcement agencies are involved this the manhunt for the suspected shooter. and there's also an 8 o$,000 reward being offered for any information that could lead to his arrest. authorities have identified the suspect as 38-year-old francisco oropezo. they have zero leads on the suspect's whereabouts. >> reporter: while the hunt continues for the 38-year-old, the man who is accused of shooting five neighbors on friday night here in the town of cleveland, texas, the husband and father of two of the five