jamie dimon, the ceo of j.p. morgan chase had a call with reporters earlier this morning and faced the question, j.p. morgan chase just got bigger, don't you think that increases the eyeballs and scrutiny in washington, d.c. and his talking point was we're big, and we're not apologetic about it. he was basically saying j.p. morgan chase because of their scale, they're able to lend to businesses or able to lend to governments, able to lend to the imf, the world bank. don't you want that coming from the largest economy in the united states, a u.s. bank. that was his point. >> also a private bank. i don't know. seems like it's -- i listen, i have no idea. i'm going to rely on you as the expert. brian cheung, thank you very much for coming on. hopefully this is the last story like this for a while. >>> coming up next, speaker mccarthy passed his debt limit plan. what the white house is now doing in response. >>> plus, the day the tv died. we're hours away from the -- hours away from what would be, i need a writer here, what

he can serve the country through j.p. morgan or running for president. he is doing great at j.p. morgan and he would make a great president. matt: we have been talking with a few people and they have been discussing real estate in texas. >> the one thing that i see from a macro perspective is that everyone thinks that commercial real estate is in the tank. it is really focusing on the market. when you look at the data center market, it is white-hot. they do not even get them developed. matt: i thought that was interesting. data centers are white-hot right now. what do you think of those two areas in your industry? ? industrial developers. we develop big logistics parks around the world. those areas are still strong. the product depending on the city you are in will depend on the value of the office building. north texas is not bad because so many people are moving in. we need great base available and we are progrowth, heavy growth. we are going to need the office and the market will not be bad compared to others. tom: you have played -- jon: you have played a key role in bringing

. >> trace: j.p. morgang to the rescue after first republic bank is the third bank to collapse this year. >> i think the banks were caught with their pants down not prepared for the steep increase in interest rates which was pretty obvious. to debate and draft the u.s. constitution? turns out they didn't trust the printing of paper money, but they did trust gold and silver. article 1, section 10. gold and silver. good for the founders, good for me, good for you. rosland capital - is a trusted leader in helping people acquire precious metals. gold bullion, lady liberty gold and silver proofs, and premium coins, can help you preserve your wealth. call rosland capital to receive your free rosland guide to gold, gold & precious metals ira, and silver brochure. with rosland, there are no gimmicks, no hassles... and they have fast, reliable shipping. ask yourself. are you safe? make gold your new standard. call rosland capital today at 800-630-8900, 800-630-8900. that's 800-630-8900. dupixent helps you du more wit

j.p. morgan the winning bid. this started several weeks ago when you had svb and signature bank failing. that created some nerves about first republic. you then have a first quarter earnings call just last week by first republic where they announce that deposits fell by 41% totalling $100 billion. that sent the stock market spiralling. they were down from $122 in early march. now the treasury department out this morning with a statement on this deal, they said, quote, the banking system remains sound and resilient. and americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill the essential function providing credit to businesses and families. but, caitlyn, there is a cost to the fdic. about $13 billion. but at the same time, you have j.p. morgan chase paying about $10.6 billion to the fdic to close this deal. caitlyn? >> yeah. j.p. morgan was already the nation's largest bank. they got even bigger. that's going to get a lot more scrutiny from washington. we'l

i like j.p. morganis too much consolidation. that is why they must raise the insurance cap which will support rich people with their deposits so it is somewhere safer. they had to do it because they had no plan for first republic opus demise which was obvious. we don't want another panik of 1907 when j.p. morgan chase saves us is the lender of last resort. shame on the fdic for not having a plan when the outcome was pretty much inevitable. how could they be so of two's? it was shredded by previous events in only a matter of time before their pants are down. now they need to raise the deposit insurance cap. and recession may be upon us. it's one indicator but somehow the be all and end all. i don't think there could be such a recession with so many good use companies. i'm not going to argue with the crowd. the market goes down and all it does is help the fed. nevertheless, it is a trigger and it is being a trigger. >> in the attack of ai. ibm is saying it may be laying off people or at least not hiring p

j.p. morgan gobbles them up. j.p. ck went up 2%. >> martha: they don't get a golden parachute? >> sandra: they had high end customers at the bank and those that were putting money at the bank, their limits were over $250,000. they able the ability to go elsewhere. they did. look at the exodus of funds following the other bank failures. their customers said we'll go somewhere bigger. >> martha: now j.p. morgan has the whole thing. >> sandra:s that what happened. >> martha: thanks, sandra. >> sandra: thank you. >> martha: so coming up, benjamin hall with an exclusive preview of the interview that he just did moments ago at the state department with secretary of state antony blinken. very interesting. ♪ you were always so dedicated... ♪ we worked hard to build up the shop, save for college and our retirement. but we got there, thanks to our advisor and vanguard. now i see who all that hard work was for... it was always for you. seeing you carry on our legacy— i'm so proud. at vanguard, you're more than just an investor, y

j.p. morgan n a statement this morning, jpmorgan chase's ceo jamie dimon said they asked us to step up and we did. he doesn't know if this will benefit j.p. morgan chase. first republic is the third major bank to fail since march. the announcement came hours before the markets open. we're keeping a close eye on how when the markets work. vanessa, good morning to you. they invested billions to try to save it and even that didn't work. >> that's right. later this morning when this first republic branch behind me and 83 others around the country opened, it will be under new ownership. j.p. morgan chase buying first republic bank in a deal overnight, announced this morning by the fdic. this was an effort by regulators to shore up consumer confidence in the banking system as part of the deal. j.p. morgan chase will assume all deposits of first republic bank. the deposits are safe. this all started to unfold several weeks ago. as you mentioned, that big cash infusion of $30 billion led by j.p. morgan.

and i think that's the danger for the fed, that what do you do if -- j.p. morganthe good citizen of wall street right now. he is the heir apparent to j. pierpont morgan from 120 years ago. but what happens? how do you get your arms around a j.p. morgan or any if it's too-big-to-fail kin ifnything like this were to happen there? and i think that that's something that, broadly, regulators in this economy have punted on. amna: so, if you take a step back now, three of the four largest bank failures in u.s. history have happened in the last two months now. j.p. mgan chase's ceo, jamie dimon, said today, this part of the crisis is over. is it? is this the last domino to fall? roben: you know, this is a problem that -- if you have this echo chamber on twitter, and if you have investors selling something, and it forces management to step up and say, we're good, we're good, but we're not going to take calls on an earnings call. depositors ultimately have the deciding vote. if they pull their money, then the fdic comes in, and it has to size up the situation and bring in o

it means that j.p. morganh-end clientele of first republic and offering investment banking as well, it will convert some of the branchs into wealth centers. now first republic did lose about $100 billion in deposits in a matter of days at the height of banking turmoil which also impacted svb and signature bank the bigger question is whether we're done from here jamie dimon said this part of the skroicrisis is over and the banking system stable, but don't forget the u.s. federal reserve is considering more rate hikes this week. the question is what that does to the system and fears that we'll see more regulation impact the banks which could crimp credit to the real economy, accelerating some form of a down turn back to you. >> a very intense rest of the week for so many thank you. >>> still to come, we will check in on the royal birthday plans for the uk's youngest princess >>> and the met gala, we're letting g the cat ouout of bag, nextxt lettining the cat t out of baga nenext so i i choose neneuriv. ununlike

j.p. morgan chase. another midrange bank collapses. 84 branches in eight states, what does this mean? stuart varney weighed in. >> the stock price of regional banks greatly under pressure, that is stabilized this morning. depositors are largely okay, they are covered and holders and depositors with j.p. morgan chase, the biggest bank in the country, it has gotten bigger. j.p. morgan chase, they have gotten bigger, regional bank getting smaller, interesting day for banking stocks in america. will they go down? is the panic continuing? is the nervousness continuing or is it stable? i think it will be stable and panic is drawing to a close. >> steve: friday night when people saw first racquetball is gone wobbly and going belly up, there were concerns what would happen this morning when the stock market opens. now that j.p. morgan chase has come in, they had auction yesterday and number of interested buyers, including pnc and citizens financial and j.p. morgan won it. what happened with first republi

first republic bank is now formally a part of j.p. morgan chase. the second biggest bank failure in u.s. history. nicole diantonio join us from capitol hill, and the big question for our audience is, what does this mean for consumers? >> reporter: that is one of the big questions here. we know thi is the third bank to fail in th u.s. since march. but, today, president biden, reassuring americans that the banking system is safe. he spoke in th rose garden today and also wanted to reassure those customers at first republic ban that they are safe as well, their deposits are protsan franci. j.p. morgan chase now runs all 84 branches of the failed bank. >> i am upset and angry. that helpeus, we have been there for us a great deal. >> customers have full access t their deposits, but some depositors were disappointed to lose a trusted lender. >> this bank was so wonderful. they were nothing but generous. >> reporter: regulators seized first republic early monday morning, and then sold all its deposits and most of its asset to j.p. morgan, the nation's lar

gets purchased -- went first republic gets purchased by j.p. morganends that problem with first republic but there has been a lot of talk around this that j.p. morgan just got bigger but this does not necessarily help regional banks and there is a question around that as well. >> adam, when it comes to what regulators could potentially do, are there any actions that can be taken to restore confidence? >> regulators have been working hard over the last few months, not just over the most recent few days of what happened with first republic, but just by j.p. morgan, the underlying confidence issue which kathleen was speaking to, which was so key for the economy are more probably is that deposits have failed, and whether they will be able to get their money back. that is the position that has not changed from the fdic. a lot of investors have been expecting and yearning for a change there from the fdic that does guarantee depositors will be bailed out if there is a more systemic issue that was on from one bank to the next. but as of now, that position is

j.p. morganurchase the california's based banks deposits and assets before the stock market opened. j.p. morgan's ceo jamie dimon spoke with analysts about the deal. >> no crystal ball is perfect but this part of the crisis is over. reporter: first republic had been teetering in the wake of collapse of two other banks. amounting to some the largest bank failures in u.s. history. rising interest rates caused loans on investments to falter. large uninsured deposits more prone to withdraw them in times of stress. >> we have a structure of near zero interest rates for 20 years and when you reset them especially quickly which the fed has under pressure from inflation debates, you will have structures that do not meet the challenges of a new environment very well of higher interest rates. reporter: the federal reserve meets later this week to do side on whether or not to continue that policy. president biden attempted to reassure depositors in the american public that their money is safe. >> these acti

the j.p. morgan ceo jamie dimon met with treasury secretary janet yellen and fed chair comes fstepublic. stock plunged last week by 75% after viewing account holders withdrew $100 billion during the incan crisis last month. the fdic will work with j.p. morgan to ensure all deposits, the insurance fund will take a hit of about four -- $13 billion. will monitor this as the stock market opens today and later when the branches open. reggie: windsurfers in alameda yesterday. it was howling at crown memorial beach, which created the perfect place for kite surfers and windsurfers on the bay. to take advantage of the windy weather, you can see this video. kumasi: yosemite valley will be reopened after flooding did not live up to the forecast. it was closed through wednesday because of concerns but the conditions were better than expected. it's the park service reopen the valley with limited services yesterday morning. the final measurement of the season will be published today. this year's snowpack is the la

on a conference call with analysts, the j.p. morganhief executive, jamie dimon, said he believed the recent making crisis was largely over, stressing the overall system was stable and there were not any general bank runs. the u.s. president welcomed the deal. >> regulators have taken action to facilitate the sale of the first republic bank. to ensure that all depositors are protected and the taxpayers are not on the hook. these actions will make sure the banking system is safe and sound, and that includes protecting small businesses across the country who need to make payroll for workers and small businesses. yuka: the closure of first republic marks the second largest failure in u.s. history after washington mutual in 2008. according to the new york times, the three banks that collapsed since march held a total of $532 billion in assets. adjusted for inflation, that's more than the amount held by some when he five u.s. banks that collapsed at the height of the global financial crisis 15 years ago. the paper also says from 2008 and 201

you mentioned the j.p. morgan chase won out.y shared on a call earlier today they were approached by the fdic, they did not pursue the acquisition from the beginning. they will take over $173 billion in loans, 92 billion in deposits and insure there will be no losses to customers. that's very important. they will also share in any loan losses with the fdic. that's a big win for j.p. morgan to limit their exposure to any losses. business as usual today. jp morgan said they won't keep the first republic name going forward. this is not the first rescue attempt from first republic last month. last month a number of banks put forward $30 billion in deposits. j.p. morgan has to pay back that money. the chairman and ceo shared a quote. our financial strength capabilities and business model allowed us to develop a bid to execute the transaction to minimize cost to the deposit insurance fund. of course, the big reason not shared in that quote the motivation for this is to minimize banking system failure. i was on a call earlier with the

jamie dimon, ceo of j.p. morganolding a media call saying initially they weren't interested, but the financials ended up making sense. yesterday the fdic held an auction. the bids were very competitive, but ultimately j.p. morgan walking away. it took many to get this deal done, but what is important is, are people's deposits secure? the answer is yes, deposits are safe. people can take out money, put in money into first republic bank, no problem. also, all 84 branches across the country are operating as j.p. morgan. additionally the fdic will last week first republic had their earns call, and we heard that deposits fell by $100 billion. markets responded, shares responding to about $3 a share down from $122 a share in march, but jamie dimon also talking about what this means for the future of this banks sector. is there more to come? listen to what he said earlier this morning. >> this is getting near the end of this. hopefully this will help stabilize everything. the banking system is extraordinarily sound. you kn

yeah, when i woke up this morning and i heard that j.p. morgan chase had taken over first republic, it reminded of 2008 when you saw them take over bear stearns, when you saw them take over washington mutual. one of the key take-aways, the big bank banks keep getting bigger. j.p. morgan won out on a competitive bidding process. they're taking over all deposits. the bank will also make a 10.6 million payment to the fdic as part of this takeover. they were operating as usual today. the one that i'm at, folks were coming in and out, checking their accounts. the president said he feels like the banking system is going to be okay. listen to this. >> regulators have taken action to facilitate the sale of first republic bank and ensure that all depositors are protected and the taxpayers are not on the hook. these actions are going to make sure that the banking system is safe and sounds. >> martha: if you remember, this is not the first rescue attempt for first republic. a group of banks backed in mash funneled $30 billion in deposits to prop up the bank

j.p. morgany with the ceo discussing the impact of the first republic deal on the outlook. >> turning to the impact of the first republic transaction, we are expecting a full contribution of approximately $3 billion. as a result, we are updating the 2023 outlook to approximately $84 billion. in addition, you will recall, our medium-term expectations was around the mid-70's. alix: at 2: 30, jamie dimon will be speaking. sonali basak joins us now. nothing seemed revolutionary. what are the fireworks into an a half hours? sonali: i think the only real fireworks is the income guidance. jamie morgan -- jamie dimon is not known for fireworks at investor day. one thing i know investor bankers are talking about at j.p. morgan is the ability to invest in underrated sectors like tech and health care, and they are not really underweight, they are prominent in those businesses. that tells you even as they look for efficiencies, you can see them potentially hiring bankers and investing in certain businesses e

if j.p. morganen of wall street, the heir apparent from 100 20 years ago -- but how do you get your arms around j.p. morgan or any of its too big to fail if anything were to happen there? that is something that regulators in this economy have punted on. amna: if you take a step back, three of the four largest bank failures in u.s. history have happened in the last two months. j.p. morgan chase's ceo said this part of the crisis is over. is it? is this the last domino to fall? guest: this is a problem, if you have this echo chamber on twitter and investors selling something and it forces management to step up and say were good but we are not going to take calls on an earnings call, depositors ultimately have the deciding vote. if they pull their money, the fbi see comes in and has to bring in other pillars of support. brand management is only so valuable in banking when it's up to the quality of your deposits and wounds. as we have learned painfully this year, that can be ephemeral. amna: how should

j.p. morgan ceo jamie diamond is in shanghai china for his company's global china summit.e called for lawmakers in washington and beijing to come together and have real engagement, no decoupling. of the issues at d.c. and beijing, are they resolvable? >> i get nervous when i hear him say with got to engage because in the past that's meant we need to appease. this the communist government, chinese communist government not interested in freedom. j.p. morgan's business was based on financial markets that run on freedom and transparency, that's not what the chinese government offers so what happens when push comes to shove in china when china which does this all the time says j.p. morgan, we don't like who you are and lending money to in the information you're not sharing with us, we'd like you to change that. is he going to engage or stand on principle? >> he's there, fine, private business, he can do what he wants, he's not talking about decoupling, because it de- risking but it seems like our government wants us to decouple from china get business leaders are doing the oppo

j.p. morgan chase locations.al e weekend with the fbi see seizing assets overnight and selling most of the operation to chase. j.p. morgan ceo jamie dimon met with treasury secretary janet yellen and fed chairman jerome powell to brokered a deal. hey comes after the first republic stock plunged last week by 70 5% after revealing account holders withdrew $100 billion in the banking crisis last month. the fbi see will work with j.p. morgan to ensure all deposits and says its insurance fund will take a hit of about $13 billion. we will monitor this as the stock market opens today. and when the branches open as well. reggie: pg&e says power has restored to all customers in san francisco after an outage that lasted days. hundreds of customers in the financial district were impacted. as you can see in the pg&e map we are in the clear this morning. no outages to report. the outages started wednesday night when a fire sparked an underground transfer -- transformer. pg&e workers worked over the weekend to

j.p. morgan has won the bidding to a higher first republic bank after it was taken over by regulators following bad investment. jp morgan will take over first republic's assets including 173 billion dollars of loans and $30 billion of securities as well as $92 billion in deposits. jp morgan will pay $10.6 billion to the fdic. in sudan, the army and paramilitary force have agreed to extend the truce 72 hours. international pressure to let civilians leave the combat area. water and food are becoming hard to find in sudan cities. ferdinand marcos, jr. said he is determined to forge a stronger relationship with the u.s. he meets with president biden today at the white house and has granted greater access to its military bases, paving the way for an increased american presence in the region. new economic data shows china's recovery remains patchy, latest indicators point to a contraction in manufacturing. the housing market continues to rebound. global news, powered by more than 2700 journalists and a

bank first republic would not be in the hands of j.p. morgan. was scooped up -- the bank was scooped up in a deal brokered by u.s. regulars. first republican bent under pressure since last -- had been under pressure since last month. we are just days away from king charles's coronation. let's skip the formalities and get to the food. with the new monarch, comes a new menu for the street parties. coronation keisha is the official- coronation quiche is the official --. dish. >> served a decade the coronation chicken for queen elizabeth, her son has opted for this savory chart bursting with spinach and green beans. when we were the filling in, it will not get started. for some top tips, we headed to this bakery in london. >> how much cheese? >> two handfuls. when you transfer it to the oven, you do not what the next to come over. >> but for the ultimate coronation fees, there is so much more than quiche on the menu. we discovered all sorts of dishes being prepared in one of london's most prestigious hotels. >> these are the kitchens. they have got

now you have a situation where j.p. morgannd waited, first republic was out, get it first song, got guarantees on the real estate and guarantees the big banks will sit on the sofa waiting for the next shoe to drop. all they have to do, just watch stock prices. if the stock prices continues to plummet for some of these smaller mid size names, the market will come for them, the depositors will leave and j.p. morgan which has 17% of all deposits will ends up at 25% one day. good for them. they're doing the right thing. >> neil: alan, let me get your views. most think it's a quarter point hike. everybody is waiting to hear the fed chairman's statement afterwards and whether he's done for the rest of the year. you think he will be done for the rest of the year? >> maybe. i think we're very close to being done. we're a lot closer to being done than we were at the start of the cycle. the stock market, the s&p is down 15% from its all-time forever top. we've had this enormous rate increase rogue for the last year. i look as it as a po

a simple switch for first republic accounts. >> the deposit is now with j.p. morgan>> reporter: with all of the branches becoming part of the much bigger bank. >> their deposits will be saved, they do not need to lose sleep. >> reporter: what about venture capitalists and startups? many also banked with first republic. >> it is important to have a personal relationship with your bankers. >> reporter: they specialize in funding women and entrepreneurs of color. she worries about losing the personal banking relationship. >> i worry about that more than the general population, the population has been underserved. >>> san jose police identified a group of men in connection with crimes targeting the aa ip community. these are the men responsible for 13 robberies, 5 grant that and countless vehicle burglaries. many of the attacks happened in little saigon. they are working with the das office to see if they can add hate crimes to the charges. >>> the search continues for a dog stolen waiting for its owner in a tesla. it was caught on the camera. thieves pulled up in a blac

sources tell us j.p. morganas the only bidder that offered to take the entire bank off of regulators' hands in the cleanest way. it acquires about 170 $3 billion of first republic loans, $30 billion from securities, and $92 billion in deposits. the ftse looking to overhaul deposit insurance. regulators have laid out three options including switching to a targeted coverage approach. sources tell us morgan stanley is preparing for a fresh round of job cuts. senior managers are said to be looking to eliminate about 3000 jobs by the end of this quarter. now to beverly hills to join romaine bostick covering the conference who joins us with a special guest. romaine: i am sitting down with the ceo at bny mellon, the oldest bank in the united states of america, on a day when everybody is talking about the stability of the banking system. jamie dimon said it is still very sound. are you seeing that as well? >> i agree with that. we are the oldest bank in the united states. we have been around 239 years. i think as we ste

this was playing out over the weekend, ashley, j.p. morganying to buy first republic and they were the ones that got the deal done. all first republic branches will open today, 84 branches across the united states, all depositors will have access to their money as of this, mo. deposits will continue to be approved by the fdic. analysts tell us this should end stress and concern about the nation's banks and should hopefully end worries about more contagion in the financial sector. so again, 92 billion dollars in deposits to first republic, their loan portfolio, investment portfolio in tact, first republic no more. second largest bank failure in u.s. history behind washington mutual during the financial crisis. in top four, think about this, washington mutual, then first republic, silicon valley bank, signature bank, three of the top four failures ever in u.s. history for banks have happened in the last eight weeks, it is pretty incredible. analysts do believe this will be -- take the stress and worry out of financial markets and today we have

steve: j.p. morganer your other bosses on a similar question coming up in our exclusive coverage of the j.p. morgan global china summit. shery: we are watching out for those conversations coming from shanghai. we'll be there live at j.p. morgan apac ceo, and exec it if from fortescue and rosewood hotel group also join us. this is bloomberg. ♪ paul: the yen has rebounded from a six month low after the nations top currency officials said it would take action if needed to. some talk about intervention, are we going to see any action? david: i would not expect any in the near term. they have alluded to the key person, who is the minister of finance, a top fx guy in japan. he said there is no specific levels, he is more concerned about the volatility. and excessive moves. what defines an excessive move is debatable. but history has said, a large one-sided move. the dollar yen at the moment, even if it goes high, without warrant and excessive move? they do tend to bring out the one-sided move. at the moment,

iain stealey, international cio a fixed income at j.p. morgansset management let's get the bloomberg in/with alix morgan. >> blackstone ceo says the investment giant is in talks with several u.s. regional banks to ask for the purchase of assets and loans. in an exclusive interview with bloomberg steve schwarzman says pressure on the banks will come from regulators as well as from the markets. >> we are interested in buying assets that regional banks create we are looking at partnerships with some of them because they are worried about how many assets they keep on their balance sheets. >> bloomberg understands that bank of america is to ask 40 staff in asia to look for other jobs and other divisions as it grapples with an industrywide decline in dealmaking. about half of the roles are based out of hong kong with a focus on china, and the majority of affected employees are in junior positions. bank of america is one of the few major wall street banks to avoid job cuts in recent months. snowflake shares have plunged after sales outlook for the curr

j.p. morgan priced a deal last week with a 5% coupon. c deals at a 5% coupon. there very low rates. until they come to maturity, that will cause pressure. it right now, borrowers that don't need the refund can sit and pay low coupons. that could be the moment where spreads widen, where companies across investment grade high-yield just either don't want to or are unable to stomach the prevailing rates that we have. markets are playing this game of betting that the federal reserve will lower rates later in the year and companies can't refinance later. it is a weird kind of thinking because the fed will probably lower rates because of recessionary pressures that they see. spreads will widen and probably will widen they need to refinance and are set up to be wider in either scenario. katie: to my eyes, it has been remarkable to see it spreads ride tighter in the face of what has been very hefty supply. what does that say to you about the fundamentals of this market versus the technicals? megan: it might seem intuitive but what we are seeing

they chose j.p. morganamerica's biggest bank, a poorly supervised bank was swallowed up by a bigger bank, now it is 200 billion dollar bigger than before. for that deal to go through two separate regulators had to sign off, when fdic sells a failed bank, the law require to choose highest bidder. but the law also requires sign off from the occ. and the occ job by law is to consider whether the merger would pose quote, risk to the stability of the united states banking or financial system. occregulations include a list of factors that the occ must consider when evaluating risk to the stability of the banks system, do you have the first item on that list? >> it relates to financial stability to us. >> what is the item we're considering? the very first one. >> i believe whether merger will have financial stability impacts. >> because of. >> the merger. >> no, it would result in material increase to risk to financial stability due too increase in size. the combining inenstutions, it troubles me you don't remembe

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industry as the j.p. morgan ceo said today? >> j.p. morgan chase and similar brands are very large. they have significant amount of deposit. therefore if there's any kind of a panic, they can afford it because they have these deposits. they have already started contacting these customers and letting them know that their deposit is safe. fda c is now going beyond $250,000 to assure them that their deposit is safe. so the chances of another collapse or bank run happening with chase and other big banks is very low. kristen: when you say going beyond the $250,000, how much? >> they haven't specified how much. but the have basically said they are even willing to cover more of the customers' deposits beyond the $250,000. i think what they are doing is ensuring customers do not withdraw their money. if it comes to that, we will cover it. kristen: is that for individuals or institutional customers? >> this is essentially for customers whose deposit is more than $250,000. euro call first republic had very wealthy customers both in terms of those who deposit their money, the creators o startu

saying this is no bailout despite the fdic providing j.p. morgan with $50 million in financing. -- $50 billion in financing. while depositors are being protected, shareholders are losing their investments. taxpayers are not the ones that are on the hope. reporter: on the brink of collapse for weeks following the failures of bank in march. >> this was the last of ones that should face significant challenges. reporter: financial analysts say the most important take away is no depositors lost money during this seizure and sale. in a call with analysts monday, j.p. morgan'seo predicted the mark surundi the banking crisis is ovebu ac in the system caused in part by th efft ce inflation by raising his weekend market analysts to expect them to once again hike interest rates to combat inflation. kristen: and wha to make occupant equipment mandatory new vehicles. among those calling for the change is a mother in louisiana whose son died left him accidentally in a hot car. >> thoughts and heart running through his mind in those moments. he asks himself how d

rishaad: james sullivan, head of china pacific at j.p. morgan. >> senate republican leader mitch mcconnell says he will not come to president biden's rescue on the debt limit. he told the president it is up to him and house speaker kevin mccarthy. the stakes on the tuesday meeting are growing as both sides face a deadline to act before june. bloomberg has learned goldman sachs has agreed to pay $250 million won a lawsuit that accused it of underpaying women. the bank struck the deal with lawyers representing the women. the two sides had been finalizing a deal. chinese foreign minister has met with the u.s. ambassador for the first time. the type priority to stabilize ties. high-level exchanges have deteriorated in recent months over in recent months over and elected chinese spy balloon. -- an alleged should -- an elected chinese spy balloon. according to local media, zhao had been looking into penalizing michael chong over his positions on beijing. global news, 24 hours a day, on air and online, powered by more than 2700 journalists and analysts

too big to fail. >> liquidated with first republic they arranged the sweetheart wedding between j.p. morgan first republic. jamie dimon must have the red phone hotline to the white hou house. the problem is the regulators of the banks three years ago would never have allowed that combination but now they enforce it. gerry: richard the mixed messages from the administration are not helping it's fine if people want to express confidence in banking system you know what to say put in triple your money out things are falling apart but at the same time people need to be clear whether their money is safe and i don't think people are getting a message. >> thank you for having me i agree with brian i think there is some problem ups with small regional banks that have very limited balance sheets that are being impacted from the increase of interest rates i set that aside from the entire banking industry. if you're watching this program and you have your paycheck directly deposited into any bank you are probably safe and you deposits are safe whipped of a larger question on not necessarily help but ho

first republic and solvents to j.p. morgan chase.y not only protect the first depositors saved the economy from the potential recession. why do i say that? must's was the first major bank to fail. the second largest bank failure since 2008. so think about what could have happened had they failed the lfirst collapse. today we will be reading headlines about panicking investors and depositors and turmoil f throughout the financl system. thankfully we avoided that because the government had the good sense to step in and maintain confidence in the banking system. now federal regulators stepped in to protect our economy on the crisis at hand was a bank with $229 billion of assets. but that 229 billion-dollar bank pales in comparison to the larger undertaking facing in washington today the future of america's 23 trillion-dollar economy. right now in the u.s. house of representatives speaker mccarthy is threatening our economy with the first-ever federal debt default. the first time ever in our history. let's put this dangerous gambling con

there is still, j.p. morganking up first republic the fdic took the hit on commercial real estate. it wouldn't have happened if j.p. morgan had to take that hit. the lingering thing. we don't know how bad it will get but it won't go away. it is really ugly for these large metropolitan cities. here is a problem, too, in smaller towns. the small banks make almost 70% of the commercial loans, it is another big risk for them. >> dana: i'm waiting for congress to say we'll come in and fix it. >> oh, please. >> dana: exactly. >> you know what? fix the crime. let's fix that first. >> dana: let the market figure that out. >> get people that want to come back downtown. if i'm at homeworking. the greatest risk i might miss my dryer and sit in the washing machine too long before i put in the dryer i'll keep working for home instead of getting mugged on my way to the office downtown. >> you think the world is a safer place? >> stand of the united states across the world in the last few years is much stronger than it was. >>

j.p. morgan's ceo.e continue this way throughout the session. really being weighed down by the tech space here. let's do a quick check of the latest business/headlines. goldman sachs is said to be considering another round of job cuts as the deal business remained slow. it will include the firm's more senior employees. they have eliminated about 32 hundred positions, embarking on one of the biggest rise of job cuts ever. elon musk has told china's foreign minister that the interest of china and the u.s. are intertwined, echoing recent remarks. this is the chief mentioning them on his first post-covid. this could potentially multinomial. in the law market valuation across the one troy dollar threshold. vaulted it into an elite club of just five u.s. companies. we are talking about alfa bank, amazon and microsoft. fewer than 10 companies globally have achieved that distinction. let's take a look at kathy one here. she is still attaching skyhigh valuations to tesla. because we talk about tesla all the time

seized by federal regulators earlier today and sold to j.p. morgan chase. cnbc's andrew ross sorkin joining me. andrew, help us understand what happened here. >> reporter: this is the second largest bank failure since 2008. $100 billion of deposits left this bank over the last two months. it was a classic run on the bank. the government stepped in, saved that bank, and effectively sold it assets to j.p. morgan. the good news, depositors, all of them, didn't lose any money at all, and the branches opened today. what it means even more broadly is that the u.s. government implicitly is prepared to guarantee all depositors at banks across the country. >> andrew ross sorkin, thank you. >>> in new york, tough questioning by donald trump's lawyer for the writer accusing him of rape and defamation. senior legal correspondent laura jarrett reports. >> reporter: back on the stand, e. jean carroll facing a second day of intense cross-examination. joe tacopina, an attorney for the former president, doubling down on the defense theory that carroll made up her accusation

there's no real value left to them, obviously, they've been seized by the fdic and everyone else j.p. morganse is up 2.75%. and pfc, a spattering of some of the regional banks which are not as closely tied to the likelihood of what will happen with first republic and pac west bancorp and the spdr regional bank ticker is down 2% so watch this sentiment, whether or not it shifts a little bit even though as jamie dimon points out the worst may be over for some of these guys back over to you >> thank you very much, dom. we appreciate it let's drill down now on the failure of first republic, and there are several big, unanswered questions for the rescue deal and the bank right, what is the five-year loan from the fdic where is the fdic getting the money from can this tie up capital from future bank rescues and why are companies -- let's bring in mark cal abria. he joins us here along with jim coffey at jenny montgomery and of course, cnbc's very own leslie picker and steve liesman who are both on set with me now. guys, let me turn to you with some broad brush chit-chat about this situation, steve

you can see this was in the form j.p. morgan. there he is j.p. morgan. now, jp bargain was the most respected businessman the country, one of the largest owned u.s. steel will have more to say about that later. and he was a guy who could get the operators attention because the one who trade created the coal strike coal trust to with and so they would listen him and tr told him about his plan to nationalize the essentially nationalize the mines and so morgan realized not only was this serious but morgan himself very concerned about anarchy in the country and he could only maintain wealth if he could keep this country going. so he had every reason to support this. so he got the mine miners together and began to operate together and began to talk to him. now i'm not going to go much more on this running out of time. i will tell you that doris kearns goodwin, who will be here tonight at our dinner, wrote a book called leadership in turbulent. there's a whole chapter on this subject. so if you really want to know more about it, that's probably the best place