joining us shortly former treasury secretary lawrence summers who accurately predicted the inflation to walk us through what he thinks of the federal response so far including this promise from the president. >> every american should feel confident their deposits will be there if and when they need them. >> in addition we have cnn's christine romans and phil mattingly on this tonight. we begin with christine. so is the threat of contagion in the financial markets, does that seem to have passed? >> these two banks in particular, they put a big ring around these banks and stopped the fire here and made essentially the depositors whole. these are people who would have to go and make payroll, small businesses, so the white house really concerned about making sure depositors are made whole but the shareholders get nothing. this is not a bail out of the bank. it is a bail out of the people who deposited in that bank. but we looked at these regional banks today, really tough day for some. there are still big concerns. >> the stock prices. >> the stock prices came down very sharply. you see

that i could snowball into a new financial crisis, including for were us treasury secretary lawrence summers. it certainly is going to have very substantial consequences for silicon valley, for the economy of all the insure our sector, which has been dynamic unless i, the government is able to assure that this situation is worked through. the us government says it's on it with joe biden. and the governor of california already discussing efforts to address the situation over the last 48 hours, i've been in touch with the highest levels of leadership at the white house in treasury. every one is working with federal deposit insurance corporation to stabilize the situation as quickly as possible to protect jobs, people's livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy. and if that doesn't work out, maybe in mos can save the day since he's already sweets it that these open to the idea of buying the bank. so what does s v be exactly? well, it was founded in the early eighty's and provided financing for almost half of us venture back technology and he

treasury secretary lawrence summers says regulators should about to support any uninsured deposit inanks that fail and it the coming years. a: policymakers need to be clear and decisive. that depositors are not going to lose their money in large banks, and medium-sized banks, or in small banks. they can do that within their existing authorities simply by being here that -- clear that in the event of failure, given the highly fevered environment with respect to contagion, right now, they are prepared to use systematic risk exemptions to allow the fbi see -- the fbi seed to pay off depositors with assurance that those funds will come from the banking industry. i think that by doing that, they can contain a significant amount of the pressures that we are facing. and, they need to be clear that that will be there policy over some interim going forward. that is the most important thing they can do to provide confidence. i think that they also need to increase the confidence they are providing in regulation. while it is true that the 2018 trump era legal changes were passed by congress, we

lawrence summers said that clearly, clinton's former secretary of treasury made that clear.g democrats don't do this. it creates inflation. we have 40-year high inflation. we have federal reserve making significant moves upward in interest rates. what happens? it creates great risk for these banks. they have got to manage that much more effectively. i will tell you if you look what happened in san francisco, the san francisco regulators were focused on climate change. in fact we went right to their website. they said what is top of mind for our work in the 12th district, that is the san francisco district, this is october of last year. it said financial risks from climate change. they were asleep at the wheel. you compare that to the richmond district, that is the fifth district of the federal reserve. they said rising rates and interest rates need to be focused on in terms of risk management. what you had hear, a woke san francisco group of regulators working with woke corporate executives at the silicon valley bank. this was the perfect storm to take their eye off the ball

joining shortly, lawrence summer, who actually predicted the current high insulation to walk us through the coming days and weeks and what he thinks about the federal response so far. including this promise from the president. >> every american should feel confident that their deposits will be there, if and when they need them. >> in addition to secretary summers, we have cnn's kristen romans and phil mattingly on this for us tonight. christine, on your money, and fill, on the white house response and what comes next. we begin with christine. so is the threat of contagion in the financial markets, does that seem to have passed? >> for these two banks in particular, they've put a big run around these banks. they stopped a fire here. they have made it, essentially, the depositors hole. these pr people who would have to go make payroll. these are small businesses. the white house is concerned about whether depositors are made whole, and the shareholders get in those banks nothing. -- it's a bailout of the people who have deposited in that bank. we looked at these regional banks today, real

these shocking but predictable projections go back to the debate when lawrence summers, of course, former secretary of treasury under president clinton, economic adviser to president obama, he warned us, he said -- he was practically warning my colleagues across the aisle saying, you can't move forward with these purely partisan, $1.9 trillion spending extravaganza and that passed on a purely partisan vote. we said it's going to start to ignite the inflation fires i certainly hope the president's budget, which we expect to see later this week, will promote pro-growth policies that can get us out of this mess, and i would argue almost an existential crisis that will come at us with debt and service on that debt. unfortunately, as the president said in the state of the union address, the president said he's going to raise taxes that's atd recipe for disaster it's going to crush productivity, discourage investment, stifle economic growth even further. i want to turn to my questions now, chairman powell you're raising interest rates to combat the inflation we see in the economy over the past

lawrence summers said that if we want to end inflation, we need in one year 10% unemployment. you agree with that? there's no way we're getting there. there is no way we're getting 10% unemployment. not this time. that means inflation goes on longer. yes. and that's why you saw today. it was interesting because you made the announcement at the market actually went up. and then by the time he was midway through the press conference, he was hawkish and the market cratered 500 points because it's clear that he's not worried about the banks and the banking crisis anymore. and i'm worried about that. he's after inflation. that means more rate hikes, another 25 basis point and maybe another one after that. in the early part of my adult life, 10 years or so, i would live paycheck to paycheck, struggle to pay my rent. i know how people feel that it's not a great feeling not to have that kind of money. what do you how you advise the average great american, the people get up every day, work hard, pay their taxes, obey the laws, raise their kids that are struggling. now, what do you advi

treasury secretary lawrence summers saying that top u.s.ators should vowed to ensure on deposits for many banks next year. the move could help confidence amid the current turmoil for the banking sector. >> policy leaders need to be clear and decisive that depositors are not going to lose their money in large banks, medium-sized banks, or in small banks. they can do that within their existing authorities simply by being clear that in the event of failures, given the highly fevered environment with respect to contagion right now, they are prepared to use systematic -- systemic risk exemptions to allow the fdic to pay off depositors with assurance that those funds will come from the banking industry. i think by doing that, they can contain a significant amount of the pressures that we are facing, and they need to be clear that that will be their policy over some interim going forward. that is the most important thing they can do to provide confidence. they also need to increase the confidence they are providing in regulation. while it is true

(we did it) start today at godaddy.com tom: the former secretary of the treasury there lawrence summersricing is better in europe. pricing is better in america as well. the level is extraordinary -- 4028 on xps futures up seven points right now. the vix comes in constructively 21.35. it is important to bloomberg surveillance, we try to capture the zeitgeist among the adults in the room. this weekend jason furman who spoke at harvard said "shut up and read it." shut up and read it is the phenomenal and hard-hitting essay of dr. posen. he his definitive -- he is definitive. adam posen, embedded in your article is that a trump-biden trade policy gives us the risk of losing american jobs. i thought we were gaining jobs from sea to shining sea? >> i'm afraid not, tom. thank you for the intro and for having me today. the issue is first we have a finite number of skilled workers, people from these companies, qualcomm, tokyo electronic. they do not have the american workers here who can do the job. if they do they have to hire them from somewhere else. it is not like skilled engineers are unemp

about these massive stimulus bills at one point, nine trillion dollar spending bill, that even lawrence summerssays was inflationary on a purely partisan vote to get passed, with democrat supporting republicans opposing. but each of these groups, back to silicon valley bank, signature bank, failed to prioritize properly clear and present risks of the inflationary environment, rising interest rates, bond values, and instead opting to focus on climate change, equity, and other factors that did not contribute in any way to the crisis that we have before us. i raise these issues of misaligned priorities with secretary yellen during a finance committee hearing back in june of 21, which identify climate change, non bank financial in a mediation, and treasury market resilience as the key priorities for fsoc. and so now we are facing a situation where responsible banks of my home state of montana and elsewhere will be on the hook, providing tens of billions of dollars and potentially more to bail out irresponsible, coastal banks for wrist taking that regulators failed to act upon despite first noticing

i remember one lawrence summers, first former secretary of treasury under pledges and clinton, economicdvisory to president obama, warned us, he said he was frankly warning my colleagues across the aisle, he says, you can't move forward with these purely partisan, 1.9 trillion dollar spending extravaganza. we had a trillion dollars of unspent money in december of 2020, and that passed on a purely partisan vote. he said it's going to start to ignite the inflation fires. so, i certainly hope the president's budget, we expect to see this week, proposed pro growth policies and gets out of this mess, and i would argue, almost an accidental crisis if we look at what's going to come out of us in the next ten years, with that and service on that. unfortunately, as the president stated the union dress, the person says he's going to raise taxes. that's a recipe for disaster. it's going to crush productivity, discourage investment, stifle economic growth even further. i want to turn to my questions now, chairman powell. you are raising interest rates to combat the inflation we have seen in the eco

tom: secretary of the treasury of the united states another time and place ago, lawrence summers. out from spain. these are market moving headlines. the market moved immediately off this. the ecb has told ministers two days ago that some banks "could be vulnerable." i looked immediately at euro, 1.06, down to 1.0593. i would point out the german two year is trying to discover the low yield of yesterday now, down as well. you have been looking at e.u. bank reaction. lisa: i want to elaborate more on these comments that the ministers were told in brussels that lenders in that region are less exposed than their counterparts in the u.s., but at the same time, said the ecb could not rule out some lenders might be at risk because of their business models and cautioned not to be complacent. you can see bmp is up .7%, socg en, 1.3%, credit suisse maintaining gains, struggling to remain over two euros per share. people are using this as perhaps the tea leaves for the reasoning of why the ecb would opt to move only 25 basis points rather than 50 with a weaker euro, the german two-year-yield

summer being sold her home. most $200, a box that is expensive, lawrence. yes, it sure is too expensive for me. folks around the bay area, we're going to see some big changes coming our way. here comes the rain. >> and more gusty winds and more snow across the state of your tent and forecast coming up next. >> in the east bay, people living near the martinez refining company are being told not to eat anything grown in their gardens. this is after the refinery released a huge load of toxic dust during thanksgiving and the refinery says it plans to have maintenance over the weekend this weekend that will cause flaring kron four's. philippe djegal has the story. >> it will be awhile before heidi taylor's garden looks like it used to some of the 20 tons of spent catalyst, dust like metal material that was released from martinez, refining company on thanksgiving and the day after blanket in her yard, potential contaminating her plan to improve just this morning, a friend of mine was asking me about gardening advice and she wants to plant a garden with her young children. oh, my god, don't put it in

summer of love it wasn't so peaceful. gentlemen thank you so much for joining the program. >> thank you, lawrence.ender condemning propose plan to deport for dealing fentanyl the drug that's killing all of our kids, that's next. and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds. >> so apparently we've hit rock bottom a woke public defender in san francisco is pushing back on new proposal to deport illegal graduates in the city who are contradicted of selling fentanyl now dispite harsh fall from grace peter callaway thinks these dealers should stay put and continue to poison our kids. joining me now former dea special director so you know we have this problem in the country. we know that we have americans that are selling these drugs right but now we have illegals that are taking advantage. they d

summer of love it wasn't so peaceful. gentlemen thank you so much for joining the program. >> thank you, lawrence.e public defender condemning propose plan to deport for dealing fentanyl the drug that's killing all of our kids, that's buried in receipts, invoices and other paperwork that's preventing you from doing what matters most? then get the all new epson rapidreceipt smart organizer to scan, digitize and organize your documents and receipts. receipts go in, and stress goes away. it's the only solution on the market specifically designed to extract and digitize key data trapped on receipts and invoices. and it integrates with financial software like quickbooks and turbotax. transform paper documents like contracts, tax records, warranties, wills, even recipes into searchable pdfs. so the information is always right at your fingertips, safe and secure. you can even turn business cards into digital contacts, and it scans up to 100 pages at a time. even different sizes in one batch. with this exclusive tv offer, you'll get the epson rapidreceipt smart organizer and over $300 in added value! act