we can speak to the chief economist of moody�*s analytics, mark zandi, who is in philadelphia. , we were watching the markets to see if shares were to recover after credit suisse was saved by ubs and of course a regulator stepping into say that silicon valley bank as well. eventually we saw these recover, but now these results are a little down, while not a little, quite a bit.— little, quite a bit. the level bankin: little, quite a bit. the level banking system _ little, quite a bit. the level banking system is - little, quite a bit. the level banking system is under. little, quite a bit. the level banking system is under a l little, quite a bit. the level. banking system is under a lot of pressure, central banks of the federal reserve, the bank of england, they are raising interest rates very aggressively, and they have been for the past year, and that puts a lot of pressure on the banking system, and it has come to a head here in the last couple of weeks with a couple of failures here in the us, and of failures here in the us, and of course the emergency rescue of course the

well this is very bad because moody and s and p 500 our buddies. they are very closely connected to the financial system. they are not independent as you would call it. they are dependent. and that means if they are willing to lower the, the out side for the us, it means that they have to pay more interest rate in future, or that the, the bonds will the value in international terms. i think that the dollar itself will devalue ambitious. the preparation from this group to devalue the dollar. so let the other people pay for their debts. we've been speaking, so i go home. i quantum. it's done that it's of the shaft to actual business newsletter, and many thanks for your time. always appreciate your insight. thank you very much . you're very welcome. thank you. let's take a ga, now we're in the capital sibley's. the demonstrators a burned a european union flag in france as the nation's parliament, calling for georgia independence from the west. in contrast, a protest last week against a proposed new foreign agent. no web demonstrations were seen suppor

read across is investors are parking to one side what happened at the moment overnight, we had moody's and s&p place the ubs outlook on negative watch because of the execution risk with the complexity and duration of the deal it will be years before we see synergies come through the ubs stock is rallying so much is because at the end of the day, they got a bargain. they managed to buy the rival for $3 billion more or less in equity value around $45 billion and deposits and assets of $600 billion. a good deal as far as ubs is concerned. we have to see how though process is going take place. in one bit on the a-t-1 bondholders. that was a concern for the markets. we had the markets say within the jurisdictions, the seniority will be respected and the equities and common equity shareholders will be the first loss absorbing before bondholders get impacted which is not happened in the weekend with the credit suisse acquisition. that was one thing that ran through the market we hear legal cases coming through on the exposure to the a-t-1 debt the total size of the market is $100 billion in ig term

absolutely we did get both moody's and s&p downgrade ubs credit to negative overnight. the concern is they are citing it will take some time for this deal to be executed. they talk about the risk of execution and complexity of the deal in addition to the duration if you go back to the press conference, the chairman said it will not be before 2027 when the deal is liquid it will take a couple of years for the entities to come together it will entail difficult decisions and cost cuts and reduce the investment bank all of the changes have to take place. they will take time. the credit agency in the short-term is quite circumspect for what it means for ubs. >> joumanna bercetche with the latest on credit suisse and ubs. thank you. >>> ahead on "wex," top trending stories and the city topping the r st for the most expensive spot fotravel the name revealed when "wex" returns. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones ♪♪ for skin as alive as you

and now, moody's and s &p did down grade the banks after the recapture there.small and the medium-sized are stabilize. so they have either eased or reversed which is what washington wants to see. >> and what the company needs at this point. here to talk to me about much more is gregory meeks, a cop democrat on to foreign affairs committee. i wanted to talk to you as the meetings are happening today in moscow. the what do you think comes from this? >> vi low ei have low expectati coming from the committee, i believe that dialogue should take place, and we will be looking at what takes place after the dialogues. if xi wants to help, he should leave russia and go to ukraine to talk to zelenskyy, and if not, we are going nowhere. because nothing happens about ukraine without and he must go to talk to zelenskyy and the people of ukraine as i have. >> do you see xi here as peacemaker? >> no, vi low expectation, but we are going to be watching him, and see whether or not he is going to give weapons or something of that nature, and that means isolation for china pa als

moody's and s&p also cut it to junk status. lower rating signals a riskier investment and makes it more expensive for the bank to borrow. first republic shares off 70% the last week on concerns about its depositors rushing to move their money out of the bank. first republic saying that outflows have slowed considerably. and yet squljudging by reactionm wall street, investors are not convinced. >>> and western allies announcing new commitments of firepower for ukraine. 18 european nations agreeing to jointly purchase ammunition to aid ukraine and replenish their own stockpiles. and the biden administration authorizing 3$350 million in military equipment to ukraine. salma abdelaziz is joining me live. what will the u.s. be sending to help the ukrainians? >> the announce the of course being welcomed in kyiv. important to note here on the u.s. offer for assistance, that $350 million security assistance package, that is a drawdown package, that means that it will be pulled directly from stockpiles and get to ukraine quickly. eu coun

s. banks, which had appeared to be under pressure. it wasn't all good news, though, with ratings agency. moody's cutting its outlook on the u. s. banking sector from neutral to negative. 13 sasha stephan of the frankfurt school of finance can tell us more from new york, sasha. thank you very much for joining us and stocks starting to turn around but the outlook is down. can we breathe a sigh of relief, or is it too early? i mean the, i think the immediate fall out from the college of as we be bank work, but he gave it so to speak. but of course, the, the underlying structural core groups remain specifically in the banking sector. i . but i think as the, the immediate problem that you're, that you've seen particularly over the weekend on friday. i think that that has been stopped for now. ok, why i'd like to begin to is, you know, the recent bank lapses were significant silva, gate signature, silicon valley banks where they all rare one off events due to poor management or is that something broader and systemic to be worried about. so i'm the one hand these, these banks with very specific in the sense that for example, as the

interesting to see s&p and moody's come out and say to look at the risks. that is the big question. it is potentially great for ubs, but it will be tricky to make sure is a success because it is so much riskier. it is a huge operation ends in terms of current changes needed, obviously thousands of jobs will be cut, so it is a big process ahead. tom: the difficulty and the risks around integration, risks around execution for ubs at his -- as it absorbs ubs -- as it absorbs credit suisse. in the u.s., we still look at first republic. what are the regulators considering to support the sector? tom m.: now it is a universal guarantee of all deposits. one silicon valley went under, they were like, we can guarantee this much is in the situation, and now you have midsized lenders saying that we would like a full guarantee. it is immense, the implications, and particularly, there is a huge amount of pressure on that, so it is being noted and requested. tom: bloomberg's tom metcalf, thank you. china's xi jinping has said he and vladimir putin will forge a blueprint for china-russia strategic

downgraded the debt ratings of collapse signature bank deep into junk territory. moody's also placed the ratings of 6 other u. s. banks under review for a downgrade. now helping fuel those fears over midsized lender is, is the concern that many of them may be sitting on under valued assets because of interest rate hikes when interest rate hikes were low. banks like s v be deposited their customers funds into long term bonds. does interest rates have climbed dramatically over the last year? they lost money on those investments. now that's not no problem. usually the bank can wait until the bonds are repaid. but if the bank is forced to sell bonds at book the loss, the same time rising interest rates, our customers in s v b is case the struggling tech industry withdraw money. so the bank had to sell assets booking those losses because they had to meet withdrawal requests that turned into a spiral of fear and run on the banks. hon space i book us is joining me now. he is chair of banking and financial services at the university of who and hines and germany mr. book are at the heart of the story as we just saw, are

downgraded the debt ratings of collapse signature bank deep into junk territory. moody's also placed the ratings of 6 other u. s. banks under review for a downgrade now helping fuel.

why didn't you or you might try to reassure people, but then we have the moodies out look for the u. s. economy, which my people are going to be looking at and thinking is this a sign that the countries in worse shape than officials are willing to admit? well, it most certainly would be a very so long it met. but the truth about anyway and not just the banking system or the economy. you say these troubles date back to 1999, 24 years ago. when they dramatically changed to banking revolution regulations. prior to 1999 commercial banks could not engage in investment banking. the 2 kinds of banks were separate investment banks took risk on their own money. they were partnerships, people with their own money at risk. when they let commercial banks become investment banks, the commercial banks gamble with the posit all the depositors, they're not using their own money, they're using the deposits that their customers put into the bank. and so this has allowed tremendous risk taking that was previously not part of the system. so when they repealed the glass steel at 999, this act had prevented

to give you an idea of moody's rating agency downgraded the u. s. banking system from stable to negative. and in a report said the rapid, rapidly deteriorating operating environment in their words, was a cause for the downgrade. so certainly there's a sigh of relief that the market seem to be doing very well on tuesday, but also the medium to long term outlook is still very delicate. china has a stray, the end the u. s. and the u. k. are on a path of era and danger. that's off of the 3 nations and the nuclear power submarine deal in the face of beijing rising influence and the asia pacific. mondays deal under the old security patch would provide a stray area with 3 america manufactured nuclear psalms. john henry reports from san diego. it is a bold effort to shift the balance of power in the pacific. the leaders of the u. s . the u. k. and australia cementing a plan to deploy nuclear powered submarines from the australian coast are unprecedented. trilateral cooperation, i believe, is testament to the strength of the longstanding ties the united is

in 2020 it hosted the mag, i rode show of moody, and then u. s. president donald trump, the cookie diplomacy comes as in just pushing for a greater international role. india is the president of june 20 this year. it's due to new delhi take seriously seeing it as an opportunity to project it says as the voice of the global south, particularly on issues affecting developing nations like climate change book supplies and high debt. india's already leading the full match series winning this fine and match will secure a spot in the finals of the world test championship. the opposition is eager to deny this victory as to the start of the series didn't go to plan losing the 1st 2 games. but you know, there's a lot in it for india as well. if they, when they can secure a spot and not have to rely on other results. so you know, we want to make that difficult as difficult as possible for them. and so we went to the series and, ah, i'd been easier for the visit started with him, celebrating the festival of holy. the 2 nations are expected to strengthen trade

havingxd not done a good job, moody's or s&p. >> you know, no e1e1disrespect the work that thesefá guysgging indicator. just take -- i'm not following it every day in theg7i ways i d. yesterday was quitee1 interesti and i thinké"ñ some of them downgraded some of the big further. but surprise, ñrsurprise, becau of what janet yellen said, we had a big rally in the stock prices. so, you know, i never thought of the rating agencies as leading indicators. and for them to be really, really useful somehow they got to try and become more cutting edge and leading indicator in the risks that are out there. >> what was it that janet yellen said that you think led to this? is it the idea that even though there is queqÛ9m■ about what they can do and how far thexd government can go, you think that she's basically implying that she is going to say every Ñ them will belp allowed to go under? >> i can't imagine that the fed would be pressurized took go th far. but i read from what she said that they need to look at what they put in place in '08, which, you know, until recently in what has worked reasona

tom: ubs is outlook has been cut to negative by s&p and moody's as the bank faces integration and restructuring risk in the wake of its acquisition of credit suisse. let's get more from the finance team leader tom metcalf in london. what kind of reaction to settling in around ubs and credit suisse? tom: i thing the markets are taking a breath and there is a little bit more calm out there. you can see it in the shares today. yes, you had this credit ratings agencies coming out and saying on the outlook, maybe we will put them on watch effectively and obviously there are risks to this acquisition. there's a huge thing in m&a is difficult to achieve. most investors are looking at the upside here for ubs, which seems to have basically got a bit of a deal as you might expect such a situation. if they can pull it off, most people are saying this will be very good for the swiss lender. francine: when do we know if they can pull it off and there was a brilliant piece this morning saying is this a lehman type pause? i know the perils of lehman on the outskirts are a little bit dodgy maybe but, how much

first republic bank down 39% today alone on this, after credit ratings firms s&p and moody's cut firstublic deeper into junk territory over the weekend. we did get positive news on the banking sector. a u.s. official telling cnn deposits at the small and midsized banks, they have stabilized. those big cash withdrawals out of the small banks into the big banks has either eased or stopped or even reversed in some cases, and that, of course, is very encouraging and something u.s. officials are watching very closely. >> and, matt, how significant is this ubs takeover? give people perspective on that. >> yeah. i mean, i think this is a very significant deal, and i think that it shows how concerned regulators had gotten in recent days about credit suisse. this was a stock collapsing. some of their counterparties reportedly backing away from the bank, and also we saw big deposit outflows out of credit suisse. i think the good news here from a u.s. perspective is that u.s. official tells cnn u.s. banks have pretty limited exposure to credit suisse at this point. again, the hope is that this em

comes after first republic was downgraded over the weekend further into junk territory by both s&p and moody'sthat's due to what first republic got just last week. we did get encouraging signs on the regional bank front because more important on the share front is what's happening with deposits. we don't have a great view into deposits, but regulators do. and a u.s. official telling cnn's phil mattingly and i that deposits at the small and midsize regional banks that they have stabilized. that those massive ive deposit outflows have eased. and that is really important. why this matters at the end of the day to real people is whether or not your money is safe in the bank. we know fdic insures up to $250,000. it's really what it does to the economy. the longer the bank crisis lasts, the more expensive to borrow, right? mortgage gsz, car loans, credit cards, small business loans, all of them are going to be harder to get and more expensive. and, john, the concern is the longer that lasts, the greater the risk this ends up causing a recession that everyone is worried about. >> that's why we watch

so it 's kind of a moody view from early in the morning, so please smile lord smile well, this is a classicrt of the live broadcast. yes friends ends after the release of the news. getting in touch. with gomel. alexander lupinenko. he will tell you what interesting things happened this week in this region, but is it true that it is spring there today without sleep, we will definitely ask him about it. well, of course, we will receive guests today and we have two reasons today, firstly, the constitution day of the republic of belarus and world consumer rights protection day. well, in the third hour , according to tradition , our charming masha khrustaleva will drop in to us to ask pepper to the world celebrity. all the more reason was fine oscar's demand that there was someone and something to discuss, that our parting would be short-lived and very soon we would tell you a good satchel. you know the origins of the belarusian culture of architecture that at one time the place was the children of the city. once the great vitov laid eyes on it and built a wooden castle here, which stood in this

s. foreign policy, india certainly was, but isn't that the point is an arc of history and what no render moody is doing today? joining with china with, although lula, president, lula brazil has been on this program, has been making different sound. so it's difficult for any leader to oppose u. s. foreign policy. this is the arc of history, isn't it? that the students who want to study in america, they do talk about the learning from a dying? no, listen, that i did. none of these are the decisive factors. the decisive factor you want to know is the chinese crossing the ls, he and plumbing and occupying are judging. that is shown went through this, the beget, sorry to interrupt the 3, but we went through this. i went through all these deals, nuclear corporation in 20 o 8 a deal signed between india and the united states. what do you think china's going to do? allow india to launch nuclear weapons at major. yeah, and you're talking about the line of actual control after you by our territory. they can have more you nuclear weapons and them facing india. i don't mind that. i think i think the inter

s. as proxy war through ukraine. joining me now as a politician for prime minister moody's ruling bar at the edge, another party or b j. p in india and like moody he supports the major line on ukraine, doctors of romanian swami form a cabinet minister and 6 term regis. i'm p as in new delhi. thank you so much sobriety of her coming back on. i mean, last time you were on the show, there you are slamming u. k. colonialism. and now, now you seem to be completely supporting your old colonial master. the britain. and the european colonial must is on the ukraine proxy war. what do you got against this rise of the global south? finally, winning the day? yeah. well 1st of all, the britain is following the american light. and then i'm not pulling britain a more list. in tandem with the americans are not bog down there. the fundamental question is that a green is a independent united nations member, and there has been a crossing of our soldiers army and so on, by a country which is considered as one of the permanent members of the supreme. now the security council, it is so and, and she did that s

s. lenders for smaller rival 1st republic. bank. moody's downgraded the banks credit rating on friday. yes, president jo biden's calling for congress to impose tougher punishment on bank executives. right, police have confronted angry protest as in paris for a 2nd day and a violent demonstrations outside parliament against pension reforms come to day after the government by pass parliament and push through a plan to raise the retirement age. from 62 to 60 fool, turkish president, russia, ty, burden says he will now support finland's bid to join nato. it happened after his meeting with finished president saline sto in ankara. the swedish foreign minister, though says anchor's decision to only ratify finland's bid is regrettable villains, president says nato membership would be incomplete without his closest neighbor suite. 295 percent of manda. so parliament sit and bolted last spring that we have to apply for membership. no, we haven't got an awesome, thank you and button we have a neighbor, sweden. and what i now say is not only due to the fact that they are nice people and we have e

s. labor department has reported that inflation in the country rose to 6 percent in february compared to the same period last year. moody's investor services, part of the big 3 rating agencies, has slash outlook for the entire u. s. banking system to negative, as the country's economy is shaken by financial turmoil. this comes after 2 major american banks collapsed over the weekend. now, the federal reserve, which overseas the banking system and the rest of the economy is faced with the choice either to raise interest rates even further or tackle inflation by reducing prices for consumers. speaking on monday morning, president bite and tried to reassure americans that their money is safe. former white house press secretary gen saki chimed in, saying that it's difficult for bite and to do anything in the morning. but he did so because it was important. now it's important to note, president biden does nothing at 9 am. he is a night owl. so the fact that he is doing this at 9 am anyway, speaks to how vital the white house recognize that it is for him to have his voice out there. conveying that to the american public. earlier

s. lenders for the smaller rival 1st republic. bank moody has downgraded the banks credit racing on friday. you as president joe biden is calling for congress. him post tougher punishment on bank executors. ra. a police have confronted angry protestors in paris for a 2nd day. there were violent demonstrations outside parliament against pension reforms comes a day after the government. i passed parliament and pushed through a plan to raise the retirement age from 62 to 64. take his present, a wretched tale bearer on says he will now support finland's bed to join nato. it happened after his meeting with the finish. president saline sto in ankara, the swedish foreign minister says encore, his decision to only ratify finland's bed is regrettable. former pakistani prime minister m ron con, appeared in court on friday, where a warrant for his arrest was counselled. they happened warren south against him on multiple corruption charges, which con denies. they see headlines. nice continues here now to 0 to one, a one east. to al jazeera. we are, who is really fighting? is russia basic wagner? or is

and we saw that on tuesday for moody's, the rating agency downgraded net outlook for the u. s. at banking sector as a whole from stable to negative. they say in their words, they did this because of a quote, rapidly deteriorating operating environment and their words. so clearly there's still a lot of trepidation about how the banking sector in the us will come out of this in the medium term. and as well as the concerns for the banking sector. there were also concerns about the impact of silicon valley is go to bank going fast on the tech sector game, especially given the recent layouts. and it seems that there are more job cuts. now . there are no mark zuckerberg to ceo of meta announcing on tuesday that they would be cutting 10000 more jobs and would not be filling 5000 open positions. this comes after the company matter, which of course owns facebook, instagram, whatsapp among others. some of the biggest tech companies that doings of people around the world use these tech products. this comes, these cuts come after medic cut 11000 jobs in november. so it's clear that there i

s&p. it wasn't moody's. i take that back. s&p downgraded u.s. debt in 2011. and the number of times i get from reporters outside, aren't you fearful you're going to get downgraded like you did a dozen years ago? that's not what happened. we got downgraded because we didn't take the debt seriously. and the numbers today are dramatically worse than in 2011. but is that the discussions you have around here? are our brothers and sisters on the left saying, hey, i care about -- we got to fix social security because in nine-some years, we're going to double senior poverty if we don't fix it because that 23%, 25% cut seniors are going to take. do they have a soul? do they care? well, if you cared when the president gave his state of the union speech, it would have been not, you promised not to touch social security and medicare. it would be, we're going to save them. so in the president's budget, a number of my colleagues on the left have been running around saying, oh, they put all this taxing to raise money for social security part a. remember, that's only 25% of

s. in europe, but not for political interference. prime minister moody recently made this position clear to chance the sholtes regarding the ukraine war is india dance? representative of the entire global south india, like many other countries in the midst of those power struggles. asia, why is india so reluctant to clearly position itself in this war? when it comes to russia in jo ann just really have a really long days and a callback decades. we can have a complete episode on that. so no, not get into that. but the in, in foreign minister has been seeing a lot of thing in the last few months, which really explain what india stands is for one of the statement that he gave last year. and then the rest has to change its mind. said that the west problems are the was problems, but there was problems are not this problem. that means it needs to be changed. he said bad and that day and a lot of media outlets said that he sounded extremely out again by seeing that. but the see that those words were actually early recorded in the munich security report . and urban johnson of all of shawls, also

to give you an idea, moody's, the rating agency downgraded the u. s. banking system from stable to negative. and in a report said the rapid, rapidly deteriorating operating environment in their words, was the cause for the downgrade. so certainly there's a sigh of relief that the market seem to be doing very well on tuesday, but also the medium to long term outlook is still very delicate and any sigh of relief with the latest inflation against gay. one of the reasons for silicon valley bank collapse has to do with interest rates hikes, having a negative impact on the bonds that the bank held in the latest inflation figures show it's coming down. is it too early to tell us that would have an impact on interest rate hikes? yeah, it's complicated in a word, but the bottom line is, is that the inflation rate in the u. s. has slowly and steadily been coming down. the latest numbers show it's about 6 percent. now that's good news when compared to where it was this time last year where it was 9 percent. and then it was creeping in about the $8.00 to $8.00 an

s&p right now. this afternoon moody's rating agency said it is putting comerica's a1 long-term ratings of certain bonds on review for downgrades as investors run to ec. nasdaq had been on pace to close at a 5-week high, sill in the green by 113 points. we've got a hoisting by a mix of names. netflix, marvel technology, regeneron. netflix is a really hot stock right now, up 7.7%. the party is really hanging out in the chip sector. while we are looking at some of these chip names including asml holdings, micron awe applied materials, advanced microguys and nvidia, web -- remember, we need to punch up block. hindenburg research, shares are falling about 15 points -- 15%, rather, which accuses -- this report accuses the ceo and founder, jack dorsey, of obfuscating the cash app's surface services, obfuscating the true user numbers can hindenburg alleges is filled with fake and dupe cannily cat accounts. we're watching block really closely right now. it's coming out with a statement in the last hour saying it intends to work with the securities and exchange commission, is exploring legal action against hinde

tesla is up big, help aid long with a credit ratings upgrade from moodies, making it investment grade. no longer high yield. s&p did something similar back last fall with its rating up to bbb, also investment grade. check out general motors, rivian, ford, lucis, all up on the day. >> dom, thank you very much. >>> we begin with the fed as we are less than 24 hours away from one of the biggest fed decisions in years. so is another rate hike on the table, or will the collapse of silicon valley bank and problems at other banks cause the fed to pause and wait things out a bit? here with insight, former federal reserve board governor and economics professor at columbia university. professor, welcome. good to have you with us. what will the fed do tomorrow? what should they do? >> let me tell you where i stand. i've been taking the view that the last time they should have done 50. the fed has been a little behind the curve and has to move and move rapidly. i have to tell you, my views have changed right now. we're dealing with an issue which is frequently referred to as financial dominance. if the financial sector i

moody said the group needs a reset to solve current global issues. we must all economic died. multilateralism egan cries, is today. the s williams of the last few years. finance or glitzy, glamorous g h. brand, emmy, that of them. and vol clearly shows that a global governance had fade. but you cranes, western allies are insisting the world needs to present a united front against russia. is that european union? the foreign policy chief, joseph burrell? the international community has to use all for, as is a very important for because here to be represented almost 80 percent of the warranty, the b have to use all 4. i know that the political pressure and russia for stop the war 14 started to war. and russia has to stop it. and this is a good occasion in order to make conclusions on least make clear that the international community is pushing to russia. first. india is very dependent on russia. points defense needs. what is the european union doing to encourage india to diversify its defense needs? well, we know which is the position of india. we know that he is playing a multi paula role abstaining, united nation being a

mary moody are reporting for r t in had at a symbolic it seems that some u. s. allies, australia, for it was our, was started turning their back from washington or syrian centers, 3rd, jordan. still john has even a huge the u. s. of persist in the using armed conflicts to advance its own national interests. they begin a conflict in their national interest. i'm, they ended in their national interest, the people of vietnam, the paypal o iraq, the people of afghanistan know that america is a very bad house guest or says of the only one of the other countries around the world are distancing themselves from us policies. recent research has shown that despite around $140.00 countries condemning the ukrainian conflict, 85 percent of the world's population does not participate in the western sanctions against russia. r t correspondent, steve sweeney. as the details. the u. s. clearly views itself as a global leader, the most important country on the planet. they are both countries that chief in bristol, at u. s. leadership around the world. and in china's case, in part

to unnerve wall street tumbled 400 points or 1.2%, nasdaq 7% and s & p 500100%, first republic saw its credit rating downgraded by moody'sng significant challenges shares of first republic plunged 33 on friday, pack west is down 19% and z iles 7%, investors are hoping next week's meeting will serve more light. earlier i spoke with michael imer man at uc irvine and asked him after a week of bail-out and cash infusions how precarious is the banking situation now >> the problem with any banking panic is that it's like a series of dominos, and once one domino -- once one of those dominos falls it has a cascading effect, there's no way to know which will be the next to fall in this chain reaction, oath everybody is on the edge of their seat wondering, who's next. >> the problem with these falling dominos, as you say is how quickly things seem to have fallen, as you pointed out social media has played a huge part in this. >> this wasn't a bank run this was a bank sprint. and social media played a really central role in that bank sprint, if you will, because historically with a bank run, we'll see it unfold over a matter of day

silicon valley bank's unsecured debt at the end of last year according to s&p global, insurers total investment in the banks that moody'sgraded is less than $5 billion, when the industry holds, just putting this into context, trillions in assets in cash insurers could also take a hit from these banks by paying out on d and o policies. shareholders have already filed a lawsuit against svb claiming mismanagement by its directors and officers if there were a jury award or settlement, insurance would pay. among the biggest providers of this kind of insurance, chaig, travelers, svb has, we're told, $180 million in coverage, that's according to an industry trade publication, "the insurer. it is a long tail challenge for the insurance stwindustry, but immediate challenge is macro issues like inflation and, of course, this rolling credit crisis, which they just have to keep tabs on >> contessa, thank you, for laying that out. so, guy, is this -- is this a guying opportunity, or -- >> i don't know, sometimes it's a selling opportunity. we always have -- we typically are buying, sometimes it is a selling opportunity. prudential h

moody's has cut its outlook on u.s. banking system to negative. this afternoon s&p global placed first republic on credit watch negative, says credit suisse -- which is now a $2 and change stock, it's falling 1.7% right now, they say its 5-year credit dethe fault swaps which they basically insure investors against a default of the company have risen to a record 522 basis points. how or worrisome are these developments, diane? >> well, you know, i can't speculate on whether or not the financial crisis is behind us, has the fed contained it, and that's exactly why i think they might pause with this hawkish pause, because they need to assess the situation. and the bottom line is we just don't know. and i think that's the most important thing to remember are. i do think what we codo know is that -- we do know is that we're going to the see tight or credit conditions for the backbone of the u.s. economy, and that is firms less than 250 employees have driven employment consistently since the reopening of the economy in 2020. they're playing an outsized role today with a