response is when it resumes trading. >> we had a guest onset talking about the action with new york community bankwhich she feels is a crisis of confidence which is a little bit frightening if it's not based on fundamentals and people's incompetence in a company. you have been focused on new york community bank specifically, but is there something else or other banks to be watching out for? as this contagion happen sometimes like we saw a year ago? >> confidence is a critical one especially in the banking world when you get a cycle of events where you have depositors who look at the stock price, the stock price is concerning, they get concerned and take money out, then it feeds on itself. that is not necessarily the case here. i don't believe it is in the press release that came out but we have not seen much of an update to the state of deposit last month. we have no reason to believe they have been running with one of the benefits new york community bank has is that a lot of branches are under different brands like flagstar for example. it is not as easy for people to make the direct comparison t

the rating on the bank which largely caters the new york city landlords was cut friday to junk by fitch and then moody's agency slashed new york communityvestment grade. new york community bank with, which acquired failed signature bank during the regional banking turmoil in 2023, is now facing an uncertain future. will it need a lifeline from the fdic, the federal deposit insurance corporation? if joining me now in a fox business exclusive is the former fdic chair sheila bair. well, the way this is going, sheila, is that around the corner where the fdic is going to have to step in and say, heying everybody, it's fine, we will make sure to ensure all your depositors, each up to $250,000? -- insure. >> well, i certainly hope not. i mean, that would be surprising. i don't like to make predictions about whether banks are going to fail if or not can be. [laughter] but i would with observe that what the fed jutte a couple years ago approvedded this bank to acquire flag -- [inaudible] which increased its significantly. and ask and occ approved it to bid on signature's deposits and some of its assets. so presumably, both of those events involv

new york community bank was opportunistic. they acquired deposits from signature. sonali: i want to switch gears because we know about the stresses in the regional banking system. there's also a lot of stress in washington. this is a much bigger problem on the banking system. this comes at a time where the u.s. is issuing an extraordinary amount of debt. congress has been able to approve interim funds. but you worry about the band-aid coming off and what that means for the march 8, march 20 second deadlines. how much volatility do you expect and what worries you? >> i think the new speaker who succeeded mccarthy as a result of mccarthy's inability to get out of the house, the 12 appropriation bills that in time -- congress hasn't produced a budget on time since 1997 and as a result use these continuing resolutions to ensure the government has funded without necessarily having debated budgetary priorities and reset them for the fiscal year. this congress came in house majority, the republican house majority saying they would cut spending and get budgets done on time

powell was before the house financial services committee had no idea what was happening with new york community bank stock and what do you think he learned and what would he have done with right after he finished testimony in q2? >> new york community banks problems well known for awhile now and they replaced their chief executive last week and clearly a bank that's had some problems and problems with commercial real estate problems but this wasn't new news to the fed and in fact when fed officials have been is asked about it in the past, they down played it and this doesn't seem to be getting anywhere near the level of attention that svb got one year ago. liz: new york community banks troubles do not from your seat incur the fed or push the fed to cut rates sooner than they would have? >> not at all this. is one bank like i said their problems have been advertised for awhile and like you just showed, the kre index is not showing how big contagion is through the banking sector here and seeps like something you could say is in a league of its own and not contagion risk right now. liz: again, there's

idiosyncratic issue here, which is the un-stabilized departments which were so concentrated in new york community bank's books. fine. there were also those idiosyncratic issues last spring with the venture capital concentration. but, when you have so many banks that each have their own issue pile up, eventually, it stops being a one-off situation, and it starts to be something where we start using the term "systemic more." so, i don't think we have gotten to that point, but it just reintroduces that fear back into that conversation, after a full year since the last go around. >> steve wiseman, undoubtedly, any other day, the fed chair testifying on capitol hill and coming off more dovish than the market had inspected -- expected would be the obvious lead. but here we are talking about bank stability and the irony is, so is the fed chair, because he was asked about it, not sarat sethi specifically, but this was unfolding as he was in his seat in the house today. >> yeah, and i think as usual, josh put his finger right on the issue, which is the extent to which this is systemic. i have this formula that i

this is a very significant regional bank, more than new york city even though the name says new york city communityank. we are going to try and diversify and reposition the institution. and i think it is a long-term project so this is not something you can snap your fingers and it will happen overnight. i have high confidence that joseph will get this right in the short term. sonali: this only closed a week ago and investors are asking is $1 billion enough? at what point where it might need more capital? will $1 billion do the job? milton: i cannot predict tobacco -- the macro and where it goes but based on the work that we have done and liberty did this independent of us and then we came together to look at the results and we were spot on top of each other. i think we feel very comfortable today based upon the current view that $1 billion is sufficient. if that changes in the future will, we will put more capital. katie: i want to talk about the role of private capital. is there a plan to sell assets to private credit firms and do they even want them? milton: we run a private credit firm, opportun

interesting as i did -- the executives noted that customers from signature bank which, of course, new york community bank under, that those depositors were the ones who were most jittery and pulling their money out. i guess you could figure once bitten, twice shy. but who's to say either way they'll keep their money in this bank? >> you know, that's a fair question. i think at least in the short term this capital raise helps provide some confidence with regard to those depositors. longer term here we've seen some pretty big management shake-ups in the past couple months, and that will probably make not only the depositors question things, but also those who are doling with the bank. -- dealing with the bank. i think there's a good chance some of those employees from signature go to other greener pastures. liz: we know one thing, former treasury secretary steve mnuchin is a smart guy. this is not his first rodeo. years ago he bought what was, of course, the failed mortgage lender indy mac after after the financial isis. he talk abouted that around -- turned that around, and he put joseph otting in as ceo

away from the silicon valley bank issues and i think we need to go back to the time when new york community bank bought signature bank and the assets of signature bank, which the fed would have had oversight of you correct me if i'm wrong, and i'm just wondering if something was missed that maybe that deal should have been questioned a little more firmly at the time it's easy to be monday morning quarterback now, but the fed does have oversight on this issue and one i think can credibly ask the question as to whether a ball was dropped somewhere, steve >> reporter: i think that's an excellent question, scott. i've also seen the history of these things where some of the banks who step in to take over these problems end up -- and, by the way, a lot of these things are done burning the midnight oil, and sometimes they do miss things, and so banks who have stepped in to help out the fed or the government in these situations end up taking considerable losses later on it's not unusual and appeared to be not big enough to withstand those issues, scott. >> the stock is down some 45%. the fed chair is si

new york community bank on the fritz. out, people like janet yellen saying we can backstop every single depositors in the entire system, it just -- it goes to play on the thesis that fiat currency is worthless because they can print it forever and you change to the ease of use, now you can just buy an etf from a reputable company like fidelity orbit coin or bitcoin, it makes it easierr people to own. historically once you break through the cycle high, you triple that previous cycle high so you could -- in my opinion i think you see north of 150,000. maria: it's unbelievable what's happening here. you do think it's going much higher, then. when? >> i don't know if it's going to take six months or two years. these cycles play out over time but the having is an important event and already now with the buying and a etfs and it got approved at bank of america and wells fargo so this is still being rolled out into the retail advisor industry, the best days are in front of it unless the government some d somehow runs t surplus.

new york community bank corps, ink a deal. those investors buying common and convertible preferred stock $2 per share. investors will get a 60% warrant coverage to buy more stock with an exercised price of $2.50. a bit of background on how this came together according to people familiar with the matter. secretary mnuchin had been involved here, with nycb for a while now. jeffries approached a select group of other investors with the prospect of a capital raise on sunday. they were told a lead investor, mnuchin's firm put up $450 million. hudson bay capital, reference capital parents and citadel had decided to invest alongside him for a total infusion of that $1 billion. i'm told that putting former comptroller of the currency, joseph oting in the ceo roll and revamping the board fwas a boos of confidence for investors to join in here. the price per share of $2 was finalized intraday after the stock plummeted. it's a presume to the lows of toad, below any level that nycb has closed since the late 90. the stock is reacting posit

take another look at new york community bank, okay. n, now down 22%. so again friday, just to back up, fitch ratings and moody's cut the bank's rating to junk over concerns it may have to increase its provisions for credit losses over the next two years. things are just getting worse by the minute. if you stretch it out, you can see that it is, had a really difficult time. i just want to tell you what it has done over, just you know, one year. let's take a look here. over the past year, it is down 58%. but year-to-date, down 72%. bank of america, bullish target for the s&p 500, it has been hiked to 5400. maybe way too tame for our "countdown" closer, infrastructure scrap capital advisor jay hatfield has a even bigger target for the broader market index. spit it out, jay. >> we went from 5500 which we started at the beginning of the year. we were one of the more bullish. we're now at 5750 that is probably the risk to the upside. we're seeing it today, a.i. is supporting the market before we get the rate cuts. we think we will get summer

new test for the rally with the jobs reports and two days of jay powell testimony on the docket. >>> we are watching the latest with the regional banks and if the worst is behind for new york community bank. >>> and the bulls are alert with the decision over the weekend and later on, there is no alternative to japan. stocks doing something there for the first time ever. it's monday, march 4th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ >>> good morning and welcome to "worldwide exchange." i'm frank holland. let's get you ready for the trading day with the hourly check of the u.s. stock futures. take a look. you will see stock futures in the red across the board. looks like the dow would open 70 points p lowlower. nasdaq under pressure. the nasdaq joined the s&p with the first all-time intraday high on friday. still off the all-time highs are the small caps. the russell 2000 trading at a fresh 52-week high. it is lagging the other indices. only up 7.5%. growing more more highs with bank of america boosting the lofty target for the year end anti-ingd tying for the higheste street. we'll have more on that in a moment. take a look at the s&p 500. we will show you w

so it's really difficult to tell kind of which way the fork in the road goes for new york community bank but obviously, it's a dire situation. it's one in which, you know, there are likely a bunch of investment firms that play in this area, are taking a look but there are asset sales that would be on the table in order to tighten up that balance sheet a bit more discussions with investors it sounds like a lot of those are involved in private investors at this juncture so we'll see what happens. but it's obviously a very precarious situation, and a plummet of 42% today makes things more challenging for this company. >> we'll watch those shares for sure leslie, thank you very much. >>> we want to get to the other big market story so far right now, that's fed chair jay powell wrapping up day one of his testimony before the house financial services committee reiterating that he expects interest rates to come down this year, but isn't ready yet to say just when. steve liesman is here with more on those details day one of the testimony formally known as humphrey hawkins. what did we learn head

liz: let's hope you are correct that new york community bank can survive. a little more worried than the market appears to be. we don't see it spooked in the latest earthquake in the regional bank, incredibly strong at this hour hoisting the s&p and the nasdaq. cloud and data management software company is at the north pole of the s&p leaderboard, gaining 20%. we've got the ceo coming up. it's followed by chipmaker and chip equipment manufacturers broad, western digital, micron, kayla, everybody is up, 4% to 7%. and over the past, year to date. and it has spiked 28%. and one of the dow components, heavily weighted here in the nasdaq, struggling the past several days. there's news, goldman sachs taking off a conviction list and the market is looking strong overall. >> it's not supporting the market to get on it. apple doesn't have a clear strategy, they are the provider, they don't have a strategy that is helping to be part of this. liz: do you like any of the names in the magnificent seven. as we watch them hold onto extreme leadership positions does that ma

strategic capital and two other investment firms are injecting a billion dollars into with new york community bank up confidence so depositors don't pull their money. they have. the bank said this morning it held total deposits of $77 billion. that's down 7% from a month earlier. the problem is that new york community bank corp. has huge exposure to commercial real estate like offices right here in new york city. in fact, steven mnuchin just said the biggest problem in their portfolio is their new york office loans. but what happened in 2019 here in the city in they capped rent increases. that killed -- stuart: there you go. >> good old democrat policy for you. lauren: you can't bring in more money, interest rates go up, all these office builds are sitting vacant because everybody's working from home, this is what happened. so the question is, is this idiosyncratic to maybe new york community bank and a few other, or there -- will there be contagion? stuart: we shall see. adam's brought some stock ticks -- picks, and we're going to start. tell that? i'll never buy into an airline. >> you and warre

our leslie picker, new york community bank shares down more than 22%, almost 23% right now. weiss, i'm going to come over to you. you have a lot of financial ownership. what do you make of nycb, of the regional bank space? >> it's troubling. i know jim takes a different view -- >> no, i don't. >> oh, good. i'm glad to see you don't. the massive wall of refinance -- >> i get nervous when you agree. >> i'm particularly nervous when i'm the one he agrees with. the refinancing later this year and into next year, we'll see more of the problems. this is the other shoe to drop and not the most well managed and given the fact they went through acquisition recently and the fed didn't pick up on the poor controls, that's troubling as well. we don't know what else is out there. jpmorgan hit an all-time high. why mess around with the regional banks and try to buy value, which doesn't exist? >> speaking of the regional banks, a chart of the kre, the regional bank etf, over the last year. it's down double digits following svb. what's your take on the regional bank space itself? >> i think

the latest with new york community bank in connect.ar following the announcement of the $1 billion capital raise and the shakeup led by steven mnuchin. this following the one-year an anniversary of the collapse of svb. we have leslie picker with more. a lot going on with the leander. >> reporter: it is remarkable, frank. one year to the day that svb experienced that historic run leading to its demise. that failure and the one of signature bank came at a cost to the banking system. it is still going on. that figure was revised upward by a whopping 25%. last fall, the fdic levied a $16 billion fee spread among the biggest banks that covered the depletion of the deposit insurance fund after it was used to protect uninsured depositors of svb and signature. that fee was bumped up to $20 billion. the numbers are raising questions if uninsured depositors should have been required to take hair cuts on the deposits and if deposit insurance reform should be back on the table. this, of course, comes amid the price $1 billion infusion from the gro

and in finance, new york community bank rebounding after steep losses this week following a credit downgraderom fitch. remember we are seeing the stock still down about 11%. and that regional bank stock move brings us to today's big take because the stock has fallen by more than 70% just this year and the story of how it happened includes missed signs, new laws, changing regulators and a lot of names underneath the surface unseen before. this begs the question have so much went unseen. >> first of all, we've worked together for so long, i think this may be the first time you and i have been on tv together one on one. new york immunity bank is a long and interesting story and it would be so nice to be able to tell you that there is one guy who made one mistake and it all comes down to that but really it is kind of a detail of three different buckets. on the one hand, classic ambition, the theme you and i love to write about when it comes to wall street. you had a small banker wanting to get big and then a big bank that became the big and then you have real estate, the story of affordable hous

i think they did a good deal with new york community bank because quite frankly it strengthened new york community bank to put that franchise. obviously, if jpmorgan had wanted to buy it instead of buying first republic, they would have bought it. no, i think the fdic did the right thing, and again, i think you see this as we were able to raise capital. we were able to stabilize the bank. i obviously had extensive conversations with both the fed and the occ over the last few days. and they have been very supportive of us moving forward with this investment. >> steven, was there another bidder, and also, are you going to change the name of the bank? it is a great bank in the midwest, or more of a regional and just focus on new york? >> i can't comment on the other bidders. there was a group of capital that we brought in, into it. some of the people like milton berlinsky i had a long standing relationship. he was my partner at goldman sachs. so in a short period of time, people came into the deal very quickly. we upsized the deal from what was going to be about $700 million to a little ove

credit quality has been a big concern since new york community bank recorded earnings at the end of januaryor me treasury secretary mnuchin whose firm is leading net capital race says there will be problems >> we did extensive diligence on the large loan we will look at the reserves and make sure overtime and has the appropriate reserves and that can be done through a combination of capital earnings. we cut the dividend to a penny or share so we will retain almost all of our earnings and we think the asset side is very manageable. >> mnuchin added if they need to take more reserves in the future they have the capital based now. he also said he was working earned about the bank six mosher to office and he was to multi family and he believes will be bolstered by lower interest rates over the next. mike? >> leslie, you and i spoke about the degree to which there were unique elements in terms of the nature of its portfolio and specific markets but one thing mnuchin said about why time can be your friend if you are a bank in these situations, if the rest of your business is okay you are sort of

i think this is the an idiosyncratic story to new york community bank.y noted issues with their loan review process, and as a result their quarterly earnings would take a hit of $2.4 billion. that's a huge loss. now you have new management taking over. what happens now? perhaps that new management finds more material issues, and it gets a little bit worse or maybe not. but, yes, huge decline in new york community bank is take down the other regional a banks today but not by much, 1.75% decline for the top two on that one. stuart: going the other way, we have dell, michael dell's company, and that's up -- lauren: wow. stuart: 36%? i know they had a report. lauren: it is the same story as nvidia with. there's more demand than supply by a long shot. they have a backlog of a.i. servers of $2.9 billion worth. that nearly doubled in the quarter. dell is literally shipping and selling every single product that it can make to feed this a.i. demand. its servers are equipped with nvidia what chips but also amd chips, and after this wonderful report card, dell came

. >>> plus, is new york community bank finally a buy?er the last few months, one of our traders sees an opportunity to get in. why they have changed their tune. don't go anywhere. "fast money" is back in two. >>> missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai. >>> but the thing i don't like is that, without tiktok, you could make facebook bigger, and i consider facebook to be an enemy of the people, along with a lot of the media. i think facebook has been very bad for our country, especially when it comes to elections. >> that was former president donald trump on "squawk box" this morning, saying t

the super e regionals, or there's a lot of risk teams i believe -- and we with saw this in new york community bank by a lot. and so the occ and the fdic went into new york community bank, and they found a lot of missed markets, then they forced this capital raise where steve mnuchin came in. so at the end of the day, there's never one cockroach. in other words, right now we believe and we with hear from our institutional a clients around the world there are looking at a lot of other super regional banks, and the way the super regionals are performing versus the s&p, charles, is just mind-blowing. you've never seen it outside of a financial crisis. we're talking, look i -- like, 40-50% underperformance versus the s&p over the last year for some of these super regionals. so i think the fdic and the occ, they have a list, kind of a wish list of next victims that they're going to go after. charles: so, i mean, with that in find then, i mean, it sounds extraordinarily ominous. i do want to, without giving too much away, i do want to share from your book some of the key bullets with the audience. we're

>> look, i actually think that that was good news for the rest of the community banks because it essentially circumscribed new yorkas its own issue, right? charles: right. because the markets were holding up that same day. yeah. >> exactly. now, that doesn't mean that a there are not issues in community banks especially if the fed's not going to cut til later, right in i think the community banks, you know, do need a to lower ratessal at some point -- rates at some point to be more profitable. you can now say new york community was an exception, and you don't have to essentially worry about dominoes, so to speak, the way we were doing in 2023 when those banks were failing. charles: all right. so no contagion -- >> correct. charles: the fdic quarterly banking profile came out this week. i went through it. and, i mean, listen, this is a few things. you had a bump and a problem, i think 6 is banks. not -- 16 banks. one thing that was standing out to me was the change in quarterly credit loss revisions. it's a little bitty thing, but should we be worried? >> so, look, i think that credit has been so good for so long t

the new york community bank shares are at the lowest since 1996.hey are plunging once again for the commercial real estate lender said it found material weaknesses and how it tracks loan risks. hermann chan joins me now. could this test put this into context. we were waiting for another shoe to drop so how bad is this one? >> the disclosure yesterday evening about the material weakness raises questions on how the bank is monitoring their loan portfolio especially with heightened exposure to areas of concern like office commercial real estate and rent regulated apartment lending. it adds to the uncertainty and raises questions on future potential provisions for loan losses. do they need to add more capital to the balance sheet, are there more expenses because of the need to shore up their compliance? lots of questions surrounding them. katie: where does it go from here? you look at the shares now and it just a wipeout. what is the path forward? >> it's a challenge. the good thing with new york community is they have a fairly low level of deposits. t

visit indeed.com/hire stuart: new york community bank shares rebounded after falling 40% at one point we get such a rebound? lauren: they got a billion-dollar equity investment, essentially a vote of confidence to put the money and, they did their due diligence, they saw something that was okay, just to play devil's advocate, same happened with first republic a year ago, all of a sudden a week later it was coming down. just to give some context on the deal, it was led by steve mnuchin. there you go. the stock is up. and the cash infusion comes with four board seats and ceo spot. the conference call they had this morning showed the deposits were 80% insured so they will be addressing the material weakness that was revealed last week and stock is up 11% right now. they have been under pressure from months. it down 60% year today. some of these charges are unique, the exposure to the commercial real estate industry is hitting the regional banking sector as a whole, $929 billion coming due this year. if you have to refinance in a rate environment there remains high, that could be tough, r

to take you back to new york community bank their real issue was commercial real estate specificallyent controlled buildings in new york city. you're in the midwest. it's a different real estate market when it comes to real estate for retail and things like that, but also multi-families not so much rent control, but a different space. give us your sense when it comes to that. >> we do a fair amount of multi-family lending, but it's really strong. even again when we go back and look at the loans year as f doing the years of underwriting and looking at the rates up 300 basis points, actually our multi-family product has performed incredibly well, and there continues to be this structural deficit there's more demand for housing than there is housing available. for us, it's still a segment we continue to loan and invest in and it's performing incredibly well. >> how do you gauge the risk how do you mitigate the risk because we continue to hear it's a risk the kre risk is down year over year, just about at the one-year anniversary of silicon bank, which has nothing to do with real estate,

new york community bank savior steven mnuchin said he will lead a group to buy the app from the chinese owner. >>> plus a trio of real estate destroys here. rent stabilization and using a.i. to build homes and using sports stadiums -- in its latin it should be stadia. stocks lower today following a hotter than expected ppi. you have got wholesale prices rising 1/6 of a percent of her break compared to an estimate of .3. there you see the dow industrials down a third of a percent. and nasdaq composite is 1.4%. tesla, the worst performer in the nasdaq. 100 today. it is down 20% so far in march and off by almost 4% today. nvidia, right behind it. that stock has been down four of the last five days. it is almost 3% as we speak, tyler. >> let's start with the big report on squawk box. former secretary steven mnuchin says he is putting together a group to buy tiktok. he said it will cost a lot but he thinks he can make it happen. >> it is worth a lot of money, let me just say. i think the number one issue that needs to be solved is a technology transfer. and if we can figure out a way to solv

following shares in the week shares of new york community bank are down after the collapse of siliconley bank, but your next guest sees optimism from mid-cap banks with potential rate cuts expected later on had year. jared shaw is a midcap bank analyst at barclays. he just initiated with a positive view and welcome. it's a bigger story than just the stocks that you cover. new york community bank shook a lot of people up and we thought the worst was behind us a year ago and now we have this, again, but is nycb an nycb-specific issue? >> yeah. thanks for having me on, broad brian. good afternoon. i do think there are unique aspe aspects to the nycb story. they grew very rapidly over the last year and a half partly from another acquisition and they changed the regulator with the sec any with that comes different requirements and maybe a different way of looking at things. part of what you're seeing with nycb are growing pains as they've grown into this bigger size, but it's really not reflective of the broader market. you've brought up the one-year anniversary and you saw the strain that

in the property sector, what does that mean above and beyond any issues you are seeing a new york community bankdebbie: for the commercial real estate sector writ large, those tightening financial conditions are having an impact, particularly in sectors like office, where you have the demand fall off and all of the aspects that go with that. you have certain other sectors like the multifamily business where you have this influx of supply, and then you have sectors like ours and the data centers where you have demand and revenue growth and growth that as well outpacing those. there will be an impact on the smaller lenders. we have seen that. it is something the system will have to absorb over time with $1 trillion of real estate loans coming due in 2024. it is having an effect. the best elixir for that might be lower rates. rates may be cut this year. for capital-intensive sectors like commercial real estate that is a great antidote. sonali: even if we only got one rate cut, what would that mean for your business? debbie: most prices are off the 10 year bond anyway but there's a correlation betwe

. >> i guess we should bring up this new york community bank issue. it seems somewhat idiosyncratic. it has been from the beginning. but it has been exacerbated right now. obviously the stock is showing greater concern about this particular institution. regional banks, community banks of the group are down 9% on the. day not any kind of panic but i do wonder if there is a shadow over the heart of the market. >> it certainly seems in a sense if you look at the care, even individual regional banks, what you see is they rallied a lot in the fourth quarter. they rallied right into resistance, rolled over, and are continuing their downtrend. it just means there is not a lot of confidence that we are turning a corner on the earnings trajectory. i think for new york community bank to question going forward will be, what does the deposit base look like? all of these headlines have been very negative. i think we need to watch very closely the deposit trends. this is, of course, the 2023 issue. we have been thinking about it much. but the next question is, what

. >> steve, new york community bank, does it come up? and how does he address it if it does? >> sure. i think that it comes up, because we're approaching the anniversary of the silicon valley bank failure. you might have some discussion around that, relative to the financial regulatory stuff i was talking about. i think, again, the fed sees this thing sort of the way it saw svb, as a kind of one-off. what's going at new york community bank does not appear to be the -- what do you want to call it, the canary in the coal mine on the books of the banking system. that's not it. there may be one yet, but i don't think this is it. >> steve, thank you. steve liesman. >> pleasure. >> tim, what did you make of the move in the ten-year? >> great song by the police, "canary in the coal mine." the move in the ten-year was a function of the ism number. there was some deflationary dynamics in that number, and i think if you look at, again, three rate cuts by the end of the year -- i think, if anything, i think powell needs to talk about liquidity conditions out there. i think there's so muc

it's new york community bank corps, ticker nycb, down about 25% again.s is the embattled new york based lender that replaced its ceo at this point. that's where we begin. leslie picker is here with the latest ohhen this saga. there are multiple headlines involving them today. >> multiple headlines, you're right. still losing about a quarter of its valuation. all of these just the latest salt in the wound of investors who have held onto new york bank community corps shares. the stock plunging at a filing revealed that management found material weaknesses in internal controls related to internal loan review. that review is not complete, meaning more problems would aice. they attribute the weakness to ineffective oversight, risk assessment, and monitoring activities. as a result, nycb needs to delay its annual report and will formulate a remediation plan. piper sander analyst downgrading that stock, because there is concern there could be more issues coming down the pike for that company. that is now the responsibility of a new management team. the executiv

. >>> we're back with moez those committing moves you sold new york community bank, which i was surprisedt into in the first place. so give us the reasoning here. >> first, the trajectory it was about a week and a half ago, i decided to take a flyer on it. it shot up, i felt like a hero the next day there was an analyst downgrade and it comes down, and i just said nope, i'm not going into a loss position with this. i'm over here in the corner playing with matches, nobody is stopping me. i'll stop myself before i get burned >> i remember the day you did it, and i think the stock was at like $370, $360, something like that and i think one of the reasons why you got into it in the first place, you're like, former treasury secretary ma mnuchin has come to the rescue, he's like the white knight here i trust him and the team that he's put together moving forward. i felt like your reasoning was more along those lines, almost -- i don't want to say -- >> that's accurate >> i don't want to be disp disparaging that you were more enamored with that and ignored the fundamentals, that even with the re

jonathan: new york community bank shares plummeting, the company and that sick material weaknesses andhat sick material weaknesses in its loan review process. there bank could be swapping ceos and expects to visit a deadline for filing an annual report. chris marinac saying this, "director change are part of the early repairs at n.y.c. be. investors should be pleased. two directors have resigned, we see this as a healthy change that should build confidence." chris joins us right now. i assume you believe the stock should be up and not down 30%? chris: that is right or at least creating flat. book value will only change by three pennies given the fourth-quarter changes. jonathan: why are you so confident that are not anymore monsters under the bed at nycb? chris: the company's issues have to do with stress testing. they have to stress test for higher interest rates. there is more of that to go but the company has the earnings to work through this. this is not an earnings issue. the credit issue is stress testing and not having done it sooner. the prior management team had to go. we had

sonali: when you look at the financial sector, people are thinking about new york community bank and troubles it has seen. you saw a bond here that was trading at par fall to about $.74 on the dollar, jumped above 80, now below that level. i'm wondering for your perspective where you see these jitters and property market, and regional banking system. how do you view that opportunity, and is it even an opportunity? >> i think the pockets of volatility can create opportunities. especially going in to buy credit, quality at discounted prices. the banking crisis spreading in terms of volatility and other credits previously when that happened. it might create a more favorable market for investors like more contrarian and going into these times with the expectation to get good bargains and hold for the long term. i do feel like the market has been pricing in this unexpected scenario that there will be significant rate cuts in the face of a strong economy and growth. there will probably be volatility ahead as it may not materialize and you do have flareups and regional banks or other geopol

. >> new york community bank is getting the money from a group of investors led by former treasury secretarychin, the bank has suffered massive losses in the commercial real estate market, fueling concerns about other regional lenders in the wake of last year's collapse of silicon valley bank, we turn now to pennsylvania and a shocking attack in a woman's backyard. >> it was just so fast. she was so aggressive. she was all over me. >> leanne galante is recalling the moment a black bear attacked her in her backyard north of pittsburgh. >> she had me down and she put my arm. she was on top of me. i thought, you know, i thought she had just let her dog smokey out tuesday night. >> having no idea that a female bear was lurking in the dark until she saw bear cubs in her neighbor's tree. there were three of them. >> if you were to see that big. those bears were in that tree. and how big she was, she just kept coming. but i didn't want her to eat my baby. and if she would have taken one bite, he would be dead somehow. >> the mama bear got distracted, and galante got herself and her dog back inside.

today though does give tiktok and bytedance a date for this and it has a successful deal with new york community bankhe is on cnbc. >> i understand the technology. it's a great business, and i'm going to put together a group to buy tiktok. >> you're trying to buy tiktok? >> i am because it should be owned by u.s. businesses. there's no way that the chinese would ever let a u.s. company like this in china. >> have you already put a group together? >> no. >> we have to talk price and the bank deal mnuchin put together was for $1 billion. tiktok is worth much more than that, 60 billion, 80 billion, nobody quite knows because no one's ever sold tiktok before the same way you don't know the price of a picasso until someone tries to sell it. sure, we can make estimates based on revenue and growth and that's where the guess of $80 billion comes from and that is a lot of money. elon musk, the world's richest man had to borrow most of the money to buy twitter for $44 billion and compare tiktok's $80 billion to the tech's biggest deal excluding twitter, dell bought emc for $67 billion and that's the biggest te

we're watching new york community bank. doesn't appear to be in any way systematic. ghts on that and the continued weakness in certain pockets, certainly the banking industry? >> look, i really think there are some people who are -- and sectors that are going to hurt because of the way this has fallen out on the rate side and the restrictive policy on the rate side and how long we've stayed up here. commercial real estate is certainly at the forefront of that. i agree with you, david, it's not systematic. i think there is pain in the equity piece of this commercial real estate capital structure. and it's a lot of people being reluctant to write that down. and they're going to have to. it's okay. by the way, i think it's in a lot of the private equity world, too. there's a lot of equity in the private side that needs to get written down. i really -- i think that's not a systematic story. they've had a great run for a long time. they've enjoyed zero rates and very low rates for 15-plus years. they can take one on the chin for a little while. i don't really think it's sy

from the macro to the micro, because we had the story overnight over new york community bank discovering material weaknesses in its loan risks, so the question is whether that comes back to haunt the markets this year. how concerned are you about developments within real estate and regional banks of the u.s.? >> most regional bank analyst will target the concerns of this particular bank are representative of the concerns for the broader banking space. this is a bank that has its own lending book specific to new york, very exposed to new york commercial and residential real estate, but especially commercial properties in new york, and that is a unique market in and of itself that us post-pandemic friction of volatility to go through, so this is not news we want to suggest is indicative of some broader endemic weakness in the banking space, nor in the financial space at large. what i will also say is regional banks are less important to the outlook for stocks. regional banks as a market cap share are significantly lower than they have been in decades within the s&p 500, so what we might se

that is part of the new york community bank story but more the bank itself and its management did notntrol, and risk management policies. a week ago when the news broke the auditors said there was material weakness. a management shakeup which led to a stock decline. there are core issues on the balance sheet, it is a different story than the run on the bank, caused its collapse. neil: the bank stock stabilized today. the magnificent seven, lost the other day, $233 million market value collectively. not so much tesla, no longer one of the largest or 10 largest companies and the least magnificent of those seven. what do you make of that? >> i own it because regulators want us to say that. let's talk about tesla's market, still more than ten times that of gm and ford. it's a technology company in the eyes of some and part of that magnificent 7. it's reverting back to being a car company, still ten times more valuable than the legacy car companies. the market has to figure out how it is looking at the industry. that growth expectation is different as relates to a company that is a car com

new york bancorp? >> new york community bank is a lot easier. it's a, a lot easier to get done.now, it's a top 20 bank. we put up a lot of capital, which will stabilize the business. brought in joseph ceo and i think a great turnaround. >> let me ask you a very different question, put your treasury secretary hat on a second. how do you think the economy's actually going? >> i'm worried about the economy. so we're in a situation where obviously the fed is on hold. you know, i agree that the fed needs to see continued data. the last thing we want them to do is lower interest rates and not control inflation. but even if the fed lowers rates to 3.5% i think we're going to see ten-year treasurys in 4 to 4.5 range a long time. >> did you read this? 99- -- used to be 4. an example where it is. things seem like they are 40 or 50% higher than three years ago. good as the economy seems to be that people that follow it. >> my question, it has -- ask the former secretary about this. if you had been the secretary of the treasury for this administration, current administration, is there somet

we talk about new york community bank. felt people are reticent to work with the banks? stephanie: actually think community bank's and local banks play a big role and an important role in how we think about what is going on in financial services. it is the simplest api for fast payment. it is important we work with and offer services to all size and scale of banks. how we provide those services is diversified and i think there is something to be said for working with smaller banks who can provide certain types of independent variables. some of them have very discrete protections that provide higher interchange rates. things that are very good for fintech. we are building the innovative economy. to have a single point of failure in a system is generally a risk. companies are more eyes wide open to the fact that having that risk is something not as worth taking as it once was. ed: concentration risk was a lesson from the silicon valley collapse. people were open-minded to using multiple service providers. has that made the m

new york community bank. would you leave much money? why would you leave it there when there so many banks around? they need to pay more. >> reporter: there are concerns about that. to be clear, the last update that nycb gave was february 15th before the series of moody's downgrades. at the time, 72% of the deposits were insured or collateralized. most of the dehe poposits were flight risk because they were uninsured. if you look at nycb nobody else has the concentration that barry was talking about with the regulated new york city businesses which are all of a sudden worth less after the 2019 law changes the economics on the businesses. nobody else grew as much as nycb. they added signature last year in the banking crisis. they added flagstar and doubled in size. they brought a lot of scrutiny they were not ready for, joe. >> janet yellen said everything is insured. hugh son, thank you. >>> target just reporting earnings for the quarter. it came in at $2.98a share. that is much better than the street had expected at $2.42. revenue also

new york community banks exposure to commercial real estate sinking at stock.he past 12 months, hermann chan for bloomberg intelligence. let's talk about the last 12 months before we get into the next 12 months. what if we learn the what if we change? herman: regional banks that have been over reliance or concentration can lead to instability. we saw that with svb and their interest rate risk and securities portfolio and we are seeing it in new york community with concentration risk and multifamily real estate, britt regulated apartment lending. the rest of the regional banks have a more diverse investment. that serves them in operating environments. lisa: where are we on the regulations targeting smaller banks that have been highly contentious? have they moved closer to reality or further away? herman: it depends on which regulation we're talking about. the basel three endgame rules of influx given the comment from the federally. we expect the endgame to incorporate the unrealized losses in the securities portfolio within the capital regulations. we are closer

we have really seen quite a significant amount of volatility or very wild move has been in new york community bank orb and those shares down as much as 47%, closing a bit higher but we did the some degree perhaps of contagion coming across. we saw the regional bank index a little bit under pressure, southside bancshares as well in the red. are you concerned about that story at all? andrew: while certainly, it's amazing how it's one year to the day. the reason why the stock in the markets and the bank index turn was an infusion of capital from some pretty well-known investors. i think that is a signal that maybe this is not a repeat of last year. >> do stay with us. our senior portfolio manager will be staying along with us when we talk a little bit more about china and some of these international markets that may yield opportunities. ella had, we will be talking currencies. the international people's congress could wear on the aussie dollar. china's leaders look to boost urbanization in a bid to stimulate economic growth. to beijing next for the latest out of them. this is bloomberg. ♪ thanks to a

with new york community bank, their issue is multifamily and when we have not been discussing challenges that's palms. 50% of their portfolio is rent stabilized. kathy hochul said you can't raise rent rates that much. what that's done, the cost of servicing their debt has gone up astronomically because of where interest rates have headed. they've either had to refinance or on variable rate loans on these properties but they can't pass through any of those increases and they're getting squeezed because of that so this is yet just another situation where progressive policies are disrupting the free market system the and certainly putting banks in jeopardy. i mean, i don't even know who could step in if things end up going south with these guys to buy them. probably not jp morgan. maybe citigroup. i don't know. maria: who is there to pick up the pieces, right. jpm did it last time. but you made the point the last time we heard from jay powell that he took out that one line, that the banks system -- >> is resilient or whatever. i mean, obviously there are issues with the banking system and w

that have investments, loans at a different time, where we have seen that most recently is new york community bank are going to have to mark those assets to market. the loans will come due. there will be needs for new capital and institutions who get into more trouble. i don't think that this is like 2008, 2009 in terms of scale, but i do think that there will be some situations. that is what creates the opportunity. the perception is so negative, the headlines are negative, but the value decline has occurred. i'm not saying that it is v-shaped recovery, but the bottoming is when you want to try to move. sonali: when you say this -- francine: what you say that, you mean companies going bust? jon: with a particular focus on commercial real estate, as there has been a more profound impact in the office sector. i think that will create opportunities. we purchased a $17 billion mortgage loan portfolio from fbi c with signature bank. those are the opportunities. more might emerge. saying that it will lead to a broader systemic issue could be too much. francine: there is growing competition for retail p

regional bank in new york announced the need for a billion-dollar cash infusion and you have steve swirled into the story, explain what is happening here and why people need to know. >> new york community bank took over portions of signature bank that failed in march and acquired another bank that had heavy exposure to commercial real estate which is in trouble. >> office buildings are empty and commercial real estate is struggling. >> they are now have entered the arena of some of the largest banks and they have had staggering losses because of their exposure to their two asset classes so as a consequence there is concern even with a billion-dollar infusion they got today that they may not yet be out of the woods and the question always is if a bank that large goes, does it cause other problems in the financial system to which the government will have to respond. it does not seem like that is the case now but that is always the risk. >> elizabeth thank you, always great to see you ron. when we return, what is at stake for the president at tomorrow's state of the union address. we will break down why it is so critical for his reelection campaign. when the 11th hour continues. ah, these

the mood around new york community bank is changing. y's changing it to review from upgrade over review from downgrade. >>> this weekend marks the one-year anniversary of the collapse of silicon valley bank and the shocks in the financial system. the biden administration is finding itself in a tough position to better regulate banks a year out. megan cassella joins us with more on the story. megan, good morning. >> good morning, frank. the push to raise capital bank requirements has been years in the making and one of the most concrete efforts to boost bank regulation since svb failed. the reporting shows opposition to the proposals is on track to delay finalization by what analysts say would be another year if not longer. regulators are left with two tough options at the moment. move forward with the rule as they have it with modest changes or face litigation from big banks or they could withdraw and start over. jay powell acknowledged for the first time this week that that is a real possibility. >> i will say we haven't made that decis