it failed to attract by buyers with a regular sinking potential makeup of sbb. one of the options under consideration by the regular is a sale process for the private bank of sbb. bids are due on wednesday. on friday fdic will invite bids for a depository bank. which is also part of its retail operations includes all its consumer deposits. those plans could change. fdic did not immediately respond to requests for comment. it's for the whole of sbb were due today. >>> is taken to the sierra with this new video from soda springs. it has been snowing. understatement of the year. the small community just west of donner pass the woman who posted this says it really puts into perspective the amount of snow they have been getting. in the sierra. all that snow is added up to huge gains for california snowpack. it is that 222% of normal. the scientists who work in the sierra finding more than just snow they conduct surveys. they are also finding micro plastics. nbc bay area kristi smith spoke to the researcher about what the impact of that discovery could have. >> so far

sbb financials don't. this company is a merchant bank with a deposit base. the wall street have been has bestapling concerned about, as you see on silicon valley bank recently bought one of our favorite research firms,d bofa. come less depe this it's become less dependent upon private equity venturnden e capital offerings. wait a second. the 's dried up this year. they could come back long term private equity, venture capital . they're going away being a banker to these immense pools of capital has always beenapitas a very good business as these nearly 40% rally this year0% ray is barely a drop in the bucket. >> there's been this great ifou that guy ever endorses anything canary islands, change your name. you're doing, moved to thee -- canary islands, changed your name because disney is coming. >> but just like after all the geniuses told you to buy sbb, even when it was on the brink of total collapse . >> what explains that? surely something does. we don'tb. reall y know at s point. >> hopefully we will someday. what w e can say tonight is that s.v. be like

up next, we get the view from pepper international as investors weigh the sbb fallout.new payroll numbers, not to mention the looming u.s. cpi report. this is bloomberg. ♪ shery: dear getting breaking -- we're getting the latest of measures from the u.s. authorities on the fallout from silicon valley bank. we are talking about the treasury, the fed and fbi, announcing new actions in the wake of scb, u.s. saying depositors will have access to all their money on monday. the fed will make additional funding available to banks and it is announcing new emergency bank term funding programs. this coming at a time when we are waiting for anything to try to backstop this deposit flight we are seeing from sv be and other banks and trying to stop any contagion coming from the fallout of sv be. we are hearing the u.s. will give access to sv be depositors to all their money on monday at a time when the fed is announcing new emergency bank term funding programs, saying they are ready to address any liquidity pressures that may arise. the u.s. is saying signature bank -- this was a ba

about how the government interacts with business and regulation in a written about banking regulation sbb think, what did you see him with the federal government involvement? >> i have two big thoughts about this one, there's a lot of stuff we don't know is always a tendency in these things to think there's a disaster and tha' blindness and blame all about not exactly sure it is right now and i think all of us to take a deep breath and really figure out what is going on because it's too important to politicize. the other thing about this whole mess and some ways it contradicts what i said we don't know what's going on, we know if we had required things, all kinds of banks to carry a higher level of capital, that would give christian that would protect us against this down. whatever the solution is here, i'm already convinced it's going to be requiring thanks for capital. >> we have seen early on the passage was supposed to take care of a lot of things when it comes to banking including their physical ability and liquidity ability, if you think the law protected thing like this or was it i

because of the sbb bank and other banking problems?ully i've not heard of any businesses in that part of the country in trouble because of the bank. stuart: the homebuilder lennar reported yesterday surprisingly upbeat earnings. you expect improvements in earnings as the buying season gets in? >> up until the crisis in california we expect an upbeat, pretty good spring but really good latter part of the year, that is the ultimate prediction and that is buoying things. stuart: i am hoping for a rebound, come all the way down and back up you go. it is not going to be like that. >> it to too early to tell, we have to wait and see but from your lips to god's years. stuart: we will take it. we will see you again soon. the administration wants new efficiency standards for washing machines in the name of combating climate change. who better than jeff flock. is this going to make doing laundry more expensive? >> the thing that worries me, it might not clean has well, this is by work shirt? it needs high-powered detergent. i thought i had a hig

the impact of the tightening in the fed hikes and bank lending that is the unfortunate part of the sbb'sailure the fed is good to be more cautious and we will see earnings drop and when they slow down that's when the stock market might realize it's got ahead of itself. maria: your expecting the selloff later this year? >> in the near-term, by the end of the year that's when the shakeout will have resolved itself comparing q1 and q2 earnings are going to be a wake-up call for investors. >> obviously the question and fear in 2023 and will we not have a recession was a major news event is a silicon valley bank, credit suisse are those going to tip us into recession or will we skirt recession like we did last year not technically but we say we skirted it recession last year. >> it depends on what your definition is when you relate with the receptionist. i was in europe when credit suisse broke in it look like it was could be a story that would bring the market back down and it's amazing how resilient once a central bank starts showing their supportive. i think a financial debacle will be mit

will 1 billion or ines kantor freedom did take a hit in the sbb collapse.ing charles schwab, executive chair of the company, has he made a rebound. >> stock price is up 9%, 10% around $76, charles schwab had a 6% stake in the brokerage, and when this first happened his wealth dropped, $3 billion in that time. and and it is 76 to for us -- 56. >> >> the wall street journal, the wall street investor predicted that 2,008 lehman collapse revealed which bank he thinks will be the next bank to fall, fail, i should say. we will tell you all about it. senators warren and sanders blaming the silicon valley bank collapse on donald trump. president biden blames bank management. he was really out fall? outfall? carlton english on that next. ♪ ♪ welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese,

sbb led to those tech companies. stuart: big banks are down again.$52 billion in value. stuart: do you want to change the subject? let's do some oil watching? prince harry and meghan markle announced they will use royal titles for their two children. royal watcher neil sean is with me. does that mean it will be prince archie and princess liberty? >> what it is and people are confused about is this was royal protocol. it would always be they superseded this by having a private ceremony and many people suggested they forced the king's hand. by announcing that, this is not being reported, they gave short notice to the king, william and catherine, the prince and princess of wales, there is no way they could have attended the ceremony. privately, it is the client six months in advance, those invitations did not come through. they are entitled to use prince and princess, but not hr h, which is the most important line. stuart: buckingham palace preparing for megan and harry to attend the coronation. how will they be received at buckingham palace and the bri

the sbb uk assets were bought for £1 by hsbc bank overseas.the issue is that the us could not secure a buyer for spb or signature bank . now the fbi has taken over both of those banks, and they'll go through the process starting today with people who have funds in them depositors being able to take that money out. the question going forward is whether or not smaller banks will be held to a higher regulatory standard, the big banks coming out of the financial crisis did see their standard their burden of operation. up. if that's the case with smaller banks, it could mean some of those incentives the higher yielding savings accounts that people appreciate from smaller banks are less available because they increase their standards in turning increasing their costs, and then it customer sees a little bit of less payment on their account. but of course, we all want our money to be safe when it goes into the bank, diane all right, rebecca jarvis, mary bruce, thank you both. and our coverage continues on abc news, live and abc news .com david muir wi

now those shareholders are taking legal action to recoup their losses claiming sbb's ceo and executivese deceptive and acted with reckless disregard. and this morning swiss lender credits sweets announced they had been finding "material weakness" in 2022 they had a net loss of a billion dollars which came from regulars last week. that same investor that forecasted the lehman brothers collapsed 15 years ago offer this prediction. speak i think the next bank to go as credit suites because the bond market is cracking. the u.s. dollar is losing in germany in the world right now, so they're going to print more and more and more of this trying to keep it from sinking. >> that would be a big deal while they are applauding the bite in a action in relieving sbb's depositors but there are some republicans and economists that say federal regulators should have anticipated the situation. steve ainslie and brian? >> steve: and sadly, they do so much were the regulators? as it turns out it was the federal reserve bank of san francisco that supervises silicon valley bank and the ceo of the bank until

this being said i have serious concerns about sbb, the things that they did in the 30 days leading upthis collapse. i think they knew it was going to collapse. they took measures to protect themselves versus protecting their stakeholders and their depositors. maria: like what? >> when you see bonuses being given out hours before the bank was collapsing. stakeholders selling out their stock at the last minute. these are all concerning it may not be illegal but the optics let's not rush to judgment but the optics are daca quite frankly and james freeman at the wall street journal. obviously we see the failure of dodd frank taxpayers once again having to rescue people that under law did not deserve a bailout. is there a plan among your colleagues to say here's how we going to shrink the federal safety net and reduce taxpayer exposure and bring the freedom to fail back to the financial industry? >> let's trust the free market. let's make sure we do have a systemic risk in a cascading effect because of the fully grown bank but we gotta move past this. the question is the regulatory regimes

as i mentioned we have a team of staff working on it, we are not responsible for supervising sbb, we are look at our own structure and suggest reforms. >> thank you, you'll back. >> the gentleman from south carolina is recognized. >> let me ask a simple question. we had a $209 billion bank and as such have a total meltdown from march 8th through march 26th. 18 days you had a bank for all appearances strong to the taxpayer, to the investor and of those 18 days, there was a meltdown. the warning signs that have been mentioned at this hearing like the 6 citations, the absence of a chief risk officer for 8 months, like the deficient government and controls, the signals were there for a bank that was in trouble. when the chairman started off, i didn't see a sense of urgency for many of you all on things to do other than we contacted staff or contacted immediate supervisors. when i was a director on a bank if one of these citations had been issued somebody's head would roll. there would be a conference call, give me some assurance that i am wrong, give me some assurance what specific actio

sbb found that out the hard way. one thing that concerns me, concerns me a lot, the fed in a stress test has not since 2018 stressed the largest banks in a scenario where we have a recession, but we also have high interest rates. they assume that interest rates go back to zero and that's not realistic as we fight inflation. the higher interest rates, there's losses on this financial assets that large banks have. that's not been reflected in the stress test. this year the fed really needs to run the large banks in to that kind of scenario where interest rates stay high. >> neil: that's interesting. stress tests don't take into account emotions. like what we -- i remember talking to you. we chatted a lot during the meltdown. the selling and the frenzy fed on itself. people panics and said i better get out and sell my stock, take away my deposits. one thing led to another. obviously that is a chain effect, a chain reaction when that happens. so you can't police fear, right? >> that's very true. certainly svp ran -- it's

.>> with sbb operating with new leadership and old deposits fully backed by the federal government, it is facing increasing scrutiny. cbs news confirms the justice department launched an investigation tuesday. while the wall street journal reports, the sec also started a probe into the silicon valley collapse, according to the journal, stocks made last month by the chief financial officer will be examined closely. the former ceo has not spoken publicly since the collapse but addressed his employees friday. >> i care so much about all of you and really, it's just so incredibly difficult. >> reporter: he sold more than $3 million worth of shares in the company, fewer than two weeks before his house of cards fell. the transaction was scheduled a month in advance and does not necessarily suggest wrongdoing. >> i expected they would be coming in. >> reporter: the enforcement lawyer said the investigation into potential insider-trading is of most interest to him. >> what they are going to look at is, what did the ceo know when he established the plan and was there any modification to the pla

the selloff at sbb financial group continues to rattle the markets. this is a technology-based lender. out it lost $2 billion selling assets after a big drop in deposits. it's gone from $600 to $60 yesterday and has been closed, the stock's halted pending market news. that's the news at this moment. is sbb -- svb, big problem yesterday, halted today. investors worried that bank jitters spread. four big banks lost $52 the billion in value, they're up a tiny fraction this morning. and then there's the budget, $5.5 trillion worth of new taxes, $6.8 trillion in spending. tax and spend on steroids. look, it's not all going to pass. it's the not a serious budget. it doesn't address the enormous, looming problems of social security and medicare. s the really a political document, a campaign plan to point the way for biden's re-election. good luck. the president of mexico so offended by threats to use america's military in mexico against the cartels. he threatens to interfere in american elections, campaigning against republicans who support military the acti

sbb collapsed when uninsured depositors began to pull their money out of the bank all at once.ederal reserve chair vice chair michael bar called sbb s failure, quote a textbook bet case of mismanagement. the fed said it's considering whether stronger rules are needed to prevent further failures, and it will review whether the collapses can be partially blamed on a 2018 law that weakened bank regulations. so joining me now is possible. i'm marie, who is an economics professor at sonoma state university post, but thank you so much for joining us this morning. thank you for having me here with the chair said here. he acknowledged that supervisors at the fed pointed out the issues of silicon valley bank back in 2001, and that the bank waited too long to address the problems. did we learn that airing hearing yesterday why regulators didn't act sooner to prevent the collapse? we did hear definitively. however from my understanding is that there's an issue. there is a difference between the issue of the regulations that are on the book about and the regulators ability to actually enfo

bank is in early stages and could focus on millions of dollars worth of stock sails last month by sbb's officers, according to "the wall street journal." while the sails alone do not suggest wrongdoing, some are, is action lawsuit claiming executives failed to disclose how rising interest rates made svp "particularly susceptible to a bank run." the failure of the bank and new york's signature bank of raising fears of contagion. with moody's downgrading its rating of the u.s. banking system from stable to negative, and putting some regional banks under review. >> i think this is a great wake-up call. >> reporter: cbs news business analyst bill/ends or says with inflation so high, the fed may f rate hikes. speak on one hand, the fed has to raise rates, ablation is still a problem. on the other hand you say, wait a second, there was just a ripple through the banking system that unnerved people. >> reporter: for travis, who found another commercial bank to do business with, hard times are still ahead. >> we have a list of all of our suppliers and we are just calling every single one to say,

today at sbb, the long lines of customers trying to get their deposits. new ceo of the revamped bank is working to improve relationships and try to keep the depositors with the bank. >> there's a lot of connections that have been disrupted. and so folks are trying to find her footing and who is the best partner for them going forward. and that will take time, particularly for the tech community to sort out. >>> stock prices and regional banks like first republic and trop rebounded today after suffering losses since thursday. >>> storm coverage, the wind causing a traffic mess for people on the richmond sanibel bridge. you see it there, the wind blow over that big rig. new video shows the moments chp was finally able to put it back onto its wheels. there we go. the accident blocked traffic for hours before chp could clear the bridge before 7:00 p.m. >>> some families in saratoga are cut off because of the landslide near a winery. highway noun is shut down . the landslide just before the winery. the owner say essentially trapped in their home for two days.

. >> you mentioned the volatility, huge move in the volatility index as the market digested the sbb fallout. the vix surging up 10% now 4% for the week, mike, what do you make of that move >> what's interesting is that vix level at 25% probably represents average daily moves in the s&p implied by the options market of about 20%. so annualized. that's looking at 1.25% per tradingday and, you know, i think we did see levels that high last year i mean, we could go a little bit higher here. it wouldn't surprise me if we ticked up to the level of around 30 or so, which is basically where we got last year but my thinking is that we're probably not going to be seeing that kind of day-to-day volatility, at least i hope we won't, day in and day out. 1.25% moves every single day on average would be very high that's what the vix is implying right now, and i think that's too high frankly. >> brian, what do you make of this level on the vix? >> yeah, i mean there is some data behind that we looked at -- we saw march 30 calls, sellers actually today as the move -- the morning transition into noontime, 18

whose paychecks and workers for small businesses unbeknownst to them have their payrolls handled by sbb and may not get a check get income that they rely on so we need to make sure we underscore how important it is people get those paychecks who are depending on it for their living. on of us are particularly concerned about what happens with bank executives or investors but people who make deposits are protected to the 50,000 and the risk of contagion other banks have mitigated by treasury these are the concerns we have expressed and i would add also there's profound concern in california given that this sector is an important part of our economy a bank that really was integral to that economy ideally another bank to take over that portfolio so work can continue. >> in earlier today they ruled out a bailout for the bank. you think that's premature to make that declaration? what if some kind of rescue packages necessary? >> my sense from the calls we have had in the fcic treasury kept their cards close to their best the best outcome is to find another bank to acquire and run the assets t

sbb is the biggest bank in the country the second-biggest bank failure in us history after the collapse of washington mutual during the crisis of 2008. that was followed by a massive government rescue but a bailout is not in the plans this time. >> let me be clear during the financial crisis there were investors and owners and systematic large banks that were bailed out and we are certainly not looking and the reforms have been put in place means we are not going to do that again. soon the host of cnn business nightcap. good to see you again. so john asked the federal government is not going to bail out this bank what kind of help can depositors and companies who have money and that bank expense? >> right now the ftc is assuring those who get to know $50,000 and those will be available on monday and beyond that they're going through the assets of liquidating it and at some point the depositors will gain access with the question is, how much and when will they be available. if there is not a bailout, the bank could be sold. that's likely depositors will have full access to their funds. >

not only legacy issues or some of the interplay with sbb -- svb but with how they are pricing bonds. tom: some of these founders are pulling their money out so they can put it into treasuries. that is a pressure point. goldman sachs said risks went from small to large. we know the u.s. has greater scrutiny on thanks. francine: i think the only question almost is how much do these banks have interest bonds that cannot be sold in a hurry without loss? coming up, silicon valley bank as we just heard, sending tremors through the global banking sector. more on that market reaction, next. this is bloomberg. ♪ tom: welcome back to "bloomberg markets: european open." heavy losses across the benchmark. focus on the banking sector, down 4.7% linked to the silicon valley bank in the u.s. francine: for market reaction after the lender took steps to shorten -- the crux of the matter is that banks are holding on to things that we do not know how they price. if they sell them in a hurry, they will take a loss. >> exactly. let's take a look at how the asian banks are forming overnight. they were vul

we saw the collapse of us banks lastly, the sbb bank and signature bank mac last week.t happening?— is there a domino effect haueninu? , , , happening? there is because what comes _ happening? there is because what comes down _ happening? there is because what comes down to - happening? there is because what comes down to it - happening? there is because what comes down to it is - happening? there is because i what comes down to it is people need to trust their banks, because banks are inherently leathered so they're taking in deposits and lending them out to companies and individuals, so there has to be trusted there. if people start pulling their money out, the deposits, their money out, the deposits, the bank does not have all those assets in house. they've learned the funds out and you get what's a classic bank run, what happened to silicon valley bankin what happened to silicon valley bank in california and signature bank in new york. it spreads. people look at their banks more closely and go, wait a minute, can i trust this bank has the capital it needs? the gover

with republic bank and the divvying up of the sbb but it is a big step. >> we are just hearing from thee ministers, they are speaking in tokyo saying they are carefully watching central bank liquidity in the -- enhancements. they will be examining how the credit suisse deal will impact japan. we know they have been having -- they have had their worst week since 2020 last week. clearly this is an incentive for central bank's as well. in terms of the fed, is it more likely we will get a pause? what is the likelihood of a hike this week? >> this has to be a question that the central banks are doing as well. this is what they are waiting to see. he things that everything is on an even keel but obviously everyone is watching this. can the fed move? can they hike when there is still so much uncertainty around u.s. banks when it could perhaps intensify this feeling? what if there is not liquidity? what if they pause? will they be going with the european central bank did when they went ahead and did a 50 basis point hike because you have a big inflation fight, a long way to go? she said if they

arm of sbb -- svb. shares in the british lender fall at the open. u.s.rities backstop depositors have failed under svb as well as signature bank. the shareholders and some creditors will be wiped out. a two year treasury yields plunging again as traders scale back raid high -- rate hike bets. european markets are set to open mostly higher. tom: the message from investors particular the banking sector seems to be we are not yet reassured by the action from the fed and the purchase of svb u.k.. more consequential as the action were seeing in the u.s. in terms of the position from treasury and regulators and the federal reserve to ensure liquidity is provided and depositors are protected. seeing losses of 9/10 of a percent. the most pronounced in italy. losses of 1.3% over the u.k.. trading at 7684. it's the banking sector that remain squarely under pressure. down now and again the headline is hsbc to buy the business, the unit in the u.k. for just one pound. reassurance for depositors there. the broader banking space concerns remain. every single sector in

the problem with sbb as it ran out of money. they did not have enough money. bonds, very cheap prices. went to the market to try to raise money from a share sale. depositors got spooked and wanted their money back and if that happened at the same time there is not enough to go round, there are issues are us regulators stepped in and effectively shut the bank down yesterday. the question is how much is it going to spread?— is it going to spread? silicon valley does _ is it going to spread? silicon valley does have _ is it going to spread? silicon valley does have a - is it going to spread? silicon valley does have a bank - is it going to spread? silicon - valley does have a bank subsidiary in england. the bank of england here said they will put that into insolvency tomorrow so it will stop accepting deposits are making payments but individual depositors get money back up to £85,000 from an insurance scheme and the bank says sv b only had a limited presence here, really. so they're trying to reassure investors and the companies it works for that this is not goin

half a trillion that's like what was half of what we saw in the '08 crisis and sbb flies through multimillionmerican taxpayers cannot access certain dispepts also homeland security mayorkas party with msnbc as border chief ortiz testified lost operation control of the u.s. border at the southern border. okay we're going to stay on stories throwts coming days remember send us e-mails we love reading them from rickardo i did not catch every night from now on you'll be part of our nightly list of shows sending us your shows we may feature them on the show. next time you see us, read them all we love your e-mails i'm liz watching evening edit on fox business time for the bottom line and i'll be joining dagen and sean. dagen: talking about your great granddaddy. >> you've got it right. >> thank you liz. >> see you soon.

sbb is the parent company of silicon valley bank, which was seized by the federal government as it collapsedaking the government and industry by surprise. how come they missed the red flags? this bank grown over 60% in three years enroll there was this enormous blooming silicon valley is one of four lending institutions to face calamity over the last week here in the u. s and in europe, countries are going to have problems, so it's going to be a rough patch ahead. all of this makes it less likely the federal reserve will hike interest rates, but we won't know until the fed meets next week in washington. caroline shively fox news, google is raising the price of its youtube tv subscription, beginning immediately for new subscribers. the basic package will now cost $73 a month. that is an $8 increase from the price has been available for more than three years now. existing customers will receive the new price beginning april 18th and the reason behind this price hike. youtube tv says content costs have risen and the company is investing in its quality of service. youtube tv recently bought the

thank you, sonali basak, for all things weaving together what is happening with the likes of sbb --sonali: and also silver gate. i want to give silver gate and crypto more withdrawn will. john, we turn to your expertise because you have announcements. you are still building in a space. ultimately you are currently a man trying to digitize the entire, ultimately, trying to digitize the world's assets for traditional finance for asset managers. how hard is that when we see silver gate having to unwind? john: it will be harder when all intermediaries, seemingly all intermediaries and on ramps for institutions and individuals in the crypto ecosystem are one by one getting removed. either the regulation -- through regulation, bad actors, risk management, or bad fundamentals, like in the silver gate case. it's not easy. it makes it harder. but you continue to build and get partnerships. ed: you are operating in an ecosystem and industry that still wants to build access to capital and banking services. quickly give us insight into conversations you are having with industry peers about silver gat

investors scrambled to get cash out yesterday prompting police to block access to an sbb bank in manhattan. hey, nate. reporter: the collapse triggered the biggest bang run in u.s. history. customers at the bank with drew $42 billion, this was on thursday, works out over a million dollars every single second for a period of ten hours. one day later yesterday customers weren't so lucky especially here in new york at the lone branch behind me. tech founders and ceo's showed up here trying to withdraw their money not only were they turned away the cops were called on them. people in california were also left waiting outside the bank, take a look at this video, came after shocking announcement of bank of $1.8 billion loss and bank crumbled after seeing bonds. the bank is best known for lending to tech sector which leading start-ups in m tough shape. many not being able to make payroll come monday. >> innovation is bleeding and hurt and everybody is trying to figure out what is monday going to bring. is it only 250, when can we access the rest of the capital and leads me to believe that some ty

you look at bill ackman saying the failure of sbb could destroy an important long-term driver of the economy and called for a government bailout if there is no private capital options. why are we so worried about the broader banking sector? he of course goes on to say a highly diluted government bailout should be considered. so, why the worry? could we get to the stage where the government needs to intervene? russell: a couple of things going on here. concerns of contagion, it could be another svp or silver gate. how to wind down its operations because of basically a run on deposits from his crypto clients. broadly, i think it is more of what you touched on at the top of the show. we are talking about the fallout from the rise in interest rates. the conventional wisdom is that the banks benefit from rising interest rates. but we are seeing now is that the value of the assets in the portfolios is declining, the treasuries, other assets have been following as interest rates rise. also, the deposits. clients are now looking at going elsewhere to deposit their cash, into money markets, w

there's not enough authority for banks when it comes to the sbb size banks to claw back that compensatione working on legislation to do that. >> neil: it's chicken feed compared to the tens of billions that are lost in market value and depositors funds and replenished by the fdic. i guess the question then becomes should the fdic extend support from depositors for everyone as it has in the case of first republic or signature or, you know, silicon valley. not for first republic. i misspoke. in other words, we will guarantee your deposits way beyond $250,000 for individuals, $500,000 for couples what you do for one you have to go for all. do you agree with that? >> neil, i agree we should look into that question. there's lots of questions now that have come out of this particular bank meltdown that we need to take into account as we examine where to go next. you know, obviously the question is if you're going to ensure those deposits above $250,000, who will pay. right? if you're a smaller depositor, should you have to pay -- should -- should small community bank that doesn't have lots of d

susan: look at sbb and 85% of those deposits were uninsured and last night night's coordinated actionthe fed and treasury and fdic was unspoken guarantee of all deposits here in the u.s.. do they necessarily need to make it official? you did hear from president bide than this is not, in his words, a bailout. listen here. >> americans can have confidence that the banking system is safe. your deposits will be there when you need them. small businesses across the country, the deposit accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills. the hard working employees can breathe easier as well and no losses will be born by the taxpayers. susan: so silicon valley bank and signature bank stockholders have been wiped scout that's not a bailout. i want to point the finger and show you greg becker quickly if we bring it up and fingers are being pointed and criticism at him and paid out millions and he reaped and sold millions in stocks and paid out thousands in bonuses hours before the bankruptcy and shut down at silicon valley bank. stuart:

i know both said in regard to sbb and in regard to signature are going to do a careful, careful review of the events. >> thank you very much and i agree with you. we really need to know the role that venture-capital plane in this bank. going further, based your barr you said yesterday stb birds management rating which is considered decisions about what is considered sufficiently capitalized given the bank's unique customer base, extremely large share of uninsured deposits. an underwater asset portfolio, liquidity management was also a key issue. the clarity and should bank asset liability management. what was the bank's rating on liquidity? >> a thank you representative waters. my understanding is in the summer of 20 of the composite rating was three which would've been satisfactory. one of the things looking in the review that synced up with the supervisory matters requiring attention and requiring immediate attention to liquidity than previously been issued. we are looking at whether the standards were sufficiently stringent. whether the firm should have been downgraded further. whet

workers that is for small businesses that completely unbeknownst to them had their payrolls handled by sbbre may not get a check. they may not get income they need to rely on. we want to make sure we underscore how important it is that people get those paychecks that are depending on it for their living. i do not think any of us are particularly concerned about what happens with the bank executives, or even investors. we do want to make sure people who made deposits are protected up to 250,000 bird beyond that at the risk of contagion runs on other banks is mitigated. >> cnn joins me now put elaine out when you hearing from lawmakers? >> well jim, as a shift to said the cow for delegation was brief this marred by the treasury department per think something really interesting i know came up on the call from people i spoke with on the call is that the republicans, democrats and the treasury department are aligned on not wanting the government to bail out the silicon valley bank. and i do think as he also said where the main concerns as well as making sure people can meet payroll part mixture

all sbb branches will open under the new ownership today.umber three the grand jury investigating donald trump's alleged hush money payment to stormy daniels. we'll we'll be hearing from another witness today a decision on the indictment for former president trump could come as soon as this week number four a severe weather outbreak over the weekend at least 27 tornadoes were reported in five southern states being able to blamed for at least 26 deaths today the same storm system will linger in the east with damaging winds large hail and an isolated tornado threat and numbereou throhoncaslouds temperatures in the 50s and 60s on the exclusive 87 storm impact scale on tuesday is a level two moderate storm with heavy rain in the morning. number six we are following a solo spinout in san jose north 101 right near the montague expressway temporarily blocking all lanes. i'm seeing the traffic backed up now past the capital expressway. that would be your alternate. number seven the world's oldest drag performer has died walter cole known as darcel d

sbb is the parent company of silicon valley bank, which was seized by the federal government as it collapsed, taking the government and industry by surprise. how come they missed the red flags? this bank grown over 60% in three years enroll there was this enormous blooming silicon valley is one of four lending institutions to face calamity over the last week here in the u. s, and in europe. countries are going to have problems, so it's going to be a rough patch ahead. all of this makes it less likely the federal reserve will hike interest rates, but we won't know until the fed meeting next week in washington, caroline shively fox news coming up on ktvu news at 6 30. the international criminal court issues an arrest warrant for russian president vladimir putin for war crimes by security experts are skeptical, ever stand trial chapter in the legal fight between right here companies and workers. what you state court ruling means for thousands of gig workers in california, then later in sports st mary he's taking on vcu in round one of the n c two a tournament will share the gale season i ugh. n

shareholders filed the class action lawsuit yesterday against the bank ceo cfo and sbb s parent company shareholders said that despite having the data, the company did not share information on the risk it was taking knowing interest rates could climb. new numbers on inflation and retail sales provide economists and policymakers with a clearer picture of the state of the u. s economy. as lauren blanchard reports everyone's trying to gauge the fed's decision next week on interest rates. mixed signals on the economy signs that shoppers are starting to feel the pinch of a year of high prices, even though the pace of inflation is slowing down the producer price index for february which measures wholesale prices came in at 4.6% year over year way lower than expected in the food business. i'm seeing it getting softer consumers also pulled back on spending last month. retail sales are down by 0.4% despite the unexpected declines, the stock market opened with a major sell off. the market is no longer focused on inflation and ppe, but instead the fed. are you going to lower rates? are you going t

a senate banking committee hearing in washington today, lawmakers are looking into the failures of sbbll as new york signature bank svb collapsed when uninsured depositors began to pull their money out of the bank at once, says the bank's bond investments lost value. federal reserve vice chair. michael bar called svb s failure, quote a textbook case of mismanagement. the risk the bank face interest rate risk and liquidity risk. those are bread and butter banking issues. the firm was quite aware of those issues they had been told by regulators, investors we're talking about problems with interest rate and liquidity risk publicly, and they didn't take the action necessary. the feds said it is considering whether stronger rules are needed to prevent further failures, and it will review whether the collapses can be partly blamed on a 2018 law. that weekend bank regulations, stocks were slightly lower on wall street today, the dow is down 37 points. the nasdaq dropped 52. the s and p was just slightly in the red, apple, microsoft and other big tech stocks were among the biggest waits on the

bloomberg reported doing her and venture capitalist peter teal had his companies pull their funds from sbb this week. do we know what kind of role that played in all of this? >> peter is an incredibly influential figure in silicon valley. right now there is a lot of finger-pointing going on about what caused this. he is reported to pull out thursday and encouraged his companies to pull them out as well. word spreads quickly. you have group chats and people are talking. we saw tens of billions of dollars being withdrawn from svb, which basically was the kiss of death. you may remember he was a big proponent of crypto. he was very bullish on bitcoin. he attacked the critics of bitcoin as enemies. meanwhile, he sold crypto and made billions of dollars in profit. people in the valley know that he is very skilled at moving his billions of dollars to safe harbor when there is volatility in the markets. >> there may be some volatility to come. john, thank you very much.>>> texa s is urging people not to travel to mexico during the spring break holiday. the warning follows the highly publicized ki

this was just outside sbb yesterday with a long line of customers. they're waiting to get answers, waiting to get their money. the bank's downfall started after depositors and investors all watch tried withdraw 42 billion dollars from svb once they learned the bank was not very stable when it came to its cash reserves. we brought you yesterday live. the president speaking to the nation trying to assure everybody that the banks we're safe and that depositors will be protected and that no losses will be buried by the taxpayer. but instead the money is going to come from fees and other banks pay into the deposit insurance fund. the fbi see then will refund customers up to $250,000 per account. but the majority of the counts at svb, of course, are much larger than that. >> i think the major thing you can take a moment to look at is if you have an account with a singular owner, you with more than $250,000 and why not have 2 accounts? so let's go ahead and set ourselves up for a protection by looking at the limits of the insurance of the fbi. see would hav

interest rates and this could all be a tempest in a teapot right here, and they've solved the problem with sbb. but, look, we've got stress in the banking sector today, no question. major banks are down, pre-market trading. some of these mid-sized regional banks are down a lot. first republic is down a lot. first republic, it's interesting, because it actually got some fed banking this weekend and also backing from jpmorgan chase. and i bank at first republic and i got an email yesterday from the ceo who said, by the way, we have plenty of capitol, everything is fine here, but people get nervous. the technocontagion is hard to e in the banking sector. and i think that's why the white house was so careful to go with a muscular approach here this weekend, to try to prevent any contagion. >> before we let you go, can i ask you about the potential acquisition of svb, because they were asking people -- they were taking bids. do we know where we are with that? >> there was an auction yesterday, they did not get a match. the terms were not attractive enough for a bank to take it, but they did sell hb

sbb warrant we face risks from the prolonged work from home arrangement.t at odds with some of the talk -- top banking ceos . >> it does not work for younger people to does not work for those who want to hustle. we want people back to work. this is not an employee choice . >> we have to get our employees back in the office picked we see this collapse in productivity. >> one former executives summing up the banks culture saying it is not cutthroat like goldman sachs. out front now the private and institutional capital correspondent has been following silicon valley bank closely and cowrote the story on the banks culture. you know, you are really kind of raising the alarm about a lot of this stuff in the past weeks and months. you talked to a lot of x svb employees and what it was like, what was the culture like and what did you find? >> sure, i think the context is that silicon valley bank was the banker to silicon valley. they were financing a lot of the private startups that could not get startups from the larger banks like j.p. morgan. they were also fin

we spoke with one business owner who had just deposited money into sbb the day before it collapsed. >> yeah, that is the unfortunate reality of this. and that's why our ability to recover at where we're less sure about it and perhaps some other folks are because out indication systems were not fully activated. concern for us is if we don't get the money right away. will will we ever see it as the assurances from the fbi see that? we will. but given the reason this bank had the trouble that it did, there could be more to come from here. >> now all of this did start after depositors and investors tried to withdraw 42 billion dollars from svb on thursday. the run on the bank left with a negative cash balance. currently, financial experts don't expect this to happen across other banks. however, they say mania can drive behavior and cause some major problems. traditionally the f d i c does only insure up to 250 k. so financial experts say if you're worried there are some steps you can take to protect yourself. >> i think the major thing you can take a moment to look at is if you have an ac

new ownership in a deal that closed overnight first citizens bank agreed to buy about $72 billion in sbbd. the new owners will also take over more than $56 billion in deposits. silicon valley bank was the country's 16th largest bank when it collapsed on march 10th after too many customers trying to withdraw their money all at once . the failure rocked the banking industry. i don't believe we're going to have bank collapses like people fear, but banks are going to tighten lending. they're going to pull in liquidity and that is going to cut off the lifeline to a lot of businesses. silicon valley bank had 17 branches in california and massachusetts. all of them reopened this morning, former svb employee showed up to work this morning as usual at this branch in santa clara, and one worker told us he got a call from raleigh, raleigh, north carolina this morning, welcoming him to the company will shares in first citizens surged more than 50% today following news of the agreement, but overall, the markets were mixed. the dow gained 194 points nasdaq was on 55, the s and p added six. to attend s

it's hard to keep track of the names was first republic and then sbb. and now it's first. citizens. that's right. that's right. who cares about the name? as long as your money is safe, right when you go to there's those silicon valley banking customers. when they go today, they will have a new name on their bank. but everything should work their cards, their their their access points, their digital banking. all of that will still be working. great nice to see you guys, so let's get back to the turmoil happening in israel over the government's controversial plan to overhaul did you just judicial system there. aaron david miller is a former middle east negotiator for the state department and senior fellow at carnegie endowment. he spent decades working on american efforts to broker agreements between israel and its neighbors. good morning to you, erin, we appreciate you joining us, much of israel is at a standstill right now. the options for netanyahu at this hour first of all, don kehler. thanks for having me. look, we're on terry cognito and president you now have a general strike,

just happened with ubs and cs and what did not happen the weekend before this past one relative to sbbity backstop provided to ubs through the swiss national bank. you reported 108 billion we saw 9 billion of loss protections provided to ubs in connection with this this was the pattern, as you know, in 2008, whether it's jpmorgan or bear stearns and the loss protections there or other combinations now, weekend before last, i don't believe -- and i can't precisely confirm this maybe you can. that our authorities, the fed, the treasury, the fdic, were willing to provide those protections. i've seen in the press reports to the effect that they were not. why not? because of the bailout, the aura or lack of aura of bailouts, which we don't want anything that looks like, smells like, or sq quacks like a bailout. we're not going to provide that protection that is a really important change assuming i'm right. >> can't, roger steve liesman said before they weren't allowed to make those protections because of changes after the last financial crisis, that they can't say they're going to do those

thanks federal regulators were grilled on capitol hill yesterday when it came to the sudden collapse of sbb could executives had to field banks have to pay back their bonuses. music sounds happy conversation may not be for some of them. we're going to discuss it all with mr wonderful himself, kevin o'leary. he's back on set just laughing at the push into that person who was testifying in ththe song. it was so weird.. spot, does it? obediently. oh, boy. wonderful pistachios. get cracking. it really enjoy playing golf. expect to play into my eighties and balance of nare is going to help me g there. my mental state is so much clearer. my swing plane was better. i will be taking balance of nature for the rest of my life. when i play golf, i would notice that bending over the line up, i would have a bit of a struggle to stand back up. but even now, 10 years later, i stand up better now than i did then. start now by going to balance of nature dot com and don't forget to use discount code. cnn outages are unpredictable, inconvenient and disruptive to your life, real threat to your comfort and safe

this needs to be fixed very quickly. >> the sbb collapses.utual during the great recession of 2008. and congressman roe conn who represents silicon valley sent us a statement about the closure of the bank. he says in part, quote, i spoke with the white house this morning to emphasize the importance of the silicon valley bank to the startup and tech community and economy. i will be working to insure the bank's customers are protected and have continued access to their funds. so startup employees and workers are paid. and it's almost time to spring ahead for daylight savings this weekend. it's a ritual that leaves many americans groggy. a little annoyed. >> but as kron four's washington correspondent hannah brandt reports a few lawmakers are trying to put a stop to it. >> right now, it's a biannual routine. spring forward then fall back. but some lawmakers want to end that. i think it's about time. senator rick scott is one of the sponsors of the sunshine protection act, which would make daylight saving time permanent. it's an effort. senator t

elizabeth warren demands fed crackdown a large regional banks irresponsible, excessive risk taking by sbb and signature executives should serve as a clear reminder that banks cannot be left to supervise themselves. the fed has a responsibility to ensure financial stability. what do we expect? the answer will be to have the fed given us any clues when they say, shouldn't you have done more? did you not miss something big here? well, john, the fed has launched a review of its own regulation here. i think they've got to try to figure out how they missed what, in hindsight looked like some red flags the same time they are facing some political pressure, right? i mean, democrats. there's this effort to sort of undo the 2018 rollback of dodd. frank kind of roll back the rollback. right so one they want to. maybe they're introducing new legislation that would repeal that 2018 deregulation. but also now we have the lawmakers stepping up this pressure. they're calling for the federal reserve to kind of unilaterally cracked down on the large regional banks, the ones between 100 billion and $250 bil