schwab has those, too.end of last year, they had $14 billion losses in mortgage-backed securities in the portfolio. bad ratio. rather than simply holding them to maturity and getting their money back. remember, there's no credit risk here. just where they bought them on the curb. if schwab were to sell at a pinch, that $14 is worse. there's 8 billion in common equity. sounds scary. right? wrong. many people did make that mistake. i think the recent pullback is a buyable dip. you can't analyze charles schwab like a regional bank because it's a brokerage. sure on the investing side, but the real killer was its deposit base. they got most of the money through a small amount of customers with an industrial complex. these people all know each other. one of them started worrying about a bank run, they're all worried. there's nothing like schwab. nothing. a consumer focused brokerage. 80% of deposits are fdic insured. the money is uninvested cash from brokerage accounts, not their main source of savings. i think i

schwab's total bank deposits fell within the fdic's insurance limits that puts schwab among the five highest ratios of the top 100 banks in the entire country. so if you think this is systemically risky for schwab, then really, nobody is safe if they're in that top five but i don't think that's the case so today was a huge over reaction in schwab i think the stock is down double digits, multiple case in a he row. cut in half almost this year i stepped in and took a position in the high 40s. i don't know -- i just know overreaction when i see it and decided to make some money here. we'll see if i'm right the day is not over yet. but i do this all the time in markets like this. hopefully this will have the similar outcome where cooler heads will prevail. >> you don't sound like you're looking to be necessarily a renter so to speak, that this is one of those as you put it, perhaps, generational opportunity type things that you look at? >> if i'm up ten by the close i might say good enough. i have exposure to schwab. they're one of my post important business partners. client assets at td

. >>> charles schwab, it's a name everyone knows and one of the hardest hit names over the past week the ceo will join us live exclusively this hour to defend his strategy and explain why they won't suffer a similar fate >>> and plunging mortgage rates. analyst steven kim is here with the housing stocks that could be a buy right now. let's start with the markets, though it's green today >> not even just green but solidly so a decent size relief rally, a bounceback, if you will. but the s&p 500 is up 62 points. kind of towards the higher end of its range so far. 317-point gain for the dow up 1%, and a 2 plus percent gain for the nasdaq, up 239 points. so, again, tilting towards the higher end of the range. but remember, the dow is working on a five-day losing streak, so this could be that relief rally taking hold. one place to keep an eye on, the relief rally in banks. they're all heading higher right now, albeit, yes, anybody who has been watching our network or reading the news, knows these banks have been hit hard we've been showing you the damage that's been done. so right now, yo

we are seeing many rotate within charles schwab. is that a charles schwab problem or is there a way the struggle to the common be? edwin: i think this is a problem for charles schwab also trickles out because obviously, if people are leaving swab, not necessarily staying within the swap network, that is going to be -- you can look at this as something that happens at other banks. what this means is eventually, it affects the asset side of the that -- the balance sheet as well. when you have liabilities shrinking, then assets drink. or they will have to go get other very equity. they borrow money from various government facilities but this comes at a higher cost. they obviously do not want to do that. guy: the cost of money is going to go up. the availability of money is going to go down. that is a problem for the economy. as we see this deposit fly, or be exhilarating the crunch we are worried about and bringing in a recession that we all expected at some point closer or may significantly closer? edward: i think we are. it was inter

kari, you bought more schwab josh brown, you told us you brought schwab yesterday do you feel the worst is over here >> for schwab in particular, yes. unlike jim, i'm trying to be a hero just kidding this is stupid i'm 25 years in this game. there's a reason why some people are still doing it this type of trade does not come along all the time if you're very lucky something like this happens once or twice maybe in a given year where it's clearly the highest quality name of the bunch it's coming down in sympathy with other names it has its own very different situation. the bulk of people trading it are trying to play an interday swing or don't understand what's going on or it's being sold as part of, like, some kind of a basket that was the situation with schwab there's nothing specific to schwab where this stock should have been down 40% from its high now, is there going to be a problem for some of these banks? is it going to be as easy to make money if, for example, the rules about contributing to fdic change or whatever that's a discussion for another day. i don't think any of that wo

i haven't been in schwab in a couple of years. is the kind of investor that i want to be, that i am, blue chip quality on sale. we know why it's on sale, but i think they're throwing out these quality companies, these excellent franchises without really doing the homework. they could get $250 billion of excess liquidity from cash sources and at the same time something like a $90 billion drawdown in deposits which is not forecast but those are the extremes on both sides. when i look at it, i say, a great quality company. they are not focused on venture capitalists, which is what we know siv was, and so, in my opinion, this was an opportunity at 14 times earnings to get into all the quality banks that i have. i do think the three banks that failed, they weren't really well run. we know credit suisse was a problem child -- >> randomly fail. >> 15 years we've known it was a problem, right? >> and silicon valley bank and the vc exposure and mix on their bond book and not having a risk officer at the same time. >> for like six months. >

schwab puts out a very normal schwab report, activity highlights they say schwab's business continuesto perform exceptionally well about $5 billion lower than january, 80% of their total bank deposits fall within the fdic insurance. we wish it was 100%, but it isn't. >> 80% of the total bank deposits fall in the fdic insurance limits okay >> they believe they have upwards of $8 billion in potential retail cds and $100 billion in access to liquidity including $100 billion in cash what they're saying is something, david, you know that if you have to say you don't have a problem, we know that typically wall street is skeptical and says they do >> they go on to say their bank's loan to deposit raceio is 10% and they're overcollateralized these are the loans where this is related to the unrealized losses and what we have been talking about, the held to maturity portfolio banks typically have two one is available for sale, that means you have to keep it marked where it would be sold at any given moment inother isaturmaturity, unless you sell it, you don't need to mark it. if you bought it h

charles schwab, nation's seven thenth largest bank down 11% since march 10th.red a lot of what it had been losing. a lot thought the large selloff, schwab, people perceived to be uninsured when it came to their deposits but turns out just 16% of schwabs deposit base is uninsured, compared to 88% of svb's, 90% of signature bank's uninsured deposits. goldman has more, 33%. our countdown closer likes his chances with schwab. circle squared ceo jeff sica. schwab is the one you're picking. >> what you like about the massive selloffs in banking sector oval val bank declines, the market tends to sell the good one and schwab was truly a good stock. this company has over half a billion dollars in assets and what happened was when the stock fell, one thing i tell investors, is always look at the insiders and the ceo came in and he bought 50,000 shares for his own personal account as the stock was falling and he was saying that they were seeing big inflows of assets coming into schwab. liz: which is true. >> schwab is going to benefit because they are a behemoth bank. the

morgan stanley is worry about them flowing away from schwab.alk about that story later but stock is down about 5.5%. within technology, you had a good move story this week with micron results. semtec is taking a hit, down about 20% on concerns about the market. shares of blackberry basically not changed and we are watching that in canada. the company will report its quarterly results and they told us they missed out on some key deals during the quarter. we will watch for more details on a portfolio sale. restoration hardware's parent company rh 3% and this is a reminder of the sensitivity out there, it's a company that caters to people in the housing market and with the uncertainty we are seeing emma that's being reflected in their business as well. vonnie: the contraction in bank lending is sending some ripples through the credit markets. here is amandalyn on bloomberg this morning. am >> we are already seeing some signs under the surface of levels of distress picking up in the credit market. if you leave the default rate aside which is fairly

it's not a knock on -- >> that's what i said. >> it's not a knock on schwab. it's just a knock on the environment. >> absolutely. exactly what i said. it's not a customer problem. it's a mixed problem >> isn't they both a problem >> customers are staying with them they're going to higher yielding assets that's okay. >> it says -- >> down 30%. >> they cite the recovery time line >> it's down 37% in the past year all of the banks will see this why not? it's too attractive to move your money from no yield to a higher yield. it's not a crisis or a credit problem, it's a mixed problem. i think this is an opportunity given the stock is down as much as it is the ceo is buying stock, too >> sentiment isn't that positive the fed hiked rates after the market sold off 17%. the market bottomed three days later. if you look at it, was it in january when the market was 10% higher was it in march when the market was 20% higher or was it mid yield when the market was making new record highs if the market continues to improve you'll see rates come down and see the money flow b

tierney for schwab asset management. you're sort of schwab's voice for etfs.you and schwab telling investors right now who are nervous about a recession and banks, what are you telling them to do right now? >> yeah, thanks, bob. great to see you again. thanks for having me back. one of the favorite parts of my role as index strategist for schwab is meeting with advisers. i spend a lot of time on the road with advisers talking to them about asset allocation. the last couple of weeks i've been in schwab branch offices, maybe not a surprise to you but very high engagement right now between investors and advisers. so i'm seeing firsthand schwab advisers in action, counseling investors on navigating the market turmoil and volatility and what they're doing is doing their best to keep investors focused on the long term, long-term strategic asset allocation, and avoiding overreacting to the short-term moves we're all living through right now. >> you know, i mentioned big flows at the top. outflows from u.s. equity, but inflows into international equity, huge inflows i

charles schwab has such a strong reputation. what would cause a run on them? is the same thing causing a run on all of these banks. it is the fact they are not paying enough interest in terms of the deposit. there other places you can go. you can go to money market accounts. you can go to many different places to get your yield. as a result of that now we are in a different interest rate environment schwab is going to have to either let some of the accounts go they are going to have to lift some of the yield they are supplying for the sweep. every account that has cash in it goes into a sweep and that money is being paid into it. if people have tens of thousands of dollars left in their schwab account and they are getting no interest on that money, they're more likely to put that into a money market account that will pay them three, 4% interest. haidi: edward harrison with the latest on schwab. we will continue watching that story. coming up next we will be looking at byd's earnings and how the chinese ev maker is coping with the price war that elon musk's tes

. >> joining us now, collin martin of charles schwab, kelce barrel of j.p. morgan and vichy of morgan stanley. is it that black-and-white question mark is a recession and inevitable at this point? >> i thick it is not as black and part -- black and white. it is very difficult to say in point and say this is happening imminently. we don't have a good sense of how the tighter financial conditions and tighter lending conditions that will come out of what we expect to come out how quickly and how it will play out, i think it is safe to say the prospects for growth have gone further. we have the deceleration of growth that we have been seeing and it probably continues on that and the chances of a hard landing. the timing of which is yet unclear. katie: on that point, we caught up with a rep of deutsche bank earlier today and he said tighter credit could lead to a landing that some will not anticipate. let's take a listen. >> we do think ready conditions are going to tighten the way we have tried to quantify it, suggesting it could be .5% of growth or certainly mo

. >> i don't think, e■jenny, we d schwab yet >> i didn't want to jump the gun one■ you you've mym■ñ■ft(■ schwab as jenny revealsfá she's buying it.r >>> let's take a first break our "chartth of e day. shares of one retailer upÑi■15%n the e■week joe terranova owns the name which means we trade it next what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next. what does it mean to be ever better? its your customers getting what they ordered when they expect it. discover how ryder ecommerce makes your customer's experience ever better. >>> we're back our "chart of the day" is lulu, h)en holidayqç■i■quarter, full year guidance as well joe, you own it. on the networkr have an inventory issue. we leaned in deliberately.i■ sara eisen points out, okay, while inventory grew 50%, better thanr higher than the industry average. should it be more ofj■ a concer■ that's reflected in the stoc

shares, charles schwab is up, i didn't know he was still around.ost $2 billion or $3 billion worth in financial worth. stuart: i have to get this in. i did the first ever tv commercial for charles schwab 50 years ago in san francisco. i've got to get this in. meta, there's no tape of it, used to be two inch tape in those days, just got confirmation of more job cuts for meta-blooge and the stock is straight up. susan: we are talking 10,000 jobs and closing 5,000 job positions that will no longer exist, they don't need to refill those, on top of 11,000 job cuts they announced last november. a huge cut down in head count. i think they are following twitter. stuart: let's go straight uber and lift, they are got a huge boost from a court ruling in california. susan: they won that vote to reclassify or classify their drivers as contractors. stuart: they don't have to be employees. >> the court said we are upholding the fact that these are contractors and not employees that you have to pay with benefits. that is why stocks are up including door-dash. boei

. >> so, the upgrades today of schwab and cs, of discover at b of a, of truist at citi, those make sense> the discover, no, because they talked about a dramatic increase in credit losses. the swab, what we had there was a very good interview with our own sara eisen where the ceo bought 50,000, had money inflows, and then, the evidence lab, david, i know you always follow the evidence lab. >> oh, yes, i do >> because of "csi." >> i love their show on cbs too. >> well, it's unbelievable >> it is incredible. >> they come out -- >> their flu thing is just unparalleled >> they initiate buy on western alliance >> this is the time -- david, western alliance, too early. >> you think it's too early? too early for credit suisse also, then >> credit suisse is getting -- remember, one of the things i learned when i was at goldman-sachs, being taught by the great david tepper of the panthers, is that stocks stop at zero they never go below. >> no, they don't. >> no negatives. so, let's get away from that whole concept. >> well, they got $1.80 to go there. we got to watch it closely again, the market

i i always like charles schwab, it's down about 40%, under pressure.ot going to be a run on charles schwab. it's the largest brokerage firm in the country. people are concerned, and morgan stanley had a note saying, well, people concern investors -- are moving their money from the cash accounts into, say, 2-year treasuries because they yield more, and that will help schwab's earnings. okay, it may hurt them slightly but not a lot. schwab will still make $4 which means it's trading at about 11 times earn, that's half of where it trades. stuart: full disclose off, they handle my investment accounts. >> well done. stuart: lauren's back with us looking at the movers, and we're going to start with disney -- lauren: up 4% this week, investors are buying into the restructuring of mr. bob iger. the 300 job cuts in china and then the marvel entertainment chairman, isaac perlmutter, is out. they got rid of the metaverse, investors are buying. stuart: it's a long time since we talked about under armour, what have you got? lauren: a big partnership with steph curr

eps just because you had deposit rates go up a lot, which squeezes the net interest income margins schwab yesterday is a good maybe sample set of what could potentially happen where you had morgan stanley lose like the stock for seven years, downgrade the company and say, hey, net interest margins are going to get hit. they cut their estimates by 30%. you're like, well, the stock's already down 34% going into this it goes down 5% yesterday anyway last time i checked, it was down again today. clearly, it's not all in the numbers yet as much as people desperately want to believe it is >> dan, have you missed this run that we've seen, s&p 500 up for the quarter 6%, nasdaq comp up 16%? have you been too bearish? >> no, because -- the answer to the prior question, sara, but i said on march 10th, you can look at the tweet, we're covering our shorts for a short-term bounce on the 14th, i said with mike, we think we can get up to 4,100 or close so, we've done very well with this bounce. we've gone from 55% net short before, the banking crisis 5% net short on that following monday on the 13th we'v

schwab is trying it depopulate the talks think that klaus schwab is trying it in epopulate the talkshat klaus schwab is trying it in his 3ulate the talks think that klaus schwab is trying it in his own e the talks think that klaus schwab is trying it in his own book? alks think that klaus schwab is trying it in his own book? does about it in his own book? does he get households? are you planning to do to depopulate the planet? how do you think crumbs ? listen, is this is ? well, listen, this is this is a dark look on this a pretty dark look on this programme . all opinions are programme. all opinions are welcome, think welcome, but i don't think there's evidence to prove there's any evidence to prove that klaus schwab the wef that klaus schwab or the wef have necessarily a dark intent, but you're entitled to what but you're entitled to do what many people like . this many people don't like. this character. is unelected character. this is unelected figure of klaus schwab and the wef is that they meet a year with the good and the great. yeah.in with the good and the great. yeah. in dav

and here you are what do you make of it now you have josh out of schwab. jim, who bought first republic what do you make of what the market is doing at this moment >> well, i think regional banks play a really important role in our country. and not all of them are bad. silicon valley bank had very specific risks that were being taken, but they also had a run on the bank. that's not a normal phenomenon, and had a significant amount of uninsured deposits that's not the case with a lot of other regional banks. i think to jim's point there are values that are going to be materialized out there i think especially in the region of the country i'm from which is ground zero between silicon valley bank and also concerns about first republic and what was happening with the stock market, two very trusted organizations that i think in many respects are going to cast a little bit of a shadow on sentiment in our participate of the world, and i worry potentially it spills over onto the consumer side. >> jim nailed it when he said markets are volatile and they've been vol

shares of charles schwab and u.s. bancorp tumbled you can look there wells fargo and citibank off 10%. that is really an indication of what may be the implication for the larger economy because of this we have other news to tell you about. >>> credit suisse saying net outflows have declined the report scheduled to be released last thursday, but delayed from the s.e.c. late day phone call credit suisse revealed it had not identified weaknesses in the controls over the financial reporting for the years 2021 and 2022 the bank did not have an effective process then to identify the risk of material misstatements. that is that story the question on the banking is are we out of the woods? i don't know >> you look at the regional banks and it is reassuring to see that bounce back today there are questions about what the fed has done and what the treasury is doing at this point and what all of this means and investors are still digging through trying to figure out who has unrealized losses and where the depositors are going if

charles schwab with a rough few weeks.e with meghan horneman at capital vadvisors how did you view the last couple weeks? i'm referencing the flux in the banking sector is it positive because the fed, at least, has that on its radar and maybe is not quite as hawkish or does it portend a deeper landing what does it mean for stocks >> i would not say it is a positive it put the fed in a more difficult position now they have to weigh the fact we still are above the inflation target that they want. they have to balance that with keeping stability in the banking sector short term, the banking stuff may be behind us, but longer term this is a growth issue. when you look at the stock market, the stocks you see in the past three weeks is getting complacent for the rest of the year as we start to see the banking crisis filter into economic growth. >> as a credit contraction and earnings estimates have not come down enough. that could introduce some risk to where stock prices are. i can argue this i can argue maybe one of the reason

schwab shares plunging after they were downgraded to equal weight from overweight, slashing its price target to $68. client outflows will continue to mount, with no turnaround in site the stock is down 32%, just this month, in the wake of the silicon valley bank crisis even was looking at tschwab, an then things were calmed down what is this downgrade about >> well, it's about earnings so, it's kind of what we were just talking about with all the banks, further regulation, right? and some of the dynamics that are come from, you know, the quick rise in interest rates, how a lot of these banks make money. how much of those assets are ensured by fdic, the way they're moving from one account to another and really, it is about net interest margins, right? so, a lot of the cash that is sitting there is not being deployed in an account is at a very low interest account. when you think about the mismatch and the ability for people to move those to much higher yielding money market funds, that's what's going on here, right? and so they earn the money on the other side of it, right? because the

schwab says everything is okay, eight and ten over 34 million accounts are fdic's. bring that up because eight and ten at svb were not so is the polar opposite and schwab ceo bought 50000 shares this week, a vote of confidence in the bank and he did so in his personal account. stuart: let's move on, politics. reporters caught white house press secretary jean-pierre of the president biden avoiding the meeting. watch this. >> this is coordinated. [inaudible] >> i hear you guys. i hear you guys. look, two plus two is something done in coordination with the country visiting, it's not something unilaterally decided, it's in discussion with the other country. stuart: would you think? >> basement strategy is well underway for 2024 of extremely obligated topics and another leader of another country, it's an opportunity for reporters to ask questions on the complicated topics, reporters are the eyes and ears of the public, that's what they are there to do, to get the answers is team is scared of giving the answers because they know he's going to flood and potentially cause a

i read that and said, well, i guess that's going to hurt schwab again, and then someone from schwab will buy more stock. someone will re-recommend schwab they're a premier franchise in the world, but everybody is reassessing how much they have at a particular bank if you haven't, then you just haven't read the haeadlines why do you have $400,000 at any one place? it just is not worth it. >> right. >> that's what i think is happening all over the country people are saying, you know what, a charity might have $700,000 in community bank now, they have to pull out that much and put it in another bank. no one wants a meeting, "well, why do you have all your money with this community bank"? >> right. >> that's going to hurt. it will hurt >> diversification. >> yes, it'll hurt. >> jim mentioned this new note out of need ham about apple and disney quote, there is material upside for apple if it buys disney by using shares apple is worth 15% to 25%, she argues, more if combined with disney my first take was, what is laura up to? we'll talk to her later today. >> i've been mulling this over you co

people staying with charles schwab, losing a lot of the low fee deposits. it's a big probability problem. is that the same for the regionals and does it feedthrough to the underlying economy? if you like that's the question we are all trying to grapple with. now bed bath, that's just a fun story. they said today yeah we are probably going to go bankrupt i bring it up because carnival is one of the top performing stocks in the s&p. so there are still some company stories with difficulty. consumer stocks, like h&m, are doing well. carnival with its second upgrade in about two days. i don't know how much of this will be positioning at the end of the quarter but 412 is where we are on the two-year, guy. guy: yeah, end of the day, stoxx 600 is up over 7%. do we have an economic problem? through the filter of the stock market, maybe not. how can you have this doom and gloom scenario with the possibility of cuts if we had stocks performing the way they are. another thing worth bearing in mind here is if europe doesn't have the same banking crisis we are seeing ove

charles schwab is seeing tons of outflows from market funds. on -- on all of that banking and terminal, next. this is bloomberg. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh go. go brain. no, not that one. go this one. go optimizing data. go efficiency. go results. emerson's plantweb digital ecosystem is the brain for smarter, safer and more sustainable performance. go plant go. go boldly. emerson. what do you see on the horizon? safer and more uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets

that's 30% what do we think >> we own schwab it has a lot of organic growth they've gained market share've made smart moves and higher interest rates helped them we like that call. >> up next, mike santoli and his "midday word." missions... but it also means cutting costs. because now clean energy is more affordable energy. we've been investing in american infrastructure for thirty years... lowering electricity costs today, and protecting from volatile energy prices tomorrow. so walk with us— and let's make cutting energy costs real. ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪ 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 work

a big interview 1:15, the ceo of charles schwab be will join me on "the exchange."ck is up sharply today, 10% after taking a beating on all of this bank stock. a look at meta in the spotlight today because the company finally confirmed another round of layoffs, another 10,000 we're watching the semis stocks, nvidia, lam research, intel. amd up a whopping 7% technology rallies in fact, everything is rallying. communication services and financials at the top. you love closing a deal. but hate managing your business from afar. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> one of the big stories of the morning, meta announcing more cost cuts in the form of layoffs. the company says it expects to reduce head count by around 10,000 and close out 5,000 open job postings the second major round of job cuts at meta the street likes that news on a day tech is doing very well. s&p tech up 2.5. let's bring in julia boorstin. julia, we talked about not just the nu

let's talk forward rather than past schwab now and the financials now, what do you think >> well, schwabay, got caught up in everything. it's also a san francisco originating bank i know it's in austin today but silicon valley are both from san francisco so you wonder if that had anything to do with it 80% of deposits or more than 80%, $250,000 or less so in short, they had a week ago it's ten times next year's earnings, low multiple stocks. we don't see anything but a very cheap stock right here we do not own money centered banks. when i said financials, we were talking about more specialized types of companies in that grew is paypal we thought that would turn around it hasn't yet. we think there's still potential for that part of the market and that sector. some of my other picks were good like align >> align was great align was great. i'll lead you there. don't worry. you have to cover up the losses with that. i've got your back up 48% top ten nasdaq 100 stock in the quarter, yes, kari, you picked that one, too. jason snipe? energy again, talk about being on the wrong side of position

we are seeing that charles schwab was hit with eight point billion dollars in outflows from their primeoney market funds this week. we have seen investors much more anxious and scrutinizing lenders. they have been looking at brokerages. this would be the largest redemptions in at least six months. plenty more to come on daybreak australia. this is bloomberg. ♪ emerson software helps clean energy become reliable electricity. go “good night." go boldly. emerson. >> let's take a look at our tracking when it comes to australia and new zealand bonds at the moment. as we continue to watch the dislocation when it comes to the banking story and the u.s. as we see that discount window for the fed being taken up as well, we are course we are watching shares of republic plunging after hours trade following another day of trading for the lender. let's discuss the outlook and bring in annabelle for morning cause. despite the volatility, some analysts say the worst of the banking turmoil is over now. >> that is what we are hearing but it is ready hard to say that when you take a look at where first r

schwab.ng about howbko the exposu that people think is not nearly hink. and why tschwab's books haven't you know, $7 trillion of action of clientele. >> loan devalue of mortgages, excellent. obviously, to me, it's going to be under attack. but if you read the article, i certainly would feel most positive. i've seen it from huntington bank, frost, banks should call us. m&t has a very good defense. >> i guess, though, as we end the week, you know, there's been a hope, particularly early in the week, that we sort of -- all you need is time, time where there's nothing happening, and it feels like we're kind of back in it a little bit. >> so, lagarde said some very good things, but deutsche bank left itself wide open. did they know they had left itself wide open? >> they knew. listen. there was many years of poor performance there. those are years ago. >> they make money. >> memories are long in some ways, and people remember that name, and what else are they going to come after? >> it's not fair.

you have good companies going down with bad and one of the best examples of that was charles schwab whyling charles schwab they have like a hundred billion in liquidity on hand before they even have to sell any of these held to maturity people are not thinking rationally they're thinking emotionally that's a very dangerous time to be an investor, because you aren't seeing rational swings. you're seeing panic moves up and down >> and peter, you know, there's kind of this urge right now, i think, to say, "okay, well, the consumer balance sheet is way different than '06 and you know, this is not going to rerun exactly like the credit crisis, so therefore, maybe the panic is a buying opportunity or maybe, you know, we know a downturn's coming but you can start to kind of pick up stocks on the cheap and look past that." what do you think? >> well, i think the hardest thing has been this past year, for investors to take their time and realize that, you know, when the fed started raising rates a year ago this month, in this day and age of instant gratification and social networking data, et ce

also saying schwab stock was the top stock purchased by the firm's clients on friday schwab finished up more than 9%. meantime, shares of first republic rebounding after dropping more than 65% in the last week. trader thinks this move has legs mike khouw has the action. mike >> so first republic traded 24 times its average daily options volume today it was the 13th busiest single stock option and the fourth busiest amongst financial. activity really went both ways there were both bullish bets and bears bets the largest trade by the end of the day was the march 30 straight puts. we saw those trade for a little over two bucks, that by traders who are a little bit concerned because they're risking 5% of the current stock price on a 25% out of the money that expires at the end of this week implied volatility has come in and we're seeing an increase in the bullish bets in the regional banks, particularly first republic >> quickly, karen, you're in this first republic trade. >> i'm in the trade. it's a bit of a capital structure arbitrage. long the preferred just got annihilated yesterday

being priced in here charles schwab is not a silicon valley quasi private equity venture portfolio. so you have to look at the severity of what we've seen in all of the regional banks, but then bigger than regional banks, the brokerage stocks, vno, sl green. these couldn't be less venture capital related. these are commercial real estate property owning investment trusts based out of new york, boston, chicago. they are all behaving in the same way why? because it's a new level of doubt being introduced into a system where things have been relatively calm outside of the pandemic for more than ten years. that's the point that needs to be made here >> i'm glad you're making it because you're actually walking the walk in some respects because you sold the vnq, the vanguard real estate etf, and you sold spg, simon properties you have real concerns about commercial real estate, enough to sell those positions, which i know you've liked for a while. >> yeah, i actually think those will be fine, but you're swimming against the current hoping that event lip the market won't get to all of the

no it's not a recommendation of schwab the stock but you can certainly keep your money in the bank.f the fed pivots to a more dovish stance next week, and that is a big if, we're looking at a brand new market with the potential for a wholesale shift in leadership. much more on "mad money" including my exclusive with signet jewelers. after the earnings can the stock shine bright like a diamond in i'm getting the latest from the ceo. then jpmorgan came out with a note this morning that made me think something could be cooking at amazon but what's he will are the move you're going to love it except if you work at amazon. and your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer! ♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house. it's hard to run a business on your own. make it easier on yourself. with shopify, you can have everything you need to streamline your shipping, returns, and product s

charles schwab, down 4%, as .19rles schwab, down 4%, as pnc financial and u.s.ng to goÑi to capitol hill. a top member of the house financial services committee is calling for the government toçó temporarily ensure all bankÑixd [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com yp&egulators have backstopped t banks, but onee1 congressman sa it'sfá not enough. oner the governmenÑt to ñrensure eve bank deposit in the country to system. banks for decades. after 30 yearsewand a community banker himself, he says a ok broad-based guarantee could be the move to stop other banks from going under.

schwab is a product. it's a great piece of research today about how schwab makes a lot of money >> i got you >> one of the things i see people recognize is the banks people going after were not making a lot of money. they used to be the example, where they made a lot of money, and it was a georgia bank and they are making a lot of money, but a lot of things can go wrong. we know that they came out today and said the banks are going to come in, and they're going to be very, very interesting it's going to bwork i thought that was, you know, first of all, we're far from when they print, but i don't like -- the banks are not the strong suit here that you want to start earning season, and i do think this is the first season that we will see raw costs down and up, that will be saying gross expansion we'll see some better revenue m numbers. i like costco here, emblematic of what i see happening. looking for a better bargain, lower costs, trading upward into the kirkland brand, trading every five years right abou

you really think klaus schwab is think that klaus schwab is trying depopulate talks trying to depopulate about his own book? does about it in his own book? does he get households? are you planning to do depopulate the planning to do to depopulate the planet? think crumbs planet? how do you think crumbs ? well, listen, this is this is a dark look on this a pretty dark look on this programme . all opinions are programme. all opinions are welcome, don't think welcome, but i don't think there's to prove there's any evidence to prove that klaus schwab the wef that klaus schwab or the wef have necessarily a dark intent, but you're entitled to do what many don't like . this many people don't like. this character. unelected character. this is unelected figure of klaus schwab and the wef is that they meet a year with the good and the great. yeah.in with the good and the great. yeah. in davos, plan our future and i don't think anyone appreciates that. no. and planning which pandemic are going to unleash on us. you know that's another very harsh accusation . you think it's true? accusation. you thi

you know, they've got to do more work schwab is not in trouble schwab has the stickiest account basethe drum beat that schwab is next is so wrong i mean, you know, it reminds me of 1992 when people were saying, look out, it's going to be -- we're about to see bank of america go under i mean, you know, security pacific, yes >> goldman today does have a crack at the regionals, and they say they do see earnings risk across the coverage, to the tune of 26%, but given the selloff, they still see 25% upside. >> you got to be careful you've got to go with ones that have very high ratio of deposits you're not going to deal with some sort of run on things, which i would tell you, cohen, fr frost and huntington bank are my go favorites hu huntington is a buy. some of those don't give you the data they need you go to jensen huang, you could have second-by-second withdrawal numbers, which would, of course, save silicon valley bank and save some people on the hill from being incredibly embarrassed. >> meantime, the wapo has this piece about the white house recommending rules, maybe not rolling ba

we are talking charles schwab, executive chair of the company, has he made a rebound. >> stock price0% 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, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much

they don't see a bigger risk to deposits leaving schwab's accounts and whatnot those charles schwab sharespgrade and then there's the big banks being seen as a beneficiary of the failing smaller competitors was jpmorgan chase is being upgraded to overweight from equal weight by analysts at wells fargo saying this is an example where size and scale matter in what they're characterizing as a goliath is winning scenario they will benefit ultimately from market share gains and a more diversified banking and business model becky, an interesting kind of fundamental take on just what the fallout could mean for other people in the banking business as well. >> yeah, i think this is something everybody's watching very closely today dom, thank you. >>> joining us right now to talk more about the fallout from silicon valley bank is former venture capitalist california congressman josh harder whose district has been directly impacted by that bank's failure. first of all, thank you for being hear re this morning. what do you think of the proposal, or the plan put together by treasury and the federal res

you could not even trade stocksn in charles schwab, venerablead charles schwab, schwab it downat 25% and tripped a circuit breaker. that's bad. in fact, that kind of panic could quickly conceivably a catastrophe. on th become a catastrophe. so on the brink of catastrophe, cata yostu need one thing strong, don't ha competent leadership. but weve don't have that.e shuf we have joe biden. today, hfle shuffled out to thed podium and announced a bailout. >> i want to briefly speaka about what's happening in than silicon valley bank and see your bank today. thanksf my for the quick actionf my administration over the past few days, americans cat thn have confidence that the banking system is safe . your deposits will be there when you need them.y deposi small businesses acrossse bankst the country, the deposit accounts that these banks can breathe easier able to knowing they'll be able to pay their workers bid pay their bills. oh, right. tucker: so so the money the administration is using for this bailoutt coved apparently is coming from the fdic. >> so the feds have iton't worry covered .

i would argue schwab is in better shape and has better options now than it could realize, profitable, decent franchise. nobody is declaring this crisis over, not by any means, not with the unrealized losses of 600 million on the books, but because things have slowed down. everything about this fiasco seems a bit more manageable, which brings me to our game plan for next week where we're back to worrying about a too hot economy and whether the fed will go back to bringing more pain. that's why on monday when we get some manufacturing construction data, the bulls have to hope we see some sign that things are slowing. this is rate hikes, not banking issues. i know it's dopey to go from credit to worrying business is too good, but that's exactly how binary folks on wall street think. anything below 50 on these indices might give the feds some breathing room. tuesday we'll find out if the mini banking crisis is truly over and if the economy is defying all attempts to slow it down or at least that's what i fear when i see the president of cleveland fed speaking. i think she'll keep saying t

at this time yesterday, we were talking about big declines in first republic, comerica and schwab we have seen those stocks rally in a big way today. holding gains of more than 40%. kriti: is not to digest. it -- a lot to digest. are these moves relative to the rate hike path of the fed? traders do not want to be bond traders right now. earlier today, andrew discussed the uncertainty. >> at risk is there that there will be a financial stability issue that prevents the fed from hiking further, but the early read is it probably will not prevent them from hiking further. if the fed does not hike next week, there will be real questions about whether the fed is also committed to price stability. jon: let's get more on all of this. wells fargo's managing director joining us as well as mike mckee. based on those comments, the balancing act is where the fed has to consider. mike: there are two things you have to keep in mind. what is it the fed is completely focused on inflation and they really believe invasion is a danger to everybody's candor of living and we need to get inflation back dow

. >>> charles schwab downgraded the name to equal weight saying there's minimal visibility on multiple variables despite the rating cut they keep the $68 price target, still 23% upside from here schwab is under pressure but has been an overall gainer as financials have stabilized "squawk on the street" will be right back but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. ♪♪ alex! mateo, hey how's business? great. you know that loan has really worked wonders. that's what u.s. bank is for. and you're growing in california? -yup, socal, norcal... -monterey? -all day. -a branch in ventura? that's for sure-ah. atms in fresno? fres-yes. encinitas? yes, indeed-us. anaheim? big time. more guacamole? i'm on a roll-ay. how about you? i'm just visiting. u.s. bank. ranked

and even make decisions on my behalf, he says, yualharari, adviser to plaus shvam, why the schwab book the great reloaded the fourth industrial revolution is worse than the little kamf of the hitlers minecraft - this is awareness of some kind of its geo. the physical world order is very old in its essence, the neo-paganism of the denial of christianity, these guys, by the way, also deny christianity, but they have the technical means to implement their ideas, which hitler did not have at all, all these people are now trying to take revenge in russia for the defeat of the third reich, because the reich that they want to create is a direct continuation of the nazi reich well, isn't it? here compare at least your position without reliably. you lack ammo supply and food your rulers and driving are incapable of running and leaving you to fend for yourself. your fight is useless. go to them. there good treatment and food awaits you, as well as an early return to your homeland. this is one of the leaflets that the germans scattered over the positions of our soldiers. and here is what nazi ger

kriti: we are getting breaking news, charles schwab specifically saying it got $16.5 billion in court net new assets, proves how much confidence they have in the banks. who is benefiting from this accident in the regional banks. let's get to commentary. wally added, said it is under control. -- wally adeyamo said it is under control. >> it demonstrates our system is safe. why we will remain vigilant, the goal in this administration is to make sure depositors are safe. jon: someone who agrees with that is dick bove. walk us through your reaction and particularly yesterday to the banks coming together to firm up the deposit base for first republic your you saw that as an encouraging development. dick: it was more than just putting $30 billion into first republic. if you take a look at the federal reserve balance sheet produced last evening, you will see the banks together put $440 billion into the fed. in essence, the banks put a massive amount of money in the federal reserve so the federal reserve didn't have to put money into lending the banks. all of the loans that supposedly were ma

she's charles schwab managing director and chief investment strategist. liz ann, where do you see the pockets of recession? >> so to think about the nature of this cycle and the rolling recession idea, you have to go back to the middle part of 2020 when we saw all the still are plus and massive pent-up demand kick in. it was highly concentrated on the goods side of the economy because we had no access to services not just here in the united states, but globally. that launched us out of the recession but, again, it was concentrated on the goods side. that became the breeding ground for the inflation problem we're still dealing with. but fast forward to the present, you have goods disinflation if not outright deflation, and many segments of the economy either goods-related or directly tied to interest rates like housing, housing-related, the factories sector, many consumer goods categories very much in recession. we just had the offset of strength in services because of the later access to them and the pent-up demand, and that's also where the stickiness an

others like schwab.owhere near the same ballpark but how do you characterize any kind of concerns about names that have had deposit growth over the last few years? >> well, it depends on what kind the problem with svb, in my opinion, is their deposit growth is almost all commercial and it's a lot of venture-backed companies and so on. but in each case, you always have a cfo or treasurer that is trying to get the last basis point on rate. whereas if you compare that to the average bank, right, the average account in the united states has $5,000 or $6,000 in it, and the retail customer has a couple thousand coming in on the average month, on direct deposit and a couple thousand going out on bill pay, right so, you know, are people really going to move their operating accounts out of that are they going to go to hr and change their direct deposit bank and then reinput all of their payment data no, they're not going to do that to earn 2% or 3% extra on a couple thousand dollars. the average retail depositor