i want to bring in sheila bair who in 2011 was at the helm of federal deposit insurance corporation,he's here in a fox business exclusive. well, shea rah, i -- sheila, i do have to tell you, you have seen this movie before, and i just want you to tell us how important it is not to have a sequel. >> yeah, it's really important not to have a sequel, you know? this idea of undermining our fiscal responsibility by claiming to be promoting fiscal responsibility by, you know, messing around with the debt limit just is completely wrongheaded. so i'm sympathetic with the house republicans about the need for a serious discussion on spending reductions. we are on an unsustainable path. but to tie that to the debt limit or suggest that somehow the debt limit would not pass unless the there is an acceptable agreement to them is really irresponsible. but i do think also the biden administration should come to the table and talk with them, you know? there should be no question that they are going to pass a debt limit increase, but having robust discussion around spending and constraining spending

sheila bair is with us. crucial role she played in the financial meltdown. this always embarasses without her calm resolve, so many were freaking out at the time we might have had a very different outcome. we have different economy from then, i'm not politicizing but your thoughts, god forbid do we face something like that again. are banks ready for it? are they capitalized for it? >> if we have a soft landing i think they are. they have been proven resilient. there is a lot of government support and stimulus to help us for instance during the pandemic. there is a large nonbank sector we don't have a lot of transparency how well-capitalized are. for regular banks if it's a mild recession it will be fine. if we have disruptions in the treasury market with the debate going on about the debt limit, that could impose widespread damage on the banking system, indeal on the worldwide financial markets. neil: in the situation we are now, we can't go a penny over the debt ceiling like finding money out of couch cushi

the center of financial stability ceo sheila bair joins us at 12:30 p.m. new york time. bloomberg. keeping you up-to-date with news around the world this is the first word. the two trump company found guilty of tax fraud have been sentenced to pay $1.6 million. it is due to limits under new york state law and the real punishment could be that the former president's business could get frozen out of deals and government contracts. japan's prime minister will seek public support for his new security strategy from president biden. they will meet at the white house. several weeks ago japan announced a radical upgrade of its security policy including a 16% spending increase and plans to have missiles capable of striking china. in germany, the economy probably stagnated which is easing fears that the war in ukraine and inflation have triggered inflation. gdp rose 1.9% just ahead of the estimate. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. guy: thank you very much. u.