liz: sheila bair. thank you, very, very much. former fdic chair, we really appreciate it. the perspective that sheila has given us is that this is in a way a bailout. i do just want to let people know that literally the second we took it back from kenny polcari, 3:09 p.m. eastern, western alliance was halted again. western alliance was halted again and at the moment, we still have it halted at $27 down about 45%. 45% for western alliance. so i told you, we're keeping a very close eye on all of these developments. it's been a white knuckled 96 hours for venture capital-backed port kportfolio companies with e backed silicon valley bank that failed. wisconsin based startup fetch had the majority of its money tied up in evb -- svb. fetch's ceo joining us next with the harrowing experience over the last couple of days and on where his money is now. with the closing bell ringing in 44 minutes and the dow up 137. the claman countdown has the startup angle next and famed investor kyle bass. don't move, we're back in a moment on the "claman coun countdown". when you stay at a vrbo y

. >> i'll ask sheila bair, the former chair of the fdic about the last banking crisis. >> legal troubles donald trump faces potential criminal charges in new york where he's been invited to testify before the grand jury this week. >> our country has become the investigation capital of the world. >> while his biggest challenger visits iowa for the first time. >> we will never, ever surrender to the woke mob. >> will the republican primary voters even care if trump is indicted >>> and the art of deception >>> house speaker kevin mccarthy hands over january 6th footage to tucker carlson who claims the insurrection was mostly peaceful and it serves to divide republicans on capitol hill. >> i think it's bull [ bleep ]. >> bob menendez of new jersey, , senator and chairman of the foreign relations committee. and joining me for insight and analysis are mariana sotomayor of the washington post, jonathan of politico and republican strategist brendan buck. welcome to sunday. it's "meet the press." >>> from nbc news in washington, the longest running show in television history this is "meet the pre

a lot of people saying not so fast including the former chair of the fdic, sheila bair, who i caughtp with yesterday on fox business. anyaway -- anyway, there are similarities but necessarily don't have to be quite repeated. take a listen. >> one thing that disdisturb me -- does disturb me is that the fed in its stress test, it has not since 2018 stressed the largest bank in a scenario where we have a recession, but we also have high interest rates. they always assume that interest rates go back to zero, and that's just not realistic as we fight inflation. again, with higher interest rates, there are going to be losses that large banks have, but that's not been reflected in the stress test x. this year the fed really needs to run these large banks into that kind of scenario where interest rates stay high. neil: that's interesting. you know, sheila, stress tests also don't take into account emotions, right? like what we had going, i remember talking to you during the meltdown where, you know, the selling and the frenzy fed on itself. people panicked. i better get out, i better sell my

sheila bair, thank you appreciate your time should mention also the author of a book series for childreny or lessons in financial lit literacy. >> recommend billy the bor borrowing. >> i'm sure your boys have memorized it. >> top laggards on the s&p this week no surprise it's all banks "squawk on the street," there you go, first republic down 67%. broad market hitting new lows too. the s&p down 1.1%. "squawk on the street" will be right back go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson. what do you see on the horizon? suncertainty? 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 worl

sheila bair in okot. >>> the sector what if we live to 100. i don't want to outlive our money.ncial future to empower what's next. i think i'm ready for this. take control of your financial future heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪ >>> welcome back, the recent rally in tech taking a breather today with interest rates back on the rise. the space does remain one of the standout performers this year as investors return to the mega cap world amid more market volatility.ó[■ joining me to discuss, lou■ ton of flexo capital. good to see you again. >> good to see you. >> it's an incredible run we've witnessed. as i said at the outset, barely

sheila bair, she wasn't raising alarms. i want to make that clear. what she said to me is that essentially the regulators and the authorities need to be very clear about what we are dealing with. they need to be very clear these emergency facilities on the planet, we can all assess what the hazard is of helping these banks that got in trouble and whathould be done about the people that run them and other things like that. it is too early to tell what the fallout will be. i gleaned from sheila bair yesterday who knowshis stuff very well, for now, there are facilities in place. there is a gameplay in place. there were some lessons learned om 2008. host: this is james jacoby of pbs frontline. 9:00 tonig is when that documentary airs. where can peop find it? guest: find it on youtube. or at pbs.org/frontline or the pbs app. it streams there. we put them out for free on youtube. host: live from alabama, this is dixie. caller: i want to encourage all c-span work -- all c-span watchers to watch frontline. in-depth reporting, it is magnificent. i want to say

sheila bair is focused on these issues as a former chair of the fdic.gency from 2006-2 011, working to keep the system stable. thanks for being with us. the collapse of silicon valley bank and signature bank, it is raising questions about how the banking system is regulated and how it's supervised and there are those who say that rather than tightening this crews -- the screws on wall street that regulators should focus their attention on smaller firms who have not really faced the same level of scrutiny. what is your view? >> well, first of all, i think the smaller firms, the regionals and the larger community banks, most of them are just fine. they did actually very well during the financial crisis. they remain stable and solid. the traditional ones, the ones that have been around for a long time, have diversified the cost basis, good asset quality. so, i think we had some unusual situations, especially with silicon valley bank. that should not be extrapolated to the entire midsize segment of banks. that is not to say we cannot do things better but i

and "outfront" now, the former fdic chair sheila bair. she led the fdic during the 2008 financial crisis. i remember talking to you so many times during those volatile and frankly often very terrifying days for all of us. how concerned are you right now about further spread? >> well, i think the system is basically sound, and that's not -- you know, there are bank failures. we've always had bank failures. >> yes. >> and so that shouldn't scare people. we have insurance deposit allowances of $250,000. so this is not anything that should be alarming. i think the government needs to be very careful in how they communicate this because, in a way, i think by making highly unusual systemic risk designations for two mid-sized banks. we've got a $23 trillion banking industry. one had 200 billion. another had $100 billion in assets. this is keeping to the deposit limits, which are there in law and clearly disclosed would somehow create systemic risk, that, i think, people found a little dissettling. so i do think, you know, you can end up creating

sheila bair joins us now, former fdic chair. she lived through a lot of that craziness.wonder how far this goes. we're talking increasingly about moral hazard, maybe the latest proof might be the melting down of these bank stocks, the very banks that were rests cued or provided sort concern rescued or provided sort of a cash lifeline that's doing them no good. their stocks are still melting. what do you think of that? >> well, i think beer is setting in. fear concern fear is setting in, fear, not rationality. and the problem was they did bailouts of these who the mid-sized banks, very tiny parts of the overall system, in the name of systemic risk. and that created a lot of uncertainty. well, what's going on, now who's protected and who isn't. neil: yeah. >> they're trying the imply that all uninsured are protected which is concern the they don't have legal authority to do, frankly, and this is putting pressure on community banks now. the big banks are going to protect them, uninsured goes fitter thes, you won't -- depositors, you won't. it's troubling. i believe in moral

sheila bair, former head ofhe fbi see raising alarms. i want to make that clear.s said me is that essentially, the regulators and authorities need to be very clear about wh we are dealing with. they need to be very clear there are these emergency facilities that are mnt to stem the pic . can all asseswith the moral hazard is of helping these banks thatot into trouble and wh to be done about the people that run them and other tngs like that. i think it is too early to tell what the fallout will be but wh i gan from sheila bair who really ds knowhis stuff very well is that for now, the right facility is inlace, there is a game plan i pla for places like the f see --fdic in case this does become cascadin host: this is james jacoby of pbs frontline. 9:00 tonight iwhen the documentary airs. guest: you can find it on youtube so you can watch that or at pbs.org/frontline or the pbs app. it streams there. we put them out for free on youtube. host: from alabama. caller: first of all, i want to encourage all c-span watchers to watch frontline. i want to say thank you for pr

we'll have a full lineup of interviews, including senator bob menendez, as well as sheila bair, who was the chair in 2008. we hope you sun in to "meet the press"at 8:00 a.m. >>> governor newsom is coordinating with the fdic which ensures money in banks. he said in a statement -- >>> coming up in about 30 minutes from now, we'll talk to larry gurston for our weekly segment to look at california's push to make more affordable housing, and why some cities are opposing those new plans. >>> happening today, the funeral service will be held for the 16-year-old who was stabbed and killed at a high school in santa rosa. jaden pienta died march 1st during an altercation that escalated. the service will be at 11:00 this morning and a secondary service will be held at new vintage church in santa rosa from 2:00 until 4:00. >>> coming closer and closer. >> this is the spacex dragon endurance capsule after it splashed down just off the coast of florida. this is video from the recovery vessel. dragon endurance touched down around 6:00. inside were four astronauts, including bay area native nicole mann

form former fdic chair sheila bair said she would not have declared the banks systemic saying that theyts of $30 billion, okay -- 300 billion, but it's a $23 trillion banking system. baer says the optics of bailing out venture capitalists and and their portfolio companies she calls terrible. interesting. stuart: right on that count. thanks, ashley. we have restored good audio with andy puzder. so, ann key, i'll repeat the question. the president insists that we invest our pension money in esg, we invest according to climate concerns. am i better with off? do i make more money investing the way the president wants me to invest or what? >> just think about the it logically. look, if you're concern you want a return in your pension fund. you want your company's investments to be profitable. and i think companies focused on profits are going to be more profitable than companies that aren't. it's hard enough to make a profit when you focus on it, leapt alone when you're trying to accomplish this leftist agenda that the democrats and president biden want companies to accomplish. so, no, you a

sheila bair on that. that's what bernie marcus is worried about, the billionaire co-founder of home depot has said for some time. confidence in the economic system depends on confidence in the economic system. in other words, people that believe that the fed is doing the right thing, the administration is doing the right thing, regulators are doing the right thing. let's just say that bernie is very worried about this thing. my special guest tomorrow at 10:00 a.m. as we explore this in a lot more detail and ramifications for not only big money but your money. not only the players on wall street but main street. again, tomorrow at 10:00 a.m. as we explore that. speaking of money, we're following the money men and women who are taking a close look at two prominent iowa candidates who so happen to be making iowa a focus of their campaigns. polls are tight. now indications are that the money is flowing in fast and furious after this. ♪ whoa. okay. easy does it. we switched to liberty mutual and saved $652. th

pointed out that it could really be iddiosyncratic we just came back from the conference where sheila bair speaking about it. you can let the bank fail and it doesn't mean the system is not good enough. so we expect another rate hike, and we don't expect any cuts until next year. so unless something really systematic, systemic happens to the economy, that would be something of a risk area >> all right thank you all very much for your thoughts v. a nice weekend, guys >>> coming up on the show, your next guest has a few ways to minimize risk. we'll look at some of the opportunities abroad and if you are looking into buying an ev for the new tax credit, you might be in for sticker shock. we'll break down the new rules for you and those ev credits as we head to break, let's check on the markets again, just near session highs right now. the dow is up 259 points the s&p 500 is up about 1% n "the exchange" is back after this i count on personalized financial advice from my ameriprise advisor. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still

you know former ftic chair, sheila bair said with the government shawf done here is put a full blanketngress should have done that instead of just deciding to assure that deposits and signature bank because what the government has now done is created this environment where normal people aren't sure if their accounts are going to be protected at regional community banks what do you make of that? >> you know, there was a soundbite that came out last weekend which is not -- not a dollar of taxpayer money will be used. and once they made that, you know, absolute statement then it sort of precluded congress from stepping in and doing bryan what you just suggested. i sort of push back on that comment because if you have the ftic back stock deposits for one bank and lead to two or three those cost inevitably passed along to depositors and customers of those banks so the taxpayers are paying for it. but once they cut congress out of the loop, and decide to do this the way they did, we're sort of down a slippery slope of, you know, not enough and we're probably going to have to do more. >> okay

. >> reporter: former fdic chair sheila bair said this morning finding a buyer would be the best outcome here, but so far one has not emerged. back to you, eric. eric: nate, thanks so much. arthel: for more on this, let's bring in former obama economic adviser robert wolf, founder and ceo of 32 advise isers, also a fox news contributor. so when comparisons are made to the banking industry collapse in 2008, what's your response? >> i think it's absolutely nothing similar. i was running ubs at the time. i was there at the lehman weekend. this is not going to cause global contagion. these are not the largest bank withs in the world globally having issues with meetingly equiedty. meet liquidity. the leverage in the system is night and day. this is a situation where a bank took in deposits, it grew too fast, it doubled its assets in a year even though its market cap got halved in a year. and with the assets, they went out and purchased long-term treasuries and long-term mortgages and other things and had a mismatch on their assets and their liabilities, more so to the s&l crisis in the '80s t

former fdic chair sheila bair said this morning that would be the best possible outcome here.ack to you, mike. mike: we'll follow it. nate foy reporting live, thanks a lot. ♪ mike: as former president president trump prepares to land in iowa tomorrow, florida governor ron desantis sat down with our maria bartiromo this morning to discuss his recent visit to the hawkeye sate. alexandria alexandria hoff has more on the state of the 2024 presidential field. hello, alex. >> reporter: yeah, governor desantis made no official announcement today, but his mere presence in iowa on friday indicates a campaign in the works. here's what he kid can offer today. he did offer today. >> we got a great response across two different cities, and i think it's just people look and they see, you know, we have a deficit of leadership in this country. and when people stand up and willing to lead, and i talk about the book, when i became governor i said i'm not doing any polling. i never did a poll since i've been governor to try to tell me what another. a leader's not captive by polls, a leader leads

here is what former fdic sheila bair said yesterday before the decision >> almost all of our bank failuresring the great financial crisis, about 400 of them, we did purchase an assumption we sold a failed bank to a healthy bank usually the healthy acquirer would credit the insured the problem is this is a liquidity failure, a bank run. they didn't have time to prepare to market the bank. >> roben, can you elaborate on why that isn't what we saw here? >> things were happening way too quickly. i'm sure behind the scenes you had the too big to fail banks were approached. there's a moral hazard in that you have effectively golden children left over from 2008, 2009, a lot of criticism directed at them from the likes of senator warren, you're bifurcating the system you have hugely profitable banks and this whole other ecosystem of banks which were thriving, including silicon valley bank and made one stupid move with interest rate management and caused a rush to the exits and people ostensibly taking money from a smaller bank and back into these too big to fail banks. they don't pay you anything

. >> as sheila bair told jeff les -- last week. >> we have all seen that, the money had been investeds, they did not have all the cash, no bank does, every bank lends out some of their deposits. >> i will take mine now. >> no, but -- you're thinking of this place all wrong as if i had the money back in the safe. the money is not here. >> the bank has made loans. if the depositors are withdrawing their money, either you call in the loan or if you cannot do it, you cannot pay depositors, either way the bank is in serious trouble and may not survive.l then whodunit? several suscts? svb taking more depositors and putting them all in one basket, long-term bonds. quick trader depositors. inflation that hiked into straight, killing the value of long-term bonds and the likes of senator elizabeth warren loosening regulation starting back in 2018. we need to learn from what has just happens with these banks and go forward by tightening the regulations. it is just that simple. >> simon johnson agreed. >> loose regulation was very important to cars -- in part because in that is what was said beca

i don't know how they do that without -- liz: former fdic sheila bair. >> you need congressional legislation more money printing. >> more money printing maybe. they say they get it from the fdic fees come from banks. liz: they will raise rates on bank account holders. >> i'm just saying. that is the way it is working. republicans are kind of against that. you can do it via declaring every bank systematically important case-by-case. get into the auction. this is fascinating. i have sources that were inside of the bank. this is what, this is what they're up against trying to sell this thing. this is not a traditional bank loan portfolio. it's bank loan portfolio has leveraged loans, bank lines of credit, and other things that -- liz: not just long-term bonds. >> not just, not like loans to construction companies. these are loans to vc portfolio companies, loans to pe portfolio companies. they're structured. they're hard to value. and because of that, it is hard to find a buyer for this thing. and we should point out that that was, that is probably one of the reasons why people are saying where

sheila bair, thank you very much. >> sure. to be here. >>> great perspective on such a key issue here. also this morning, we're tracking something else going on across the country, a huge nor'easter that is now packing heavy rain, snow, dangerously strong winds as it is ramping up across new england and new york. massachusetts winter storm watches are already in effect. snow totals might reach two feet with wind gusts already up to 45 miles per hour. more than 94,000 people are without power already throughout the northeast this morning. cnn's derek van dam is live in massachusetts, tracking all of this. derek, last time we checked in with looked a lot more like rain. now clearly the snow is coming down there this morning. what are you seeing on the ground? >> reporter: yeah. this is what i signed up for, kaitlan. big, fat snow flakes. a true nor'easter starting to set in here in worchester, massachusetts. what you're looking at behind me is a salt barn. we have seen this dump truck filling literally trucks and trucks full of

. >> sheila bair, thank you, steve. >> thanks for coming on. >> let's turn to the border.r americans abducted and kidnapped just a mile -- just a mile across the border from brownsville, texas, in matamoros, mexico. four friends from south carolina traveled to mexico where latavia mcgee intended to get cosmetic surgery. in the days that followed they were moved to three different locations by members of the gulf cartel and security forces located them tuesday morning and the biden administration is in a bind politically, caught between republicans eager to exploit border security as a campaign issue and by democrats angered by the asylum limits in which it's considering bringing back national detentions and do we have a national security crisis just over our southern border? joining me now is a member of the senate foreign relations committee and democratic senator bob mendendes. i invited you on before all of this happened. have you gotten a briefing over the weekend and what's your sans of what we can expect tomorrow morning? >> well, chuck, i have not gotten a briefing

keep interest rates steady, trying to survey the damage in the banking industry, and that's what sheila bair things should happen to. but look at this over on wall street investors are actually coalescing around the idea that the fed is going to raise interest rates at last check about 85% chance that the fed raises rates by a quarter of a basis point. just 15% chance right now of no rate hike. and given those odds, there is a danger here that if the fed doesn't act today, if it doesn't raise rates, they could end up kind of spooking wall street. a lot of investors would worry that the fed looks scared and that the fed maybe know something that they don't so if the fed raises rates today, that means that rates will be the highest level since 2007 on that chart. you can see that rates are going up rapidly. we haven't seen rates go up this fast and this short amount of time really , since the early 19 eighties under paul volcker. so what does all this mean for everyday americans? well higher borrowing costs. we've already seen mortgage rates go up to nearly the highest level in 20 years. the f

. >> former federal deposit insurance agent sheila bair says the fdic covers up to $250,000 per depositort most banks. >> if they want all their money at once, they will force an otherwise healthy bank to close. >> we're on a roller coaster, not the fun kind, brian. put this week in perspective for us. it starts with the government bailing out, one might say, some depositors. now we have the big banks coming in, some doing things they would never do again, bailing out smaller banks. what do you make of this? >> yeah, it's very interesting the person i u spoke to, the former chair of the insurance corporation who stepped in over the weekend who said if we saw the government step in over the weekend and the banking stepped in yesterday, then maybe the next step would have to be congress. it's possible it could require a larger response down in capitol hill. >> it bears repeating. this is a self-fulfilling prophesy. if you start pulling your money out of the bank, in many ways, that is what starts the crisis. >> a lot of people are saying these are healthy institutions, but it seems to be if

sheila bair and it was brilliant. i spoke to her. that's the way it was in the crisis.out of umass. she was an acolyte out of kansas. she understands small banking in america. she lived with bob dole in the early part of the savings-and-loan crisis. jonathan: is 250 a limit anymore? tom: it should have been hired to begin with. i thought it was artificial. lisa: how do you determine that? if it's not 250? is it as much as you want? tom: the issue is -- have we done that data check? we will come back to it later. what is so important here is what is so different in the time of bob dole. gerard cassidy joins us. he is with rbc capital markets, the fabric of american banking. is that what this is all about? we were sitting over a cup of coffee at that coffee shop near government center in boston. what the hell is a money market fund? now we know. is this about the fear of bank deposits moving to money market funds? >> thank you for having me on the program again. that is part of it. you have a very good memory. when the reserve fund broke, the fed it came out and guarantee

. >> jacoby: sheila bair, a former top banking regulator, was issuing public warnings at the time thatbad behavior on wall street despite its best intentions. >> i can't fault the companies so much because these interest rate, this interest rate environment creates very strong economic incentives to do exactly what they're doing. it's hard to create a new product. it's hard to come up with a new idea for a service. it's hard to build a plant, and hire people, and run the organization. it's real easy to issue some debt and pay it out to your shareholders to goose your share price. that's real easy to do, but it doesn't create real wealth, it doesn't create real opportunity. it doesn't create jobs. it doesn't improve the labor market. but it's just another example of how these very low interest rates have really distorted economic activity, and frankly, been a drag on our economic growth, not a benefit. >> (chuckling): warren buffett likes apple's buybacks. >> well, why wouldn't he? he's a shareholder and they're buying back $100 billionn stock. >> when you get an age of easy money like

i was just trying to look it up before because i was inside listening to sheila -- >> former chair bairht was going to happen in the first quarter ant it down the road someplace and at opt but i was talking to somebody last night who saturday they a lot of retail clients and the retailers were preparing for this downturn. and once you prepare for the downturn, sometimes the shock neff happens because you prepared for it it >> you have a little froggy in your throat? or are you okay? >> no, i'm good. >> that might have been from last night >> i walked right into that. >> you do. you did. you did. >> it's justified all those guys thank you. seep you later have fun >> let's get to the fallout over the clafs of sill i connell valley bank and signature banks. reports say the white house may soon call for tougher regulations on mid-sized institutions joining us is former federal reserve governor daniel tarullo. dan is also the form are oversight governor in charge of supervision and regulation of the banks and was responsible for implementing dodd, being. >> well, big and we don't know how mu