that was silicon valley bank. then, you've got statute 2155 that when it was changed from may to shall, made mandatory a new duty on the federal reserve to take into account higher risk profiles presented by certain banks. and to strengthen supervision of those banks. look at silicon valley bank, they had a number of activities with above average risk profiles. the concentration of deposits, the quantity of uninsured deposits. 94% uninsured deposits. then you look at federal reserve authority under regulation to impose additional risk-based leverage capital or look could be requirements -- liquidity requirements or others they deem necessary to carry out the purposes of dodd-frank. i look at this and think among these statutes and regulations, the fed had plenty of authority to prevent silica national -- silicon valley bank and the problems it encountered and was aware pretty early on that there were unique problems there and there was a very unique financial institution because of its risk profile but did not do i

hsbc is stepping in buying silicon valley bank. is showing us the right color this morning the rest are trading lower that is in contrast to the early indications that we see upbeat action deutsche bank is hard hit in germany on friday. down .60%. co commerz bank is down here. we are seeing the fears here and concerns if interest rates go up, what does that mean for the maturity profile for the european lenders we had a special tprogram announced in the united states to manage the bond portfolios. we don't have the same here from the central banks. perhaps some questions around what that could look like and reassessment after what has been a strong trade in banks, but still risk is coming back off the table. let's get too hsbc which flipped into the red it bought silicon valley bank uk for 1 pound in a deal fac facilitated by the government. officials held all-night talks to prevent the lender from falling into solvency. we have sylvia with the rescue come monday morning. walk us through the details. >> reporter: exactly in the end

silicon valley bank started the year with more than $200 billion in assets. today california regulators closed the bank into receivership. basically it collapsed. a top lender to vc backed startups. now it's the second silicon valley bank to fall in a week after silver gate's bankruptcy. this story is bleeding into the tech sector, into the financial market at large, and has the attention of not only financial regulators, the white house, tech founders of all backgrounds. tell us a bit about how it is impacting individual companies at this moment. ed: first off, trading of svb financial group was suspended. had a really profound impact on equity markets. a bank index down for percent. other names, particularly regional vendors we saw pretty deep declines. first republic and signature bank, some of those names. where we did see severe reaction was of course in svb group's debts. i'm keeping the 2033 note in particular. we are deep into distressed territory. in this case trading $.45 on the dollar. what we have is a situation where the fdic has taken control of

silicon valley bank is a smaller regional bank. why did you advocate for government intervention here? >> it was clear i was against bailouts. i didn't think any of the investors should be protected and they are not. i didn't think any of the shareholders to be protected and they are not. i think we should -- back money from the executives who sold stock. i have been advocating very strongly for that but depositors just put their money in the bank. they should be protected. they are not assessing the risk of a bank closing and the dangers we hadn't protected those deposits or funds would have been some of that money would have gone all to the four new york banks and we wouldn't have regional banks. unlike 2008, the assets underlying silicon valley bank are good assets. it is not like they made a bunch of bad loans. made a terrible decision to just be long-term treasury bonds without a -- and they are suffering the consequence but that is why i don't think it will cost the deposit insurance fund money because ultimately, they will b

do you have money with silicon valley bank? john: silicon valley bank is one of the banks we use. as well as some of the other ones mentioned. the right thing, the prudent thing, we have learned is counterparty risk once these things start, this is a classic bank run and win a bank run starts, you don't want to be the last either wondering what happened. the way the banks work as they rely on trust. when they lose trust, bad things really will happen. ed: john, we have so much to discuss about what is happening with avalanche. but, we have to stick with this story because it is happening before our eyes. what do you do in this situation? do you follow the advice of names in the valley like founders fund and pull the money? do you stick with it? i have to point out there were a number of names bloomberg cited in its reporting that fed what we are seeing in silicon valley bank is not the same as silver gate and long-term they have a solid future. what would you do in this circumstance? john: hopefully, you have to diversify out. maybe, not pull everything, but pull some. caroline: y

vc firms are working on a long shot plan to preserve silicon valley bank and including catalysts. ay's banking selloff. in all, global financial stocks lost $465 billion in market value since friday hardest hit is the regional banks with the sector coming off the largest drop in years. now trading at the lowest level since november of 2020 regions bank is trading 21% lower today. >>> concerns of charles schwab closing down 12% yesterday and erasing the found's net worth. >>> and cpi is out at 8:30 a.m. eastern. headline cpi is forecast to come at 6% year over year against 6.4% back in january experts are split if the numbers are enough to push the fed rate hike next week pricing in a 20% chance of a pause next week and the 73% chance of a quarter point hike last week, there was a 770% chance of a 50 point hike. let's bring in sarah house and erin gibbs sarah, i'll start off with you cpi at 8:30 this morning is it still a big deal as svb overshadowed the entire thing? >> it is important for the markets. in the short-term, it has taken a backseat to the other market developments if w

one is being left to foot the bill for the failures of silicon valley bank. the community banks most of us lived by. most rely upon main streets to be a lifeline about the crucialbanking services to the l businesses. so the smaller banks which we all need to have are some of the most trusted institutions in the financial industry. so, mr. gruenberg, you talked about it before but could you elaborate if the smaller community banks in texas where i'm from will be left responsible for bailing out the banks in california and new york which we don't even know where they are. >> thank you, congressman. sensitive to the concern let me just say under the law the fdic is required to impose a special assessment on the banking industry to recover any cost of the deposit insurance fund from covering these uninsured deposits. we have to do that by the notice and comment public rulemaking which we are going to do and just to be clear the law gives the fdic authority to consider the type of entities that benefit from any other action taken or assistance provided us with that

failures of course never a good thing or generally not a big deal but the quick collapses of silicon valley bank and signature bank were no ordinary failures. in less than a day, silicon valley bank customers pulled 42 billion dollars out of the bank fueled by venture capitalists and their social media accounts. they created the largest and fastest bank run in history in the following days signature bank lost 17 billion dollars. regulators both republicans and democrats came to gather to prevent the panic from spreading. they increase liquidity, they promoted confidence in our banking system, they protected deposits of customers and small businesses not notably the investors -- the investments of executives and shareholders. i spent that weekend on the phone with ohio small businesses and banks and credit unions. while small business owners simply wanted to make payroll. they did not want to see years of hard work go down the drain because of venture capitalists panicking on twitter 2000 miles away. one woman told me she was terrified she would not be able to pay her workers next week and i hear

tue: silicon valley bank why the silicon valley bank? silicon valley bank has been why the silicon valley bank? tt2 silicon valley bank has been around for a0 years, it is very well represented in the tech industry, as you know, many tech start—ups bank with them, hundreds across the uk, thousands in the us, they represent about 50% of start—ups, so they have until 72 hours ago had a fantastic reputation of understanding the nuancesin reputation of understanding the nuances in the start—up community, which are different to established companies, and they are very well positioned to help with our sector and ensure that we were looked after correctly. and ensure that we were looked after correctl . ~ , ., _ and ensure that we were looked after correctl . ~ ., . , correctly. when you say nuances with the sector, does _ correctly. when you say nuances with the sector, does that _ correctly. when you say nuances with the sector, does that imply _ correctly. when you say nuances with the sector, does that imply there - correctly. when you say

and a former top executive at silicon valley bank. and we have the ceo of indoor labs and a customer of silicon valley bank. good morning. your company works with open-source software and the software supply chain, and the paycheck that you pay your employees come out of silicon valley bank, right? >> yes, scott. thanks for having me. we have 42 employees that are distributed globally. we do make payroll directly but silicon valley bank. until last week, 100% of our deposits were at silicon valley bank. >> take me back to that day in which you thought to yourself, oh, no. what went through your head, what convinced you to take your money out of silicon valley bank? >> i was interviewing candidates around 10:30 a.m. on thursday, when my feed had an article about reuters talking about silicon valley bank. my first reaction was, well, this is quite a normal reaction, and then my phone started exploding with text messages from other founders, entrepreneurs, venture capitalists, and the mood shifted from 10:30 in the morning being oh, seems

silicon valley bank is not safe. lley bank will cease to exist the people we depend on which is the critical infrastructure of people building innovative startups in america are safe >> that's very good news. >> in terms of what people were thinking, we heard a lot about predatory lending taking place with startups in a crunch. what was behind the scene? >> this is important to note and this is why it pays to keep a level head which is in times of uncertainty, especially in an international environment like now. we have russia invading ukraine. china right out sside of taiwan licking its chops there. these are the same people looking at small businesses serving american critical infrastructure and saying this is an opportunity to take a shot at the united states that is why the government position is important. >> we will come in and giver you f -- give you funding and we want to see what you are working on >> for defense companies you come in and say the market says you are worth this. i think you are worth this all

currently examining the collapse of silicon valley bank. r stock sales by executives violated trading rules. want to bring in a big-name from silicon valley. for her take on all of this. ginni rometty, former ceo and chairman of ibm. she is out with a new book called good power. what you make of the focus in particular of oversight of board membership, executive management at this moment? ginni: something i have learned over a long time and working with boards, it has never been more important and the importance it can have on your board, people with all different disciplines. you had mel on earlier talking about the importance of cybersecurity. it goes to show it is a job everyone needs to take seriously. caroline: you sit on the board of jp morgan. the only big bank with still the same ceo from the big crisis era. i am interested what your perspective is from a banking perspective. and what that means for the sector in general. ginni: there will be many quarterbacking events taking place after that. from a regulatory side, 200 billion. wha

it won't surprise anyone that silicon valley bank went nearly a year without a chief risk officer. venture capitalist fueled the banks growth by forcing the companies invested in and advised to keep their money at silicon bank. and then those same vcs turned around and sparked the bank run by telling companies to pull their money out creating more chaos, more panic. signature bank found themselves in the middle of a sand bank with a climb summary at the crypto exchange ftx. at the banquet them open multiple banks, they ignored red flag after red flag. it's all just a variation of the same theme. the same root cause of most of our economic problems, wealthy elites do anything to make a quick profit and pocket the rewards. when they are risky behavior leads to catastrophic failures, they turn to the government. they turn to the government asking for help expecting workers and taxpayers to pay the price. too often workers do. even though no taxpayers money is being used to say the deposits and i understand why americans are angry even disgusted at how quickly the government mobilize wi

s. government says it will not bail out silicon valley bank. you as regulators shut down the bank on friday, i offer loss of assets prompted iran on deposits. it's the 2nd largest bank failure in us history. that's it for now. up next is shift. i'm hold on like a and i'll be back in 45 minutes with one use. thanks very much for your company. ha. ha ha ha.

should we have faith in silicon valley bank? it is a storied institution, they have specialized banking services for startups. it is there bread-and-butter. literally called silicon valley bank. it seemed that one point yesterday there was a bit of a herd mentality, a lot of people are moving money and people are talking about moving money. vcs are per -- are advising the import folios to move money. other people look around -- portfolios to move their money. other people are looking around to see if they should to. everyone likes to talk about being a contrarian inditex industry. i think maybe -- in the tech industry. maybe this situation shows it is not that way. kriti: reporting from the lobby of an svb bank office. svb becoming the stock of the hour, early we spoke to former u.s. treasury secretary about what the collapse of svb would pose to -- a risk to the financial system as a whole. take a listen. >> if this is handled reasonably, and i have every reason to think it will be, i do not think this will be a source of system

it's called silicon valley bank.rol of customer goes deposits, the largest such failure going back to the meltdown of that year. this comes as venture capital-funded firms, i should say, was trying to raise money to plug a loss from sales due to higher interest rates. it has a lot of treasury notes and bonds on its books, more than half of its better than $200 billion are treasury notes and bonds. the irony there is those are conservative investments and as safe as you can be. but for a company like this, leveraged to the point that the it needed cash past to cash out of those, it would be underwater and, obviously, you know what cascaded since. federal regulators have said and janet yellen, the treasury secretary the, has emphasized that this is not widespread, they're monitoring the situation, and the fdic will back depositors there. we have gary kaltbaum on the significance of what's going down. and what from what we -- from what we hear, gary, we also have with us douglas are holtz-eakin and susan li. so, gary, o

the start of the global financial crisis this despite to backstop all customer deposits at silicon valley bank and signature bank the offer of additional liquidity to others. however, fears remain over smaller banks less diversified around the threat of customer deposits markets are betting that the collapse of silicon valley bank and banking stocks will force the fed to rethink the hike pathway. goldman sachs believes it will cut rates by 25 basis points and put an end to qt investors are still pricing in 50% of hiking of 50 basis points next week, but expects to cut by june on bunds, it is yielding 2.21. we have julio with us now. i'm stunned by that. we have the market saying this is a u-turn and questions with the fed over 50 or 25. ecb or deutsche bank has not thought? >> it is changing by the hour. we are reacting to the news coming in and what we know right now. i think we don't have to forget what some of the fundamentals are. the thing is central banks are struggling with inflation and fighting inflation they will look at core inflation. the number that comes up today with the u.s. cp

uninsured that are held at silicon valley bank. l happening as the fdic sells the assets of silicon valley bank. when they do, future dividend payments will be made to those uninsured depositors the point here being, carl and sara, a receiver bank has now been set up to basically take over all of the operations of silicon valley bank. those with fdic insured deposits will have their money back, no problem. the ones that have in excess of insured deposits amounts will have to wait and see what happens with the certificates as they go through this whole liquidation and sale process, guys >> yeah. even offers a 1-800 number for those who have more to contact the fdic would we argue, dom, relatively swift action by the agency, the fdic and reports on the tape right now that the regulators actually showed up last night. >> not just that, i mean, the moves were fast, no doubt. what was even more interesting was the juxtaposition with regard to some of the comments out of the treasury department earlier this morning with regard to monitori

following the collapse of s silicon valley bank this week, officials in washington are expressing concern. >> when banks experience financial losses, it is and should be a matter of concern. >> reporter: silicon valley bank is the 16th largest in the country with $209 billion in total assets late last year according to the fdic. the bank is known for serving tech startups and venture capital firms. >> silicon valley bank failed largely because of its links to the tech industry because tech is getting nailed by all the rise in interest rates and change in consumer preferences. >> reporter: on friday state regulators shut down the bank transferring control of its assets to a new institution controlled by the fdic. in a statement, the agency said customers would be able to access their funds no later than monday morning. but it only insures deposits up to $250,000. the bank serves some major companies like roku, pinterest, shopify, and etsy, which warned sellers that some deposits may be delayed. small business owner amber fields now swept up in the chaos. >> i run a small business. i do thi

that is what we are seeing with the collapse of silicon valley bank and other bank stocks. increase the profitability of a bank's main business. but when the federal reserve plows ahead with nonstop interest rate increases, problems start cropping up quickly. silicon valley bank got hit with a one-two punch. it's customers were burning through more cash because it became harder to get funding. when your customers need cash, you need to have enough on hand. thanks usually park a lot of their money in safe investment. they were forced to sell those investments to raise cash to meet those withdrawals. they sold their security is at a loss. the total loss? $1.8 billion. when the announced the loss, other startups got scared and started pulling out their money. after the great financial crisis, the government imposed all kinds of on banks that they deemed too big to fail that j.p. morgan chase, bank of america and their peers. they even have to ask permission to give dividends to shareholders and now many shareholders are playing it safe for diversifying where they put their mone

arm of the collapsed silicon valley bank. hsbc u.k. acquired silicon valley bank for 1 pound. 1.21, okay. in a deal that excludes the assets and liabilities of silicon valley bank's u.k. parent company, silicon valley bank. so what a are your thoughts on hsbc? is this china controlled? how do you see hsbc, hong kong of -- used to be hong kong shanghai glang yes. bank. >> yes, the thing about hsbc. china has extraordinary influence over that bank and so we have to look at this as beijing buying the assets of silicon valley bank. really, what we're seeing right now is china trying to take over the u.s. it's not just the agricultural land, not just the financial system. it's everything. and we've got to get china out of our society. i know a lot of people will think that's drastic but we are now at a point which is a crisis because we know what chinese leader xi jinping talked about. he talked about destroying the united states and just -- we cannot allow that to occur. we americans have not been paying attention to what the communist party has been saying about us. just as we did

and that actually let that to pretty much the government for now is taking over a silicon valley bank. it's clearly a big blow to the technology to the biotech or world. so in general, and as they say, and companies usually have some time to go bankrupt, but banks, they die, they die over night. and if there is a run on the bank, as we've seen it with silicon valley bank, how serious is this collapse? are we looking at the start of the next financial crisis? well, i mean, that remains to be seen a most experts i talked to are saying that specially the big bangs in the united states, for instance, are as safe for now. but actually what caused them all this turmoil in the beginning was also that, for instance, the federal reserve for increased interest rates very aggressively in the past year . on the other side, that meant that the price is for treasury's, for bonds to got under a lot of pressure. we're talking about unrealized losses, sir. u. s. banks at unrealized losses of about $8000000000.00 by the end of $21.00 . then we started this cycle off, increasing interest rates are now u

the government is still seeking a potential buyer for silicon valley bank. for silicon valley bank, the federal reserve is creating an emergency program to offer loans up to one year to financial institutions affected by svb. >> meta platforms is planning additional layoffs to be announced at multiple rounds in the coming month. the "wall street journal" reports it would be roughly the same magnitude as the cuts made last year. the new round will likely hit non-engineering roles and meta is expected to shut down projects and teams, including wearable devices. >> general motors is exploring uses for chatgpt, an executive telling reuters last week chatgpt could be used for information normally found in the owners manual and it could program a garage door code or integrate schedules from a calendar. reports say gm is working on a virtual personal assistant that uses the same ai technology behind chatgpt. i thought i would like it without the owners manual because whenever i need to figure something out, i'm going through the pages and it's hard to find. >> light

liz: silicon valley bank was the bank of first and last resort for startups and they said, yes, when generator for the vibrant startup community. not just in silicon valley but across the nation but please come back. enrique, we want to continue following brex and see how the story develops. >> thank you. liz: any time. howard schultz left the building or c suite at starbucks and new ceo wasn't going to start till he earned his barista certification before stepping into the role. who is the man? find out next and what maybe he plans at the next shareholder might. closing bell ringing in 35 minutes. dow is up 322, s&p up 27, nasdaq up 19, and yes, we're continuing to watch first republic, still down about 46.25% right now. stay tuned and "claman countdown" is coming right back. sometimes you're so busy taking care of everyone else you don't do enough for yourself, or your mouth. but eventually, it will remind you. when it does, aspen dental is here for you. we offer the custom dental treatments you need, all under one roof, right nearby. so we can bring more life to your smile... and m

the guarantee deposit of silicon valley bank. they shutdown signature bank also as becky said earlier, there is new financial at first republic you know regulators made that happen they guaranteed all uninsured deposits you are guaranteed for a period of time. they created a new federal reserve fund to finance bank assets they eased lending rules at the emergency discount window to make it less expensive to borrow there. officials said they took these actions to avert a situation where uninsured depositors would pull money from healthy banks and deposits end up only in big banks. there are not major problems with the assets, especially with the treasuries and mortgage-backed securities main problem is rates are up bond prices are down that creates large unrealized losses for banks and little default risk in the assets another usual you is how fed policy is affected here. look at what has happened. this is dramatic 54% probability that the fed does nothing right now sorry, is that right we're scrambling to put stuff together here t

given the bank is backed _ silicon valley bank. given the bank is backed by _ silicon valley bank. y the us - bank is backed by the us government and is now conducting business as usual, this must be one of the safest banks to bank within the us right now denmark actually, i had a call a little bit earlier and i was talking to a pretty prominent venture capitalist and i was making a point which they agreed with which is arguably silicon valley bank is at this moment the safest bank that you could bank with. i that you could bank with. i don't think that's going to last forever. in the us, the united states, deposits are insured for up to $250,000 but for right now, essentially you are banking directly with the us government almost and there is essentially no safer place to put your money but, over time, svb will go back to being one of many banks, although they have a very unique business model. ironically, very model stop one thing that is really confusing about this crisis is normally when you have a banking crisis, the bank might�*ve made bad loans risky investments, but none of

a lot of startups are dependent on silicon valley bank for payroll, pulling from other banks into the silicon valley rails, if the you will, to make payroll. had that not been the case you could have gone weeks without pay roll being able to be made if you had most of your money in silicon valley bank and you're a small company. that he threat is gone. i think what you'll have going forward is these companies now are going to be diversified from day one and whether you like it or not they're going to be with the big four banks. they're going to have accounts with jp morgan chase, bank of america, citibank and wells fargo and less so with first republic bank and silicon valley bank and the ones like them so you're going to see more diversification in the banking partners which is probably good given what we have seen happened at silicon valley bank. maria: there's only a handful of the large systemically important banks you're referring to, the global banks, jp morgan and bank of americas of the world. can they the take on all these companies that are worried that they don't want to go

but there's also issues here unique to silicon valley bank. >> yeah, for sure. ful lot of the money over the last two or three years has gone to ec. that is silicon valley bank. a lot of people were raising red flags about svb at the end of the year because we had this mismatch of their assets and liabilities. but i think one of the things the market's responding to, it's all very well to saying, well, the now the fed isn't going to be able to hike rates so aggressively, that means inflation's going to be the here longer. it's going to the hurt the american economy for the foreseeable future. i think this is extremely negative in terms of the outcome for growth and wealth creation and all those things. so this is a complicated situation and not particularly positive, obviously. maria: and, jake, there are small companies this morning that are hoping that they can make payroll. they're the clients of silicon valley bank, and the leading clients are technology and health care. a lot of those biotech firms need that lending. >> well, it's true, and you hate to see i

we discovered shortly after regulars took control of silicon valley bank the top is negatives at the bank -- executives that the bank uploaded millions of dollars worth of stock in the weeks leading up to the collapse. very convenient. including the former ceo who sold $3.6 million worth of stock two weeks before the bank crashed. the dodd-frank banking reform law included a compensation clawback provision for executives identified as execs -- excessive risk takers. those that put the banks and the entire economy in jeopardy. the fdic in conjunction with the other financial regulators begin working on a will to implement this provision in dodd-frank in 2011 and again in 2016. the final rule was never issued. does the fdic have plans to revisit this rule? >> it seems appropriate. >> i would say urgent, i know the justice department and the sec are looking closely into this matter. i would encourage them to include any evidence of insider trading. that seems only appropriate given the circumstances. that should be part of the scope of their probe. there is a scenario where these executi

as far as silicon valley bank is concerned, it hit me personally as well. it now that we are over the hump. all of our operating accounts were also in silicon valley, so [indiscernible] i was trying to help our clients navigate to this unprecedented crisis. i was also trying to figure it out because it was an existential crisis from the un whether we would have the lights on next week or we could pay payroll. i'm happy to say that we are in a safer zone with the fed stepping in, but i feel like frankly someone who survived a car crash. i am still not feeling safe enough to start driving again, you know? rishaad: the question is, are these companies going to be feeling they can drive again properly and have confidence? silicon valley bank was so important to startups in terms of how they managed it in the ecosystem. that is my question to you. what are they telling you about the future now? is there anywhere else they could go that is doing the same thing that silicon valley bank was doing? anil: yes. i think we will have to look at and people around us will

and the situation for both signature bank and silicon valley bank are actually very different. the silicon valley bank failed because it was just an old fashioned, bankrupt more customers wanted their cash and they had on hand. unfortunately, for silicon valley bank to meet those cash requirements, they had to sell out some security that they had bought o a year or 2 ago. unfortunately, because of the rapid increase of interest rates in the us over the last year, those investments were worth a significantly less so the $21000000000.00 that they sold in securities resulted in a 1.8 $1000000.00 loss for s b, b in the case of a signature bank and they were heavily involved in crypto, in terms of lending to crypto related customers. and as many know, that's been an extremely volatile market. and so, although they are both relatively large failures compared to what we've seen in the past, relatively speaking, they're small parts of the whole us banking system. will professor, if i'm hearing you correctly, it sounds like you're saying then that the u. s. federal reserve precipitated o

the fdic took control of silicon valley bank's assets. it took control of signature9 bank's assets. l not stop at this. we'll do whatever is needed. gerry: wait a minute, silicon valley bank or, indeed, signature bank for that matter was under official u.s. regulations and law not supposed to be systemically important meaning it was not officially too big to fail. that's the idea that a bank is so crucial to the financial system that a collapse would be catastrophic for the economy. so the bank is not too big to fail, why isn't it allowed to fail? well, you didn't need to be a cynic to note that this was a bank that's very friendly to the kind of people democrats love, the silicon valley crowd. hot just intend -- entrepreneurs, but venture capitalist investors and others. the bank's risk manager in london, for example if, perhaps instead of managing the bank's risks was almost always speaking out about racial justice, gender equality and lgbtqia +issues. of course, the bank gave millions to black lives matter and democratic candidates and causes. >> it's no sent that they made a $5 b

one problem is silicon valley bank. there's other stories coming out now. i know a lot about this situation. they're having a hard time having people to help them finance it. how do you value loans on the book from portfolio companies of vcs that are not making money? i mean, that's what we're talking about. silicon valley bank went out on the risk spectrum giving loans to these businesses. there's a double whammy there and that caused it to implode. when the companies are losing money, they have money here, you take out here to make up for the money you lost. >> neil: are there's others out there -- one thing i can remember the craziness of the meltdown is cooler heads did not prevail. with the tumbling of the stock market, the currency was gone. >> yeah, i don't know if there's other banks. there's lots of rumors about banks being in trouble. i don't want to mention those banks. i don't want to be a part of that. you can look at those stocks. those are the rumors ones. this can't be an isolated instance. it cannot. ri

on friday, the fdic took control of silicon valley bank's assets. over the weekend it took control of signature bank's assets. treasury secretary yellen has taken action. first, all customersed who had deposits in these banks can rest assured they'll be protected and they'll have access to their money as of today. including small businesses across the country that bank there and need to make payroll, pay their bills and stay open for businesses. this is an important point -- no losses will be borne by the taxpayers. no losses will be the borne by the taxpayers. instead the money will come from the fees that banks pay into the deposit insurance fund. because of the actions that have regulators have already taken. every american should feel confident that their deposits will be there. second, the management of these banks will be fired. if the bank is taken over by fdic the people running the bank shouldn't work there anymore third, investors in the bank won't be protected. they knowingly take the risk. fourth, important questions of how these banks ca

about some after this fundamentals the way investments at silicon valley bank silicon valley bank versusple putting more than in uninsured depositors over there didn't match up frankly you didn't see, you don't see that, under diversification, lack of diversification in banks i have talked to middle sized banks in south eat louisiana don't have the same problems not a systemwide program but checks coming due from two years of president biden's reckless spending that drove inflation drove interest rates, a lot of people said fed was late, in the game then whether they got in the game started raising rates too much too fast as opposed to catching early they kept spending trillions paying people not to work made no sense one of the reasons they lost a majority in the house, why we need to restore fiscal sanity in washington. maria: good point when you are in a situation people think we are already vulnerable, one issue, one item can act as that straw that breaks the camel's back we are seeing equity equity market sell-off as a result of worries arounding banks so where are you in terms of c

why wasn't a silicon valley bank purchased a sooner? i think that would have created more stability in the situation. >> if we could have sold at the first weekend that would have been desirable but the fact is silicon valley bank was a pretty large institution, 200 billion in assets and pretty complicated in terms of its business activities, so requiring the institution to do the due diligence over a weekend and reach a conclusion and make it frankly not practical so we set up a bridge institution and for both of the failed banks in a pretty orderly way to set up the bidding processes for each in fact for silicon valley we had considerable interests and got a couple of requests for additional time for the interested parties to do the due diligence, so we extended the bid to date a couple of times to give people time and we ended up getting i think 27 bids from 18 different sources, so it ended up being a pretty constructive process. >> thank you very much. i yield back. >> the gentlewoman from california is recognized for five minutes.

the funding environment will be difficult for some companies to open up accounts because silicon valley banklly catered to the tech ecosystem and would help companies when other banks couldn't or would not, so that is going to change a lot of the dynamics here. we also talk about some of the big portfolios, the funds like softbank's vision fund they may have to mark down their portfolio companies earlier than they might have liked. >> thank you deirdre bosa >>> coming up at the top of the hour you will not want to miss brad gerstner on the halftime report his take on where the vc community turns next for capital. biggest losers on the nasdaq 100. deirdre mentioned smaller tech and non-tech names in here like pfizer, marriott, some of the biggest cap tech names rallying as we are ei ts llsenghiray broaden out. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. (vo) this is more than just a building. it's billion-dollar views. perfectly located. an

silicon valley bank is among the top 20 commercial banks in the entire u.s. according to the fdic. its collapse is a huge deal. it's the biggest bank failure since washington mutual back in 2008. today at the bank's menlo park branch there was a line of about 50 people waiting in the rain desperately trying to withdraw their money, but that didn't happen. fc representatives told them come back monday and you can withdraw up to $250,000. svb says half of all startups that went public last year were their customers, a huge portion of the bay area economy tied up in all this. betty yu joining us tonight with more details. it's hard to overstate what a big deal is for a lot of companies in the bay area. >> that's right. a lot of people are still processing everything that went down in the last few days. startups had millions or even in some cases hundreds of millions of dollars deposited at silicon valley bank and now nobody's really sure just how much of that cash is left. this is money companies use to pay employees and run their startups. as federal regulators swooped in, startups r

saying, what did silicon valley bank do for ou? ., saying, what did silicon valley bank do for ou? do for you? thanks for having me. they were our bank. _ do for you? thanks for having me. they were our bank. i _ do for you? thanks for having me. they were our bank. i am - do for you? thanks for having me. they were our bank. i am the i do for you? thanks for having me. i they were our bank. i am the founder and ceo of a start—up here, they were who we banked with. whether it was charge cards around ripart deposits. was charge cards around ripart deosits. ~ ., ., , ., deposits. without them would you have been able _ deposits. without them would you have been able to _ deposits. without them would you have been able to set _ deposits. without them would you have been able to set up? - deposits. without them would you have been able to set up? maybe | deposits. without them would you i have been able to set up? maybe not as easil . have been able to set up? maybe not as easily. silicon _ have been able to set up? maybe not as easily. silicon valley _ have been able to set up? maybe n

the silicon valley bank. as of right now, the dow jones is up this morning. president biden just spoke. from the white house about the failure of those two u. s banks over the past few days. today thanks to the quick action of my administration. over the past few days, americans can have confidence that the banking system is safe. deposits will be there when you need them small businesses across the country. the deposit accounts of these banks can breathe easier, knowing they will be able to pay their workers and pay their bills. the federal government has now taken control of the assets for silicon valley bank and new york based signature bank, the president said the management of the banks taken over by the government would be fired and said there will be an investigation into how those banks got into trouble in the first place and pledge those responsible will be held accountable. more on that developing news about the government takeover of silicon valley bank ktvu. james tauruses live in santa clara, where some people waited in line james for the bank to

>> silicon valley bank, the lender at the center much the venture capital world, second largest bank failure within u.s. history within 48 hours. what went wrong? created over a poker game 40 years ago, silicon valley bank produced tech start ups like roblox and roku, brought billions of u.s. treasures and mortgage bonds at ultra-low interest rates. these investments are considered best on the planet, to tame inflation, caused bonds to lose valley. silicon valley bank revealed it sold securities at loss of $1.8 billion to plug holes in financing, sparking calls which spilled to social media feeding frenzy that fuelled this. >> move part of the funds, that is frightening position to be in that anything above $250 k could disappear. >> it is going on all over social media and seems like it was hysteria. >> we were panicking, a lot of us. >> the stock was in free fall as customers tried to withdraw 42 billion in deposits. regulators moved in to shut down silicon valley bank and signature bank two days later. emergency measures were taken to protect depositors, even those above $250,000.

customers of silicon valley bank. did, more urgently, it is the fact that it is a retail bank for those companies. many of those companies are wondering whether there will be excess funds to pay their rent, pay their suppliers monday morning. find to pay their rent, pay their suppliers monday morning. and with it? what do you _ suppliers monday morning. and with it? what do you understand - suppliers monday morning. and with it? what do you understand what - it? what do you understand what happened on monday morning? the happened on monday morning? tue encouraging happened on monday morning? tte encouraging thing happened on monday morning? ttj: encouraging thing is after the bank of england encourage us to keep karen on the subject is not a very big bank. we did contact, and have contact with the government, with the treasury, including the secretary of state, they called us together on saturday and said they understand the significance for this tech and the government wants understand the significance for this tech an

that is going to be extremely combing for the valley and extremely combing for any company that banks with silicon valley bank. now means that any lender can bind to them with complete safety. >> silicon valley bank is deeply connected with technology startups and venture capital. experts say is collapse because of the downturn of technology stocks and the federal reserve interest rate hike. ultimately resulting in a bank run. experts say the unexpected move today is designed to instill public confidence in all banks and prevent people from pulling out their money. nbc bay area news.>> this is a story with developments coming around the clock that we will stay on top of it for you and we will have live covers throughout the evening into tomorrow morning as well. when we are not on air you can get the latest updates on nbc bay area.com and click the link on our trending bar. >>> a historic area going up in flames. what we know about the fire that broke out in history park last night. >>> a deadly boat crash. why the coast guard says this is a part of a much more serious issue. >>> we are still seei

if silicon valley bank is not resolved and an imminent timeframe i think you -- you should expect to see some of this concern will spread to the other banks. >> former fdic's chair says a buyer for silicon valley bank is the best outcome. i know you saw this earlier today, catherine, chuck treasury secretary janet yellen set a ballot of the bank is not under consideration at this point. could you have something short of a bailout summit rescue package that no one was to call a bailout but is essential when going in there and assisting the investors, the consumers at that bank? >> so, everybody knows the word bailout is a toxic term. nobody wants to be accused of bailing out anyone let alone a bank, let alone a bank that serves the tech industry, which is a very polarizing industry. it does not really have a specific term. i think what they mean when they say were not going to have a bailout is we are not going to do something that necessarily makes the stockholders or the hole. but, they are interested in making sure the depositors are okay the customers of the bank are okay. those ar