this allowed the fdic to protect all depositors at silicon valley bank and at signature bank. they were placed into separate bridge banks under fdic control, silicon valley bank to flagstone bank, asus is very great, and silicon valley bank was sold to weeks later to first citizens bank of north carolina. and, as you will know, first republic bank in california also experienced a large outflow that weekend and managed to survive at least the bank -- the weekend. the bank tried to raise capital but was unsuccessful. the state of california closed the bank. the fdic had time before the bank was closed to conduct a competitive bidding process, which resulted in jpmorgan chase submitting the least cost bid and submitting all of the deposits of first republic. the winning bid had the insured depositors under the least-cost test and did not require a systemic risk exception. in brief, that was the story in march and april. so what should we learn from this episode? what should we take away from this experience? the three banks that failed this spring shared comment characteristics th

they have been under fire for the failed oversight of the silicon valley bank. the bank said the former fed in minneapolis will take over in october. >>> following a story we brought yesterday, 3m agreeing to pay just over $6 billion to settle 260,000 lawsuits stemming from defective military earplugs. according to reuters, the money will be paid to victims over the next five years. the stock had popped 5% yesterday on early reports of a settlement which is far less than the $10 billion some analysts had been expecting, frank. >> big story there. we will continue to cover that here. silvana, we will see you later on. >>> now to a developing story. u.s. commerce secretary gina raimondo wrapping up the face-to-face with the chinese premier as she prepares for an evening meeting. we have eunice yoon with more on the story. eunice. >> reporter: frank, i'm outside of the beijing train station where the commerce secretary is going to show up minutes from now to head to shanghai after a very full day of meetings here in beijing. her main message has been the u.s. and ch

silicon valley bank is probably going to cost us $2.5 to $3 billion. so whatever happens when the next bank comes, i want it to be a reasonable bid, and not where $10 billion extra is being given to a small bank. that is not fair to anybody. so i think they need clear rules about the resolution and recovery, and i also think we made huge mistakes on silicon valley bank and i hope the regulators will be looking at that we created a crisis and we created something that maybe didn't have to happen. >> what do you think needs to be assessed from a regulatory standpoint >> i'm not going to go through it but they should be asking questions of themselves. whenever we make a mistake, i spend a lot of time on the most more item, what did we do wrong, how can we do better we know we're going to make mistakes i don't think we should treat every mistake like a violation of morality, but i think they should be doing a little soul searching. >> do you think there is an appear site among regulators and an appetite among the c suite to do more consolidation in the indu

i think it's quite topical now that we're again in an environment with signature and silicon valley bank where there is stress in segments of our financial market and again there are calls for bailouts and delivery of bailouts and. what i wanted to do with the book because again in march 2020, we went through a very similar situation where there was stress in the financial markets because of the fears from covid. so i wanted to give readers an inside sense of what it means to be a financial regulator sitting in that seat where pretty much 99 out of 100 calls you get are we need you to rescue this now. and i kind of have a sense what it's like to feel that pressure and also for me to made different decisions. so part of the conversation, the book is how certain for bailouts were resisted in how we took a very data driven approach. so i want this to walk away with there are alternatives to bailouts you can directly households and families which is what we did in terms of housing rental distress from covid. so again, i wanted to give perhaps an alternative narrative that you don't always ha

this proposal was initially tech drug for these look on value -- silicon valley bank failure. they dropped the threshold from $250 million to $109 and ensured that this proposal comes out. this is not applicable to the biggest banks. they already adhere to this, and certainly this will be something on the fixed income or debt signed that you will be paying attention to. we anticipate fertilization of this proposal will probably be about one year from now. jon: this is interesting. we have been covering the m&a aspect of this as well. depending on what you need to have on the balance sheets, some might be thinking about some larger consolidation yet, it was see my getting the math right what regulators want could also delay m&a. is that possible? nathan: absolutely. banking regulators are skeptical of m&a. we have seen certain prior mergers take two years or longer. or ultimately backing out. what will happen is you will have the math side of the equation and will have to get over that hurdle. but when it comes to m&a, you will also have to get over the impact to the community,

have prevented by higher capital rules, but he was critical of the regulators' handling of the silicon valley bank demise. >> i think we made huge mistakes on silicon valley bank, and i hope the regulators will take a look at that we created a crisis that maybe didn't have to happen. they should be asking questions of themselves. like, whoever we make time on the after-action report, what did we do wrong? how can we do better i don't think we were treat every mistake like a violation of morality or something like that, but i think they should be doing a little soul-searching. >> reporter: he also said we should get rid of the debt ceiling, saying it's always used in a way that makes it very difficult. we need certainty in the world and should have more of it mike >> leslie, somewhat familiar themes that he's hit on over the years, in terms of the risk of perhaps a higher bond yield interest rate environment in general, but also potentially the less regulated sectors of finance. i was interesting in what he had to say about the private capital, private credit markets and what that could mean about

back in march, as silicon valley bank collapse, deposit holders lined up trying to withdraw their moneynk went broke. now one former employee and longtime shareholder is suing the bank's former executives, alleging among other things, breach of fiduciary duty and negligent misrepresentation. >> they were not being truthful, they were not accurately reflecting the risks that were taking place behind closed doors. >> the suit claims the shareholder had plans to sell her stock but was convinced by statements made by svb executives, to hold. we reached out to svb for a reaction but have not heard back. business professor caroline chen said the case comes down to what the executives knew and when they knew it. >> the timing, certainly implicates the officers and perhaps knowing something that they should have disclosed to the shareholders because they were selling, but maybe not everybody else was selling. >> because of fdic intervention, svb deposit holders got their money, shareholders who kept their stock, did not. >> we are seeking restitution for our clients, to make her whole. >> accor

month, we bail with the fed printed $300 billion unanticipated to pay for the bailout of the silicon valley bank, so we have a lot of money when we needed for the bankers or when we need it for the war machine, but we don't have it when we need it for regular americans. now, mitch mcconnell, mitch mcconnell was asked about $130 billion. if you kept it here, we won't have to cut one dollar from medicare or food stamps. and he said, don't worry because it's not really going to ukraine. it's really all just going to us military contractors, raytheon , general dynamics, boeing , lockheed and the other ones, well, who owns those companies, 100% of them. black rock, vanguard, and state street, and if you look at the generals who are on tv, telling us the narrative for the ukraine war, which is complete baloney. if you actually look at where they work, the retired generals who are now working for those companies. so this is another way they strip mine the country. i'm gonna ask dennis kucinich to come up here and make one little other point. [applause] he's like my van, he's like my vanna white. so i'm

and the silicon valley bank shareholders suing the bank group to recover stocked was held in reliancetive statements. santa rosa city council will consider amending an ordinance against camping in public spaces that will bring their policies in line with federal law as federal law determined that municipality cannot bar unsheltered people occupying a public space. no other options are available to them. on a grueling closing its stores, its tap room and its brewery in san francisco's dogpatch neighborhood because a policing issue they will close on october 31st. one and a quarter billion dollars up for grabs tonight in the mega millions lottery. the jackpot has been rolling since it was last one back on april 18th. wow. one-time cash payout for tonight's drawing. well, not the winner. more than 625 million dollars after federal taxes. oh, boy, the prize money is a little less. if you don't live in one of the 8 states without a lottery decks. this is the 4th largest mega millions in jackpot history. happening today, all national parks will be free. this in honor of the passage of the g

already since silicon valley bank failed the entire banking system in more than five months has onlydollars in new loans. over a typical fire month in history, 150 billion. growing economy is a growing boy. banks we need to give us credit. the fed is making it so banks can't do that. as you say the commercial real estate business we need to have access to credit to roll over loans already there. we are playing with fire, my friend. charles: political observation i will fold in another question i was bringing up to you. this is on treasury's website. it tells you how much the u.s. government spent this year. they proudly say $5.3 trillion, that is what they spent this year. there is the rationale, they say according to the constitution's preamble the purpose of the federal government is to establish justice, insure domestic tranquilty, provide for the common defense, promote the general welfare and secure the blessings of liberty to ourselves and our prosperity. these goals are achieved through government spending. sounds like to me the constitution is saying run amok with deficits, r

reason why this is taking so long to play out is because the fed decided they had to bail out silicon valley bankf letting it fail and so on one hand the fed is tightening. on the other hand they have special programs for banks to create liquidity. that's ballooned to a trillion and-a-half dollars. so every b bit of quantitative tightening they've done has been offset by emergency programs so you're delaying the inevitable and i think making the eventual problem worse so these tightening -- you need tightening and lending standards, need to take liquidity out of the economy, otherwise inflation will never get back to 2%. maria: well, mark, liquidity is certainly coming out of china. china's evergra evergrande resu. the stock fell better than 80% at the open today. i was surprised this did not impact the shanghai composite and become a more negative story for the overall shanghai chinese market. the overall average ended higher but evergrande lost 87% of its value, mark. give us the impact. >> obviously, investors are turning and looking in the opposite direction because from my standpoint, this i

for its worst -- i thought it was an amazon series -- for its worst day since the collapse of silicon valley bankat's next, right here on "the exchange." stay with us with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. >>> shares of jack henry down 7% today, making it the worst performer in the s&p 500 that's despite reporting a beat on the top and bottom line, but guidance for next year coming in below estimates. the company provides payment processing services for the financial industry, mostly small and mid-sized banks. for more now, we're joined by the ceo. thank you for coming on today. i appreciate it. >> happy to be with you, tyler >> good. you can't find fault with a report where the earnings per share whipped the estimates by 15 cents, revenue was way up, compared to estimates and last year it looks like the nitpickers are picking a nit over your guidance >> i think that's a good characterizati

you saw that, of course, with silicon valley bank. w much capital you could have in order to fulfill some sort of bank run nothing has changed in terms of the technicalities that caused the silicon valley bank run. they had definitely idiosyncratic issues containing to customer base, concentration levels uninsured deposits those are very specific situations, but the sheer amount of deposits that fled, nothing has really changed in terms of the picture that would keep deposits in house anywhere else. >> true. >> yeah. leslie, thank you very much. good to be with you. thank you. >>> bank downgrades adding to worries on wall street the dow falling as much as 466 points at one point during the day. while off those lows now, the volatility is here the highest level since may. for more on the markets, let's bring in jeremy brian, senior portfolio manager and mike santoli in the discussion as well jeremy, let me begin with you. how important is this bank downgrade in the overall market picture? is it a one day story? obviously it wiped out al

portfolios got crushed leading to i ahandful of regional banks to go under, the most important being silicon valley bankthe yield curve and a miserable set of clients who took their money, ran and announced it all on twitter. that caused an old school bank run. first republic also had a run but of a different sort. it tried to raise capital and failed which led to i atakeover by jpmorgan in a deal that was busted by the authorities because it was the only way to stop the bank from going under final nail in the coffin was when toronto dominion failed to acquire first horizon. it got scrapped in early may t.d. hit some regulatory snafus itself we knew merge yernz wouldn't be able to save the group anymore since then a regulatory clampdown on growth and insiftence on higher capital requirements has made the bank stocks much harder to own. just actually almost impossible. second is retail laid low by shrink, which is retail speak for shoplifting there's so much stealing going on mostly because it's so easy for professional criminals to unload this stuff online, just sell it to a dozen online marketplaces th

the silicon valley bank is not over. mples of these banks not being able to increase their margins. in fact their margins are decreasing. their spreads are decreasing because they are paying more to keep the deposits in. that is another area to avoid. charles: all right. thank you so much, eva. always appreciate it. thanks for the guidance. folks, we'll be right back. known as a loving parent. known for lessons that matter. known for lessons that matter. known for being a free spirit. no one wants to be known for cancer, but a treatment can be. keytruda is known to treat cancer, fda-approved for 16 types of cancer. one of those cancers is advanced nonsquamous, non-small cell lung cancer, where keytruda is approved to be used with certain chemotherapies as your first treatment if you do not have an abnormal "egfr" or "alk" gene. keytruda can cause your immune system to attack healthy parts of your body during or after treatment. this may be severe and lead to death. see your doctor right away if you have cough, shortness o

the regulations we had in place which were not being implemented or at least enforced with silicon valley bankstep back and take a look so we are making everything that much harder for businesses which were starting to pull out of the sort of malaise of last year. jon: what's challenging at a time like this as well, especially when you have these new themes and technology which fuel a handful of stocks in a big way this year, people look at those run ups and they wonder whether those names start to hit any speed bumps. even in your etf, you are focusing on a long-term that might play into technology because of some of the realities with the economy including the tight labor market. >> exactly, if you go back and look, historically when we've had tight labor markets, spending on technology has risen dramatically as a percentage of gdp. that has worked its way through two stocks. our theme in thetglr is companies that are embracing the digital red -- revolution, someone like pepsi who says we are a technology that happens to sell snacks and beverages and then the suppliers of those solutions. th

of america sharply people even did not come, but started withdrawing money online from the silicon valley bankply could not withstand such an influx. even the best bank, if half of its customers come to it at the same time and want to take their money from the bank somewhere, it will not will endure. we must understand that this is not the problem of the bank or the banking system itself, but crises are too big to cope with, and such a phenomenon is called a bank run. as far as i know, when people actually run. withdraw their funds, sometimes this happened in ukraine, and then the state comes to the rescue. it can act in different ways. it can either lend money to the same bank so that it can pay these funds, or it can temporarily introduce a moratorium we know that during the orange revolution there was a short-term moratorium on the payment of deposits, or he or he can declare the bank insolvent and pay out certain sums to the bank's clients and guaranteed contributions. 000 hryvnias are paid or some other amount is not a time of martial law, the state guarantees all 100% of deposits regardl

come in response to the regional banking crisis earlier this year that led to the failure of silicon valley bankfirst bank, and first republic. >>> the founder of hedge fund sculptor capital is taking issue. for claimed culptor's rationale is, quote, misleading and incomplete and is demanding the firm release records to asufficient in an investigation. the ceo has been at odds in recent months, most recently at learnen's pay package and sculptor's deals that favors sculptor over shareholders. >>> and hollywood studios has released details of a new proposal. the writers guild of america will get a compounded 13% pay increase over the three-year contract and ai-generated contract will not be considered literary material. no comment from the wga, which represents the nearly 11,500 film and television writers who walked off the job on may 2nd, frank. >> certainly a developing story. looking at shares of walt disney and netflix up. >>> turning now to big tech, shares of nvidia trading at all-time highs as the company prepares to release its latest quarterly report. options indicate the stock will mov

that is why we have had issues like silicon valley bank going under, as well as others.on't even know where you're coming up with this idea that this is somehow about the possibility of curtailing social spending as the problem. the problem is the u.s. is less competitive. if you look at inflation, in terms of wages and where it is going, you will know that services within the u.s., hospital, education, have soared, literally gone up, 10, 12 times, whereas actual goods coming from the rest of the world have remained fairly steady. in some cases, have gone down. the inflation that the u.s. is facing, is of its own making. it's a highly service economy, when those wages go up, it's not like putting the interest rates higher by the fed is going to make people feel less sick or like they don't need an education. >> i will come back. you are shaking your head through all of that. >> yes, absolutely. that's -- inflation is a global problem that resulted in the supply problems caused by covid in the war between russia and ukraine. we see that before covid, the u.s., for 10 year

how long can it be before we have our own silicon valley bank style disasters ? style disasters? talking of disasters, stop the boats. yes, this has been the big stop the boats week for the british government. well today it turned into a total carry on up the channel farce. all of that in a couple of minutes radio. we've been bombarded all week. >> yes . we're going to send >> yes. we're going to send people to the essential island, etcetera. we're going to stop the boats . it's one of rishi's the boats. it's one of rishi's really big , the boats. it's one of rishi's really big, big pledges. well, border force today , frankly, border force today, frankly, from first light and before turned into border farce . i joke turned into border farce. i joke not mark white do i? >> well, certainly it seems to have been pretty chaotic in the channel for a large part of today. channel for a large part of today . it looks as though border today. it looks as though border force were actually overwhelmed by by what came across and still just within the last few minutes, i can c

how long can it be before we have our own silicon valley bank style disasters ? style disasters? talking of disasters, stop the boats. yes, this has been the big stop the boats week for the british government. well today it turned into a total carry on up the channel farce. all of that in a couple of minutes radio. we've been bombarded all week. >> yes . we're going to send >> yes. we're going to send people to the essential island, etcetera. we're going to stop the boats . it's one of rishi's the boats. it's one of rishi's really big , the boats. it's one of rishi's really big, big pledges. well, border force today , frankly, border force today, frankly, from first light and before turned into border farce . i joke turned into border farce. i joke not mark white do i? >> well, certainly it seems to have been pretty chaotic in the channel for a large part of today. channel for a large part of today . it looks as though border today. it looks as though border force were actually overwhelmed by by what came across and still just within the last few minutes, i can c

. >> as you know, we had a big financial turmoil when silicon valley bank went down. a couple others went down. that allowed the feds to take a close look at things. the fed has declared the banking system overall to be stable. they're the countries looking at these closely. the regional banks are regulated differently. some of the customers are understanding that not all banks are created equal. people are looking for more security. that's bad news for the smaller banks. >> inflation in the u.s. is smalling. the job market has been strong. how do you explain the economic disconnect? >> that the economy is delivering good news. sometimes good things happen. i've been here since 2021, 2022. the terrible pandemic and awful recession, i'm thrilled that good things are happening. >> the american people, when they're being told, think think it's the worst it's ever been. somehow, that message isn't landing. >> well, they don't think it's the worst that it's ever been. there is a disconnect. that people aren't as happen pz as you expect. if you ask people, how is the america

initially, they had money in silicon valley bank and that bank failed and they had to move some moneynkages here to the u.s. financial system will be interesting. the partners that they have. i think of circle because of the way coinbase for example uses circle and usdc to manage their kind of cash holdings as almost a proxy, given that it's backed so much by very stable liquid u.s. dollars in treasuries. the expansion of how paypal works with the existing crypto ecosystem in that way, how much can you use the paypal stablecoin given that it's backed by treasuries and cash? when more companies like coinbase feel comfort in doing that, will they work with paypal in the future? ed: bring up that shark again. look at the market for stablecoin. it is clearly dominated by one name, break down the market for us. tether is a big part of the stablecoin market and i think you have to look at this because 21% is usdc and how much are people using stablecoin inside and outside the united states and paypal is still a u.s. domiciled company so there is a rationale for them to work with paxos. pack

. >> you know, um, so i have been -- downgraded banks after silicon valley bank merger, banks have an securities, those securitiesdeeply underwater largely context of the way the fed conducted easing in 20, and 21 forced banks had no other alternative but to put money to work in treasurys, mortgage-backed securities, then when fed n tightened i urged them to be moretive with balance she's less aggressive with rate hikes they didn't do that. that caused a deep inversion essentially an existential threat for small banks that doesn't matter for homeowners for large corporations that can sell investment grade credit in you know, in the capital markets but matters a lot for small businesses. >> a lot of small businesses that is right those are banks are in a lending to small business small businesses are job creators i am wondering if that creates more pressure on small business as weigh await numbers july ppi is out, the expectation called for gain /10 of a percent month-over-month gain 7/10 of a percent year-over-year let's gets to lauren simonetti with numbers. >> hey maria for july wh

that's why we've had issues like silicon valley bank going under as well as others. so there's, i don't even know where you're coming up with this idea that this is somehow about the impossibility of for tailoring social spending is the problem. the problem is that the u. s. is less competitive. if you look at inflation and been in terms of wages and where it's going. you'll note that it services with in the us, whether have a hospital or education have stored literally going up 1012 times. where is actual goods coming from the rest of the world. i remain fairly steady, even in some cases even gone down. so the inflation that the u. s. is facing, is of its own making. i'd say is a highly, it's a service economy. and when those wages go up, it's not like, uh, putting the interest rates higher by the fed is going to make people feel less sick or decide they don't need an education. but really i'm going to ask you to come back and you wish like you had through all of that. yes, absolutely. i mean, that's a non secular, that's of all you has just talked about because inf

we have seen that market experience some major challenges since the collapse of silicon valley bank and the other venture lenders over this past spring. what is exciting is that they noticed interesting patterns with ppp, what did we hear from industry and both sides of the aisle? what we heard is that it was wonderful that these emergency funds were able to get out to many small businesses, but we were leaving behind the innovation economy. because of a long-standing -- regulation related to affiliation and control. if you have taken on equity funding from a private fund, you are not eligible to get funding. you have to have bootstrapped the business in order to get funding. and that is great for those businesses, what if you are not independently wealthy? what if you have to go and seek funding in the form of equity to get your business launched? because you did not have a bank account large enough to support employing people and growing that business. it seems a shame that we would not provide federal loans to them. many banks -- we need to figure out a way to make sure these compani

sally: these warnings, mid heightened scrutiny about banks -- in the aftermath of silicon valley bank'sppened, the federal reserve found shortcomings in its own processes. regulators are watching closely from this category 4 bank which includes banks like citizens, m&t, fifth third to make sure they have adequate liquidity planning to make sure they are up to snuff, to make sure they have access to things like the fed discount window, a funding mechanism to help manage liquidity. it is also that the fed and regulators do not get caught having missed trouble brewing again. sonali: there is a tighter supervision, there are more rules ahead for the system. there are demands for corrective actions. how much of a hangover is this from the banking crisis that can lead to even more of a hangover from the banking crisis? sally: while the immediate drama seems to have faded, there has been persistent concerns remaining. banks are facing what could be costly and serious measures. these warnings are in the form of matters requiring attention or matters requiring immediate attention. there has to b

banking industry, you remember, was shaken earlier this career by the collapse of silicon valley bankepublic, one after the another. joining us is chief economist, moody's analyst, mark zandi. so is this the reason that these banks have been downgraded the same reason we saw the problems with those three banks earlier this year? >> yeah, i can't comment on the ratings. it's clear the banking system is under a lot of pressure, similar to the pressure that existed in march, you know. at root, it's the federal reserve's very aggressive interest rate hikes that's raising the cost of funds, the deposit rates that banks use to fund their loan growth, and, therefore, it's undermining or weakening their profitability. there are other issues. credit quality, which has been good, starting to weaken. delinquency, defaults on credit cards and commercial real estate loans are starting to rise. loan growth is weak. you know, the economy is turning softer because of the interest rates. and the banks themselves have tightened up on their standards for making those loans. so there are a lot of things

despite what we heard the regional banks and silicon valley situation, banks are still paying significantlyer than they can earn the fed. you are seeing that flow through to net interest markets. katie: and money market mutual funds which are at another all-time high in terms of assets. amanda you midget you see it as a tailwind for private credit -- mentioned you see it as a tailwind for private credit. how big of the market get? amanda: the global market is 1.5 trillion, slightly larger than u.s. high-yield bond index and the u.s. leverage loan index. there is significant scope for growth on that market we think one because of the opportunity to expand the adjustable market we outlined. when you think about and using data from -- investor allocation to private debt, relative to more mature asset classes like private equity, there is probably scope for private debt allocation to grow. we think about investors that do asset liability matching and are looking for long-term investment , think insurance companies, pensions, and almonds. we expect a significant growth back drop. in the near ter

borrow from fed in emergency we have just come off unstable period because of signature, and silicon valley bankcollapses that we saw how would you access the banking system today. >> first of all,t did you know the average regional bank only a size goochgs,unfair to talk regional banks they have different strategies differentable liability management strategies banks that we are associated with first dwhaert had hard time were -- most regional banks have more common equity than above a hundred billion i think a regional banking system is strong vital to economy super important we are number one learned of texas companies any bank based in texas top 10 syndicate bank for debt for the nation, for companies 5000 million and below, that is important. maria: big deal. >> a big world for regional banks for the economy livelihood of consumers in different markets. maria: small business the job creators of the country higher interest rates caught many off guard interest rates now 22-year highs after federal reserve raised rates quarter point last week what is your assessment of fed move 11 rate hikes t

true and significant banking reform on capitol hill has kind of fizzled since the failure of silicon valley bankhe banking tumble of months ago. >> i want to touch on the italy news italy obviously backtracking on the extent of the wind fall tax. but wind fall taxes are nothing new in europe. this headline, does it have any real impact on the u.s. financial system >> i think it's something that the more progressive type reformist like an elizabeth warren may look at with interest but it probably has no political chance here in washington. i just don't see us levying a european-style profit tax on our large banks in the united states i don't think there's appetite in the white house, which wants to just see the economy slow and steady and is focussed on other issues at the moment and i don't think we have sort of standard bearers in congress who have the political support to get something done. you have a republican congress, obviously, and you've got a democratic nominated senate. but i just think they have other priorities on the agenda this year so i don't think we'll see that. but it is a rem

more than 22 years banks simply can't write enough new loans fast enough to stay profitable silicon valley bank didn't hang itself in cell fed killed it insisting raising rates again downgrades just beginning. maria: look. dick bove send me a note said explanation why bank stocks are in trouble doesn't have to do with commercial real estate it has to do with capital. so he is worried about capital the banks are holding you say you don't care about banks but underlying issue is credit tightening? >> yeah who, the capital requirements fed same drivewayed ability to do business raising cost of funding more than 5% in a little bit more than a year taken banks out shot them now commanding corpse banking system to raise more at stocks prize, absolute madness. >> at this point we will wait to see fed's thinking another window when fed releases minutes from july policy meeting this afternoon 2 pm eastern minneapolis federal reserve president neel kashkari said inflation is too high fed not ready to dlaifr it is fshd raising interest rates you say fed needs to stop adam we are expecting fed to continue

he reference the volatility around silicon valley bank's collapsed. ion of traditional banking carried on into the second half of this year? based on what happened with selleck and valley bank. adam: i think the fintech market as a segment within tech definitely has been hit the most and understandably eerie i think there was new business models that people underwrote that have not panned out, so i think rightfully fintech was hit the most, but the strongest companies in the market are doing well. if you look at our own portfolio , simple or albert, director -- direct to consumer businesses, they are continuing to bring growth, profitable, and their customer acquisition costs are contracting as there is less competition in the market. ed: so question for an investor like you focused on fintech and financial services, what is your attitude toward ai and how that fits in with your existing portfolio companies? adam: first and foremost, across our portfolio, we are focused on how we take costs out of our businesses. there is huge opportunities within your

appreciation in truist getting a 6.5% dividend while you wait and the stock crushed in the silicon valley bank collapse and hasn't recovered whatsoever and it's a bit overdone and they operate in a lot of the southeast and it's a merger of sun trust and bb&t. these are good banks. they're big enough to where i can't see them going out of business. they simply survive and return to normal valuations, you'll see substantial price improvement on that. it take as couple years. there's a 6.5% dividend yield. stuart: that's what got my attention accident 6.5% dividend yield on truist. thank you, mike lee. peter doocy pressed president biden on his claim that he never talked business with his son. you've got to watch this. >> there's this testimony now where one of your son's former business associates is claiming you were on speakerphone a lot with them talking business; is that what -- >> never talked business with anyone. i know you'd have a lousy question. >> why is that a lousy question? >> because it's not true. >> thank you, mr. president. stuart: will cain joining us now and things are not lo