silicon valley bank released its annual report on the state of the u.s. wine industry, and the reportfound that premium wineries saw a slight drop in sales over the past year, and it predicts slumping demand throughout 2024. now, earlier today on the four, we spoke with rob mcmillan. he's the founder of silicon valley bank's wine division, and he says the wine industry really needs to work on attracting younger consumers as marketing, advertising and understanding what the younger consumer wants. >> you really have to provide a product that they that they want, that they desire. it's got to be, uh, presented to them in a way that they that they enjoy. now the bright spots in the report include expected increase in tasting room visits and modest growth in direct to consumer sales. >> san mateo county is inviting people to come out to the next neighborhood fix it clinic. it's a great opportunity to get a helping hand from your neighbors, from fixing everything from electronics and small appliances to getting some clothing repaired. the next clinic is coming up on saturday at the redwood

everybody concerns about a bank crisis luckily have not panned out since the march '23 collapse of silicon valley bankregional bank etf down just three quarters of a percent. but some smaller banks have felt a bigger impact of that turmoil. since we're in the thick of bank earnings, let's get a check on a couple of them we have two ceos joining us today. first off, david zalman, and jose raphael fernandez of ofg bank corps, which operates in puerto rico. dave, prosperity shows a little lower today, despite an earnings beat and taking a hit which caught a lot of banks, the fdic charges traceable back to silicon valley bank. that was a few cents off of earnings, wasn't it? >> right i think we posted earnings around $95 million if you took out the fdic assessment we have to pay to cover the silicon valley bank and signature bank, it would have been $19.9 million. so after taxes, it would have been about $111 million, i think. >> you have like 285 full-service banking operations, of which i guess 90% are in texas. the texas economy is doing good, so your bank ought to be doing great. >> the economy is doi

we're joined now live by rob mcmillan, the founder of the silicon valley bank wine division. rob, great to have you on. thank you for the time here. so we obviously see the wine industry facing some issues. how would you describe the state of the wine industry right now? >> well it's good. um uh, but we are oversupplied right this second and it really spans across all alcohol categories. so the demand is off a little bit. and now we have to figure out how to fix that. >> yeah. how you have too much supply in warehouses here. and not enough demand. how do you balance things out. >> well it's it starts with the wine industry in particular. we have to divide it into two. you have the, you know, the high production, lower price wineries . and that's where the greatest pain is felt. and the bay area in particular, the fine wine regions, uh, are doing a little bit better. but we clearly have to be, uh, we have to change what we do and be better at attracting younger consumers. >> yeah. so let's talk about that because because i know this is an ongoing challenge to try to address th

when silicon valley bank went down, we hired the whole team.age universe, there were literally hundreds of companies that i probably never heard of that have been created and are sizable and have addressing markets that are very interesting. francine: you have hired 27, right, in 2023? how many more this year? ken: i think we are going to keep going. last year was the year to do it. we are in a funny world. the best talent in the industry is not available and you want it. it is available when they are available. it is hard to remember, we started the company in the 2008, 2009 crisis. the reason we were able to grow so fast is because in that market everybody was shrinking and scared. and we felt 2023 felt like a similar moment for us. big banks were shrinking, pressure from their shareholders, capital needs. and we decided we were in a good position, we are unlevered, have great culture, and we decided to grow. we expand the firm by almost 20%. francine: but unexpectedly. you basically swoop up good talent when they get laid off? ken: it was un

charles: all right, so all eyes have been on the banking sector since the fall of silicon valley bank the big move since late october in the bank stocks really has assuaged the fears of investors. face it after a while no one has been talking about the banks but this morning regional banks are looking more vulnerable after pinnacle financial posted financial results. suddenly the key index, the the re is at key resistant point. bank loan rates remain negative so maybe banking crisis is not over? i want to bring in qio chief strategist, danielle dimartino booth. how concerned should we be about the banks? for a while it was all we could talk about and now all of sudden, it went away but they never regained their composure. these stocks never goat back anywhere near where they were, most of them, especially regionals since silicon valley bank? >> charles i think we've only seen phase one of the banking crisis that it started last year with banks having unrealized losses because they had lost, they had so many losses on their treasurys and mortgage-backed security holdings but that was j

these guys bought silicon valley bank or someone's assets, signature's assets. gional banks are getting hammered but the big banks are holding up. we have large bank analyst erika najarian. let's talk about that with the big banks for the moment. they're holding up pretty good. last time you and i spoke you seemed so-so with respect to this round of earnings. you were not seeing enthusiastic, you said let's pause, did they surprise you? >> no, it was fine. the thing is, that fantasy sort of got stopped cold today but there was a fantasy that the fed was going to cut, therefore deposit costs were going to come down and the earnings trajectory was going to reverse. we have a little bit more hawkish sentences in today's press release from the fed right? charles: right. did you anticipate that then? >> no. i mean look, if you walk into a new york city restaurant maybe but if you look at just the economic data no. that's why i think the money centers hold up better because they don't really need the fantasy of deposit costs getting cut. they have really good deposit b

>> first the malery daily the san francisco fed the one regulating silicon valley bank? that one. moving along. actually what she's talking about has been going on ever since silicon valley bank. i know that because i'm a director after bank here in dallas and we've been involved with this. there are banks that never used the discount window and they don't have to, never will have to but they don't know how because they never had to. so what dailey is talking about, this is a readiness exercise like a fire drill. far be it from me to defend the fed but this isn't really a conspiracy. this is a smart thing. charles: claudia sahm hottest economist, according to the media, she has been on my show, i like her a lot. she is suggesting the republicans stop fretting about spending and debt that the u.s. enjoys, quote, exorbitant privilege, rest of world can't wait to buy our bonds, we'll never be in that position so we don't have to worry about this. do you think there is merit about that. >> start with claudia sahm the hottest economist on wall street, she was wrong all about last year w

silicon valley bank just released its annual report on the state of the u.s. wine industry.ort found that premium wineries saw a slight drop in sales over the past year. it also predicted waning demand this year. founder of silicon valley bank's wine division said the wine industry needs to work on attracting younger consumers, marketing advertising under standing what the younger consumer wants and we have to provide a product that they that they want, that they desire. >> it's got to be, uh, presented to them in a way that they that they enjoy. >> some bright spots in the report, though, include an expected increase in tasting room visits and some modest growth in direct to consumer sales. i saw recent study that said 35% of people in their 20s say they drink alcohol, but they don't drink wine. oh wow. so what are they drinking? craft beer. spirits? tequila. that sort of thing. so the wine industry isn't just a foregone conclusion about what do we drink if tonight is special? well, i do have friends that come here that want to go to napa. >> yeah, you do have a few months.

today, silicon valley bank released its annual report on the state of the us wine industry. report found premium wineries saw a slight drop in sales over the past year , and it does predict slumping demand this year. earlier today on the four, we did speak with rob mcmillan, the founder of the silicon valley bank wine division. he says the wine industry needs to work on attracting younger consumers, marketing, advertising, understanding what the younger consumer wants. >> uh, you really have to provide a product that they that they want, that they desire. it's got to be, uh, presented to them in a way that they that they enjoy the bright spots and the report do include an expected increase in tasting room visits and modest growth in direct to consumer sales. >> still, to come tonight, congress strikes a deal to keep the federal government funded a little bit longer. >> also ahead, commercial crab fishermen try to make up for lost time their prospects for the rest of the season, and another call to action over the war between israel and hamas activists taking their message to

i'm gonna, we saw a silicon valley bank grow up in march and people began to think that that was exactly what was happening. but i think we address to make it 2 or 3 things. firstly, be the button fiscal package buttons, fiscal bruce to the economy, helped. secondly, americans were on such a fixed rate. mortgage is we say they were, you won't get you to go. there's more because of the lowest ever rates in 40 years in the careers and very few i've had to take on you because even this, right, so i taught the pay stuck with those fixes that really helped. and that's certainly all those types of payments. and that cash support in 20202021. just last longer than that. i think most people expected shirley was less than has been can be drawn for 2024 from. i think it's fairly safe to say the surprise economic development of 2023. and i like the way you frame. it's just now i the gentleman mention about fiscal stimulus in the united states, and i think that is the less than that can be trans transpired to the chinese economy in 2024 as well. and poll fiscal policy stimulus has been put in place

money to pay back the fdic, the funds that was used to cover uninsured depositors from the if silicon valley bankure bank, all of those failures back in march. that was one of the reasons why bofa's stock is down. they also said going back to net interest income, it fell for them by 5% in the quarter. i think that's part of the reason this stock is down. finally, whales fargo also lowe. net income interest for this year could be up to 9% lore than a year ago. stuart: okay, kenny -- [laughter] the floor is yours. taken all together, this sounds like kind of a mixed picture. >> it's definitely a mixed picture. if ppi was actually a positive, but to your point, it doesn't include housing. so we'll see what happens next month. but, you know, the bank reports i'm not necessary lu surprised at all, right? in terms of what they're reporting. they're down year-over-year, but they're beating the estimates. the bar be's been lowered. i think overall it's okay. what i'm curious about, we should talk about, is what they've allocated for the -- [inaudible] has that gone up. if it does, that suggests what they

charges related to special assessments from the fdic and other areas following the collapse of silicon valley bank signature bank. my next guest still sees opportunities in financials this year. joining us now is a senior research analyst at oppenheimier. chris, good to have you with us. why of the four banks that reported today, why is citi the only one that's higher and it is the only one that reported loss? the others all had profits. explain. >> well, the citi loss was driven primarily by some of those special items that you highlighted, the fdic charge, and then they also had some kind of one-off charges on russia and argentina that they disclosed earlier in the day. you know, overall i would say the core fundamentals for the -- for all the banks that reported today, for the fourth quarter were pretty close to what we were expecting certainly. so i don't think there were any real fundamental surprises. >> any disappointments here that would explain why these four banks, with the exception of citi, are all trading lower today? not by a ton, but a little. >> yeah. i guess i would say there was

hadar was one of the losers in march when silicon valley bank collapsed. hich was its worst monthly laws. that situation has forced it to retool its portfolio, reversing its short bets. hadar expects global central banks will reverse interest rates. katie: dorsal -- who are some of the other big winners we have heard from? sally: macro traders like hadar seek to profit by analyzing macro data, and last year they had to wrestle with the pace and extent of interest rate hikes and trying to time the policy pivot. but they did not alter badly. discovery was up about 48% last year on sort of emerging market bonds and stocks. alpha dine was up. fortunately bridgewater had a slightly worse year and was down. katie: alpha, baby. sally: and was up, likely on stocks and bonds. guy: looking ahead to the year people expect, rate cuts coming through, we don't know when, i have been hearing big ranges in terms of habit 10-year my chain. what does the setup look like for these funds? sally: with the anticipated rate cuts around the world, this creates volatility in the eq

swath in general, you're seeing the gut punch being assessed by the fdic they're bailing out silicon valley bank, $16.1 billion so the theme today of all these banks being in the red is due to the fact they have to pony up. you see goldman push up about $529 million going into that insurance fund that got depleted from signature bank as well as svb. >> morgan stanley moving the other way after earnings revenues beat expectations, but that fdic payout cutting into earnings under the new ceo >> yeah. i like morgan stanley here if you look technically, it potentially offers some support, but they paid $286 million into that insurance depletion so you're seeing all these big banks really get a haircut today, or a two-by-four to the back of the legs there's an lunlt as you see the wealth management side of morgan grow, and provide revenue, i think it's another name i want to own >> the third buy on your list is jpmorgan, the sort of grand daddy of american banks. >> it is, ty market cap at nearly $500 billion. this is an company 40 portfolio name, an essential bank to the american way of life we go b

but it was maybe just a little over a year ago we saw the silicon valley bank, regional bank issues gettingttention. is it perhaps an opportunity now to see the smaller mid-sized bank trade, and not focus on bank of america, because there has been so much attention towards those, that there might be a catch-up trade elsewhere? >> i do agree with that. i think those really got hammered hard last year. for valid concern. this time last year, there was a lot of concern on what would happen with those smaller admit sized banks, but a lot of that has not come to fruition. i think you will probably see a catch-up trade in some of those mid and regional banks. >> how should people think about two things that are sort of extraneous variables in the market? one is the presidential election, and the other is tension around the globe, whether it's taiwan, the middle east, whether it's ukraine. >> these are always going to affect certain extent. the question -- the elections i get questions on every day. there can often be volatility leading up to an election, but it's typically, election years typical

last year silicon valley bank imploded and you had to have first republic bought by jp morgan as a rescueletely belly up and that was because they had too many longer term treasuries on their books that lost value as rates continue to rise. this can happen and, okay, that was two banks but what do you foresee and the worst case scenario and what can a individual do right now to perhaps protect themselves, you know, short of thankfully and the fdic being there. >> right. well, it does. it exposes the banking system and the problem is much more profound and in terms of safety being deposited and people should take comfort in the fact that the banking industry and entire capital of the banking industry going behind the deposit and maybe the banks are in better shape to protect the process of the federal government at this point. but there are a lot of bad stuff with the fdic, it's got a perfect record and i don't even with this fiscal instability and the federal government level, i don't think people should worry about insured bank deposits but the government and how it'll lead to more taxes

they had a tough road to get here with money tied up in the silicon valley bank debacle and they haveeen able to hold their model into this ipo. the stablecoin world is quickly changing with regulation around it and at the same time, is there a market for crypto related stablecoin stocks? it is a different flavor of crypto asset at a time when the ipo market is supposedly opening up. it'll be an interesting year. ed: katie, the news of the approval roque just before i went on stage at ces and on stage i said this is the breaking news and there was a small ripple of applause, and i emphasize small. after that, the conversation i had with so many people said how many got approved? do we need 11 of these things? >> know, that is the answer i've gotten pretty much from everyone, issuers included, not specifically on the record but the thinking is this is a very crowded field and the question becomes how do you differentiate yourself if everyone is going at once and we all hold the same thing? the answer has been to cut fees and then cut fees again. these fees are extremely low. you had bi

united states dollar by the endless money printing is why bitcoin is rallying, first it was silicon valley bankey would bail out every bank, now we have etf approval, opening the flood gaetz of trillions of dollars of assets that flood in. they're linked in my opinion. it's great to bring it up. maria: great point. we appreciate it. thank you so much, mario, good to see. mark and mike, you're sticking with us all morning long. we are grateful. stay with us. we'll be right back. >>> he hits his mark —center stage—and is crushed by a baby grand piano. you're replacing me? customize and save with liberty bibberty. he doesn't even have a mustache. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free get over here kids. time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the intern

hide the fact that they did not see the risk that almost everybody else saw in the spring from silicon valley bank signature and so on, and they're trying to blame that issue on not having enough capital. when in fact, it was a mistake by the regulators, a huge mistake that they didn't do their job right. >> i've heard other people say that. i've heard exactly the same critique from a few others as well, who have been banking executives for a long time, and they are a little frustrated that's what is going on. i don't mean to misspeak, mike mayo said he thought the shares could double, not triple, but it's a huge increase in this environment. dick, just to step back for a second, is this the outcome that you think is good for the country? maybe it is, maybe to have five or six or whatever the number is mega banks that nobody has to question the security of their money, and that's the whole game. but whatever people intended 15 years ago, here we are. >> well, you do need large banks. large banks are international this their business, or many of them are, as their customers are. so you can't provid

banks about how they could replenish the fdic's fund that got deep linage and drain because of silicon valley bankking for for all of the numbers, wells fargo as well missed on earnings-per-share, lee munson said this is good to be a basket case to report maybe that's what were looking at, they missed on earnings-per-share and came in at 86 cents, the she was a for a dollar 17. they did beat nicely on revenue, 24.8 billion the street was looking for 20.3. as far as wells fargo, pretty good number there. as far as the books that wells fargo the talking about the capital position being strong in there saying increasing market share and growth, it's a pretty decent number pretty interesting number for wells fargo, net charge of one point to 6 billion, return on asset 72.7% a little bit here as well but again, let's pull up stock of j.p. morgan, this is the dow component, here comes j.p. morgan this is the big one, 38.6 no 38.6 billion revenue on j.p. morgan, the street was looking for 39.70 billion they came in at 38.6 billion on j.p. morgan that's a revenue list that's what i is earnings-per-share i

maria: a lot of questions after the silicon valley bank failure. further fallout? are we talking about a tight lending environment. >> the banks are very sound. when first republic happened, we told you all i think it was the last domino, provided that rates don't go up much higher which they haven't and we don't have a major recession if we haven't. if rates go up, a major recession, some banks will be in stress. they didn't fix the fbb problem which they should have focused on. the lending standards will tighten. that's all normal. it's wishful thinking a that the economy will get stronger. it may get weaker. i would think how to grow the economy right now. and i think it's important for the future of this society that we grow, have a healthy economy. maria: what about your own investment cycle? your technology budget is half of nasa's total budget. obviously this is a priority for you, $15 billion and you were for a long time competing with centuries old institutions but now you're competing with apple and google and amazon. is that right? >> ye

deadline for public comments on the fed's proposed changes to bank regulations in the wake of that silicon valley bank collapse last spring. the proposal would raise capital requirements for banks with at least $100 billion in assets but rebecca, you see cause for concern if those changes take effect, because maybe or not, it's not just about the massive banks out there. >> not at all. what these regulations do is they get a much bigger swath of banks that are going to have to increase the capital they hold, and so, the risk is that you get, as michelle bowman, governor bowman of the fed put it, a possible cliff effect. you get banks that are just under this $100 billion in as sets mark that have to shrink their business, that's not good for the small businesses borrowing, or there's going to be mergers they are going to get bigger so they can get economies of scale that helps spread out the compliance costs, regulatory costs they're encouraging. so, the regulatory environment for banks right now is difficult. it's particularly difficult for the regional and smaller and community banks, because they j

silicon valley bank's wine report came out this week with the same warning as before, people are just less interested in wine. younger people a lot less interested in alcohol. a headline from last year, the biggest threat to the wine industry, irrelevance with young people. >> younger consumers are looking at health messages and they're more inclined to just skip alcohol altogether and, you know, you go to the dry january, sober september, so those kind of things start to have an impact on total alcohol consumption as well. >> rob mcmillan says who people do drink, they tend to drink spirits, vodkas and things. because the vodka industry has figured out how to make high-end -- it may be the same stuff, but high-end label stuff. >> the creativity in labels overall is -- >> incredible. >> i'm always shocked, the whole point of vodka is that it doesn't taste like anything. >> it's just pure alcohol. "the new york times" did a taste test and they determined the best vodka in the world is kirkland. >> we can afford that one. >> yes. >> thank you, scott. >> it's not time for that martini ju

you had the silicon valley bank saga last year. let's not forget about that.h in the numbers. overall it looks like the health of that company is doing fairly well. on the other side of the spectrum, you have citibank who unfortunately have put forth a restructuring for the entity which has for a long time been this big conglomerate that has struggled to put along. perhaps putting a knife to the entity. 20,000 jobs are expected to be cut out of city citibank. that's one of the four banks whose share price went higher. it may be telling they're on the right track. >> arabile, we've talked about the rough weather plaguing the united states. arptss are experiencing thousands of delays and cancellations for the fourth consecutive day. give us a quick sense how airlines are dealing with these major travel disruptions. >> yeah. this is not just about weather. let's not forget you still have the united airlines and alaska airlines having those 100 737 max-9 airplanes still grounded. it's hurting quite stick nif cantlay. about 3,000 flights being tapered back as well.

>> there were specific things that happen in silicon valley banks that ould have regulations and the government money, that is a mutual company, and i would love to take it off your hands and manage it ourselves but >> with all due respect, i don't think it really matters who is paying for it, but the fact that anyone has to pay because of these traces -- actually, mr. din >> quickly. >> outstanding. mr. dimon, you claim that the capital requirement that will increase costs chase done $5.7 billion in shared buybacks and $9 billion in dividends so far this year. so, wouldn't it be easier to just kind of hold onto a lot of that money and lend itougive it away to the shareholders? buying back their own stock. >> it is the shareholders money, d ■/the proper landing we can and should do. it will■vre to bank of doing business, i don't think we should be asking people to do stuff that is on probable for their shareholders. i'm happy to talk about that in more detail. >> my committee will take under advisement mr. dimon's proposal to take ■e >> yeah, i wish there was more time, i would love t

them got a little whacked when it comes to having to reinvest into the fdic fund, and that was silicon valley bankyear. you know, going through the reports, it was a challenge. ed, it was good to see you. thank you for being here. >> thank you. cheryl: ed car depp knit. let's bring in chief investment officer cameron dawson. cameron, let's go ahead and talk about, fist, i want to get your thoughts on the ppi data at the fed, but also these quarterly numbers. this was a rough start to the fourth quarter earnings reporting season, for sure. >> yeah. so let's start with the fed if and the numbers. i think what's interesting is even though cpi came in a bit hotter than expected, you're actually seeing more cuts priced in to the bond market over the course of 2024. so the bond market seems very confident that the fed is going to not just tweak policy lore, but aggressively ease. we agree with ed yardeni to say that probably that's a bit aggressive because we're not expecting a recession in 2024, at least in the first half, which just means that the economy is likely not going to give the fed reason to

charles: and again to your point it's, you know, this qt was letting it roll off but we have silicon valley bank these new facilities they're all maxed out. then why, what do you think motivated jay powell to take this somewhat victory lap? wall street loves it. bond market loves it but why did he do it now? i just don't know why he had to do it right now? >> i think two reasons, one we talked about the banks are literally having problems still right now because of what they did hiking rates so far so fast and all of these treasury bonds devaluing on the fed's book, on banks books, causing some crises we saw last year with more to come. i still have a very negative out look on a lot of regional and even some larger national banks. so we have problems there. they had to find a reason to pivot more to rate cuts, to open themselves to qe and growing this facility. it is supposed to stop march. it won't. i do not believe it will. also we got an election. powell has to put his foot forward and say look inflation's fine. that to your point, prices are still going up but not so much. we have been weak

we ended up having a lot of concerns around the silicon bank -- silicon valley bank. because the fhlb had provided billions of dollars in the weeks that led up to their buyouts. whenever that happens, we will get questions about what the priority was. if that is in fact the mission and they are backed by the federal government, how can they justify giving billions of dollars to these two banks? >> thank you for the question. some banks are certainly part of the greater financial ecosystem. as part of the report that we issued, the discussion about all this and the failure of the three banks or the two banks over the weekend, what i would say is the primary regulator of permissible activities -- we try make sure that they are not the lender of last resort. and to the extent that if they want to advance, we certainly work with them, we assess their credit and we look at their activities. we'll get reports of examination. we have to rely on our own credit assessment. based on the requirement of law, they are required to provide advancement and advancements need to be use

we saw it in silicon valley bank when people were very excited when it benefited them, it changed when it was in the free market arguments tend to be selectively employed. you haven't actually gone anywhere to build anything. it's gone towards privatizing the gain. another example, you mentioned the deficit, republicans love to point out the urgency of the deficit when they are out of power. when in power they want to do deficit enhanced tax cuts. they say don't worry about that it will reduce the deficit. that hasn't actually happened ever. not under reagan, bush, trump, a lot of this stuff doesn't pass any more. acknowledging that doesn't menu hate markets. you have to take it from reality. the last thing i mentioned is the view or markets this is a very old view not invented in the last five years. i don't think it's susceptible. i wouldn't argue for or against it. it's important to ask why is this more prominent in resent years i will pause two answers. one the behavior and rhetoric of big business. it doesn't seem very friendly for traditional values. i us spect one reason we have

silicon valley bank has released its annual report on the state of the us wine industry, and the report a slight drop in sales over the past year. it also predicts slumping demand this year. now, the founder of the silicon valley bank wine division says the wine industry needs to work on attracting younger consumers as marketing, advertising and understanding what the younger consumer wants. >> you really have to provide a product that they that they want, that they desire, and it's got to be, uh, presented to them in a way that they that they enjoy. >> now, the bright spot in the report includes an expected increase in tasting room visits and modest growth in direct to consumer sales. google is launching a new search feature, the tech giant introducing the circle to search to help users find what they are looking for a bit easier. some android smartphones will be able to circle, tap, or highlight an item on their screen. then a page will pop up showing them more information about that particular item. >> our time is now. 647 two men in new york are now suing madonna after they went to

it was for the bank failures we saw earlier in 2023. silicon valleyive of the future at all and, unfortunately, the industry -- the larger banks in particular if -- had to pay the tab for those tail -- failures. what we see going forward is some real opportunities for bank investors, in our view. finish. ashley: you know, it's interesting, you would have thought in a higher rate interest environment the numbers would be better with, but i guess that's only part of the story, isn't it? there are a lot of other factors at play. >> there are. and some of the numbers, in the case of jpmorgan, they had record earnings, record revenues. now, granted, that was supported by their acquisition of first republic from the fdic. but you're right, you know, rising rates in the initial phases of a tightening striking -- cycle are very positive for banks. but at the end of a tightennenning cycle, it works in the opposite direction and starts to weigh on their net interest margin and net interest with revenue. and that's what we've seen in the second half of 2023. but

financial services, has been a key term for a long time, but i would argue, after ftx, after silicon valley banknology side, which has much more to do with which products do you offer, how do you research those products. so we focused a lot on building a multi-asset platform, where you can buy bonds and options, crypto equities all in one place. >> we're going to run out of time. 30 seconds, do you have a take on bitcoin? >> you know, we've seen crypto trading search, in q4, with all of these etf news. we're still seeing in the retail community after those etfs came online that there's a lot more trading happening in the sort of traditional crypto. >> if you call it that. it's kind of weird to call it that. the etfs are among the more bought etfs, but there are still multiples higher happening. >> you've got to come on back so we can talk more about it. >> still to come, rundown of this morning's big earnings, lots of them. and we'll have former s.e.c. chair, jay clayton on esg and exxon's move to stew two activist investors over trying orce the company to cut emissions. "squawk box" coming righ

in a span last march silicon valley bank failed and the of the ic said the depositors don't get theirhey did not change their mind until sunday. when credit suisse got in trouble, a global -- the central bank organized a merger with their 100 your competitor across the street and no depositor was at risk. if you want to see the difference in the implicit guarantee, look at those eight days and how the two different banks were treated. the fact of the matter is, small business in america will be very unhappy the fbi see and congress -- fdic congress have not created a modernization of the fdic insurance fund were small businesses feel comfortable leaving deposits in banks. meanwhile, the proposals we have seen are all about capital at all about issues that had nothing to do with the three bank failures. we are not addressing the key issue, which is deposit insurance modernization. jonathan: let's talk about the consequences. we are focusing on the wrong thing. what are the consequences if we go forward with this? tom: they will be another crisis. one of the things i wish i did not have

shift in deposits what are you tell us about banking overall the tight credit environment has been an issue, obviously, early last year with failure of silicon valley people worried about health. >> banking great capital liquidity, well regulated you didn't see every across the industry it didn't unique things the rest weathered the stormy, we figured out right balance between cal liquidity what you can do in a bank what you can't do in a bank getting it straight part of the reason not -- to stop on new capitals we will figured it out pretty well well lets it working through the system. >> the proposals from bozell in a moment mortgage business until the face of 11 rate hikes how is consumer doing right now. >> if you separate, the consumer on spending, it last year here talking about 10% growth rates money out of accounts in the economy from consumers that is down to have to 5% growth rate more conflict of interest with 2% inflation 2% growth economy what it was 16, 17, 18, 10% strong causing inflation so consumer is spending good level, come down, during course of the year mid '23 on good shape, credit quality consumer normalized people forget in

silicon valley. the alameda county community, food bank and the san francisco-marin food bank also reporting a shortage of volunteers and monetary donations. this as their budgets and the number of people they serve demick era benefits are gone. inflation is still an issue out there. cost of living very high. the food bank of contra costa and solano sets a goal of providing 3 million meals a year. >> and in 2023, it fell short of that goal by 13%. >> in concord, philippe djegal all kron. >> in the north restaurant, santa rosa is getting attention online for its kind customer service. vine burgers took to social media to track down a woman who had dropped reasonable amount of cash under a table. the restaurant explain the situation in a facebook post and said we'd love to find her in return for cash. if you nowhere, please. yeah. let us try to get in touch with her. within hours. people tag the woman. she was then able to meet up with the owner to get her money. people have since responded to the post saying they plan to eat at vine burgers to reward the restaurant for their honesty and trying to track

and hl fell over silicon valley when federal regulators shut down silken valley bank and what was the second largest bank failure in u.s. history. a lot of us got a lesson on diversifying our investments and looking for the fdic guarantee. in light march bay area radio listeners mourn the death of dj jv of wild 94.9. he was known for his making so many people left but had been open about his own mental health struggles. april began with the stabbing death of cash at founder bob lee and is accused killer currently awaiting trial. in may disgraced fairness founder elizabeth holmes reported to a texas prison camp to begin her 11 year sentence for defrauding investors that blood testing technology that never worked. summer kicked off with the bay area's first national women's soccer league team bay fc. the four u.s. olympic gold medalist founder say bay fc will be ready for play in the 2024 season which begins in march. ceo elon musk wasting no time in rebranding twitter. in july twitter became asked which elon musk essay represents the evolution of the social media platform into and ever

second harvest silicon valley, the alameda county community, food bank and the san francisco-marin foodk also reporting a shortage of volunteers and monetary donations. this as their budgets and the number of people they serve demick era benefits are gone. inflation is still an issue out there. cost of living very high. the food bank of contra costa and solano sets a goal of providing 3 million meals a year. >> and in 2023, it fell short of that goal by 13%. >> in concord, philippe djegal, all kron. 4 still ahead tonight on kron, 4 news at 6. don't feed the bears. that's the warning from state officials after some signs pop up around tahoe saying the up around tahoe saying the complete opposite. want luxury hair repair that doesn't cost $50? pantene's pro-vitamin formula repairs hair. as well as the leading luxury bonding treatment. for softness and resilience, without the price tag. if you know... you know it's pantene. sometimes jonah wrestles with falling asleep... ...so he takes zzzquil. the world's #1 sleep aid brand. and wakes up feeling like himself. get the rest to be your best

> in 2023, the food bank of contra costa and solano fell 13% short of its goal of providing 3 million meals for the year. that's about 400,000 meals. second harvest of silicon valley. the alameda county community, food bank and the san francisco marin, food bank are also reporting a shortage of volunteers and monetary donations. this is the number of people they serve grows after months-long delay crab season is now open. the california department of fish and wildlife says that commercial dungeness crab ing is open now from the oregon state line down to the sonoma mendocino county line. this after the department placed a commercial crab trap restriction because of humpback whales in the area. recreational that has been open since october young. still to come, a cropper news at 10. a new bobblehead is out. there's a catch. so doesn't even have ahead. we'll explain. plus, when we come back, we're going hear from a heartbroken artists how his heartbroken artists how his new year started off. want luxury hair repair that doesn't cost $50? pantene's pro-vitamin formula repairs hair. as well as the leading luxury bonding treatment. for softness and resilience, without t

second harvest silicon valley, the alameda county community, food bank and the san francisco-marin foodso reporting a shortage of volunteers and monetary donations. this as their budgets and the number of people they serve demick era benefits are gone. inflation is still an issue out there. cost of living very high. the food bank of contra costa and solano sets a goal of providing 3 million meals a year. >> and in 2023, it fell short of that goal by 13%. >> in concord, philippe djegal all kron. 4 >> our state including the bay area grapple with retail theft. a lawmaker at the state capitol is introduced legislation he believes will tackle the issue head on capitol correspondent eytan wallace reports. >> retail theft. it's an issue that's plagued communities, shoppers and business owners alike across the state. but now enough's enough. stockton, democratic assembly member carl philip, has introduced legislation he believes will help with the end goal in his words to fix this problem. specifically, he introduced the proposed referendum to make changes to prop 47 passed by california voter

silicon valley. the alameda county community, food bank and the san francisco-marin food bank also reporting a shortage of volunteers and monetary donations. this as their budgets and the number of people they serve demick era benefits are gone. inflation is still an issue out there. cost of living very high. the food bank of contra costa and solano sets a goal of providing 3 million meals a year. >> and in 2023, it fell short of that goal by 13%. >> in concord, philippe djegal all kron. 4 >> hollywood has lost a tv icon who defined 70 school actor david sole to play detective hutch in starsky and hutch has now passed away. so was the blonde half of that detective do all along side. paul michael glasser started starsky together. they shot to fame when the show aired in 1975. so was also a stage actor and a singer who scored a number one hit in 1976. with don't give up on us. his wife, helen says he died surrounded by his loving family. david sole was 80 years old. coming up, how the mayor of alameda is reacting after the city council did not approve her call for a cease-fire in gaza. >> also, heroic ef

on top of that, the group, the top 20 banks this quarter are paying $13.5 billion to cover the losses tied to the failures of silicon valley be messy. citi is a $2 trillion plus bank going throw restructuring and bumps along the way. >> overall, we are thinking at least if you look at the expectations from the street, that numbers will improve, we'll see some bit of improvement in the earnings bottom line for these companies. but by less than we had thought maybe a month ago. >> yeah. for the group overall, you know, the fourth quarter is impacted by the continued increase in funding costs we have seen throughout the course of 2023. typically funding costs peak after the fed stops. so we're getting closer to that point, but not yet. fourth quarter you tend to see reserves building ahead of losses that are expected for the year ahead, so you can consider that in the results. >> we have seen financial stocks in general pick up though. is that the right move? >> certainly. it is interesting if you look at bank stocks, the last two months of the year rallied like 35%. mark was up closer to 15%. despite that, 2023 was the third

time second harvest of silicon valley, the alameda county community food bank in the san francisco-marin food bank. okay. reporting a shortage of volunteers and monetary donations. this as their budgets and the number of people they serve. could use all the help that we can get. and a big thank you to people who have already given every donated dollar provides at least 2 meals. and in our of your time will go a long way. >> in concord, philippe djegal all kron, 4 news. >> people's park in berkeley now completely blocked off to the public. it's now coming one day after a number of people were arrested for protesting a construction project that should be building student housing for cal. there. can see here that they put up cargo containers and barricades blocking off the park to the public, although no protest scheduled to take place today. chp officers continue to patrol the area as a precaution. here's some video from yesterday's protests. people were out at people's park starting at midnight. they stayed there throughout the day despite calls to stop construction uc berkeley spokespers

banks. are going to silicon valley or other businesses. let us see how this plays out. you really help a focus group in south carolina. voters there, especially women voters. what did you find? >> i was in spartanburg, south carolina, on monday. it is a little more liberal bubble in a very red south carolina. we were there with a group called the south carolina women lead. it is an amazing group which trains women to run for office and do public service. south carolina -- i think this is really itching with nikki haley -- 49th in the nation for women's representation in government. the only state that is worse is mississippi. there only state in the country with on all-male supreme court. very serious issues in terms of gender inequality there. this was a fairly evenly divided between democrats, republicans and independents. their top issues -- the top two issues, concern over democracy and abortion rights. i was fascinated that democracy was so high on the list. we are seeing that reflected in some of our national polls, also. here is what was so interesting and i want

whereas big tech companies benefited in march from silicon valley, and apple does not need a loan from regional bankhat they have tremendous free cash flow generating all the income. so i think there could be a rotation and more positioning for them. tom: this is critical. you mentioned the 60/40 triumph and that is all great, except that most of our viewers and listeners, to them, apple is the portfolio. psychological, that is a bogey. is that idea just go away? philip: no because those are high-quality companies. it does not go away, i just don't think it takes the leadership this year that it did last year because the fundamental story has changed, folks being worried about high interest rates, and free cash flow, you have financials, and that was a great cyclical story that was on their own this year. jonathan: you set this one up for us, the financials next jp morgan because jp morgan has done really well. the rest of the sector struggled. why is that going to change? philip: i think that was more on the fact of do we have a recession? in one of your last segments, it was a good story. in a ris

banks. you have to understand what they are holding. you know, this meltdown we saw a year ago in march with silicon valley and first republic, it was problematic in terms of are they matching their balance sheets with their treasury and loan -- >> energy has disappointed a lot of people. obviously they performed poorly, but the thought was this is a new year. this is one of the lagging sectors. it will have a good 2024. where do you come down on the? >> look energy was down 11% in 2023. if i look at the last three years, technology did 46% last year versus 50% in three years. so basically did even to where we were three years ago. energy however, was actually the big winner in the last four years. if you ignore last year, energy is up 87%. these are areas in the economy where again if we can buy on dips, and route down our portfolio, and not just have the technology, i think there are some good -- >> that is what you are doing, to buy on the dips we have seen? >> i am. anytime we get a dip in energy and technology, i am adding to financials, adding to health care, but i'm still avoiding certain sectors as well. >> okay. let's bring in keith le