silicon valley bank with responsibility inside the bank agreed his errors on the part of corporate treasurers, the fed also had some self-examination to do because the examiners and supervisors of the bank were not doing what they should have been so we might be forgiven for being skeptical of claims being on this. what has changed in the context of silicon valley bank gives you the confidence that they will be on top of this? chr. powell: i see it with my own eyes. frankly there's a risk that we would overreact to something as significant as that. it's not like we wouldn't have reacted strongly to what happened silicon valley bank and we have. so i know our supervisors are out there we are hearing back from media reports that we have been engaged with medium and small sized banks principally on this so i'm confident we are doing the right things there. and i do believe it is a manageable problem if that changes i will say so. >> thank you mr. chairman, i yield back. >> thank you for being here today. i would like to associate mayor marx with the remarks earlier with regards to the fbi see pr

once upon a time, silicon valley bank had a fantastic business going, it got its start as a normal regionalilicon valley's thanks to its footprint and its land of innovation, the bank of choice for a huge chunk of our nations startups including the founders and top executives. in the end, they were doing anything and everything for the startups and their top guys banking. even lending them money using non-publicly traded stocks as collateral. in more recent years, they made moves expanding research and investment banking, offer the same type of customers, the stuff giving silicon valley banks relationship with tech startups, you had a lot of reason their strategy would keep paying off, for many years, it was incredibly successful, their average positives grew from 20 billion in 2013 to 48 billion in 2018 and 186 billion in 2022, their stock caught fire along with the market start -- guy rocketing from 220 17 to an all- time high of 700 and -- 63 in november 2021, in 2022, svp got collapsed, stock plummeting back to below 200 by its lows in early december, that aggressive rate hike makes cli

next, how the decline of silicon valley bank created 285 million dollars in fees from the federal homeoan banking system, the largest set of fees since the great financial crisis. stick with us. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. sonali:'s. it is time now for the wall street beat. u.s. banking regulators have an unusually large penalty on silicom bank last year, 280 $5 million and peas to -- in fees. we will discuss this with sally bakewell. why was this fee so large? sally: when silicon valley bank was teetering on the brink of collapse it borrowed money from the federal home loan banking sys

one is it would not have saved silicon valley bank because they were a mess. but the reason it's important to have it is so that other banks that are threatened when people are panicking can pay off their sadepositors. >> it provides confidence to depositors and investors frankly the bank will have access to liquidity if needed. >> the second thing is we tell the banks you have to have a certain amount of liquid we have all these rules. we tell them you should feel free to use the discount window it's almost like this is probably a violation of some corporate finance principles almost like a line of credit. but then we tell them you cannot count this access and we decide how liquid youwh are. >> i think we need in the u.s. to decide we are for with the discount is it a facility that's a banks to use or is it something that should not be used? this ambiguity doctrine that dates back to the 20s has caused a lot of confusion. i think the confusion is stemming from the federal reserve act itself. in section 10d disc that governs the lending notes note no reserve ba

vinod: the risk for silicon valley bank had nothing to do with silicon valley and startups. to do with interest rate speculation, which the bank did. i want to separate irresponsible actions on their part, on the interest rate side, from what the business was. i think the business was a solid business. it mostly has continued in the same way. i do not think it has changed dramatically. alternative banks came up, but there are other banks are still the printable things for startups in the valley. i do not know if there is as much concentration, but you do not worry about that too much. caroline: what has been interesting is, perhaps, there was a moment of realization in a time of a crisis -- who could you depend on? there was so much fierce competition to get in money to the right start up. yes, that competition perhaps faded a bit as the economy turned direction, but has it brought you more business, do you think, by the fact you were able to stick your neck out early and say, "i am here, i've got your back"? vinod: that was what was most disappointing about the venture comm

it wouldn't have saved silicon valley bank because they were a mess. t's important to have it is so that other banks, that are threatened, where people are panicking, can get -- can pay off depositors. susan: yeah. it provides a source of confidence to investors that the bank will have access to liquidity if david: and the second thing is we tell banks you have to have a certain amount of liquidity, we tell them you should feel free to use the discount window, it's almost like this is probably a violation of some corporate finance principle, almost like a line of credit.■< t them you can't count this access when we decide how liquid you are. so why don't -- susan: i think we need in the u.s. to decide what we're for, for the disdown window. is it a backstop that's legitimate for sound banks to use against good collateral? or is it something that shouldn't be used? this constructive ambiguity doctrine that dates back to the think there's confusion. stemming from the federal reserve act itself. last provision in 10-b that governs discount window lendingn

alongside silicon valley bank he has a lot to say about some other stuff.n the show, we will hear from the hotspot ceo. how companies need to approach diversity. caroline, what are you looking at? caroline: we have to check on the markets. we were at record highs. no longer. we have recovered significantly. the nasdaq off .4%. the nasdaq 100, what takes us lower? broadcom not living up to expectations. nvidia turning lower. we are down 3% on nvidia. keep a close eye of volatility as we take a look at the weekend and see profit-taking. from new york and san francisco, this is "bloomberg technology." ♪ xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. caroline: bloomberg just hosted its international women's day celebration in san francisco and highlighted the philanthropic work the organization does. i had the chance to sit down with the hub spot ceo on her thoughts about how she approaches running her business, ai integration, and diverse leadership. take a listen. >> our leadership team is 50% women and our board is 60% women and

the silicon valley bank situation -- the money move so quickly in those cases. it was instantaneous. the velocity ofthose banks, i think contributed to their failures. are we looking at anything technologically that might to address some of that or mitigated? >> after silicon valley bank we got in contact with and worked with financial institutions that have high concentrations of uninsured deposits greatly improved their liquidity positions. as you know, we are also working on some liquidity rules, which will strengthen our framework of liquidity rules. that is something we have not proposed yet. >> let me ask you something off- topic. we know that russia has about $300 billion in u.s. -- we have frozen assets, russian assets of about $300 billion between u.s. and european banks. you want to comment on that? what i would like to see is us give that to ukraine, to be honest. i know that is a simplistic idea. is there any historic example that we could look to if congress has to take the necessary steps to redirect that money so they can feed their people and figh

taken and are taking many more steps to deal with the problems that revealed themselves at silicon valley bankt's around supervision -- senator warren: i'm asking about the basil three rules. chair powell: basil three rules are not directly related. they are not the thing that is directly related to silicon valley bank. they are a longer run thing. and i would just say that we put them out for comment. we got the comments. anybody's free to go read the comments. my view is that it will be appropriate to make material and broad changes to that before we finalize it. in terms of -- i didn't -- senator w to strengthen the rules? chair powell: material and broad changes. we are talking about what that will mean in the end. i did not say that we would withdraw theule. i said there is a consefpt reproposal. i said, we hadn't made a decision on that. if that turns out to be appropriate, in the view of the board of governors, that's something we would look at doing. senator warren: everything you said a year about supporting the vice chair, who is responsible for writing these rules -- chair powell: y

you girth the federal reserve report that compensation incentives contributed to silicon valley's bank failure? >> i'm sorry. >> the april federal reserve report, it said that compensation incentives contributed to the silicon valley bank's failure. do you agree vacuum >> it is the best her teary factor but it probably has something to do with it. that is no? >> that is very small. >> so, it did. you really appropriate rules on incentive compensation could have reduce the likelihood of the failure? maybe? if they did not take all -- >> i do not think so. i don't think it is a first order question for silicon valley. a lot went wrong barbara >> they actually blame you guys. they blame the oversight, even though they did not respond to your correspondences. we took our medicine. >> do you think it has something to the fact that section 956 of the dodd frank rule has not been finalized by you? >> no, i don't renew you don't make it is the reason?, you know, i don't. >> you don't think it is because you will make money off of the failure? you don't make money drove them to do what they dat

. >> one year after the silicon valley bank collapsed, they are moving on. poke with ed ludlow and carolyn hyde. clicks the net result has been minimal to be honest. people have moved on. they have other banking services. some people involved in silicon valley bank are still around, look into other firms and life goes on. the valley has adjusted. >> you noted there are other sources of banking. it brought names like victory, some sort of alternative lending action. if there was a lesson learned, it was the high concentration. you had your banking there are probably some debt there as well . it was often the first place you could get a check. is that concentration risk still there? >> the risk of silicon valley bank had to be interest rate speculation. i want to separate irresponsible actions on their part on the interest rate side. from what the business was. i think the business was a solid business. i don't think it has changed dramatically. i don't know if there is as much concentration but we don't worry about that too much. >> what has been interesting i

to start ups and main street small businesses. >> i tell you the think that was unique about silicon valley bankwe started working with them. when ripply was just getting started, just working out of my basement, we needed to get a set of very specialized banking relationships to do what we wanted to do, to move money on behalf of clients for pay roll. and at the time most banks would never work with a company like ours. >> svb was one stop shop for many start up small businesses and even their employees providing mortgages or personal loans. svb tock equity stakes in the companies and partnered with vcs. the concern that exists one year later is that the next generation of entrepreneurs are not getting funded in the new landscape. that will have greater implications down the road the so-called innovation economy. >> all right, deirdre bosa with the tech check on svb. we will see you later on. before we go today, we want to check on the shares of nov nor. the fda has approved wegovey for cardiovascular risk reduction and people with over weight or obesity and established cardiovascular disease.

taken and are taking many more steps to deal with the problems that revealed themselves with silicon valley bank around supervision, strong liquidity. >> i'm just asking about the basel three roles. chair powell: the basel three roles are not directly related to silicon valley bank. they are a longer run thing and i would just say, we put them out for comment. we put them off or, in. my view is it will be appropriate to make changes said that before we finalize it. >> material abroad changes to strengthen the rules? chair powell: i did not say we would withdraw the role there is a concept every proposal and i said we had not made a decision on that but if it turns out to be appropriate, that is something we will do. >> so everything you said about supporting the vice chair. chair powell: uni had a long call on this. i am doing exactly what i said i would do. >> you said you would support vice chair bar to get a strong rules and now he is putting out rules. chair powell: the vice chair has every right to bring proposals to the board but as i made clear in our colloquy, you're not the comptroller

affected many banks in the united states so that risk was not in any way confined just to silicon valley banks. many banks suffered similar losses. the other issue is that silicon valley bank relied very, very heavily on uninsured deposits. we saw a pace of runs that was beyond anything-- >> understood. >> but other banks also, we actually had quite a high level of uninsured deposits in the banking system. many americans may have felt that uninsured depositors, their funding was immobilized in a resolution, that the same thing could happen to them at other banks. >> understood. >> one follow-up question and if i have time i will talk about acquiring us steel but quickly if you could on this. my understanding is that there were multiple bids when sv be collapsed and multiple bids on the table for acquiring svb and its assets. at the time public reporting suggested that the difference between the jp morgan bid and the next best was $20 billion. >> i believe that-- you are talking about first republic that went to j.p. morgan chase? >> i'm talking about svb. did they go to j.p. morgan? sorry, sor

i want to take this chamber back one year ago to c silicon valley bank that sent our financial systemray. in 48 hours' time, one of the largest u.s. banks failed. impacting customers, investors, businesses, and stockholders across our nation. silicon bank's failure subsequently led to the collapse of signature and silver gate banks in rapid succession as well. making this crisis one of the mostnicazsited states history. after moments like these, it's important that congress and key agencies like the u.s. curities a exchange commission fully understand the scope and impacts to our economy. transparency and accountability are essential to install confidence in prevent another crisis from tanking our economy in the same way. in conducting the analysis, we mustot only examine and understand the impact of the broader macroeconomy, but we must also make a concerted effort to understand the effects on small businesses an community banks that drive our main streets. according to the federal reserve data, deposits at smaller community banks dropp $120 billion in the week following the collapse

in which -- and, remember, as leslie picker said, we're almost exactly a year away from the silicon valley bank issues and i think we need to go back to the time when new york community bank bought signature bank and the assets of signature bank, which the fed would have had oversight of you correct me if i'm wrong, and i'm just wondering if something was missed that maybe that deal should have been questioned a little more firmly at the time it's easy to be monday morning quarterback now, but the fed does have oversight on this issue and one i think can credibly ask the question as to whether a ball was dropped somewhere, steve >> reporter: i think that's an excellent question, scott. i've also seen the history of these things where some of the banks who step in to take over these problems end up -- and, by the way, a lot of these things are done burning the midnight oil, and sometimes they do miss things, and so banks who have stepped in to help out the fed or the government in these situations end up taking considerable losses later on it's not unusual and appeared to be not big enough to wi

we are looking at some -- this is in response to silicon valley bank.ake and how long it should be up for comment. we are not ready to do that. that's the question we are asking. senator daines: follow on question and i'm finished. will you confirm prior to the federal reserve issuing any new liquidity requ collection that would allow for meaningful analysis of all potential policy options? chair brow p chair powell: maybe. chair brown: that's very short. chair powell: i don't want to make a specific commitment like that without talking to the people who are carefully in touch with this. that is the right thought. chair brown: thank you, senator. senator fedderman from pennsylvania is recognized. he got here last. although if senator warnock sits down the next five seconds, are you ready? you're so generous with each other. >> i'm happy to have the junior colleague -- chair brown: senator fedderman is recognized. senator warnock is recognized from georgia. senator warnock: thank you, chairman. thank you very much, mr. chairman. bank spending buy backs i

problem more anticipated and shutting down the emergency program and implemented a year ago as silicon valley bank collapsed taking down other regional bank withs it. ensuringly kidty if the bank -- insursuringly quitty and gold ad bitcoin at the moment in gustable slightly all time high and it made yesterday and up about 6% at the moment to $67,000 and gold recently hit an all time high as well and we got it here. let's fix that chart for you. we do have the yellow medal up about $10 to $2,152 a troy ounce. bitcoin billionaire mike and bing capital cochair steve here to assess all the breaking news and first wall street journal top fed journal and what bizarre timing that jay powell was before the house financial services committee had no idea what was happening with new york community bank stock and what do you think he learned and what would he have done with right after he finished testimony in q2? >> new york community banks problems well known for awhile now and they replaced their chief executive last week and clearly a bank that's had some problems and problems with commercial real estate

this week marks the one-year anniversary of silicon valley's bank collapse. banks from here with the ceo of kbw. >>> shares of tesla are under some pressure this morning as china shipments dropped to their lowest levels in more than a year. the road ahead for the company. >>> and super micro one of the big stocks to watch. the company gets added to the s&p 500. what investors need to know about that name omerasfr he "squawk on the street" continues after this break. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. whoa, how did you defeat them? with a little kung fu strength and by connecting my devices to the most powerful force of all. skadoosh. hah, huh? cool right? amazing. harness the power of xfinity internet and sta

. ♪ ♪ ♪ >>> what a difference a year makes for banks let's look at this year silicon valley bank had ring down the whole financial system. every regional bank output through the meat grinder. and it took months for the situation is stabilized but now it's a totally different. world take for example the situation at your community bank is perilous. stocks to box and change often another 23%. what happens? the rest of the banks rallied furiously. that's right furiously! what's different this ime? recognize that not all banks are created equal, some banks for a lot of -- then invest it work to be crushed with the short rates very aggressively. s -- u.s. treasuries worst possible portfolio. depends on the success of their silicon valley clients, so when the ipo market for so the idea kind of problem, doing a recap work got out that investors made a noisy exit. ensuring the bank would go under. second when many excellent mutual banks got pain cog pancaked. -- an assemblage without actual intentional deposits. -- known for its white glove treatment of rich people. it is a great deal for the

the other issue is with silicon valley bank, relied very heavily on uninsured deposits and now, we saw a run that was beyond anything. but other banks also, we actually have quite a high level of uninsured deposits in the banking system and, many americans felt if depositors -- uninsured depositors were haircut or their funds were mobilized in a resolution, but the same thing could happen to them as other banks. >> understood. one follow up question to that. just quickly on this, if you could, so, my understanding is there were multiple bids when trenton collapsed. multiple bids on the table for requiring svb and its assets. at the time, the public suggested the difference between the j.p. morgan bid and the next best bid was $20 million. >> i believe, you're talking about first republic that went to j.p. morgan? >> didn't sv b go to j.p. morgan? know, first republic. you are right. my understanding is there was a $20 billion difference between the best bid and the second best bid for first republic. some of the private conversations i've had and staff has had a suggestive difference o

is sitting on 2.2 trillion dollars of unrealize losses due to very problems that took down silicon valley bank last year and our vexing community bank and broader markets not spooked by this right now. but that 2.2 trillion dollar number has much to do with commercial real estate loan portfolios set to mature soon? right? how soon could this problem get considering loans will have to be rewritten at much higher rates? >> thanks for having me on. let me clarify this, so the 2, 3 trillion loss is just the decline in values, due to higher interest rates. and the top of that you have about 60 to about 80 -- to commercial real estate, that calculation about 14% of all commercial real estate loans are underwater many of the current volume less than the balance and 44% of all office loans what it means there are actually several hundred in the u.s. mainly smaller mid-side banks that are similarly within the community bank and s&p in other words -- their at risk of solvency and assets is less than the face value of the debt which is mainly deposits. just to state one thing it doesn't mean it will fail

in people's minds as we come up only ten days from now to the anniversary of the crisis at silicon valley bank>> i want people to read charlie scharf, the ceo of wells fargo, on that last quarter, describing actual commercial real estate issues and how small they are in the banking system, because of how widespread they are. by the way, tadavid, remember, this is not office. this is actual apartments, and we have a shortage of apartments, so maybe there's just a loan to value issue here. >> it is. to your point, it's not systemic. certainly, we don't think, in any way, it would be, but it's a name we've been watching closely. jim, let's move on. what else are you keeping an eye on this morning that we haven't yet mentioned? >> broadcom, again, is the big beneficiary. two upgrades today. price target up huge. and then, david, lot of people trying to get ahead of next week's retail earnings. jpmorgan raises its price target. huge. 125 to 157. citi raises williams sonoma, and they don't even like it. citi takes up rh. that's been a while. pvh. these are all retail names ahead of next week when th

a big run on silicon valley bank as a result of some of the tech pros saying get the hell out of there. they knew. first republic i think was part of the fallout of that. new york community bank was opportunistic. they acquired deposits from signature. sonali: i want to switch gears because we know about the stresses in the regional banking system. there's also a lot of stress in washington. this is a much bigger problem on the banking system. this comes at a time where the u.s. is issuing an extraordinary amount of debt. congress has been able to approve interim funds. but you worry about the band-aid coming off and what that means for the march 8, march 20 second deadlines. how much volatility do you expect and what worries you? >> i think the new speaker who succeeded mccarthy as a result of mccarthy's inability to get out of the house, the 12 appropriation bills that in time -- congress hasn't produced a budget on time since 1997 and as a result use these continuing resolutions to ensure the government has funded without necessarily having debated budgetary priorities and reset the

serena is a senior vice president at silicon valley bank.se two women and especially honored to be a trans woman that's been asked during this month to appear on this panel. okay, well, give us a little preview then. can you at least talk about how you have helped shape the bay area in terms of the kind of work that you do there as a leader at sf pride? well, i don't know if i really shaped it, but i, i think the economic impact of san francisco pride in this city coming out of the pandemic, i think we've made the case for the city that we really are in the fabric of the city, and our economic impact is really, really vital to the city right now. and i think we've been able to tell that story very, very good. so you talked about how you're the first trans woman to hold this office. how has your experience as a trans woman guided the work that you do? not just there, but the work that you've done for me and made it possible. people like theresa sparks. yeah can you talk about you took over in 2022. this was it was kind of unexpected when you

sarah: i think on the bank side, there was an issue that happened in march of last year with silicon valley bank. banks are realizing that even though we keep hearing these dire commercial real estate stories and dire stories about we have this refunding, all of this debt has to be termed out, there is the realization that if something goes wrong there will be a backstop for it. that makes people feel better about banks. that hasn't been explicitly said, but if you take the totality of the evidence, the odds are you will get something done if you see a crisis in commercial real estate, which we keep hearing that valuations are lower. the fact that you have private credit being able to do that may let that be less of the crisis than we are expecting. lisa: does this mean there are other areas that could benefit from the fed implicitly being thrown into the market in a massive way that you are leaning into? sarah: that is where you switched. in august and september of last year you were worried that the fed was gone, and now it seems the fed put is back. it is hard to argue. it is the don't fight

market, fueling concerns about other regional lenders in the wake of last year's collapse of silicon valley banknow to pennsylvania and a shocking attack in a woman's backyard. >> it was just so fast. she was so aggressive. she was all over me. >> leanne galante is recalling the moment a black bear attacked her in her backyard north of pittsburgh. >> she had me down and she put my arm. she was on top of me. i thought, you know, i thought she had just let her dog smokey out tuesday night. >> having no idea that a female bear was lurking in the dark until she saw bear cubs in her neighbor's tree. there were three of them. >> if you were to see that big. those bears were in that tree. and how big she was, she just kept coming. but i didn't want her to eat my baby. and if she would have taken one bite, he would be dead somehow. >> the mama bear got distracted, and galante got herself and her dog back inside. >> i thought, oh my gosh, what if she's right behind us? and i slam the door and i was at. >> galante suffered injuries to her head, neck and arm and may need surgery for broken bones in her fac

and congress after silicon valley bank failed, congress marked that bill up. jority in support of it. now it's just kind of stuck there. so i do think that's something that, yes, for this handful of banks that need to be focused like a laser on their commercial real estate exposure, i do think that would provide some additional incentives. but i repeat, the vast majority of regional banks, i think, are fine. liz: okay. >> we're going to have more failures, no doubt about that, and that shouldn't be a concern to people, at least households, main street if they're under the insured deposit levels. liz: i'm getting a wrap, but with i have to ask you, march 11th, monday, the fed's bank term lending program which was open for regionals to insure and stabilize the depositors one year ago during the sill is con valley -- silicon valley, signature bank with, crept suisse as well -- credit suisse as a well, that's scheduled to close on monday. is that going to be a mistake by the fed? >> well, you know, look, i applaud that they -- you don't want to let these special pr

we're literally sitting here at the anniversary right now of when silicon valley bank and signature bankbank bailout in u.s. history just one year ago today. the market is up. everything is doing great but everything has been priced to perfection in my opinion and if we understand with what is happening with inflation right now, we have a hotter read. happening in unemployment, guess what? the numbers continue to get revised down after the headline comes out. we look back at these numbers, they're not as bullish as we started to see. >> right h. ashley: right. >> i think all forward indicators stirringsnalling recession are there right now, ashley. i think the backward looking ones the fed is paying attention to will catch up. ashley: i hear you loud and clear. message received david. [closing bell rings] thanks for joining us as we head towards the closing bell, the dow, how about that, up 56 point now in positive territory at least. nasdaq down. that's it for us. larry kudlow. ♪. larry: hello, folks, welcome t

and commercial real estate exposure, this coming days before the one-year anniversary of the silicon valley bankpse the kre regional banking etf is down about 6% since then joining me now on what he's seeing is jim ryan the sixth largest commercial bank in the midwest. jim, it's great to have you here great to have you here in the studio. >> thanks, frank thanks for the opportunity. >> jim, you had earnings in late january, record eps, core deposit growth of 4% your stock jumped on the report. we're going to show the chart here you've had a strong quarter. how much does new york community bank and the issues there, how much do they affect your investor confidence and your customer confidence? >> i think earlier on the reports were like reopening the wounds from last march and april, so unfortunately all bank stocks took a dive having said that, i came off the road with 40-plus investors and ceos i think it's relatively isolated i think investors are gaining confidence interestingly enough, long-term investors and general investors are starting to come back and look at the space. i think they're

. >>> this weekend marks the one-year anniversary of the collapse of silicon valley bank and the shocksthe financial system. the biden administration is finding itself in a tough position to better regulate banks a year out. megan cassella joins us with more on the story. megan, good morning. >> good morning, frank. the push to raise capital bank requirements has been years in the making and one of the most concrete efforts to boost bank regulation since svb failed. the reporting shows opposition to the proposals is on track to delay finalization by what analysts say would be another year if not longer. regulators are left with two tough options at the moment. move forward with the rule as they have it with modest changes or face litigation from big banks or they could withdraw and start over. jay powell acknowledged for the first time this week that that is a real possibility. >> i will say we haven't made that decision. if and when we get to that point and that is the appropriate thing, we won't hesitate. >> you won't rule that out at this stage? >> not at all. i think it is a very pl

regional banks in focus, one year after the collapse of silicon valley bank.sk, closing the cash infusion deal agreed to last week, announcing plans to submit a 1 for 3 reverse stock split of its common stock to shareholders. nycb stock is down better than 68% just this year, year-to-date. joining me is the ceo of kbw, thomas mishow with us. thank you for being here. your firm is the leader in terms of this bank research. i want to get your take on the stability of these banks. we had the collapse of svb one year ago and now we're questioning the state of regional banks after what we're seeing happening with new york community. >> maria, good morning. it's two things. one is while three banks unfortunately spectacularly failed last spring, 4700 did not. the industry is resilient. that won't stop the challenges of commercial real estate. i heard you speak about new york community. commercial real estate losses are going up and it's going to go up for banks, it's going to go up for nonbanks involved in the industry. and like you said, the question is how resilie

powell saying the cre risk is not one that is as big as the global financial crisis or the silicon valley bankry last year, but he is also a of this idea of capital plans and buffers and extra leverage in the bank system saying things are actually looking good. we are fine with the levirate system. it when it comes to liquidity, is this something we should be worried about at all in the u.s. despite consumer resilience? how quickly can the positive story snap into negative? >> how quickly is a hard question to answer. what we know is that the balance sheets in aggregate are much more resilient than they were in 2000 any -- in 2008. the fundamental position of real estate is not fundamentally misaligned for the state of the economy, but when you look at a lot of real estate transactions, some of them are on houses that are not even being built, so if you were to stop refinancing or keep financing cost prohibitive levels for too long when you are headed for rising unemployment the whole thing can go from slightly improving and manageable to all of the sudden i freezing of the market. kriti: a lo

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ed: a lesson i learned from a year ago, silicon valley bank, is how concentrated the access to workingapital was for technology companies. sme's essentially. what was the one take away, permanent change of the last 12 months resulting from that saga? bruce: people were a bit envious about how silicon valley had locked in a lot of that customer base, first republic also. now the demise of those create an opportunity for folks. it is all about talent and commitment, it's about strength of offerings and keep abilities. we are marching right into help fill that void. caroline: you will hear from those businesses, sectors at your event this week. bruce van saun, chairman of the citizens financial group. coming up, let's talk about legal ramifications. musk suing openai. why this lawsuit matters. this is bloomberg technology. ♪ hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact deliv

keeping myself honest the year later, what happened is a little different from what happened in silicon valley bankst republic which was a mismatch of the timing of their liabilities and deposits or investments that they had like loans on the balance sheet. that is part of the new york community bank story but more the bank itself and its management did not have control, and risk management policies. a week ago when the news broke the auditors said there was material weakness. a management shakeup which led to a stock decline. there are core issues on the balance sheet, it is a different story than the run on the bank, caused its collapse. neil: the bank stock stabilized today. the magnificent seven, lost the other day, $233 million market value collectively. not so much tesla, no longer one of the largest or 10 largest companies and the least magnificent of those seven. what do you make of that? >> i own it because regulators want us to say that. let's talk about tesla's market, still more than ten times that of gm and ford. it's a technology company in the eyes of some and part of that magnificen

a year after silicon valley bank's collapse, the rules are still catching up as you new proposed baselbank discomfort. new york bank corp. is facing stability risks. the stock is down better than 66% year-to-date, ken. what are your thoughts on the banks right here? >> we're all over this. and i think the journal's got this wrong. because the basel 3 end game for everyone is mostly about the largest banks that have systemic risk to things like a black swan in the market and had there we're going to see a higher capital build required for the jp morgans and banks greater than 100 billion. move to the regional banks or smaller banks, it's idiosyncratic even as jamie dimon has said it's been poor management of really their loans, that was true with new york community bank or there was depositor duration risk so it's really two dynamics of one where we're going to see more regulation will be with the largest banks and then unfortunately with some of the smaller banks they'll pop up from time to time where we see a bank specific issue. maria: i mean, it's interesting to watch this bifurcati

so a moment happened with silicon valley bank where in a massive risk off event bitcoin rallied substantiallynting, so the deficit came in much larger last year than was predicted. i suspect the same thing will happen this year. okay. new york community bank on the fritz. if there's more bank failures, more fed bailing out, people like janet yellen saying we can backstop every single depositors in the entire system, it just -- it goes to play on the thesis that fiat currency is worthless because they can print it forever and you change to the ease of use, now you can just buy an etf from a reputable company like fidelity orbit coin or bitcoin, it makes it easierr people to own. historically once you break through the cycle high, you triple that previous cycle high so you could -- in my opinion i think you see north of 150,000. maria: it's unbelievable what's happening here. you do think it's going much higher, then. when? >> i don't know if it's going to take six months or two years. these cycles play out over time but the having is an important event and already now with the buying and a etf

. >>> now the cfo sounded a note on the lender acquisition of the silicon valley bank after the purchase year ago. >> it was a great acquisition. we loved the opportunity. we love the strategic fit. it is in our genes to bank entrepreneurs. we will continue to invest in it. we have been investing across the world to support the uk strength hub which we acquired. we will continue to work the opportunities. >>> pitch book's research on the women in vc shows activity in europe still is male dominated. women show a growing fraction over the last couple of years. our next guest at pitch book joins us to discuss more. great to see you. >> great to be here. >> the numbers and the word fraction came in with women and access to financing for startups. what does it look like for women trying to begin a new business in europe and in the united states at this stage? >> right. we see women growing their presence in the venture ecos ecosystem. female founders seeing growth over the past decade. look at the amount of capital raised last year. it is ten times the amount they raised in 2013. there has be

more bank failures, more difficulty and if you see our flight on deposits like we saw after silicon valley bankhis could be a massive disaster. maria: that's what i wanted to ask you about. if we see this spiral and become a problem for the major banks, that's where you start seeing the idea the entire market is going to get impacted by this. do you. of the larger banks will be holding the back of this? >> i believe larger banks will benefit dramatically from this. if you look at jpmorgan's earnings growth in the last year it has been substantial, the pickup they got from first republic was spectacular, the number of people going from these regional banks that have wonderful service, personalized relationships and global banks has been dramatic, it has been, jpmorgan in particular has profited handsomely from that. the fed will be holding the bag for the small banks which is bullish for bitcoin to take it all back. maria: you mentioned the legislation backdrop for bitcoin. i know bitcoin is rallying but right now the securities and exchange commission and other agencies are trying to figure out

following shares in the week shares of new york community bank are down after the collapse of silicon valley bankt your next guest sees optimism from mid-cap banks with potential rate cuts expected later on had year. jared shaw is a midcap bank analyst at barclays. he just initiated with a positive view and welcome. it's a bigger story than just the stocks that you cover. new york community bank shook a lot of people up and we thought the worst was behind us a year ago and now we have this, again, but is nycb an nycb-specific issue? >> yeah. thanks for having me on, broad brian. good afternoon. i do think there are unique aspe aspects to the nycb story. they grew very rapidly over the last year and a half partly from another acquisition and they changed the regulator with the sec any with that comes different requirements and maybe a different way of looking at things. part of what you're seeing with nycb are growing pains as they've grown into this bigger size, but it's really not reflective of the broader market. you've brought up the one-year anniversary and you saw the strain that liquidity c

. >> this is dÉjÀ vu, tomorrow one-year anniversary from silicon valley bank crisis could mean anotherne-billion-dollar equity investment you mentioned stock halted multiple times during trading losing over 40% yesterday below 2 dollar mark finished 70% up, up premarket trading the majority of that billion dollars is coming from former treasury second steve minimum shooun, down 6 % year-to-date challenges admitting last week to material weakness in internal controls, would be common issue across the banking sector exposure to commercial real estate right 929 billion in loans coming due this year refinancing rate environment remains high could be tough further already overpaying to lure customers from big banks can't afford hiccups the question will customers feel comfortable or remove deposits we saw how quickly it causes contagion first rep was casualty of the signature troubled i note they assessed cash infusion before getting bought the fed announced would end bank term funding program on monday, it couldn't come at more precarious time i leave you with this monitoring a conference

katie: about one year since the collapse of silicon valley bank. lot of heat in the aftermath of that. david: they were not as aggressive as they should have been, a dispute if that was at the regional or national level. but she think they have learned their lesson, at least they know it is coming when it comes. katie: what does the outlook look like right now in her view? david: one of the things that she says, others say, commercial real estate covers a lot of things. things that are very successful like data centers, warehouse, multi family dwellings. it is specifically the office area, and there will be some pain. you are seeing some of that already. katie: you are seeing that on the cre and regional banks side. that was the conversation with mary daly. who do you have coming up? david: the editor of the economist. we will talk to her about an interesting cover, saying that a market may be overstated, may be headed for more troubles for structural reasons. that is coming up on friday at 6:00 eastern time on wall street week. katie: really looki

. >>> it's been one year since the meltdown of silicon valley bank. now, technically it's this weekend it will be one year, but we're close. it was the largest bank failure since the global financial crisis and the government stepped in to save all those start-ups and venture capital firms who would otherwise have lost everything, even though that was not technically how the rules worked. but what we saw after that or began to appreciate was we see the start-ups getting a $20 million check, it only insures up to $200,000 and they didn't know what to do with their money anymore because banks weren't safe, which is a very silicon valley problem. but it's still a problem. >> okay, you had a good guess a little while ago. the merging of two restaurants. >> burger king and dairy queen. >> that was a good one. what do you think about pairing pasta or chicken salad, with pancakes? you may soon have a chance. are you ready for apple hop? considering a unique partnership, they want to open an ihop and applebee's restaurants sharing the same space. so far, no i