that was the day before the collapse of silicon valley bank. he bank trade? karen. we're back. banks are back, right? >> they are back. i think they never left, but okay, i understand that kre did l leave for a while. if you had looked back at that march 10th or whenever that was that silicon valley bank happened and there was obviously the banking part of the crisis with a deposit run, that obviously has really really slowed to not so relevant anymore, and then commercial real estate was very big, and it's still very big, but interest rates are coming the right way, so that's helpful. the last one is if you had said 18 months from the silicon valley bank collapse time, the consumer would still be hanging in there, i think people would have been surprised, and the gdp was still where it is now. so all of those things together, and they probably way over reacted in the depths of the downturn. >> yeah, julie. >> makes sense to me that they're back where they were. >> julie. >> yeah, i completely agree with karen. you know, i think this is a functi

well, it's been more than a year since silicon valley bank imploded. and in that year it's done a lot to return to health. this week on our podcast, sand hill road, i sit down with the president of silicon valley banks commercial banking. i asked him to take us inside that room. when bankers realized they had hit that iceberg. and let me tell you, it's very difficult to get a banker to talk about that. try to think of anything more that a banker would not want to talk about than a bank failure. i mean, is there anything, you know, root canals, anything that are sounds way better, way better. so listen to him. have a root canal on our podcast. now the good news is they have turned silicon valley bank around. it is a valued part of the community again. and that turnaround, which, mark hetty calls both both, you know, inevitable but amazing all at the same time. we talk about it just wherever you find your podcast, take a listen. all right. it must be great for him to talk about it in the past tense. yes. now exactly. on the other side, scott. thanks. so m

well, it's been more than a year since silicon valley bank imploded. and in that year it's done a lot to return to health. this week on our podcast, sand hill road, i sit down with the president of silicon valley banks commercial banking. i asked him to take us inside the room when bankers realized they had hit that iceberg and let me tell you, it is difficult to get a banker to talk about that. try to think of anything more that a banker would not want to talk about than a bank failure. i mean, is there anything, you know, root canals, anything that are sounds way better, way better. the one trick to get a banker to go to the dentist this week on silicon valley's sand hill road podcast, mark had a very interesting person. we also talk about potential icebergs ahead. what is the thing that bankers secretly worry about at night? and he talks about that as well. oh wow, you always get the intel i love you, i love your shares. it. yes, exactly. thanks, scott. well, new this morning. doordash cracking down on dangerous delivery drivers in big cities. in a n

i think there was a situation where there was silicon valley bank and signature and they tried -- the regulator tried to contain that but we do need to be looking deeply at this issue of bank runs and consumer confidence particularly and modernized banking. >> i felt like there was some thinking and a lot of people were attributing senate bill 2155 and one on my side that worked with senator warner and others on that bill trying to blame it on a lack of regulation but it does seem like a lack of supervision and risk management. i will move on from there. kind of curious of your view of the 2020 force stress test and i read that to say the banks are pretty well-capitalized and how do you read the results of that stress test? >> again i am on the outside looking at it like you are. it does seem like capital is strong and some areas that need to be looked at but that is how i read it. >> what is a stress test by definition subjecting the banks to some of those areas and did you think the stress test themselves are insufficient? or do you need to look at the details of the stress test? >>

last years fed report and affiliate of silicon valley bank noted out incentive-based compensation encouraged excessive risk-taking that led to the banks failure. you made a watch or had reports of windows bank ceos testified in front of this committee. the report incentive-based-based conversation to lead the lidth o the bank failure said the managers quote at a a financil incentive to focus on short-term profit over sound risk management.th that's what a number of us, store smith, senator butler, senator warner and i've said over and over, that the short-term cycle over sound risk management causes significant problems to our financial system. compensationfi practices still pose a threat to our banking system. i urge you to move quickly to join your. colleagues in the log overdue rulemaking when executivet compensation. i mean, you know, you read the report. at the outrage of the public about executive compensation continuing to go up and up and up and up. you have a role, significant role, a legal role to do with that. thank you. senator tillis is recognized. >> thank you, mr. chairman. th

the last, i want to note one last thing laster's a fed report the failure of silicon valley bank noticedhow incentive -based compensation encouraged excessive risk-taking that led to the banks of failure. you watched or had reports of witness bank ceo testified in front of this committee. the incentive -based compensation that led to the bank failure i mentioned said manager's quote had a financial incentive to focus on short-term process or sound risk management that is what a number of ascender smith, san beutler senator warner and i have said over and over the short term profit over sound risk management causes significant problems to our financial system. compensation practices still poseto a threat to our banking system i urge you to move quickly to join your colleagues in the long-overdue rulemaking when executive compensation. you know, you read the reports at the outrage of the public about executive compensation continue to go up and up and up and up you have a significant role, a legal rule to deal with that. thank you. senator tillis is recognized for. >> think it mr. chairman

. >> silicon valley bank in the rearview mirror. nk of america here. bank of america, if you look again, three years, it was going down for a long way. if you want to back this thing out this has a lot to reverse. never gotten back above its prefinancial highs. before we get there, it had a nice uptrend but before that, it broke out and what we want to do is show the line of resistance. it ran up, came back in. i'm getting a little too many lines. broke this level. it consolidated where old resistance became support and took a leg higher continuing in that today. the momentum is there. the earnings are there. a fed easing is there. i think a $50 target over the next four to six weeks, very possible. and then if we get past that 50, 55 all-time highs, when you look at goldman and jpmorgan, all-time highs. i think bank of america is going to follow in their footsteps and a long time coming. good to see the stock make this leg higher. >> especially goldman and bank of america not 2023 anymore. thanks. >> exactly. >> be sure to follow an

meanwhile over in the u.k., the former ceo of the british arm of silicon valley bank joint hsbc in marchcompany was acquired by svb u.k. and now she will be joining octopus ventures in january as their ceo. platts will remain as a special advisor to hsbc. 17 labs raised $85 million in a spending round. 17 labs placed of -- pays developers for emerging ai tools and ranks among the largest for ai startups so far. ed: time for our vc spotlight and we are joined by vanessa and there have been so many themes we've been passing over, just what -- asked what the main one -- guess what the main one is pretty it's generative ai. they are saying that is the untapped market or they are saying you have to be in a large language model level as the parameters get smaller there's a higher volume being built. where do you see that divide. vanessa: i'm an application play or investor -- application layer investor. i think there's a lot of value in that. it showed that the majority of the funding was going to infrastructure and the bulk of that was going to the large line with model companies and much of

last comment, i want to know one last thing, last year's fed report on the failure of silicon valley bankd compensation encouraged excessive risk-taking that led to the bank's failure. you either watched or had reports of when those bank ceos testified in front of this committee. the report -- the incentive-based compensation that led to the bank's failure, i mentioned svp managers had, quote, an incentive to focus on short-term profit over sound risk management. that's what a number of us have said over and over, that the short-term profit over sound risk management causes significant problems to our financial system. compensation practices still pose a threat to our banking system. i urge you to move quickly to join your colleagues in the long overdue rule-making when executive compensation. you know -- you read the reports at the outrage of the public about executive compensation continuing to go up and up and up. you have a role, significant role, a legal role, to deal with that. thank you. senator tillis is recognized. >> thank you, mr. chair. chairman, thank you for being here. want

so when we talk silicon valley, what is going on there post silicon valley bank, is it ai, is it macros we've been able to dring over some new employees and new clients based on that. but it was tough last year in the spring when all the conversations that we had being right at the epicenter where that happened. but now the sentiment in the market seems to be pretty stable, and some new entrants are coming in and things are shaking out nicely. >> robert, a lot of people would say this is driven by rate declines and the banks saw their assets under water on high rates but saw people moving deposits, because you could only charge so much on loans. do you think lower rates and the potential for fed rate cuts is going to help the business substun shally? >> i do think so. >> perfect. robert, what about to you? >> well, i loved your introduction with the stellar performance in regional banks. it goes right in line with what we're seeing. i'm not sure quarter basis point is going to change our market any. however, i athink the sentiment around the lower interest rates is going to be good for

i think we are trying to learn the right lessons from what happened last spring at silicon valley bank and other banks and one of them justice the discount window works, but we could certainly modernize it and make it more effective and also we learned that bank runs are moving a whole lot faster, at least in that case and even bank runs from 10 to 15 years ago were nothing like as fast as what happened at silicon valley so we need to bake that new learning, we haven't made a proposal and when we do, it'll go out for comment and we will very much want to learn from those comments. >> very good. there's been a clear trend of banks stepping away from the mortgage market kind of in the face of the increased regulation, that's my interpretation at least non- bank lenders have stepped in to fill the void. today, there is the so-called warehouse lending for home mortgages. but i am deeply concerned that some of the basel rules could harm bank and non-bank lenders alike undermining the liquidity and the raising costs of homebuyers. so, let me just ask, in regards to basel iii, the endgame pro

i want to know one last thing, last year's fed report and the failure of silicon valley bank noted how incentive-based compensation encouraged excessive risk-taking that led to the bank failure. you either watched or have reports on when those bank ceos testified in front of this committee. the report that led to the bank failure, i know it was mentioned that the managers had a financial incentive to focus on short-term profit over sound risk management. that is what a number of us, senator smith, senator butler, senator warner none -- and i have said over and over. the risk management causes significant problems to our financial system. compensation practices still throw -- still pose a threat to our banking system. i urge you to move quickly to join your colleagues in the long overdue rulemaking with executive compensation. you know, you read the reports, at the outrage of the public of executive compensation continuing to go up and up and up. you have a significant role, a legal role to deal with that. thank you. >> thank you, mr. chair. chairman, thank you for being here. i want to

level that looks really interesting overtime and right around where the kre was before the silicon valley bankd so, does that suggest that if you think there's still some turmoil, consolidation, office reckoning to come that things might have gotten a little rich here? >> i mean, the question is basically if you're a regional bank investor and participating in this market during a historic interest rate hike, at first that's actually really good for regional banks because they can charge more on the loans that they make to companies and make to individuals. then at some point that kind of changes because you have to pay your depositors more but doesn't all happen at the same time. so you get these cycle effects. and then you know, at the same time, higher interest rates also have an impact on the balance tk in march of last year throughout the spring of last year. then it starts to trickle into credit quality. a lot of the pressure that was that had befallen the kre, had to do with concerns surrounding credit quality. you haven't seen major systemic issues. in fact a lot of banks it's getting

robert hur, silicon valley bank fails rocked the markets.ew on that topic. then colorado trying to kick trump off the ballot there in the american west and claudine gay resigned as the president of harvard. all those went without a formal news conference or tv interview. that will change tonight at 6:30 and we'll have coverage for you then. dana has some ideas now. you were in that room. >> dana: president biden's political fate could rest on the solo news conference he is holding tonight. let's bring in karl rove. could the white house raise the bar any higher on a press conference that they announced several days in advance? >> it would be hard but they've succeeded in raising this to astronomical heights. why, i don't know. they need to just sort of do these things without raising expectations. this morning devastating news in the "washington post"/abc poll. the poor man's white board to show you. this is what they are walking into tonight at the news conference. should biden step aside? 67% of adults, 56% of democrats, 73% of independent

also on the financial side a lot of that regional bank scare we had last year with silicon valley bankeems to be behind us right now. we're looking at companies like pnc bank, truist as financials. we need a better entry point but i think those could be interesting going into the end of the year. >> lance, thanks very much, i appreciate it. >> folks my next guest bring as unique perspective. very skills she developed over two successful skills, one in finance, one as a software engineer helps a lot. i want to bring in kim forrest. all right, tech girl, you've been hot with these tech names, right? you've been on them. they have done extraordinarily well. it is hard not to argue though they're expensive. investors are certainly becoming a little bit more skiddish. are you making adjustments with the tech names in your portfolio? >> i always am because it feels like we're at this point in the tech cycle where maybe 18 months ago people discovered chatgpt and they said, wow, this is going to be great but i always chastise investors because we're supposed to make money, not be fans of tech

companies or even, yu know, like last year you had the s we be bail out, which took place of a rich silicon valley bank problematic because it sort of makes everyone then feel entitled to t they deserve government support and they deserve to be bailed out. meit is quite a change as bail out culture. when franklin roosevelt was governor of new york, the legislature proposed a system of deposit insurance for depositors and fdr when he was governor opposed that. and in his sort of folksy way. he talked about moral hazard, about how having thisjç guarante for depositors would make them a little lazy in!b choosing banks that were sound. and as aularged higher or gave them higher interest rates because if they lost would bail them out. so it's just all all upside. and i've heardy education, throughout my career, upthe 200e said in the last decade or so what whats term? what happened to this idea that bailouts and shieldingeo mistakd lead them to make more rky choices that would result in more mistakes? well, what happened to this ea point i think they too. what's happened is that there is this fliamerican ec

then to the extent we get lower rates remember they acquired silicon valley bank so to the extent theebounds, they should benefit from that. then the other one we are pointing investors to is m&t bank. we are expecting them to implement their buyback plans in the second half. a couple weeks ago the stress capital buffer from the stress tests their scb improved. that would give them additional capital flexibility and they are neutral to interest rates. as we look out to next year. >> what can we read through, if anything, some of the bigger bank results on the consumer credit trends at this point? i realize people have been waiting to see if that softens up. hasn't necessarily done it in a dramatic way. what are the clues telling us? >> yeah. normalization is still occurring, but it seems like it's still manageable. unemployment rate remains low so that enables consumers, you know, while they're employed to stay up on their credit bills. we are seeing pockets of weakness here and there, especially for some of the banks in our coverage, but overall, it looks like for the big banks, part

you had people rushing from that silicon valley bank thing saying, fed's going to cut now and it's goingto be another crisis. whatever. >> it turned out to be a very well-managed crisis. there were a lot of things that kicked in. if you look at where we are, i think at the beginning of the week, there was a lot of questions on small cap. is this about the fed? is this about the election? i'm pretty sure that was mostly about the fed and cpi based on my conversations. but i think it was a legitimate thing to ask about. you saw financials and energy making big moves. it was based on historical playbook analysis of 2016. as we got deeper into the week, some conversations with people saying, is it really going to repeat this time? and i think there's skepticism out there. >> it's certain, kind of, a different setup, just the economy and where it's at and everything. how does earnings filter into all this? you started to see, which we've become familiar with, a little bit of a reflex, in terms of what earnings have to prove? >> i think earnings have to provide you the basis for further rotati

miss goldsmith romero i want to go back to silicon valley bank. what, in y opinion major root cause of this to the failure what was it? let me give you choices what do you think the root cause was? >> thank you, senator. the failure of risk management at the bank and on the regulatory supervision. >> you did not see capitalization is an issue? >> is not a bank regular at that time. seems like the root cause is what you're asking. >> poorly managed and poorly supervised? >> correct. >> i think as a result it seems like it was ages ago it is hard to believe it has not been that long. at the time of the failure everyone was saying they felt so many other banks were failing was that your opinion what we saw was going to ripple through? with the one other failure first, first republic gu view those is some of us do us outliers in the banking industry based on their model? are there activities? >> is a really interesting question let me take you back a little further which is the crisis. this comes in consumer confidence. that they don't have confidence

one of the things that happened with bank of america, people were worried post republic and silicon valley bankhat their bond portfolio was the issue. it just wasn't. i think it was spread by short sellers. i know that's a tough thing to say. hon echtly, it meant nothing. things are rolling off and it's very good for them. bank of america is just really good. >> net charge-offs, flat quarter on quarter. jim's point about rolling off about 10 billion a month. we'll talk to brian moynihan the next hour. >> he's the man. he terms you loan growth has come down. we need a rate cut. >> meantime, net charge-offs, i think i just saw on the tape probably lower in the second half than in the first half. >> it's incredible. that plus the retail sales tells you that the american consumer is good. the small to medium-sized business is okay. plenty of ammo for a rate cut but not nor a july rate cut. >> despite what dpoeld man said yesterday. >> i thought goldman was off the reservation on that. it's like talking about amazon prime. i have been psych for amazon prime. it's anecdotal. i waited -- how else do y

vance is no stranger to silicon valley campaign piggy bank. he helped organize a fund raiser for former president trump last month at tech investor david sacks house. it's not clear who's hosting monday's event. tickets for the dinner are going for anywhere from $3,300 to 50,000. >> in tonight's abc seven news advances at 11, we're helping you get prepared for a highly anticipated visit that will make headlines tomorrow. israel's prime minister, benjamin netanyahu is set to speak to both houses of congress. it's netanyahu's first international trip since the war with hamas started in october, and his first address to congress in nine years. he's facing anger in israel and here over the prolonged war and failure to free hamas hostages. he'll be speaking before a deeply divided congress over this bay area representatives barbara lee and ro khanna are among the dozens of democratic lawmakers expected to boycott. >> i'm not going because benjamin netanyahu has led region into a complete humanitarian disaster. i am going to go. >> that doesn't mean

vance is no stranger to silicon valley campaign piggy bank. he helped organize a fund raiser for former president trump last month at tech investor david sacks house. it's not clear who's hosting monday's event. tickets for the dinner are going for anywhere from $3,300 to 50,000. >> in tonight's abc seven news advances at 11, we're helping you get prepared for a highly anticipated visit that will make headlines tomorrow. israel's prime minister, benjamin netanyahu is set to speak to both houses of congress. it's netanyahu's first international trip since the war with hamas started in october, and his first address to congress in nine years. he's facing anger in israel and here over the prolonged war and failure to free hamas hostages. he'll be speaking before a deeply divided congress over this bay area representatives barbara lee and ro khanna are among the dozens of democratic lawmakers expected to boycott. >> i'm not going because benjamin netanyahu has led region into a complete humanitarian disaster. i am going to go. >> that doesn't mean

think silicon valley bank as a hedge fund. they should be more neutral of the economy.coming into election cycle and they are holding down the long into the curve. which props of the equity market. think of where the capital is going right now. treasuries borrowing short. it has a lot of long-duration capital for can go into equities or go into long-term bonds. so you have this phenomenon for years of corporations issuing bonds and buying back their stocks. you dividend recapitalizations going on now. this is all a phenomenon on the shape of the yield curve which is being controlled in an antigrowth way by treasury and the fed. lisa: talking ahead of a: 30 a.m. on wednesday. where they announce what kind of maturities and the amounts they will be selling of government debt. it comes a time where heavy treasury supply it comes at a time when you potentially are rumored towards the administration. if you are in a situation to dictate in order to say increase maturities on u.s. government debt while not sort of causing this massive selloff in the long end. >> i think you h

vance is no stranger to the silicon valley campaign piggy bank. earlier last month, he helped organize trump's san francisco visit and campaign event at tech investor david sacks house tickets for tomorrow's palo alto dinner are starting at $3,300 per person. we are seeing an overwhelming call to action in cities across the country following the recent shooting death of sonia masih. today, more than 20 rallies were held in different us cities, from chicago to brooklyn to sacramento, connecticut and appleton, wisconsin. video from july 6th shows a sheriff's deputy shooting and killing masih at her home in illinois. he was responding there after the 36 year old mother called 911 to report a possible intruder. >> sonia masih called the police to deal with the potential intruder and the irony she was safer with the potential intruder than the police. she was murdered in her home by those she called for protection. >> the deputy who shot and killed masih shaun grayson, has been fired and recently pleaded not guilty to three counts of first degree murde

vance is no stranger to the silicon valley campaign piggy bank.organize donald trump's san francisco visit and campaign event at the tech investor david saxe. house tickets for today's palo alto dinner are starting at $3,300 per person. >> developing news this morning on the park fire that's burning near chico. cal fire says flames have now burned more than 368,000 acres. that is up from 360,000 overnight. so that makes it now the sixth largest fire in california history. containment is still at 12%, and this fire has destroyed at least 100 structures, including homes. the man accused of starting the explosive park fire is expected to face a judge today. abc seven news reporter gloria rodriguez is joining us live. and gloria, the suspect, is being held now without bail. >> he is kumasi and the man accused of starting the park fire heads to court today, accused of pushing a car down a hill while it was on fire, sparking what's now become the sixth biggest fire in california's history. >> firefighters are dealing with whipping winds as they battled

first, there was a post failure of lessons report after the failure of silicon valley and signature bank's. i thought that report was pretty important. how important is that post failure lessons report? chair powell: it is important. we wanted to learn the right lessons and make the right changes to both our rules but also to our supervisory practices more than anything else. we are doing that. rep. green: is this something you believe to be important after each incident such as what happened with silicon and the other bank? chair powell: i think we all have a lot to be humble about, we try to learn from events. rep. green: let me go on to the next portion which has to do with the banks that are small. let's talk about those that are less than $5 billion in total assets. yet, they are subject to the special assessments of the f dic once the exception is triggered. i would like to see them exempt from that. do you have any comments on that? chair powell: that is neither a statutory matter or matter of the fbi see's practice, so not something the -- fdic's practice, so not something the fed

vance is no stranger to the silicon valley campaign piggy bank. he helped organize a fundraiser for former president donald trump last month. it was held at tech investor david sacks house here in san francisco. tickets for tomorrow's dinner are starting at $3,300 per person. speaking of, jd vance is joining former president trump rallying their supporters in minnesota this weekend. that state has not backed a gop candidate for president in over 50 years. mr. trump took aim at vice president harris, calling her a, quote, crazy liberal. he also addressed a recent strike on israel, saying it would not have happened under his presidency, that israel was just attacked very severely, attacked and hezbollah looks like and this is things that won't happen. >> i mean, you just this can't they have to respect us. they have to respect they cannot do this. they cannot do this. what they did just now with that attack is terrible. >> this week, mr. trump will return to pennsylvania for the first time since he survived the attempted assassination. he'll hold an

vance is no stranger to the silicon valley campaign piggy bank.donald trump's san francisco visit and campaign event at tech investor david sacks house tickets for today's palo alto dinner are starting at $3,300 per person. >> your voice, your vote. we're now less than 100 days away from election day. vice president kamala harris and former president donald trump spent the weekend on the campaign trail. abc news reporter christiane cordero is live in washington with more on each candidate's message to voters. good morning >> hey, kumasi, good morning to you. so both vice president kamala harris and former president donald trump have sharpened their attacks on each other this morning, despite the party's support and record breaking donations, more than $200 million raised since entering the race likely democratic presidential nominee vice president kamala harris considers herself an underdog. we're the underdogs in this race, but this is a people powered campaign, and we have momentum. the vp rallied support from donors in massachusetts over the we

he's no stranger to silicon valley, and the campaign piggy bank. he helped organize a fund raiser for former president trump last month at tech investor david sacks home. it's not clear who's hosting the event on monday. now, tickets for the dinner are going for anywhere from $3300 to $50,000. stay with abc news for a complete coverage of the election. president biden's address to the american people is set for tonight at five, and you can watch it right here, live on abc seven 510 this morning we're looking at walnut creek. >> we have clear skies out there this morning, and it is quite mild. yesterday our hottest areas hit 105 106. so we are hanging on to that warm air this morning. it's currently 71 degrees in walnut creek. you can see that humidity. it is pretty good at 53%. and the winds right now coming in at about six miles per hour. so the forecast today you will notice not as hot as yesterday but still those temperatures are above average. we'll go to 71 in the city today with limited fog. lots of sunshine. oakland sunny and warm at 80 degr

throughout the morning, we will tell you about contributions by second harvest food bank in the silicon valley. back to you in the studio. >> we also want to say on this national give something away day that we appreciate you giving your time. welcome to the team. kpix is happy to have you. >> so happy to be with you. thank you. >>> let's look outside on this monday as we look on top of mount diablo. that's where our camera is, looking towards the east bay. there are a few clouds. i spent the day in sonoma, kind of ventured out and about. i was all over, san jose saturday, sonoma yesterday. i have to say it was a beautiful weekend. >> a full taste of the bay area. maybe you felt the micro climates, felt cooler on the coast and a bit warmer inland. the best thing is you didn't feel the 100-degree temperatures like last week. everything is relative this time of year and i am happy to say we are going to continue to keep the comfortable trend as this marine layer continues to hold on strong. you might notice it's higher in elevation and that's allowing it further inland. the fog is settling along

those are silicon valley jobs that will keep the money in silicon valley and new york banks. talks about wall street, but he is a creature of the oligarchy. he is a creature of the silicon valley oligarchy. in terms of his policies, i do not think they will have wide appeal. if elections were decided on policies, president biden would be easily 10 points ahead. we have an economy more successful than any economy in the world post-covid. he has ended the war in afghanistan. we are engaged in supporting ukraine and israel, and those are policies that are controversial. but there's not a major commitment of american troops in any war at the moment. prices are starting to come down. if elections were about policies, the democrats would have nothing to worry about. but elections are about a lot more than policies. host: if you would like to make a comment, ask a question of our guest, d.d. guttenplan, you can do that on the lines for democrats, republicans, and independents. you have called on president biden to step aside and step down from the ticket. why and what is the biggest

banks there last hour. pennsylvania-based, silicon valley area and down in houston, texas, and they were yun normally positiveoes that tell you? >> it tells me -- we have over 100 banks here in the story is the same. credit -- aside from a few banks that got off sides, the industry by and large credit quality is benign and actually even better than historic averages. so i think it says a soft landing for now is a reasonable outlook. and given where these stocks -- bank stocks trade, i think that leaves a lots of room for the upside. >> how much more consolidation -- it's already happening couple deals earlier this week -- well, yesterday. what's next in the area of consolidation and what will drive it? >> so the turmoil of last year really put a pause on consolidation. there is considerable pent-up demand for consolidation. if i were to show you a chart of profitability in the industry you would see that scale is working. so there's a lot of pressure for regional banks to come together so they can compete with the biggest banks in the nation. i think it's good for the industry. the other thing i can say is th

those are silicon valley jobs that will keep the money in silicon valley and new york banks. nce talks about wall street, but he is a creature of the oligarchy. he is a creature of the silicon valley oligarchy. in terms of his policies, i do not think they will have wide appeal. if elections were decided on policies, president biden would be easily 10 points ahead. we have an economy more successful than any economy in the world post-covid. he has ended the war in afghanistan. we are engaged in supporting ukraine and israel, and those are policies that are controversial. but there's not a major commitment of american troops in any war at the moment. prices are starting to come down. if elections were about policies, the democrats would have nothing to worry about. but elections are about a lot more than policies. host: if you would like to make a comment, ask a question of our guest, d.d. guttenplan, you can do that on the lines for democrats, republicans, and independents. you have called on president biden to step aside and step down from the ticket. why and what is the bigg

there were only a couple of us after the silicon valley debacle a couple years ago. we open the carolinas. specialty bankinghat we are investing in. we have opportunity in front of us with the core. >> they are terrific. maybe money should be going to the regional banks. much less risk. that is what really matters. >> yes, absolutely. >> it surprised people during the downturn which was not a downturn for you. i want to thank steve, the chairman, and president and ceo of huntingdon bancshares. a breath of fresh air every time you are on, thank you so much. >>> coming up, pop open those umbrellas and t up your questions. taking on new comers in the lightning round. next. >> joined the club and let me teach you the right way to invest. >> join the club with a flash sale offer for a limited time. ♪online security depends on you and me.♪ ♪install updates,♪ ♪make better passwords,♪ ♪think before you click,♪ ♪use multiple factors.♪ ♪that's how we can secure our world!♪ learn more at cisa.gov/secureourworld i'm amanda and i've struggled my whole life with my weight. ♪that's how we can secure our world!♪ i had some

as banks go on, clearly zero interest rate policy back for banking, the way fed moved the speed it moved obviously, failure of silicon valleysits, so with wells fargo the one down the most today, people were hoping, that they would actually guide up, for the margin perspective because they had you know during last communication talked about six cuts, well we only got three cut shoulds be helping them the problem is, the expense line we've got inflation, talked about it earlier because you can't cut expenses more not going to hit expected upside people thought. citi clearly was a positive surprise after aregulatory stuff citi bought stock last quarter wells bought stock, bank new york probably one of the better margin stories out there of group at the end of the day no disaster yet also no oh, my good you got to buy them a lot performed very well yesterday, going into the quarter the banking group las done well but at the end of the day, i think the focus on banking group performancewise, is based on rates if fed starts cutting or get better regulatory environment post debate the banking group soared, take over potential tak

after the break, bank of america tells us how they're positioning. plus, we talked about silicon valley's tilt for the trump campaign, prior to harris' move. now dozens of allies in financing, including big names on wall street, are doubling down on efforts to get her elected. and here's another check on markets, which are near session highs, with the dow up 1.3%, or 504 points. the russell 2,000 up 2.5%. the nasdaq and s&p up a little over 1%. back after this. >> this is "the exchange" on cnbc. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire - [narrator] we just signed the lease on our third shop. my assistant went to customink.com matching your job description. to get new uniforms with all the locations. he found great products, uploaded new art, and had boxes sent to all the shops. custom ink makes it so easy. get started today at customink.com. >>> welcome back to "the exchange." small caps are on a

silicon valley crisis. they want to try to keep this yield curve upward sloping. this perfect -- protects banktability. today, we were looking at the seven and 10 year bond yields. the curve has steepened a bit. some people are taking into account what the pboc is saying around the yield curve management. paul: yeah. in terms of interpreting these moves, some of the pboc's tactics are seen as hedge fund like. can you tell us about that? tania: yeah. we've spoken to a lot of economists. by shortselling essentially bonds to cool the rally. it's been unprecedented. we've seen the bank of japan, ecb do versions of quantitative reasoning -- easing and tightening. this is all due to monetary policy error. the pboc is not really different from that. if you look at the china economy and deflationary environment, it should have been slashing interest rates by now. they've really withheld from cutting interest rates because they are trying to prevent the currency from depreciating. if you look at this bond rally over the past six months, it has gained momentum. the market has been trying to shift its at

banks thinkg that is safe. i think there was a situation in silicon valley signature and the way they tried to contain that, i do think we need to be really looking deeply at this issue of bank run and consumer confidence and modernized banking. so i will move on from there. kind of curious about your view of the 2024 stress test, i read the results of the stress test to say that the banks are pretty well capitalized? >> again i'm on outside of it looking as you are and does seem capital is strong and there are some areas that need to be looked at but that's how i read this. >> it is a stress test by definition really subjecting the banks to some of those areas. do you think that the stress test themselves are insufficient or you need to look at the details within the stress test? >> yeah, i'm very familiar with stress test, designed for capital adequacy. >> and it's literally stressing and coming up with extraordinary circumstances? >> absolutely, sir. >> okay, thank you, thank you, mr. chair. >> thank you,an senator till hi. >> senator warren from massachusetts. >> thank you, mr. chairman, congratulations to a