svb executives, including mr.becker in front of us today, don't millions of dollars of company stock in the days leading up to the crash. millions of dollars in company crash leading up to the crash -- you are paying out bonuses until, literally, hours before regulators seized your assets. to people in ohio, and around the country, this feels sickeningly familiar. to most americans a lack of wall street accountability tracks with their entire experience with our economy. workers face consequences, executives right off into the sunset. only in corporate boardrooms can you run your business into the ground, take the whole economy along with, you and come out ahead. we cannot let that happen again. both of your banks, prior to its fast growth, but not risk management, both of your banks pushed up your stock prices in your own executive computation but did not address the glaring risks from, i'm, sorry from customer and and the concentration. you put other peoples money, and our broader economy, at risk. there must be

let's start with svb.ment and hear that they say that svb had exposure to interest rate risks for the investment in a longer term securities to generate yield against deposits. according to the federal reserve bank in san francisco staff and examination documents. the bank did not effectively manage the interest rate risk of the securities. or develop appropriate risk management tools for the risk. federal reserve and former -- staff noted that the svb bank failed due to ineffective management of its deposits and assets. mr. becker, do you agree with that statement? >> senator, i think it's important as a mission earlier -- >> yes or no? >> senator, i believe that our team, our team -- our treasury team made the best decisions they could with the information they had at the time. >> do you agree with that statement, yes or no? >> senator, i go back and just reiterate that the decisions were when -- were made by our team of people and i believe they made the best decisions they could. >> so you disagree wit

let's start with svb.ent and hear that they say that svb had exposure to interest rate risks for the investment in a longer term securities to generate yield against deposits. according to the federal reserve bank in san francisco staff and examination documents. the bank did not effectively manage the interest rate risk of the securities. or develop appropriate risk management tools for the risk. federal reserve and former -- staff noted that the svb bank failed due to ineffective management of its deposits and assets. mr. becker, do you agree with that statement? >> senator, i think it's important as a mission earlier -- >> yes or no? >> senator, i believe that our team, our team -- our treasury team made the best decisions they could with the information they had at the time. >> do you agree with that statement, yes or no? >> senator, i go back and just reiterate that the decisions were when -- were made by our team of people and i believe they made the best decisions they could. >> so you disagree with

given svb social and climate agenda, one must ask, if svb's investments and climate cause regulators to be a bit more permissive of its risks for. if you cannot stay on mission and enforce the laws as they already are on the books, how can you ask congress for more authority with a straight face. to that end, i hope to learn how the federal reserve could know about such risky practices for more than a year and failed to take definitive corrective action. by all accounts, our regulators appear to have been asleep at the wheel for. in addition, i also hope to learn more from the fdic about the role in the receivers ship and sale of boat svb and signature bank especially on the auction and the due process. i am very concerned that private sector offers appear to be submitted and yet were denied. if silicon valley bank has been purchased before it failed, the panic and the shock to the market and the markets confidence we have seen over the past two and a half weeks may have been avoided. if silicon valley had been purchased over the weekend of march 10th, confidence in the marketplace m

first, svb board of directors failed. federal reserve supervisors do not fully appreciate the extent of the vulnerabilities as svb grew in size and complexity. third, when supervisors did identify vulnerabilities, they did not take sufficient steps to ensure the bank fix those problems quickly enough. fourth, the boards and approach impeded supervision by reducing standards, increasing complexity, promoting a less assertive supervisory approach. the four key takeaways show failures by svb board and senior management. failures by the federal reserve. i will outline how we can strengthen both a regulation supervision based on what we have learned and based on the federal reserve existing authorities. on that regulatory site svb's failure to confirm the importance of strong levels of bank capitol. while a proximate cause of svb's failure it's a liquidity around the underlying issue was concern about solvency. stronger capitol will guard against the risk we may not fully appreciate today and will also reduce the cost of bank

let's start with svb. there is the statement and hear that they say that svb had exposure to interest rate risks for the investment in a longer term securities to generate yield against deposits. according to the federal reserve bank in san francisco staff and examination documents. the bank did not effectively manage the interest rate risk of the securities. or develop appropriate risk management tools for the risk. federal reserve and former -- staff noted that the svb bank failed due to ineffective management of its deposits and assets. mr. becker, do you agree with that statement? >> senator, i think it's important as a mission earlier -- >> yes or no? >> senator, i believe that our team, our team -- our treasury team made the best decisions they could with the information they had at the time. >> do you agree with that statement, yes or no? >> senator, i go back and just reiterate that the decisions were when -- were made by our team of people and i believe they made the best decisions they could. >>

by the end of 2020, svb had grown 63% over the prior year, and in 2021, svb's assets grew another 83% to 212 billion. to support this growth, svb raise more than eight billion dollars of new capital in 2021. importantly, throughout 2020 until late 2021, the messaging from the federal reserve with that interest rates would remain low and that the inflation that was starting to bubble up would only be transitory. during this time, as should be invested in low risk, highly rated government backed securities. the securities were safe assets, and they were backed by the u.s. government and could easily be used as collateral for borrowing for liquidity if we needed it. these fixed income securities complemented are short duration loan portfolio. approximately 90% of which had variable interest rates. in fact, of the u.s. banks collectively invested nearly 2.3 trillion of their securities portfolios in this low yield environment created by the federal reserve. to counter changing market conditions, nearly higher interest rates it has been over a longer period of time, i'm much eight we sold

do you recognize that a high risk of uninsured deposits that svb contributed to the run on svb? do you think regulators to commit to increasing their focus on bank with high ratios of uninsured deposits? >> i do. that is exactly what we are doing right now. as a result of this, in hindsight, the -- we have enhanced our team. one of the areas that we are taking into consideration in our early morning module is those banks that have a high percentage of uninsured depositors. in one particular area. i would say that this really was an outlier. silicon valley bank. 93% of uninsured depositors is highly unusual. it is not what you see in your average community bank. >> very good. we are agree that regulators should take steps to mitigate risks that can arise from having such a large amount of uninsured deposits. we really do want to learn their lessons from these past few months and reform these practices to ensure that this does not happen again. i am of the opinion, as are many of my colleagues on this side, that reinstating the dodd-frank regulatory requirements on mid sized banks

by the end of 2020, svb had grown 63% over the prior year, and in 2021, svb's assets grew another 83% to 212 billion. to support this growth, svb raise more than eight billion dollars of new capital in 2021. importantly, throughout 2020 until late 2021, the messaging from the federal reserve with that interest rates would remain low and that the inflation that was starting to bubble up would only be transitory. during this time, as should be invested in low risk, highly rated government backed securities. the securities were safe assets, and they were backed by the u.s. government and could easily be used as collateral for borrowing for liquidity if we needed it. these fixed income securities complemented are short duration loan portfolio. approximately 90% of which had variable interest rates. in fact, of the u.s. banks collectively invested nearly 2.3 trillion of their securities portfolios in this low yield environment created by the federal reserve. to counter changing market conditions, nearly higher interest rates it has been over a longer period of time, i'm much eight we sold

ch svb. it's been widely report that had your bank spent enormous amount of time with yourwi executives promoting safe space catchups diversity, equity and inclusion efforts to make people feel welcome in the bank. >> congressman, that does not ring a bell with me. i don't know what that would relate to. >> can you estimate how many of your senior risk officers were leaders in your company wide diversity, equity and inclusion program? >> i don't know the answer to that question. >> it would appear a lot of time was spent, your website prior to being shut down had enormous amounts of emphasis on that and seems that there was a lot of time spent on things to succeed and make things feel good. that was part ofth the problem. moving on, some proposed capitalist requirements and would they have avoided your bank from failing, mr. becker? >> i can't't comment on that because i don't know what the requirements would be in this structure. >> i don't think so and one depositor said on friday if you ha

svb picking up partner -- picking up partner with svb tend to be a tricky situation. these days? anna: the challenges svb has faced are presenting challenges for early-stage technology companies. that access to capital for startups has changed dramatically from a couple years ago. up to two years ago, startups were getting the message that capital was readily available. growth and cost wasn't what we were looking for from them and now started to getting a different message which is about profitable growth, about proving that you can get to cash flow break even and now we are in an environment where cash is harder to come by and investors are more conservative. what we are seeing is a return to the investing climate of 2018 2019 -- and 2019. it is not the environment that we are seeing today, the embarq -- anomaly is 2020 and 2021 when you can look at the rate of advanced or -- venture investing as an exception to the rule. when you think about today, what is it that founders are looking for? they are looking for capital and we are recommending that companies capitaliz

. >> so svb was definitely aware of the notices and they repeatedly ignored this. they failed to address the obvious rift that were repeatedly pointed out to you, year after year after year. blame social media, you say similar things have said the same thing, so it is not your fault for what happened, ultimately. failure to address risk after 68 supervisory notices is absolutely unacceptable, yet, throughout the last five years, your pay skyrocketed and you continued with the benefits of mismanaging your that is why maybe you are as uncomfortably as you should be today because you are sitting on at 1.5 million dollar bonus. way to fill up. you received over nine point $9 million last year in compensation, as well as 1.5 million dollar bonus in light of your tremendous failure to manage obvious risks. do you think that you truly earned your salary and your bonus? yes or no? >> congresswoman, to clarify, the numbers that you are talking about, the incentives that were set -- up >> please don't tell me that you trust the board. that is a cop out. yes or no. do you, ag

yet later on that report that states that svb was examined jointly by dfpi and fips. so the wording makes it appear as though dfpi is the only involved in a substantive oversight activities related to bank within its jurisdiction. so is it true that dfpi relies on supervision by examiners from the federal reserve for certain oversight activities of state-chartered banks?rt >> well, first we examine different sections separately, dfpi was very much taking the lead on the governance and management of that bank from an enterprise perspective. they took the lead on the i.t. examination of that bank. they took the lead on the asset examination of the bank. however, when it came to examination under the large foreign bank organization program, in that case, that is when a more experienced team of the federal reserve program -- >> how does a conduct itself as a primer skip regular if it is only involved in a portion of the supervision? >> and this is one of the reasons why we -- >> sorry. >> we added an advance team on speeded sorry to interrupt butru timeim has expired and

two months ago, first citizens bought the business after svb�*s collapse. triggered fears of a more widespread banking crisis — which forced authorities to step in. more on all of those stories on the bbc website. you are up—to—date. inafew in a few months, this baby will have a surgery to help with her cleft lip and palate, and condition which means that her... and palate, and condition which means that her... the and palate, and condition which means that her... the diagnosis and palate, and condition which means that her... the diagnosis was found during the 20 week scan. howard sheet?— found during the 20 week scan. howard sheet? , ., , ., ~ howard sheet? they are being talked throu~h howard sheet? they are being talked throu . h the howard sheet? they are being talked through the procedures _ howard sheet? they are being talked through the procedures using - howard sheet? they are being talked through the procedures using an - through the procedures using an augmented reality app, showing parents what will happen to their baby. this professor is the pe

. >> svb, the 16th largest bank in the u.s.lion in deposits, is now the biggest american bank to fail since the 2008 financial crisis. its customers are primarily businesses and investors in the tech sector. >> the swift collapse of silicon valley bank is the second-largest financial failure in u.s. history. and it took only 48 hours to unfold >> seth: man, you gotta give it to silicon valley. they know how to move fast and break things 48 hours they basically amazon primed a bank collapse. [ laughter ] and knowing silicon valley, i wouldn't be surprised if some tech startup comes along promising even faster bank collapses. "it's called instagone you just download the app, press a button, and watch as all your money is instantly flushed down a digital toilet here, i'll show you. [ toilet flush ] "honey, did you just lose the kid's college money? "yes but i got an nft of a cool plunger in sunglasses, so win/win. [ laughter ] look, i don't want to be a doomer, but situations like this are exactly why i keep all the money right he

so actually svb and first republic are sideshows, right? so you always have -- i wouldn't call them bad actors, bad risk managers that's the fallout we'll see more of those. now, i think what the fed is saying is one problem at a time. let's get inflation under control, because we need to because those destroy civilizations, right so that's what they're doing but i don't waste a lot of my time figuring out if the fed is doing the right thing, if powell is good or not good. i think he's doing a good job. i think about what's the impact? >> yeah, so what is the impact of that rate hike yesterday? >> exactly, so when josh says what he says, which he's absolutely right, okay, it means that i'm more bearish, because you don't want the fed making a mistake. the fed may be making a mistake. we won't know. history will tell. if josh's scenario is right, it's going to be the two biggest mistakes in history and he could be, time will tell that's the direction we're going. i'm worried about the market which is why i'm bearish. >> you're not the only o

ok, well, what's your impression of svb's collapse? seems clear to me that it's a result of rising interest rates forcing the bank to sell its bonds at a loss. that's so naive, kal. no, the reason the bank collapsed is because of woke. what do you mean woke? how did that collapse a bank? it just did, kal. woke. dei, esg, poc, aoc, bet, the list is endless, and the list is woke. i don't see what any of this has to do with a bank failing. well, that's because you're not a trained economist like i am. but once you learn the history, you discover that every bank crisis that has ever happened has happened because of woke. there's no way that's true. oh, come on. women get the right to vote in 1920. nine years later, the great depression, ok? how about this? segregation ends in '64. 17 years later, the recession of '81 hits. coincidence? - come on, man. you can't connect these. women and black people are not behind all bank collapses. of course not, kal. sometimes it's gay people's fault, ok? just look at the names behind the 2008 financial

on friday, they talk about what went wrong with svb.stions about how accurately they are regulating some of these banks. does this going to upend the leadership at the fed? kathy: at least we will get some dissenting votes this week, at least one or two. i would think -- i don't know, i don't have any particular predictions. there are some rewritten rules and a re-examination of what's going on. lisa: michael was talking about how now it is interest-rate risk. it could become credit risk, especially as they have trouble paying back rates. what is your sense of how significant that risk is and if it is accurately reflected in the market. kathy: the credit spreads haven't blown out in the way you would anticipate given what's going on in the market. there is the risk of widening. we don't know what's happening there. i would think there are some bad loans having to be restructured. the high-yield spreads have been much tighter than i would have anticipated. lisa: after svb happened and first republic, they were going to buy bank bonds. th

joe: i would say this first republic incident is different than svb. svb was largely unanticipated, in the case of first republic bank most founders, entrepreneur, vc's, have several bank accounts with different banks. we are not unprepared for the transition here. our accounts at frc will roll over into new jp morgan accounts, that will be an issue with continuity. on a broader account, frc has a larger non-techie consumer base. this -- we have largely been prepared for this outcome. ed: prepared how? are you talking about diversification of banking? joe: yes, since a few weeks ago most vcs and founders, those that we have connected with. those that we are seeing in the market. have open seven account the different banks. even in some banks, multiple accounts. there are fintech players that are offering hired deposit insurance then 250. once they add for, it gets to one million. that is been underway since thesvb fallout. after -- vcs and founders of the making plans, even the ones that happened, their deposit would be insured by a large bank of the u

ngressman rkhanna whose district was home to svb.rning to you. >> good morning. >> last time you were here, there were urgent efforts under way to save a bank. today, again, urgent efforts, this time first republic. we are hearing it could be seized by the fdic, but there are efforts also to find a buyer to absorb it. what are you hearing? >> this is what a modern bank run looks like. let me tell you what companies in my district are saying. they're saying that payroll companies are telling them move your deposits out of first republic, you will not have access accounts. that's why i think it's important we guarantee all bank deposters. i said this last time i was on. there's $8 trillion in uninsured deposits in these banks. 10 trillion is insured. until we guarantee them -- >> we is congress? >> congress. rubi ons, on a pro took pay an some guarantee on these deposits. otherwise what's going to happen? regional banks will be insecure and people will be concerned and start to consolidate into the top banks and you have a lot of these

what is the solution before we see any kind of svb disaster?od to be here and taking it back to the regional banks because that's really where a lot of i think the challenges reside, which is that, you know, you think about the last few years. there's been enormous amount of real estate transactions, particularly multi-family buildings being built or bought that are financed by regional banks and financed with interest rates near zero and people had short-term loans that are now rising and as those loans need to be refinanced, those capital structures are broken, so the loans need to be paid down. new equity needs to be raised, and we need to go through a restructuring process. liz: how hard is that to raise new equity in this atmosphere, when we already got this information basically that says and this is the quarterly activity report from cushman wakefield, big commercial real estate outfit that something like 20% of office space is simply empty, and who wants to loan to that? >> yeah, even multi-family and i use multi-family on purpose becau

i was struck by how grilling the bipartisan grilling of the svb ceo was, and he had zero interest ofng any of the bonuses he's gotten over the years. but the regaulators are also to blame, because they were asleep at the switch as several republican senators pointed out. >> how unique do you think svb's problems were? and this hearing is taking place, because we're not sure if there will be more shoes to drop in the banking industry. >> so yeah first of all, great to be on your show, as always i would say that if -- if to say that there is to blame the executives of these banks is to say that if you were in that situation, you would not have made the same mistake. i think that is, like a misunderstanding of what happened at these two different banks. i'm not necessarily an apologist for these banks at all, but i think you just have to be realistic that if you go into 2020 with $60 billion in deposits on your books, and you get two years later, you have $190 billion in deposits on your books, that was caused by fiscal monetary stimulus, what you would do in that situation, you don't k

it stems from the regulators decision that all deposits from svb and signature bank. that move costed deposit insurance funds about $15.8 billion. turkeys made oppositional alliances accusing russians of meddling in the presidential election. the presidential candidates -- candidate said russians were behind conspiracies and deepfake content. another opposition counted it has -- candidate has withdrawn from the race after an alleged sex tape. thailand's consumer confidence has risen to the highest level in more than three years, climbing to 55 from 53.8 in march, a steady increase for 11 months. the university of the tide chamber of congress -- commerce says tourist arrivals are contributed to spending. -- contributed to spending. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. shery: still ahead, we have more from our exclusive interview with the jp morgan ceo this hour, jamie dimon explaining what regulators should do to

. >> i believe svb phoebe's failure was brought about by a series of unprecedented events.rk differences in our business models, news reports and investors wrongly lumped svb and silver get together. rumors and missed conventions -- misconception spread online, culminating on march 9 with the first ever social media bank run leading to 42 billion in deposits drawn from svb in 10 hours or roughly $1 million every second. ed: he claims different factors svb/silver gaetz but did we hey -- did we hear any admission on him taking richemont ability for what happened? sonali: i don't think he took responsibility for all of it and i think that is the important part. this idea of a social media deal bank run, there is a lot to be understood about how that happened. every bank's ceo across the country and every private equity firm trying to back that is now having the same question. can this happen again? that is why hearings are still so important because kind of changes need to be made to the banking system out of this fee on the politics that were seen play out today? ed: sonali b

lawmakers have blamed former senior management at svb and signature bank for the banks' collapse. question of why did you let things get these bad -- get this bad? let's take a listen to how the former svb chief explained the decline. >> i believe xbb's failure was brought about by a series -- xbb's failure was brought about by a series of unprecedented events. kathleen: unprecedented. at the hearing, the xbb x ceo -- the svb ex-xeo really drew the most ire for selling stocks before the firm disclosed extensive losses. on the issue of whether he would pledge to give back some or all abused and within a dollar a year compensation, he declined, but he said he is willing to work with fdic and other regulators to review his compensation and see if some of it should be given back. it has been pointed out that the collapse of these banks cost the fdic fund billions of dollars. haidi: the fed and the fdic were also in the hot seat, what did we hear? kathleen: plenty of blame to go around. you had lawmakers at the hearing questioning u.s. watchdogs for not doing more to prevent the turmoi

even before svb failed, deposits had dropped by $300 billion.that's disintermediation and what does that mean? that means banks take in deposits which are short liabilities and they reinvest long into either securities or loans. and when those deposits he flow back out, then the banks have to somehow find the cash to pay ot the deposit hors. so what's happened? this is going to continue the. unfortunately, svb, signature and src are the beginning of what could continue going forward. maria: so we'll see consolidation, more consolidation, more banks acquiring troubled institutions. >> i believe so. now, maybe not at the size and scale of an svb or frc but certainly out of the 4500 banks in the u.s. somewhere, there are certainly going to be more levels of consolidation, more shrinkage of the deposit base. maria: the banks waited forevr to raise rates. most of us leave our money in there and the banks know it. i asked j jamie dimon. he said rates would go higher. i want to get your take on how you allocate capital today. i'm looking at the backdro

when svb had their issue, we moved that weekend.saw their tech team is a spectacular opportunity for us and we hired about 12 managing directors out of the group. the m&a environment is not perfect but i don't think that will become available in a perfect environment so we are building for the next five or 10 years. francine: is that a space where you will grow? >> it doubled the size of arotech footprint. it fit like a glove and there was almost no overlap. we knew the people we try to hire them before svb did. we knew they were our culture and we knew the overlap was perfect for us. this is the biggest feed pool in the world right now. software alone might be the biggest feed pool. out of those 12, seven of them were software. we look forward, it doubles our footprint. francine: are you looking to hire anyone from credit suisse? >> we did higher in the industrial in business. we're looking at that more and one opportunity as people decide. svb was amazing how deep and organize they were. it's a team that understood each other and

yes, we do have some benefit from the crisis, but you know, svb was very important for the ecosystem.g it easier to acquire net new customers today than we were before for our global spend platform >> one thing i'm curious about, just looking at your growth in the wake of all those concerns about svb, and the banking system as sort of more generally, what do you see as the industry that you're disrupting are you competing with the fin techs, with the established banking behemoths? who should be looking out for you, coming after them >> yeah, i would say that most commonly we're disrupting concurrent amex. we rarely compete, you know, with other bannbanks. a lot of our customers have a brex account, or maybe a jpmorgan or a wells fargo account in addition to us. think of us, we're paying your bills, running your credit cards, doing your expenses, but you can hold a lot of your money where you feel more comfortable with >> enrique, congratulations on landing number two on this list. >> thank you so much for having me >> and thank you, julia, for this interview, as well as the disruptor

he attempted to deflect blame. >> the takeover of svb is devastating.y sorry how this impacted svb's employees, clients, and our shareholders. >> did you make my poor decisions? >> senator, based on a previous question asked about looking in hindsight, i truly do believe that with the information we had at the time when we made our decisions, we made the best decision that's we could have. sn senator, there were a series of events that occurreded that led us to this. >> this was bone deep. it was down to the marrow. stupid. >> senator elizabeth warren pressed becker in a heated exchange in how much of his own compensation he was going to return. >> how much of the $40 million are you planning to return? how many times would we do this dance? >> senator, i promised to cooperate with the regulators as they -- >> are you planning to return a single nickel? >> senator, i no he there is going to be a process review of compensation. >> i'll take that as no. >> joining us is christine romans. much. >> that was something. bipartisanship on capitol hill. we have

what makes brex so attractive to startups since the fallout of svb?> there are two main growth drivers. the first is our enterprise segment of the business. in power, our solution has been serving customers like doordash, indeed, lemonade etc. go startups, midsize companies of the enterprise have been -- both startups and midsize companies of the enterprise have been attracted to our products. it is extremely global and works all over the world and for all your subs areas all over the world. that has been growing a lot. the second is our banking product. the regional banking crisis has definitely had -- we did not know if it would be a net positive or net negative for brex. now we know it was positive and customers came and stayed with strove a lot of growth. ed: i think you and i will never forget the friday when the svb story unfolded. we did a special program and we learned so much about how startups manage their finances and the type of funding they seek beyond just raising capital from vc's. caroline: what is interesting is silicon valley bank wa

so, where do you think we are in the fed's thinking >> i think humility is very important here since svb collapsed, since, we've had 50 basis points of rate hikes and based on some estimates, the credit crunch/contraction is the equivalent of an additional 50, so you've had 100 basis points of rate hikes since svb collapsed. just humility should tell you that the fed should take a pause. and i'm not saying that they stop raising interest rates, i'm not saying they need to back off on this inflation fight, but wouldn't it be prudent to take a step back, because to your point, tim, we don't really know how this is going to play out over the next three to six months, and if you don't really know, why would you then go raise interest rates shouldn't you raise or make a policy decision like that based on more confidence than looking at, okay, what's happened in the data today, which is reflecting what's already happened in the economy? >> peter, great to get your thoughts, thank you. >> thanks, melissa >> peter r bookbar. peter had an interesting note out about the other sort of side effects

was it bad or just a continuation of what we saw pre-svb? this is interesting thing from cameron crise saying demand evaporated. forget tightening loan standards. demand was gone in a way that was consistent with a recession. is this giving you some recession anxiety? manus: listen, what amazes me, i sat on a podium with bill winters down here in the middle east and he said he is not tightening up on credit or the credit committees around the world. we had state street in here who said don't worry about that. we thought things would drift off a little. i thought what? maybe i am scarred from too many crises. what is up with the markets? dani: it is fear of a credit crisis but just that. fear. it is not a real one yet. you see some support for asian equities this morning. weekly run us through this. there are some hopes that you can see more support from china when it comes to the real estate sector. european stocks edge higher. u.k. markets are participating today. it was a bank holiday yesterday. u.s. futures drift lower. manus: everybody i

. >> but the failure wasn't a surprise, much like svb. at the sort of fast and furious. this was maybe easier to foresee. i don't know that it was necessarily offsides, but i think it's recognizing the fact of what they have done has both aseparational consequences, so what they wanted to do was slow demand, maybe cool the employment market a bit, but it has they collateral damage consequences they did not anticipate they have affected financial conditions i think there was an acknowledgement of that, too, which i would welcome frankly. we have to add all the of the math together, and if it's working the way you wanted it to or not, if it's working to slow the economy, i'm glad that he acknowledged it. >> i appreciate you being here right off the top. let's bring in jeffrey gundlach, he joins us exclusively as he did for every fed decision today. what's your reaction to the decision today >> well, it was very noncommittal i think the market really anticipated that the idea they're not going to make a decision or a prediction or any inkline action about what's going to ha

svb cost them $20 billion. the question is noel quinn played his part in it but the question is what are the reverberations? morgan stanley overnight talking about more job cuts. >> we keep talking about job cuts and slumping dealmaking. we are hearing from sources that morgan stanley is planning 3000 job cuts and that is likely to hit the banking and trading group. at the same time, you have citigroup ceo jane fraser also hinting that perhaps they might see some job cuts if the dealmaking slump does not pick up. let's see what happens there. manus: noel quinn was just with us and he did not tag onto jane fraser and morgan stanley. he said they have been diligent in terms of cost being under control for the past number of years and going to restructuring. stefania bianchi, our team leader for finance in dubai. the aussie dollar is surging. the price hike hit the market hard. garfield reynolds in sydney. the message is clear and loud. the rba it will not be left behind. they want to re-anchor inflation. your fir

the company is laying off about 500 former svb workers. he said it was part of an effort to "make decisions to right-size our scope and scale to remain competitive." the ceo added, the layoffs don't include employees working directly with customers or any of the support team employees in india. also this month, at least 80 of its senior bankers have left for other companies. >>> it happened just 90 minutes ago. republican florida governor ron desantis announced he is running for president. the idea was to make that announcement on twitter in a conversation with elon musk. but major technical difficulties created a huge delay. nbc's alice barr with how desasantis was fininally able e makeke his intenentions knowown. >> reporter: a major shakeup in the 2024 presidential race with florida governor ron desantis officially launching his candidacy. >> i'm ron desantis, and i'm running for president to lead our great american comeback. >> reporter: tonight's long-anticipated announcement framed in an unconventional way. an audio-only conversation

santa clara based svb went under in march. the government briefly took over and sold it to first citizens bank. today the ceo of the north carolina-based company announced it would be laying off 500 worker, formally from svb. the ceo said it was part of an effort to scale down to remain competitive. the ceo added layoffs do not include any employees working directly with customers. >>> also tonight, could he be the next president of the united states? florida governor ron desantis used twitter to announce his candidacy. the twitter roll-out, though, was filled with technical difficulties. but his new ad got his message across. >> we showed that we can and mousse revitalizee america. we need the courage to lead and the strength to win. >> the florida governor dropping this minute-long video this afternoon. he was then supposed to join twitter boss elon musk for a town hall style q&a on twitter space. technical issue, though, repeatedly disrupted the announcement. when the event finally got up and running, after about a 25-minut

night before svb failed? >> i'm not aware if any, senator. we worked the primary regulator so we wouldn't have been the ones necessarily contacted in regard to that. >> but if they had come if there were interested parties and we find that there were, certainly should've been done the night before versus afterwards, it would've saved us all $35 billion? >> if there were opportunities for open institution solution that would've been perfect. >> if we find that i certainly hope that in the future we make those types of choices instead of ones that ultimately cause institutions all over the country to have to pay. thank you. >> senator warren of massachusetts is recognized. >> thank you, mr. chairman. so earlier this month when first republic bank collapse, multiple banks were interested in buying the failed bank. banking regulators chose jpmorgan bank, america's biggest bank. the result was a gigantic poorly supervised make was swallowed up by an even more gigantic bank, another biggest bank in the country is a

have you seen an impact post svb?instream americans have in banks is extremely low i think that was part of the opportunity we pursued when we started the company over ten years ago now. we haven't seen much of a change as a result of the svb situation. we are -- we had a relationship with svb we still do. and we think highly of the people and really feel for the people that were affected by that but in terms of our consumer base, 99.9% of our consumer deposits are fdic insured. they're well below the $250,000 threshold, and that is also really good and productive for our two bank partners. it allows them to have really strong stability in terms of the deposit base they enjoy and use to run their business. one of the elements of chime that makes us unique, i think, not only are we a great benefit to consumers who are avoiding fees, at the same time we're also helping small and mid sized banks having a very difficult time competing with the large banks who continue to get larger, and i think the last month has only fur

su: x svb ceo becker got worse perhaps of the criticism.wmakers had is how he sold $3.6 million of company stock with less than two weeks before the bank actually collapsed. he also, as mentioned, was pressured to give his $10 million a year in compensation back. he would not commit to doing that, though he said he will work with regulators to examine some of the money he received and perhaps look at giving some of it back would be the idea. haidi: the fed and ftse were also in the hot seat. su: regulators were right there. lawmakers really coming down on regulators on the lack of oversight. again, what were they doing that they did not see these banks starting to struggle and ultimately they'll. the fbi see chair, the national credit union administrator there testifying, and interestingly, the reports from the fed and fdic that had come out late last month said mismanagement was the root cause of the bank failures, but government officials acknowledged regulators bear a big part of the responsibility. haidi: su keenan with the latest. up n

this is svb's first syndicated loan since it was sold to first citizens bank.lender was known as a climate bank before the collapse. privet energy says it reflects svb and the commitment to solar financing. u.s. lawmakers or santos has pleaded not guilty after being arrested on fraud and money laundering charges. the congressman was released on a $500,000 bond and continues to face calls to resign. the federal indictment alleges theft of public funds and making false statements to the house of representatives. santos says he believes he's innocent and still wants to see the -- plans to seek reelection. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. shery: we do have more to come on daybreak asia stay with us. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh shery: softbank may swing to a quarterly profit when it reports later. our next guest has a whole call on the com

collapse, the friday before that weekend when svb went down it was 3.7. >> 3.63. >> reacting to a firmourse, is bringing the fed conversation back maybe broadlyc we do get some kind of a breather in the nasdaq 100, then there's the tell for whether yesterday's broadening out of the rally is something you can fall back on or if it's a bigger downside reset >> still watching for any debt ceiling highlights, headlines. >> the market is quickly trying to rush to a place we got it. not to say that there's nothing left for relief as we wait for some formalization that there is going to be, you know, the deadline will be averted at this point, we feel like we're moving past that people were saying hey, that could be bad news. either it's a sell on the news or now the treasury will have to go out and raise a ton of debt >> i've been hearing that more and more i'm sure you have, as well, for those looking at it as a negative no matter what. >> it's for people who feel as if the whole thing is just a bathtub and you're just tracking the water coming in and out of the bath rub, opposed to humans

rather than solely by regulation the idea is to break the cycle where we are now the folks at svb banke, first republic, they all came to congress in 2016 and said loosen regular laces. donald trump said i'll loosen the regulations on these multibillion dollar banks. they put in regulators who loosened the regulations in 2018, congress came along at donald trump's request and with help from democrats and republicans, loosened the regulations even more. you know what happened exactly what you would predict the banks loaded up on risk in order to boost their short-term profits and paid themselves huge salaries, bonuses, stock options. then when the banks blew up, they kept the salaries and bonuses. if you can get yourself to a position where you're one of the top executives -- >> how far back would they go? >> five years. >> total comp they would have to give back? >> it's because what the data show right now, gao report on this, said svb started its pumping its profits by taking on risk and pushing that money out to the executives five years before the failure you don't have to take it

what happened with first republic felt like a leftover of what we saw happen with svb?self and it would not have happened had those banks not failed? >> banks, it's a confidence industry. there is a lack of confidence in regional bank as cross the u.s. that is what the government is dealing with. >> you bring up such a good point. this is not like 2008 which all the leaders said. you had repeat really crappy stuff in 2008, to say the least. that's not the bafrmginnking sy that we're in today. that's no the what wear talking about. the fact that you're saying that short sellers could be sl demolishing these banks is troubling. >> it is capitalism. there is a whole debate on whether or not short sellers are good or bad and they have got a lot of backlash. >> that's fair. >> this is nothing like the 2008 banking crisis. it took a while for -- >> ten years. >> exactly. so, you know, it kind of went along. so there is no reason as of now to freak out, for lack of a technical term. but it is concerning and alarming. you do want to contain it and not let it spiral. >> i think

we have handled svb, signature, first republic, -- i think it is very important. the regional banks, they are quite strong. they are quite worried because the run on deposits. the financial results are good. they will be ok next quarter. they are earning money, got very good clientele, very diversified. francine: so you are asking janet yellen to get the job done, what does that look like? >> just be prepared for problems. francine: what do we need right now? do we need to look at short-sellers of banks? >> yes. my folks tell me that is not the problem, but if you actually analyzed stocks and short sales, isn't that big of a deal. i think they are partially wrong because as you know, some people are unscrupulous and use other means to go on shore. if you look at the detail, the sec has the enforcement capability to look at what people are doing by name and options, derivatives, and short sales. if someone is doing anything wrong, or people going shorter, they should go after them. vigorously. it should be punished to the fullest extent of the law. we have no evide

svb operates as if nothing happened after the fdic stepped in. jp morgan steps in with first republic in their continued operating. but the systemic issues are still there. we don't know why they are not going away. caroline: because interest rates are rising. the federal reserve continues to raise rates in the face of inflation and this robust labor data. we saw some weakness in the roles today. but there is a lot to talk about with executives. we welcome brian chesky and emily chang. take away the conversation. emily: thank you for joining us, lots of new features but the one i want to focus on his room. that's the headline here. it feels like groundhog day because rooms are where you are started. what are you trying to serve with these new features? brian: people want an affordable way to travel. one of the most affordable ways is to stay in a person's house. the average room is $67 a night. a lot of people said they are not comfortable staying in another person house which is why we created a host passport. it's a robust profile where you ide