svb. max, give us the latest news out of silicon valley bank.exactly like you are saying, we are seeing public companies come out this afternoon, telling us essentially how much exposure they have locked up at the bank. when you see a bank run like this, the concern is if you have deposits that are not injured, you will not have -- not insured, you will not have access to those funds. particularly with a commercial bank that is focused on one sector, if everyone panics at once and you see this drawdown motivated by talk from vc's telling their portfolio companies to get out, it's almost a classic for sinners dilemma where if everyone works together we won't see this happen but if everyone breaks you have this situation where folks are in dire straits and no clear way of getting at their money. caroline: talk to us about the contagion effect. how much are people now focusing in on other regional lenders that may be some are focused on the tech sector too? max: i want to be careful with how i talk about this because svb is a unique animal when it

march kicked off over i]7%, and then5a■ dropped on the svb news.not built. so what is the significance of that? >> yeah, it's homes sold, not even started construction yet. thisfá number has jumped really dramatically in the last two months. builders arefá probably going t be starting more homes. we have seenq housináp starts dp monthlxvo month, like when are they going to startq building again? what this would seem to indicate, they are going tozv■ e to put a lot of holes in the ground in the nextu■ coming months. the number of homes sold that are under construction or completed have dropped while the ones not started have jumped. >> diana, stay rightxd there. the next guest says housing is already in a recession, thanks to the high home prices, and it will take a long time toxd play out. mark isçó chief economist at moody's analytics. great to have you with us. the last time we spoke,jf mark, think a banking crisisjf happen. i'm wondering how you think ability of buyers tow3 get that mortgage? dianai] mentioned a respite whì% it comes to mortgage

they are the svb news the first republic news, the fed is in a difficult spot whether they hike or slow, or don't do anything, i think they will be under some criticism. i turn to the ecb as well. the ecb raised 50 basis points last week and, you know, that was still viewed as a dovish move because they didn't talk about further hikes going forward. so this is going to be a tough move 50-50 split. i think they do move 25 basis points and likely won't make any moves for some time. >> karen, the last word on this. the kre now just up over a half a percent. when we started it was up 2% first republic weighing on that etf. karen, what are your taking away from what we're seeing shares falling 20% in a few minutes, following news jpmorgan ceo jamie dimon and others are trying to shore up the bank. how do you think this weighs on the fed decision this week >> i think it should have an impact on their decision if it was 50-50 that they would do nothing or raise 25, i think the odds of do nothing go up it shows that hire interest rates, obviously, contribute to the mismatch between what banks a

svb collapse. it goes further than u.s. consolidations. sky newsng that hsbc is nearing a deal to rescue silicon valley bank u.k. sky also reporting the treasury announcement on svb u.k. is imminent. this is their plan a and we have heard reports of how to rescue the u.k. lender. joining us now on the svb fallout is octavio marenzi, founder and ceo of opimas. if i can, i want to start on this sky news reports that hsbc is nearing a deal to rescue svb bank u.k. is this the way you expect it to go, especially with assets from the u.s. at the smaller regional banks that might be under pressure, that this is an opportunity for larger banks to come and scoop up cheaply priced assets? octavio: it is definitely an approach to doing it, but the large banks like hsbc will want some sort of guarantees from the regulators, from the central banks that they have taken out of these things. we saw this in 2008 with the larger banks against the small ones, and i do not think hsbc is doing this out of the generosity of their heart. there are looking at this to say

as soon as news hit last wednesday, depositor were rushing to pull money out of svb at news that the bank sold bonds to raise cash. see on the one week charts of the regionals that other similar sized banks experience add wave of panicky customers yanking money out. you can see the big dropoff starting around thursday and shaking wednesday began dropping off thursday and big plummet this morning and slight comeback at the moment. let's take a live picture if we can at the doors at silicon valley bank's santa clara branch. that's the one on the left hand side there. those doors you see, now locked forever. then on the right, we've got first republic branch as that bank fights to hold on through the crisis. who's fault is this? should the government have save the depositors and where's that money coming from to rescue them? what are the implications for the banks that have shares plummeting and account market with hold the stocks and did the banking crisis give crypto renewed life? we have team coverage, former fdic share sheila baer and investor kyle bass who predicted and profited fr

justin andrews is live at svb in santa clara, following the latest news in the banking world. what have you learned about this? >>reporter: this means the 17 branches of svb will now open as first citizens bank. this comes just weeks after the bank collapse. this collapse really made a big impact on the banking industry as a whole across the country even the world. he made the biggest us bank to fail since 2008 sparking fears far and wide about the banking sector. this new purchase needs the positive svb will automatically become depositors of first citizens bank. if you loans from svb, he should continue to make payments as usual. the terms of your loan will not change according to the ftse. the new transaction covers 119 billion in deposits. 72 billion in assets. the ftse suggest you continue to use svb current renter to receive some type of notice from first citizens bank. tomorrow, the us senate banking committee will hold the first of several hearings on the banks collapse. senator mark warner, one face nation talked about this yesterday. >> if it ends up that a stress tes

svb's collapse. carol pepper joins us from new york.ve us your take about the latest measures being announced by u.s. authorities. we are seeing the announcements coming from the treasury, the fed, all trying to implement some measures to stop this contagion from happening. carol: the first message they are trying to deliver is we are in control, the u.s. is in control and we are not going to have a major collapse of our banking system. this should have been expected and it is what the u.s. does. the u.s. does not allow its banking system to fail. the fact they are going to give access to all the depositors on monday is excellent. that will calm the markets. i think they will handle us an irrational and orderly manner. this will bring confidence back to the markets but from the fed's point of view, there are additional dangers that need to be reviewed. i'm hoping this will help them have a good reason to pause because creating financial stability is the number one job of the fed. we cannot have financials to ability of more and more ban

breaking news at this hour regulators have just shut down banker svb, the largest u.s.e the 2008 financial crisis shares have been halted all day long because of the strong jobs report, we have to talk about whether the fed should hike by another ten point at its meeting? or should they slam the brakes before something else breaks dom chu has the latest on svb's co

svb. >> reporter: new mom and founder of dispatched goods, lindsey hoell, says she waited outside a menlob last friday before being told no one would get in. now she can soon access those funds and her business is safe. >> i'm really grateful that the federal government did step in at the right time and this is, i think about as good of an outcome as we could have hoped for. >> reporter: on monday armored trucks arriving and customers lining up as regulators took action to guarantee all deposits of the failed banks will be paid back in full, even those deposits over the federally insured amount of $250,000. president biden assuring americans it's the banks who will pay. >> no losses will be borne by the taxpayers. >> reporter: as many depositors breathed a sigh of relief, investors were still rattled. regional bank stocks plunging amid fears the pattern among bank stocks could spread. >> it's going to take at least a week to disseminate through all the other regional banks and try to ascertain or figure out are there other banks that have similar issues. >> reporter: even some of the larg

, amid new concerns on the health o large banks. on friday, svbor chapter 11 bankruptcy. the stock prices at th california-based first republi bank dipped by over 30%, eve after a 30 billion dollar cash infusion from jpmorgan chase morgan stanley and other large banks. joining me now, california representative tomm bera, congressman. thank you s much for being with us first. promise we are going to be talking about silicon valley bank, we're gonna be talking about what's happening i ukraine but i've got to ask yo you have the former presiden claiming that he is going to b indicted on tuesday, calling for his supporters to protest, and then you have kevi mccarthy, mike pence, senato graham, all rallying to hi defense. what does that say to you? >> it's chilling. i reminds me of january 6th an what happened after th election in november of 2020. would hope that the republican leadership acts responsibl here. let the grand jury d what the grand jury is going t do. most of us already -- feel like trump -- former president trump obviously paid off stor

new funding. they are earning through cash and withdrawing deposits. so, svb is having to sell more shares, some of its asset portfolio and ultimately trying to shore up its own capital position just one day after the crypto focused lenders over gate announced it was winding down and liquidating after its own customers had to withdraw deposits because crypto prices tumbled. what is to blame here? interest rates. they are rising as the federal reserve raises interest rates to tackle inflation. suddenly, boring old safe u.s. government bonds are pretty appetizing. they actually give you some yield. why take a riskier bet on a crypto company or a startup that may or may not pay off? this, ultimately, is the end of free money. it means valuations are sinking, and it's hurting certain lenders and companies that bet everything on taycan crypto sectors. -- tech and crypto sectors. shares continue to drop after hours for silken valley bank. bloomberg smacks reus -- max reus has been across the story. it venture capitalist were getting calls from the ceo of silicon val

firstly, when the news of svb first broke, i saw spreadsheets of insured versus uninsured posits by bankthey were available to anyone who is interested, either on the telephone or through emails. the market knew almost instantly who had the most uninsured deposits versus insured. that was shocking and i never saw that before. secondly, the impact of social media, we have heard a lot about this over the last couple of weeks. phone transfers of bank deposits has had an incredibly negative impact on uninsured deposits. i think regulators are really going to have to think through how they respond to this new reality. they are not going to force people to hold deposits for one week or two weeks or anything like that. you still want to give depositors the ability to withdraw their money quickly if they want to do that. but i have a couple of suggestions i have been thinking about. i think the first is that the fed should formally recognize the primary role as the bedrock lender of last resort in the economy. they should do that in addition to price stability. if they don't do that, people will

president biden ensuring americans that our banking system is safe despite the collapse of svb the news where they do business. leaving stocks of mid size banks to spiral. warning of economic chaos if this trend continues. joining us now someone who was directly impacted by the fall of silicon valley and that is launch pad capital ceo r ryan gilbert. ryan, not only are you personally invested there, but you have your clients there. what have the last few days been like for you? >> it was a classic being down in the dumps and now a little bit higher. at least the government acted. it took them about four days to do the right thing, which was guarantee depositors funds. >> brian: so, do you think they did that even though the rules say for a depositor you are only guaranteed up to 250,000? you think to break the mold it was okay? not a bad precedent? >> i think it was the right thing to do. the $250,000 limit was set in 2008 at the height of the global pandemic crisis. when this the fdic insurance balance was moved from 100,000 to 250. looks what has happened the past decade the massive i

svb may be a new name for many people, but it was a go-to bang for the tech sector. high-pro-final companies like roku, etsy, and fitbit were clients. some had hundreds of millions of dollars tied up with svb. all those deposits are guaranteeduncle sam. >> all customers who had deposits in these banks can reassured they'll be protected, and they'll have access to their money as of today. no losses will be born by the taxpayers. instead, the money will come from the fees that banks pay into the deposit insurance fund. the management of these banks will be fired. investors in the banks will not be protected. they knowingly took a risk, and when the risk didn't pay off, investors lose their money. that's how capitalism works. >> recwe're covering this from white house and capitol hill. matt, let's start with how we got here. >> we had a perform storm of things that went wrong and conspired to set off these second biggest bank failure in american history. so let's look at what happened. remember, silicon valley bank, it was enormously exposed to the tech sector, and that

regulators took the extraordinary step of taking over svb and new york based signature bank to guarantee their clients' deposits. matt, what more are we learning about these investigations by both the justice department and the sec? >> well, john and briana, clearly authorities are taking this bank collapse very seriously. our colleague paula reid confirmed the justice department is looking into potential criminal violations here, and that's on top of "the wall street journal" reporting the fec is looking into potential civil vielgs. what are authorities looking at? two things. one, the actual collapse of the silicon valley bank. two, stock sales that were made by silicon valley officers in the days before this collapse. now, we should caution the stage of these investigations are in the preliminary stage. we don't know yet if there's going to be findings of wrongdoing, any changes here. clearly there's an effort across the government to understand how this happened. silicon valley bank was not a household name a week ago, buto now it's going down in history as the second biggest bank fa

resolution around svb in the u.s. and the news that regulators and officials in the government and the u.s. are potentially looking at expanding the emergency lending facility. let's move the board and look at the banking space. a sense of relief at the start of this week. we will see if that will. santander gaining 35%. hsbc, unicredit and natwest all up on the back of this news. broadly across the sector gains of 3.3% across the banking sector here in europe the first human it's. you have seen losses of around 80% in the last two weeks. that is the picture across the banking space. there is really. whether it holds is a question. francine: switzerland's banking regulator says it is exploring a possible investigation into credit suisse after how top managers ran it for collapsed. the fallout from the saga continues to be felt across europe's banking sector with bank shares falling in european trading. let's bring in tom metcalf. after the steep drops on friday, things esteemed -- seem to be stabilizing but for how long? tom: it i

also, in a letter obtained by cbs news there's a new push by some house lawmakers calling to extend temporary lines of credit for those that deposit at svb, saying that there needs to be calls for assistance with essential costs like payroll. robert? >> skyler henry, thank you. and one more note from washington. president biden tomorrow is expected to announce new protections against oil drilling in alaska and the arctic ocean. the decision comes as regulators prepare whether to announce an oil drilling plan pushed by conoco phillips and see if it's allowed to move forward. >>> to california now. at least eight people dead after two suspected smuggling boats overturned off san diego's coast. it happened last night. thick fog and high tides hampered search efforts. the coast guard says all the victims were adults. >> since 2017 we've had a 771% increase in human trafficking in the southern california coastal region. since 2021 we've had 23 lives lost at sea. >> the nationalities of the victims are not known. >>> to weather now. a strong nor'easter is expected to blow into the northeast starting tomorrow night, bringing the heaviest snow o

. - have a lot of our capita with svb and when the news broke, that, we heard on the grapevine that svbto put mitigating strategieses in place, to survive as a company. for strategieses in place, to survive as a company-— strategieses in place, to survive as acoman . ., , a company. for the government, this crisis came — a company. for the government, this crisis came out _ a company. for the government, this crisis came out of— a company. for the government, this crisis came out of the _ a company. for the government, this crisis came out of the blue. _ a company. for the government, this crisis came out of the blue. the - crisis came out of the blue. the sudden collapse of a bank in the united states left thousands of british technology businesses facing potential oblivion, a solution has to be found and it had to be found quickly. 0 now hsbc has stepped in. its buying svb's uk business for one pound, ensuring customers can access their money and avoiding the need for any kind of taxpayer funded rescue. ~ ., . for any kind of taxpayer funded rescue. ~ . . ., rescue. we were faced with

the collapse began with the bankruptcies of the california silicone valley bang svb and the new yorkcha bank their total capitalization of about 300 billion dollars mothers, fathers, business owners, comes to the bank and sees only the announcement is closed until further notice both banks are faced with asset depreciation of depositors' money. they invested in mortgage bonds bought at the height of the pandemic at low interest rates, but the federal reserve . desperately, fighting inflation, the rate was raised by half a percent to almost five, and today the same bonds can be bought on much more favorable terms, and the cost investment portfolios of banks decreased significantly. so they began to urgently sell papers at a loss; they had to sell papers on the market, where they suffered real losses that cannot be hidden in the statements. and this created panic. people say, look at the beginning of the week, they reported $2 billion in losses. better. i'll take my money. as soon as possible, investors began to empty their accounts from svb, withdrawing up to 45 billion per day, and t

regulators say they're taking emergency measures to make sure depositors of the new -- the now failed silicon valley bank or svb will have taxi to all their funds starting today. they say they're taking similar measures for investors of signature bank of new york which collapsed yesterday. >> i've been working all weekend with our banking regulators to design appropriate policies to address this situation. >> reporter: svb's failure on friday was a major concern to the tech and wine businesses it financed. its collapse followed closely by signature bank's raised concerns about how this could reverberate among other financial institutions. treasury secretary janet yellen reassured customers on "face the nation." >> the american banking system is really safe and well capitalized. it's resilient. >> reporter: according to a joint statement released by the federal reserve, the department of the treasury and federal deposit insurance corporation, they're acting in a way that, quote, fully protects all depositors. regulators insist the plan will not include using taxpayer dollars as the two failed banks have not been

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the banks in europe that seems to be the problem at least of this morning at the moment >> and the svb newsand figure out things later. i don't think that many of these large european banks have dep deposit clean risk there is the potential for a large credit extension contraction that banks are going to embark on, focus more on firming up balance sheets. and rather than focus on lending. and also you have years of low interest rates where a lot of these banks loaded up on duration, and in europe, up until recently, with yields below zero so, there is a lot of toxic stuff in terms of mark to market, not in terms of where they will end up ensuring getting principle back that's what this is, a balance sheet rethink that the markets have, and also you have to wonder with a lot of these banks if they're going to have to start going out and raising equity well, that's going to dilute shareholders i want to make an important point that unless concerns about another svb bank run, but i think investors, at least equity holders, need to be worried about what the loan story is looking like, and what

alix: let's get back to the breaking news, svb has now failed.re looking at the amount of deposits. it's the first insured institution to fail this year. david westin spoke with former u.s. treasury secretary larry summers and they talked about the concerns about systemic risk in the banking system. larry: if this is handled reasonably, that this will be a source of systemic risk. alix: let's get the latest from sonali basak. sonali: when you have a crisis of confidence things can move pretty quickly and there is a process. the fbi see is bringing this into risk sever ship -- into receivership. they cover accounts but beyond that you have to give them a call at this point. the fbi see is taking the bank into receivership. this is one of the largest bank failures in history. as one of the top 20 banks in the united states. at the end of december it had 200 billion. guy: the treasury secretary was giving testimony earlier on and she said she was watching a number of institution. what are you hearing? what are people talking about as far as how far

shareholders and bond holders in svb in watch out and taking over a second risk of signature bank in new york it will backstop its deposits by the federal government and i noted barney frank is on the board of signature bank. it will provide financing across the countryby offering loans for up to a year janet yellen is saying keep your money where it is. it is guaranteed for the next 12 months it may give some of the banks, the smaller banks which may be having trouble, time to get their acts together and get deals. >>> new this morning, hsbc is buying the us silicon valley bank for 1 pound the sale protects the deposits of the silicon valley bank uk clients. and first republic getting additional funding from the fed and jpmorgan $70 billion in liq. all weekend, lots of folks talking if the company would get taken over bankers hired and lots of people looking at the bank. we will keep our eyes on this bank for some time having said that, between this investment firm jpmorgan chase and the backstop from the fed, the hope is that money does not move to prevent a run on that bank president

we have a lot of our capital with svb, and obviously when the news broke that — well, we heard on the get our funds out as quickly as possible. that was unsuccessful, so over the weekend we really had to scramble to put mitigating strategies in place, to survive as a company. for the government, this crisis came out of the blue. the sudden collapse of a bank in the united states left thousands of british technology businesses facing potential oblivion. a solution had to be found and it had to be found quickly. now th ebanking giant hsbc has stepped in. it's buying svb's uk business for £1, ensuring its customers can access their money and avoiding the need for any kind of taxpayer—funded rescue. we were faced with a situation where we could have seen some of our most important companies, our most strategic companies, wiped out, and that would have been extremely dangerous, and that is why the prime minister, i, the bank of england, were all rolling our sleeves up over the weekend to make sure we had a solution. the government insists the collapse of svb did not pose a wider risk to th

lawmakers are looking into the failures of svb as well as new york signature bank svb collapsed whenured depositors began to pull out their money right out of the bank. all it wants. federal reserve vice chair michael bar called. s v. p s failure, quote. a textbook case of mismanagement. the risk the bank face interest rate risk and liquidity risk. those are bread and butter banking issues. the firm was quite aware of those issues they had been told by regulators, investors we're talking about problems with interest rate and liquidity risk publicly, and they didn't take the action necessary. the fed said it's considering whether stronger rules are needed to prevent further failures, and it will review whether the collapses can be partly blamed on a 2018 law that we can bank regulations and the collapse of the silicon valley bank has many small business owners rethinking where to put their money. some small business owners have moved their money from small regional banks to larger banks. others have moved some funds to another bank just to make sure that they would have access to that

with a new svb situation that may add to that and create further tightening in lending conditions but the point the fed has been trying to engineer some of that, like a slowing of the economy in order to bring inflation back to 2%. as part of the normal transmission mechanism when you raise rates, you are likely to see a cut in credit. the question as to what extent has svb and the turmoil -- terminal rate has calls likely to add to the tightening in lending standards and credit restraints. on that front we know from the long historical record that that takes time for the economy to respond to such a tightening. it is not typically happening suddenly. kriti: how to talk about the dot plot because when we talk about the move, it feels like the uncertainty back into the dot plot is something to take note of. ranges from 2%-two .5% in the next couple of years. walk us through your thoughts on the dot plot. should it be something to worry about that the forecasting mechanism is so broad? marc: yes. all fomc members come from different backgrounds and viewpoints and assessments. as a resul

why is brex now turning some of that wind fall around and playing back into the new svb bridge bank? up next the ceo of brex like airbnb, door dash and customers and will explain the move with the closing bell ringing. dow is up 280, we're keeping an eye on first republic down 45%. ♪ who's on it with jardiance? ♪ ♪ we're the ones getting it done. we're managing type 2 diabetes and heart risk. we're on it with jardiance. join the growing number of people who are on it with the once-daily pill, jardiance. jardiance not only lowers a1c, it goes beyond to reduce the risk of cardiovascular death for adults with type 2 diabetes and known heart disease. and jardiance may help you lose some weight. jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration, (that can lead to sudden worsening of kidney function), and genital yeast or urinary tract infections. a rare, life-threatening bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this infection, ketoacidosis or an al

the upside in the last week or so >> there was essentially mass market chaos amid news that they had funds stored in svbey had about $3 billion. the stablecoin they were issuing would have been devastating. markets rallied, and that's what we're seeing today there was other news that was binance. they announced they would actually be converting 1 billion busd into bitcoin and either yum. this is pressure on the entire market which is essentially skyrocketing prices. >> that's really interesting that news to converting to bitcoin and ethereum, the fact they want to take their coin and turn it into pop already more well-known coins, you're saying that's creating some of the rally, right >> yes essentially they're going to be buying bitcoin and ethereum. this is a lot of money especially since they're relatively liquid right now, that will cause significant pressure it's unclear whether they've actually started the purchases but the news alone caused a market rally. >> there's a fundamental reason here a lot of times you look at the movements. this time there's a lot of fundamental reasons. >>> not too lon

let's get right to the news with svb and the big bank withs this morning. right,, lauren, are people able to get their money out? lauren: yes. happy monday morning. the fed, the treasury and the fdic launched an emergency measure last night. all customers will have access to all of their deposits today. that includes uninsured deposits. that is a big deal. 94% of silicon valley bank's deposits were uninsured. in part, this step will insure that the u.s. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a matter that promotes strong and sustainable economic growth. regulators say the taxpayer will not be on the hook. so that's what happened last night to insure a smooth opening and running of the banks this morning. 9. stuart: got it. now, new york's signature bank, that was closed by regulators as well as svb. what was the issue at signature? lauren: yep. for this bank i would say crypto. 16.5 billion of their 88 billion in deposits were in crypto. regulators deemed that

svp's new owners will also take over more than $56. billion in deposits. former svb employees showed up to work as usual at the santa clara branch. one worker told us he got a call from rally. the north carolina this morning it was his new boss on the phone from first citizens welcoming him to the company. the worker who wanted to remain anonymous told us there is now some sense of relief for people who work at silicon valley bank. this bank was the country's 16th largest bank when it collapsed on march 10th after too many customers trying to withdraw their money all at once, as vbs demise shook the financial world, i don't believe we're going to have bank collapses like people fear, but banks are going to tighten lending. they're going to pull in liquidity and that is going to cut off the lifeline to a lot of businesses. federal regulators are scheduled to testify before congress on the matter this week, and a prepared statement released this morning. the federal reserve vice chair for super a vision called svb failure, a textbook case of mismanagement, saying quote

svb client. thank you forjoining us on bbc news. happened with svs, ., ., f~ reaction to what has happened with svb. ., ., i~ ., , reaction to what has happened with svs. ,, ., :~ ., , svb. quite a 48 hours, you never imaaine svb. quite a 48 hours, you never imagine something _ svb. quite a 48 hours, you never imagine something like _ svb. quite a 48 hours, you never imagine something like this - svb. quite a 48 hours, you neverj imagine something like this could happen. it has been a bit of a well went. svb as they go to banking choice for so many british companies and it is really unthinkable that there is a risk that deposits will not be hundred percent accessible tomorrow, so it has been quite scary and we just really need to be government to support us to ensure that all of thejobs government to support us to ensure that all of the jobs and the innovation that so many uk companies work with svb offer our stable. tell me, if ou work with svb offer our stable. tell me. if you can. _ work with svb offer our stable. tell me, if you

news. ama: not to the latest on the banking crisis that began with svb. new steps to avoid further to our moral and the banking industry -- further turmoil in the banking industry. reporter: in the latest effort to shore up the financial system, the ftse says new york community bank has agreed to pay the purchase -- agreed to purchase signature bank for $40 billion. renamed flagstar bank. it will include the purchase of over $38 million in signatures assets. more than a third than the bank had on hand when it failed a week ago. bloomberg, reporting warren buffett has been in talks with the white house to invest in other regional banks, like signature. the failure of signature and has placed greater scrutiny and oversight after the fed knew more than a year of issues facing svb well before its collapse, even issuing several warnings about svb's poor internal risk management systems. oversees following a week of volatility in the banking system, swiss regulators brokering a deal for investment bank ubs to acquire credit suites in a $3 billion deal -- suisse

not suggest wrongdoing, some shareholders are in a new class action lawsuit, claiming executives failed to disclose how rising interest rates made svby susceptible to a bank rung. the failure of the bank and new york's signature bank are raising fears of contagion, with moody's downgrading its rating of u.s. banking system from stable to negative and putting some regional banks under review. for travis, who found another commercial bank to do business with, hard times are still ahead. >> we have a list of all of our suppliers, and we're just calling every single one to say we're not going to be able to pay our bill this week, possibly not next week. >> reporter: and for those resons, travis is completely fed up and done with this bank. but as of now, it is officially known as the silicon valley bridge bank, and today its new ceo reassured existing customers that all of their deposits, even those above a quarter of a million dollars, norah, are fully protected by the federal government. >> all right. errol burnett, thank you so much. >>> the "cbs overnight news" will be right back. ♪ma ma ma ma♪ [clears throut] for fast sore throat r

: what's interesting is silicon valley bank, which is previously underneath svb financial, it still got a bridge bank, got new executives? ed: yes. it is svb financial that did the chapter 13, svb the branch bank and 10 used to be a california charge bank under the receivership of the fda see and cannot fall into bankruptcy. that said, astonishing reporting on the bloomberg terminal. one year ago the san francisco fed brought in a new assessment team, quickly flagged issues at that bank and asked management to act on it what have we reported? sonali: this is a complicated thing and there are a lot of questions asked, not just about how they lobbied for easiness when it came to how they operated, there is a lot of questions about whether the system across the united states is not equal to begin with. one example you pointed out is the role back in rules helped catapult the expansion here of silicon valley bank in the most recent years. i would also say when it comes to the way they lent to businesses, they had different rules than some of the largest banks that are occ chartered and had really strict rules aro

street journal" says federal reserve had been looking into alleged risky practices at svb dating back to 2019 and "new york times" says the fed review flagged that the firm did not have enough easy to tap cash. elected leaders are calling for answers. >> we need accountability for our regulators who clearly fell down on the job, and that starts with jerome powell. >> we need to get to the bottom of whether or not there is supervisory problem, regulatory problem, bank mismanagement problem, perhaps all three. >> meanwhile president biden is pushing for legislation that will hold top bank executives more directly accountable if banks fail. he wants to enable regulators to take back salary and bar them from working in the industry again. >>> former president 2024 candidate donald trump made headlines over the weekend when he pry dictated when he will be arrested this week. he called on supporters for help in any way. that is reminding people of the lead up to the january 6 capitol riot. the latest from new york. >> reporter: former president trump is calling for supporters to take action as he faces poss

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. alix: apollo blackstone is all interested in purchasing svb'sart with that news, what part of the loan book are they interested in? sonali: it is seen as an attractive set of assets. svb secured relationships, there is a part of that loan book that is very attractive. the likes of apollo started lending out secure assets so softbank. you can see this as an extension stepping into the venture space and to make the loans more secure for themselves. since 2008, there has been this wholesale shift of lending activity over the private markets. they have raised a lot of money and you can see this as an extension of that. apollo looking at these silicon valley assets after the deals they have done with credit space. an interesting move into the private market. guy: we are seeing stability returning, a bounce in the regional bank stocks today. will that make it easier to unwind silicon valley bank in the process that lies before us? herman: their loan portfolio was not the issue that led to their downfall. their portfolio had been really strong, 53% of

name in the game, but is this a bit of a warning that perhaps people shouldn't rely on these new banks like svbanks are really where the safety is? i think the answer to that is a question i want to ask you... who else are they going to go to? svb started i believe in 1983, so a0 years ago, precisely to fill the void that the big banks don't want to be a part of. they don't want to be lending to tech start—ups because they think they are risky. a lot of these founders don't have established credit history. a lot of them are immigrants, so that's what svb caters to. what we have been saying, it's all great and wonderful when the money wheel is turning, and people are making money, and all of a sudden everyone is like, wait, the warning sign was there, but was it? no—one was saying anything. the federal deposit insurance corporation have said they will step in to guarantee some people's deposits. joe biden spoke to california governor gavin newsom and pledged federal support, is that any reassurance to any of these companies? yes and no. the insurance deposits, there is a certain limit, 250,000,

news. a north carolina bank, first citizens, has acquired the troubled silicon valley bank svb reopens thisfirst citizens.

svp's new owners will also take over more than $56. billion in deposits. former svbmployees showed up to work as usual at the santa clara branch. one worker told us he got a call from rally. the north carolina this morning it was his new boss on the phone from first citizens welcoming him to the company. the worker who wanted to remain anonymous told us there is now some sense of relief for people who work at silicon valley bank. this bank was the country's 16th largest bank when it collapsed on march 10th after too many customers tried to withdraw their money all at once, as vbs demise shook the financial world . i don't believe we're going to have bank collapses like people fear, but banks are going to tighten lending. they're going to pull in liquidity and that is going to cut off the lifeline to a lot of businesses. federal regulators are scheduled to testify before congress on the matter this week, and it prepared statement released this morning. the federal reserve vice chair for super a vision called svb s failure, a textbook case of mismanagement, saying quot

bank, this morning dow futures falling 600 points as plunging shares of credit suissespasz hit a new low. svb, strong support for far left social causes including 73 million to black lives matter, while just one member had banking experience on a board packed with democratic mega-donors. douglas, it is a mess. >> douglas: it is a mess. there used to be a cutesy line, if lehman brothers would have been lehman sisters, this wouldn't have happened. she said it a lot. i said that is absolute nonsense but it was symptomatic of the era, this idea there had been too much maleness in lehman brothers, too much whiteness, too much straightness and in the wake of the 2008 financial crisis, banking should not focus on expertise, but instead on identity. now that is not surprising, by the way, one of the top officers at lehman brothers, who happened to be a woman went on to svb. straight to svb. if you look at the criteria, svb had for not who they wanted to employ, who they were going to loan to. they didn't know who was going to get their money back, but if they were lending to enough minority and femal

federal deposit corp made friday the deadline for acquiring svb and signature bank they will work to facilitate the new auction. regulators tried to sell svb and signature last week before taking over the banks. very interesting i have to say the speed with which the uk regulators got hold of svb uk and found a buyer for it, hsbc over the weekend, compared with the longevity process in the states, for once, it is uk moving swiftly and affirmatively and having a good result >> keep in mind the size of the uk bank may be smaller and we heard due diligence of five hours. you can imagine that structure >> larry finke is warning more shutdowns in the wake of the silicon valley bank collapse the crisis is the result of decades of losing money and other american lenders with a strong reliance on leverage are at risk. finke said this is similar to the crisis in the 1980s which saw over 1,000 banks fail. >>> goldman sachs is cutting back growth forecast for the year it is under pressure as regional banks look to stockpile liquidity. goldman now expects the u.s. economy to expand by 1.2% in 2023 which is down 0.

not suggest wrongdoing, some shareholders are, in a new class action lawsuit claiming executives failed to disclose how rising interest rates made svbbank run." the failure of the bank and new york's signature bank are raising fears of contagion. with moody's downgrading its rating of the u.s. banking system from stable to negative, and putting some regional banks under review. >> i think this is a great wake-up call. >> reporter: cbs news business analyst jill schlesinger says that with inlation so high, the fed may reconsider its aggressive pace of interest rate hikes. >> on one hand you would say, the fed has to raise rates, inflation is still a problem. on the other hand you say, wait a second, there was just a ripple through the banking system that unnerved people. >> reporter: for travis, who found another commercial bank to do business with, hard times are still ahead. >> we have a list of all of our suppliers, and we are just calling every single one to say, we are not going to be able to pay our bill this week, possibly not next week. >> reporter: and for those reasons, travis is completely fed up and done with this bank, b

new owners will also take over more than $56. billion in deposits. former svbmployees showed up to work as usual at the santa clara branch. one worker told us he got a call from rally north carolina this morning. it was his new boss on the phone from first citizens welcoming him to the company, the worker who wanted to remain unknown. thomas told us there is now some sense of relief for people who work at silicon valley bank. this bank was the country's 16th largest bank when it collapsed on march 10th after too many customers tried to withdraw their money all at once, as vbs demise shook the financial world. i don't believe we're going to have bank collapses like people fear, but banks are going to tighten lending. they're going to pull in liquidity and that is going to cut off the lifeline to a lot of businesses. federal regulators are scheduled to testify before congress on the matter this week, and it prepared statement released this morning. the federal reserve vice chair for super a vision called svb failure, a textbook case of mismanagement, saying quote

abc news has confirmed reporting by "the new york times" that the federal reserve was aware of risks to svbthan a year before its collapse, raising new questions about why the fed failed to act. according to "the new york times," in a 2021 review of the bank, the fed issued a warning to svb over its risk management systems, and subsequently issued several more, finding significant weaknesses in how the bank was managing key risks. by 2022, the fed rated the bank deficient for governance and controls. the fed is now conducting a internal review into how it regulated and supervised svb. in the meantime, legendary investor warren buffett has reportedly held talks with biden administration officials about the banking crisis. if you'll recall, warren buffett, that legendary investor stepped in during the 2008 financial crisis. he bought shares in goldman sachs back then for $5 billion and made more than $3 billion on the investment. meantime this morning, we have news that new york community bank has agreed to purchase signature bank and then finally, robin, the federal reserve according to gold

kris sanchez, nbc bay area news. >> kris, thank you. >>> now, at the santa clara svb headquarters building, we saw lines forming earlier this morning as many of those people there went to get their money out. >> our scott budman picks up our team coverage. scott, you also saw federal officials passing out doughnuts to those in line? >> reporter: yeah. the federal officials that have taken over silicon valley bank have dispensed advice all morning long and even brought doughnuts. we have video of that. they've been here since about 7:30, and people have been lining up since about 7:00 this morning, waiting in line to get their money, waiting patiently, and the good news was, after a weekend of nail-biting, they found out they'd be able to get their money. now, i should say, you certainly do not have to line up outside the bank to get the money that is coming to you from svb. the fdic has an online way to do this. i'm told that's taking a little while, but as we have seen here, it's also taking a while, people are waiting in line. at 9:00, when the branch opened here in santa clara, people w

on sunday, march 12, just two days after the failure of svb come another institution, signature bank of new york with 110 billion dollars in assets in 2022, was closed by the new york state department of financial services which also appointed the fdic as receiver. with other institutions experiencing stress, serious concerns arose about a broader economic spillover from these failures. after careful analysis and deliberation, the boards of the fdic and the federal reserve voted unanimously to recommend and the treasury secretary in consultation with the president determined that the fdic could use emergency systemic risk authorities under the federal deposit insurance act. to fully protect all depositors in winding down svb and signature bank. it's worth noting that these two institutions were allowed to fail. shareholders lost their investment, unsecured creditors took losses. the boards in the most senior executives were removed. the fbi see has authority to investigate and held accountable the officers of banks for the losses they cause and for any misconduct in the management of the in

. >> we have a new development in the svb a gam one streaming company taking a leg ler iown the fterhourstell you why when "fast money" comes right back. [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. >>> we have a market flash on roku shares dropping in the afterhours >> sarah, roku filed a s.e.c. filing saying it has funds at svb bank as of march 10th, they amounted to $487 million, which of course largely uninsured. that represents 26% of the company's cash, they say, but they have $1.4 billion in cash and cash equivalents distributed across multiple large institutions they say their deposits with svb are uninsured and at this point the company does not know at what point they'll be able to recover the cash on svb. notwithstanding they believe they have existing liquidity balance and cash flow from operations will be sufficient to meet working capital, cash expenditures and ma rterial cas requirements at t