silicon valley bank is a smaller regional bank. why did you advocate for government intervention here? >> it was clear i was against bailouts. i didn't think any of the investors should be protected and they are not. i didn't think any of the shareholders to be protected and they are not. i think we should -- back money from the executives who sold stock. i have been advocating very strongly for that but depositors just put their money in the bank. they should be protected. they are not assessing the risk of a bank closing and the dangers we hadn't protected those deposits or funds would have been some of that money would have gone all to the four new york banks and we wouldn't have regional banks. unlike 2008, the assets underlying silicon valley bank are good assets. it is not like they made a bunch of bad loans. made a terrible decision to just be long-term treasury bonds without a -- and they are suffering the consequence but that is why i don't think it will cost the deposit insurance fund money because ultimately, they will b

you didn't test silicon valley bank. >> we did not apply stress test silicon valley bank. it was using its own stress test. >> did you have the authority to do that? >> under the existing regulations, no. we would've had to change regulations. >> under congresses amendment to dodd-frank, talking about 2155, isn't it a fact that we gave the federal reserve the authority to stress test silicon valley bank? >> under that legislation the federal reserve could have put in place a rule defining the word periodic in a different way than was done. >> but you didn't, did you? >> the federal reserve did not. >> if you had stress test. let me put it this way, if you had stress test silicon valley bank in 2022, it wouldn't have made any difference would it? >> i don't know the answer to that question. >> well you didn't test for silicon valley bank's problem. i've read your report. your stress test, stress tested these 34's for falling gdp, a spike in unemployment and defaults in commercial real estate. isn't that correct? >> yes in a typical adverse scenario for banks >> testing fall

hsbc is stepping in buying silicon valley bank.t is showing us the right color this morning the rest are trading lower that is in contrast to the early indications that we see upbeat action deutsche bank is hard hit in germany on friday. down .60%. co commerz bank is down here. we are seeing the fears here and concerns if interest rates go up, what does that mean for the maturity profile for the european lenders we had a special tprogram announced in the united states to manage the bond portfolios. we don't have the same here from the central banks. perhaps some questions around what that could look like and reassessment after what has been a strong trade in banks, but still risk is coming back off the table. let's get too hsbc which flipped into the red it bought silicon valley bank uk for 1 pound in a deal fac facilitated by the government. officials held all-night talks to prevent the lender from falling into solvency. we have sylvia with the rescue come monday morning. walk us through the details. >> reporter: exactly in the en

do you have money with silicon valley bank? john: silicon valley bank is one of the banks we use. as well as some of the other ones mentioned. the right thing, the prudent thing, we have learned is counterparty risk once these things start, this is a classic bank run and win a bank run starts, you don't want to be the last either wondering what happened. the way the banks work as they rely on trust. when they lose trust, bad things really will happen. ed: john, we have so much to discuss about what is happening with avalanche. but, we have to stick with this story because it is happening before our eyes. what do you do in this situation? do you follow the advice of names in the valley like founders fund and pull the money? do you stick with it? i have to point out there were a number of names bloomberg cited in its reporting that fed what we are seeing in silicon valley bank is not the same as silver gate and long-term they have a solid future. what would you do in this circumstance? john: hopefully, you have to diversify out. maybe, not pull everything, but pull some. caroline: y

ed: let's talk about how the silicon valley bank meltdown has impacted silicon valley.eally talked about out west and all the companies here that are suffering as a consequence. we will bring in bloomberg's smelly basket -- sonali basik, and tom giles leading the coverage from the tech perspective. what we are learning rapidly is it's not just private companies and founders with exposure here, there are publicly traded technology companies with exposure too. tom: this company, this bank had its tentacles across so many different industries, so many different types of businesses. these are publicly traded companies that kept a lot of their cash with svb, and clearly when you have 26% of your cash, the case with roku, that goes well above what is insured. this is a company that is falling in late trading. they disclosed in a regulatory filing their shares are down 6%. 26% of their total cash was held within silicon valley bank. rocket labs i another wents. -- another one. a lot of companies saying we have exposure or minimal exposure. that is something these companies nee

literally called silicon valley bank. it seemed that one point yesterday there was a bit of a herd mentality, a lot of people are moving money and people are talking about moving money. vcs are per -- are advising the import folios to move money. other people look around -- portfolios to move their money. other people are looking around to see if they should to. everyone likes to talk about being a contrarian inditex industry. i think maybe -- in the tech industry. maybe this situation shows it is not that way. kriti: reporting from the lobby of an svb bank office. svb becoming the stock of the hour, early we spoke to former u.s. treasury secretary about what the collapse of svb would pose to -- a risk to the financial system as a whole. take a listen. >> if this is handled reasonably, and i have every reason to think it will be, i do not think this will be a source of systemic risk. ♪ [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely

didn't test silicon valley bank -- we >> did not apply a stress test silicon valley bank. it was using its own stress test. >> did you have the authority to do? it >> under our existing regulations, no. we would have to change our regulation to have that authority. >> under calm versus amendment to dodd-frank, senator crapo talked about 21. 55, -- isn't it a fact that we gave the federal reserve the authority -- the authority to stress test a bank? under that legislation the authorities could've put a place -- in a different place then was done. >> right. but you did not, didn't you? >> the federal reserve did not do that. >> if you had stress tested -- let me put it this way. if you had stress tested silicon valley bank in 2022, it wouldn't have made any difference, would it? >> i don't know the answer to that question. you didn't test for silicon valley bank's problem. i read your report. your stressed test these 34 banks for fall in gdp, spikes in unemployment, defaults in commercial real estate. is that correct? >> yes, in a typical address for banks we are testing fal

currently examining the collapse of silicon valley bank.er stock sales by executives violated trading rules. want to bring in a big-name from silicon valley. for her take on all of this. ginni rometty, former ceo and chairman of ibm. she is out with a new book called good power. what you make of the focus in particular of oversight of board membership, executive management at this moment? ginni: something i have learned over a long time and working with boards, it has never been more important and the importance it can have on your board, people with all different disciplines. you had mel on earlier talking about the importance of cybersecurity. it goes to show it is a job everyone needs to take seriously. caroline: you sit on the board of jp morgan. the only big bank with still the same ceo from the big crisis era. i am interested what your perspective is from a banking perspective. and what that means for the sector in general. ginni: there will be many quarterbacking events taking place after that. from a regulatory side, 200 billion. wh

in their news release, silicon valley -- the fdic, rather, says silicon valley bank santa clara was closedthe california department of innovation and protection which appointed the federal deposit insurance corporation as the receiver so, the administrator of this now wound-down bank, the process of being wound-down bank, to protect depositors the fdic has created deposit insurance at santa clara bank they have immediately transferred to this new receiver bank all of the insured deposits that were held at silicon valley bank they go on to say that all insured depositors will have full access to their insured deposits no later than this coming monday morning, march 13th the fdic will pay uninsured depositors an advance dividend within the next week and those uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. uninsured that are held at silicon valley bank. this is all happening as the fdic sells the assets of silicon valley bank. when they do, future dividend payments will be made to those uninsured depositors the point here being,

it's called silicon valley bank.rol of customer goes deposits, the largest such failure going back to the meltdown of that year. this comes as venture capital-funded firms, i should say, was trying to raise money to plug a loss from sales due to higher interest rates. it has a lot of treasury notes and bonds on its books, more than half of its better than $200 billion are treasury notes and bonds. the irony there is those are conservative investments and as safe as you can be. but for a company like this, leveraged to the point that the it needed cash past to cash out of those, it would be underwater and, obviously, you know what cascaded since. federal regulators have said and janet yellen, the treasury secretary the, has emphasized that this is not widespread, they're monitoring the situation, and the fdic will back depositors there. we have gary kaltbaum on the significance of what's going down. and what from what we -- from what we hear, gary, we also have with us douglas are holtz-eakin and susan li. so, gary, o

having interest rate risks with silicon valley banks. they discuss the horizontal reviews are doing the horizontal review. >> thank you, yelled back. we will stand in recess the committee stands in recess for five minutes. [background noises] [background noises] >> admit it will come to order the chair now recognizes mr. rose for five minutes

and a former top executive at silicon valley bank. and we have the ceo of indoor labs and a customer of silicon valley bank. good morning. your company works with open-source software and the software supply chain, and the paycheck that you pay your employees come out of silicon valley bank, right? >> yes, scott. thanks for having me. we have 42 employees that are distributed globally. we do make payroll directly but silicon valley bank. until last week, 100% of our deposits were at silicon valley bank. >> take me back to that day in which you thought to yourself, oh, no. what went through your head, what convinced you to take your money out of silicon valley bank? >> i was interviewing candidates around 10:30 a.m. on thursday, when my feed had an article about reuters talking about silicon valley bank. my first reaction was, well, this is quite a normal reaction, and then my phone started exploding with text messages from other founders, entrepreneurs, venture capitalists, and the mood shifted from 10:30 in the morning being oh, seem

the important thing to note is silicon valley bank doesn't just bank for silicon valley.s on startups that serve a lot of critical infrastructure everything from clean tech, deep tech, in the case of my firm, defense tech these are firms that are doing really critical things for all of the united states spread across the evenntirety of the united states. >> i have a semi political question for you so many of the folks in silicon valley, not all, but a vocal contingent of true libertarians in sellilicon valley called for less regulation. we have vcs who say, you know what carried interest on taxes, we s shouldn't have to pay that because we're special and we help startups. we are a unique breed of people. does the vc community say i'll be humble and say thank you. maybe rethink what the approach is around what just happened maybe it wasn't a 2008 bailout, but guess what happens it is now happening and somebody came to the rescue and somebody has to pay for it. >> those are all very fair issues what i would say is i think what people have been saying consistently is calm do

as the silicon valley bank rescue brings out the bulls. it is march 14th, 2023 you are watching "worldwide exchange" here on cnbc >>> good morning welcome to "worldwide exchange." i'm frank holland. kicking off the hour with the futures. a wild day of trading yesterday that ended with the dow extending the longest losing streak since back in september futures right now in the green across the board the s&p and dow and nasdaq up .50%. we are also checking the bond market move lower in yields on the heels of the silicon valley bank rescue the 10-year treasury at 3.58 something to watch here. the 2-year treasury yield is 4.173. the spread narrowing in the last day. afte at last check, 58 basis points, reversal that spread was double previously we are watching oil which is impacted by the svb fallout. wti is $73 a barrel. down 2.5%. brent crude at $79 a barrel. down 2%. natural gas is up 1.5% we are watching crypto with bitcoin above $24,000. a lot of people saying it is count counter intuitive after the closure of silicon valley bank. >>> fut

there was a concentration of risk on the part of silicon valley bank. they catered to early-stage startups which have a high rate of failure in the first place. on top of that if you have panic that is driven by social media in many cases you have the venture capitalist firms telling their clients at the bank to get the heck out so the speed at which this happens. is there something you need to be doing because the velocity of money people can hold their money out like that and we equip, they have the longest drone history but it's something new and different needed. >> i think that is an important question to ask and we are dealing with in different environments and the point that you raised in terms of how quickly and with the technology exceeds what occurred in the past as a new risk factor that we have to think about. i would like some distinct brief answers if you could. you know how many citations specifically the matters requiring attention mra and those that were issued to silicon valley bank regarding the management of liquidity risk. i think i

i5 for silicon valley london or a silicon valley uk.— for silicon valley london or a silicon valley ukuk. is that good news question mark i think _ silicon valley uk. is that good news question mark i think that's - silicon valley uk. is that good news question mark i think that's bright l question mark i think that�*s bright in that the first course of action, or the first possible outcome seems to be an acquisition of the entire bunk. even the parent company in america which obviously scv uk was a subsidiary. there are reports that the regulator in america is try that and accept bids through an auction process today at us time. early front rotors for that conversation were banks such asj.p. morgan and others of the like. similarly, here in the uk, clearly, hm treasury and the bank of england would like to see silicon valley bank uk is potentially acquired as part of that process or of its own. as your sources have reported, the bank of london has submitted a formal bid for sub others said hsbc have done the same. some are reports and about middle eastern groups such as a loyal group

it will definitely impact the valley. because look, if people are of become unemployed as a result of this is going to impact the economy, is silicon valley housing prices will go down costs, let me go down. people will move out where to lower costs environments, such as the heartland. so there's a lot of implications just beyond the finance side of it. but all the other hand, as they say they're always innovations out there and there could be another buyer emerge even this weekend. well, you sort of mentioned some solutions here, and there are calls for government interventions across the globe. what could be done and how likely is this involvement with the government? i think the government, you know, made it move with the taking over the bank very swiftly. and what part the government will play in maybe approving a new buyer in dulling out that money that is in, in the, in the remain. then they are going to play a part in that, getting the money out to the portfolio company to the founder is a venture funds that we'll

not just in silicon valley but across the nation but please come back.rex and see how the story develops. >> thank you. liz: any time. howard schultz left the building or c suite at starbucks and new ceo wasn't going to start till he earned his barista certification before stepping into the role. who is the man? find out next and what maybe he plans at the next shareholder might. closing bell ringing in 35 minutes. dow is up 322, s&p up 27, nasdaq up 19, and yes, we're continuing to watch first republic, still down about 46.25% right now. stay tuned and "claman countdown" is coming right back. sometimes you're so busy taking care of everyone else you don't do enough for yourself, or your mouth. but eventually, it will remind you. when it does, aspen dental is here for you. we offer the custom dental treatments you need, all under one roof, right nearby. so we can bring more life to your smile... and more smile to your life... affordably. new patients without insurance can get a free complete exam and x-rays, and 20 percent off treatment plans. schedule y

no bay loud for silicon valley bank. the lender sadden collapse, has lifted companies and investors stranded. what would it mean for the global economy will bring you analysis also coming out. moldova says pro russian actors are trained to cause unrest during anti government protest. interesting. now we'll hear from our correspondence via and with osgood and i just hours away. now, hollywood is getting ready. we'll take a look at the films tip to win the academy awards. ah, i'm, we'll all soccer. it's good to have you with us. us treasury secretary, a janet yellen has said the government is not looking at bating out silicon valley bank offered was shut down by you as regulators on friday. the bank is the 16th largest in the united states. authorities say they were worried about the banks. they quit as he offered lost money while selling assets. the concerns from to the banks. depositors mainly tech companies to rush to withdrawal fund sparking phase over the wida banking sector. speaking on sunday morning, british financ

one problem is silicon valley bank., there's other stories coming out now. i know a lot about this situation. they're having a hard time having people to help them finance it. how do you value loans on the book from portfolio companies of vcs that are not making money? i mean, that's what we're talking about. silicon valley bank went out on the risk spectrum giving loans to these businesses. there's a double whammy there and that caused it to implode. when the companies are losing money, they have money here, you take out here to make up for the money you lost. >> neil: are there's others out there -- one thing i can remember the craziness of the meltdown is cooler heads did not prevail. with the tumbling of the stock market, the currency was gone. >> yeah, i don't know if there's other banks. there's lots of rumors about banks being in trouble. i don't want to mention those banks. i don't want to be a part of that. you can look at those stocks. those are the rumors ones. this can't be an isolated instance. it cannot. r

>> silicon valley bank was our founding sponsor.e us our first check when we were still in the idea stage. they were the person to take on the most risk when it came to finding things at the idea stage. they really took a chance to make ecosystem better as a whole and we really wanted to partner with a bank that saw our vision and what we were trying to create. we were helping everyone break into venture and build their own startups. last but not least, we actually helped them raise capital for their own funds. that is one of the key things that we will be missing is that first check in that will allow people to make this system better. we were exposed because we were there banking partner and that is something that i come as an investor and a founder was really cognizant of. i have other founders reaching out to me. as a founder and investor, i can clearly support using my own experience and the experience -- the community as a whole. quest -- ed: they have open their doors. what have you done to help founders make payroll? have yo

the silicon valley _ why the silicon valley bank?licon valley bank has why the silicon valley bank? "tt2 silicon valley bank has been why the silicon valley bank? tt2 silicon valley bank has been around for a0 years, it is very well represented in the tech industry, as you know, many tech start—ups bank with them, hundreds across the uk, thousands in the us, they represent about 50% of start—ups, so they have until 72 hours ago had a fantastic reputation of understanding the nuancesin reputation of understanding the nuances in the start—up community, which are different to established companies, and they are very well positioned to help with our sector and ensure that we were looked after correctly. and ensure that we were looked after correctl . ~ , ., _ and ensure that we were looked after correctl . ~ ., . , correctly. when you say nuances with the sector, does _ correctly. when you say nuances with the sector, does that _ correctly. when you say nuances with the sector, does that imply _ correctly. when you say nuances with the s

given the size of silicon valley bank, it is reasonable for me to conclude that silicon valley bank was not on the fdic's problem bank list released just three months before its collapse. including the issuance of matters requiring immediate attention from the supervisors were those findings communicated to the fdic's? >> the criteria is to be rated four or five on the scale and at that time it was not rated a four or five so we would have been in the position. >> why wasn't this share for the purpose of the fdic's problem bank list? >> the fdic makes him independent judgment. has the bank ever previously been on the fdic's list of problem banks? >> the reason i hesitate is we don't put the aggregate assets on the problem list. we don't indicate to the individual institutions. >> i believe i can come back and answer your question if i may follow-up for the record. >> the answer is yes. >> we will come back with any answer for you. >> thank you for your testimony. i still think there are lots of questions regarding what happened here especially with silicon valley bank and i appreciate y

also coming up no bailout for silicon valley bank. the lenders, southern collab says lift companies, an invest stranded, we'll find out what it means for the global economy. plus, moldova says pro russian act as a trained to cost unrest during anti government protests in the capitol. ah, i'm all also welcome to the show. hollywood is gearing up for a glamorous night at the oscars this year. 10 films are in the running for best picture, including books, office hits such as top gun and avatar. and a surreal fan fiction film set in a multi verse. the biggest surprise of this awards season is a german anti war ethic that might just break a record. the final touches are being made at the dolby theater in los angeles. before the stars arrive on this year's champagne carpet in germany, all eyes and hopes are on the netflix blockbuster all quiet on the western front. the story follows an idealistic german soldier sent to the front lines in world war one. speaking in hollywood, german culture minister claudia wrote said parts of the film succe

yes, this is it, just these lilies of the valley are silvery, in some cases, the lily of the valley isentioned, not in a single word. well, like here, for example, here it is generally written go go manga well we hope that, nevertheless, the actions of rospotrebnadzor will have actions and , accordingly, such products, where this butyl-methylphenylpropionate will be removed from sale we hope but now that's all it stands in your houses. therefore, while we hope and wait for advice, all cosmetics and all household chemistry check butyl phenyl. methyl propional, can be written in two words butyl phenyl and the second word of methylpropylene or lylic aldehyde and note that not everywhere. there is the word lily of the valley or lily, it is generally mango like this, and this substance is contained there. these are disturbing news, but forewarned , then armed, let's take a break for a while, and then we will continue good mood products three products that will reduce the risk of a depressive state with make-up not to hide eye diseases that arise from the soul for eyelashes. safe rules using

both silicon valley and signature. and we also had before us evidence of significant liquidity stress of other institutions and we have data in terms of deposit outflows. i think that was basically the data we relied on. >> if the chair will submit that data for the record an answer, would you be willing to do that? the data -- >> yes, of course,. >> related to systemic risk. >> yes. >> we will now go to the gentleman from iowa mr. nunn for five minutes. >> thank you, mr. chair. thank you for being here today. if you would just with a show of hands, you believe that us most americans do i as i said and as the president said the taxpayer should not be on the hook for that? would you agreeee with that statement? >> yes. >> further, would you agree with the statement that we should have diversity within our banking system? >> yes, i agree. >> specifically then would you be supporting our regional banks, are small and local banks and recognize the undue burden the potential you are going to be saddled with as a result of a

and silicon valley bank has a relationship with them. it is a wonderful franchise, and i would suspect that there will be many buyers, perhaps even new venture buyers in the bay area that will put together by out and that will further stabilizing. now keep in mind the owners of the bank. those people that own stock in this bank. they're going to take it terrific haircut. they may in fact, lose all of their equity in the bank. and frankly, that's the way it should work as well as the managers losing their jobs. can can i ask you to look ahead a little bit? would you expect any rules changes? you know new laws coming as a result of what we just experienced this weekend. yes i would hope that what happened in the 8 4009 great meltdown following that the congress and i was there for this past the dad, frank. thanking legislation and that required that the banks be adequately financed that they also go through a whole series of tests in 2017 when trump and the republicans took over congress and the presidency, they removed the midsize and sma

charles: probably no surprise, right, but the aftermath of the silicon valley, signature bank, their failures, the blame game now shifting into overdrive. president biden blaming the prior administration and hinting at reckless banks. there were adjustments, of course, to the dodd-prank in the prior administration. they were actually done to allow community and regional banks to lend more money rather than hoard assets. the decision to roll those back, the more onerous parts, was actually bipartisan, and i'm knot talking about just one person. 33 dems in the house, 17 in the senate. is so i get the clarion call, but if we keep blaming the last person, we'll never fix the issues right now, and that is really the big issue of the day. let's take care of what we have to do in front of us. i think liz would agree. liz: yeah. charles, you and i have been sweating this one out, certainly. all that's been happening in the past, what would you call it, 100 hours? 24 hours ago charles and i were watching these i -- markets as they held their breath as every financial stock was dropping or out

an email from somebody in silicon valley who went to an atm at the silicon valley bank and could not access it yet let's hope things open in a bit. 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,

what's next after the collapse of silicon valley bank? president biden is expected to speak any minute now. we're live in washington with the new plan from federal regulators and the ripple effect being felt nationally. >> road closures, and major cleanup. this as the next big storm takes aim at the bay area. now, crews are scrambling during the brief break we're getting from the rain. live team coverage ahead as we brace for the next atmospheric river. this is "today in the bay," streaming live on roku, xumo, and online. that river coming in. [ laughter ] >> let's work on that one. >> you can call it a pineapple express to use other language. >> the timing of this is going to be critical because they're doing a lot of prep. and, unfortunately, the areas that have been impacted, there's a likelihood we're going to see that again because impacts are coming, especially for areas around the levies. back to you guys. >>> this is an nbc news special report. here's craig melvin. >>> breaking news at the white house right now. president biden ta

and silicon valley had 2.5% of their deposit mix in core consumer goes sents. your typical big bank has anywhere from 30-50% of deposits in this core consumer deposit area which are very safe, very sticky and don't run out of a bank at the first sign of stress. very different than the silicon valley makeup, and that's why we think on these types of, the downdraft from this problem, this is the time to buy quality names like jpmorgan chase, bank of america mmt bank, many of these. cheryl: keith, last word to you with. i do want to switch gears over to the jobs report for the month of february. we didn't get that big january revision that a lot of us were expecting, myself included. but at the same time, we kid get an interesting headline, and the focus really became on the wages. wages rose 4.6% annually below the forecast, a little bit higher from january. so it really is that story as we look at 504,000 jobs, you know, that -- well, that was for january. but for february, 311,000 jobs, and the unemployment rate ticking up to 3.6%. but back to that wage story,

not silicon valley bank, of silicon valley. everyone needs to be clear on that. this was not a bail out of hard working americans with small accounts. this was a bank that only catered for the most part to silicon valley and their customers. how did silicon valley get so big? all the money at the beginning of the pan pandemic. 90% were pure crap the others went out overvalued. everyone who bought them at the ipo price. every american is losing money right now. all that money went to silicon valley bank. their deposits went up to 200 billion. the average bank over that same time went up 35%. they are living large and having a great time. what do they do with the money? they don't lend it out. who the hell needs a loan in silicon valley. they don't lend it out. they put it into different things and start investing with it. they say let's buy these bonds. this is the tricky part and i think the overall market will get hammered this morning. when banks put the bonds -- two ways to put bonds on your books. one is held to maturity. if you do that you don't have to mark

silicon valley rails, if the you will, to make payroll. had that not been the case you could have gone weeks without pay roll being able to be made if you had most of your money in silicon valley bank and you're a small company. that he threat is gone. i think what you'll have going forward is these companies now are going to be diversified from day one and whether you like it or not they're going to be with the big four banks. they're going to have accounts with jp morgan chase, bank of america, citibank and wells fargo and less so with first republic bank and silicon valley bank and the ones like them so you're going to see more diversification in the banking partners which is probably good given what we have seen happened at silicon valley bank. maria: there's only a handful of the large systemically important banks you're referring to, the global banks, jp morgan and bank of americas of the world. can they the take on all these companies that are worried that they don't want to go with the smaller glangs they would love to. i'm sure ja

after a five-day selloff at silicon valley bank, there were questions of all regional banks. a bounce back of sorts the kre etf is still down 25% over the last week we are looking at some of the names in the etf first republic catered to a simil similar clientele to svb with. pacwest is up 9% we are watching the 2-year tre treasury investors continue to run to bonds for safety a week ago, the 2-year treasury closed above 5%. this morning, that has fallen below 4% prices and yields move inversely. we are watching the yield curve. it is seen as a recession indicator. we have seen reversal. the spread now 46 basis points it is shaping up to be a very interesting morning here on wall street as you were talk about it, the inflation gauge cpi is a data point. jay powell said the fed is watching as they make decision of rate hikes this month now after svb could a hike be off the table? our fed watch tool has even odds, ladies >> frank, thank you for breaking it down. it is remarkable looking at the analyst comments coming through today with the fmoc expectations it feels not a lot o

why is there so much discussion about the bankruptcy of silicon valley? it has caused concern in the us. the weight and position of this bank in the us economy . status changes the economy of the countries after the deep crisis , which is finally the increasing opal of the inflation rate, is currently under control, that is, in europe, which is a strange inflation rate , and sometimes it is surprising that the interest rate changes will be reinvested at a certain point. markets as one of the addictions that lead to abyssinia, on the other hand, trust in the market , currently in banking, banking professions , trust with you, trust in the market , what happened and after that 12348 collapse . in other words , they bought an iraqi for investment and increase he found that in 2015, according to this news agency report, he announced that they will get permission in the us congress that there is a need when you need it, like today, when you have no confidence that you have prepared, for example , you have 10 billion dollars in cash, for example, dollars in cas

what happened at silicon valley bank impacted it's core client base. start -- start up and venture capitalists. what have your takeaways been? guest: i have been watching the hearing and vice chair michael rr -- barr field and most of the questions from the senators. it sounds like they did a review of what happened and what could've been prevented under direction of chair jay powell. was there a good way for them to see what was coming? do they need more stringent standards? he said that size is not a good proxy of risk. when silicon valley bank grew to over $100 billion in assets, should they have seen the rapid growth was part of the equation? we also heard them say that his group will be looking at whether they should change its rules. it would take a notice of proposed rulemaking. they are assessing with the could've done differently. ed: you at the technology policy institute, put yourself in the shoes that the founders and vcs that banked at svb. do you think what they heard from the panel satisfied what they went through and the questions they

arm of the collapsed silicon valley bank. hsbc u.k. acquired silicon valley bank for 1 pound.$1.21, okay. in a deal that excludes the assets and liabilities of silicon valley bank's u.k. parent company, silicon valley bank. so what a are your thoughts on hsbc? is this china controlled? how do you see hsbc, hong kong of -- used to be hong kong shanghai glang yes. bank. >> yes, the thing about hsbc. china has extraordinary influence over that bank and so we have to look at this as beijing buying the assets of silicon valley bank. really, what we're seeing right now is china trying to take over the u.s. it's not just the agricultural land, not just the financial system. it's everything. and we've got to get china out of our society. i know a lot of people will think that's drastic but we are now at a point which is a crisis because we know what chinese leader xi jinping talked about. he talked about destroying the united states and just -- we cannot allow that to occur. we americans have not been paying attention to what the communist party has been saying about us. just as we di

if there was a run on the bank as we've seen it with silicon valley bank. how serious is this class? are we looking at the start of the next financial crisis? well, i mean, that remains to be seen. most experts i've talked to are saying that specially the big bangs in the united states, for instance, are safe for now. but actually what caught them all this term in the beginning was also that, for instance, the federal reserve increased interest rates very aggressively in the past year. on the other side, that meant that the price is for treasury. it's for a bond to got to under a lot of pressure. we're talking about unrealized. lots of us banks at unrealized losses of about $8000000000.00 by the end of $21.00. then we started this cycle off increasing interest rate. so now us things are sitting on unrealized losses in the amount of $620000000000.00. that is no problem as long as clients are not putting their money. so now we have to see if we see more, a bank runs in the days and weeks to come. so janet ellen has rolled out a bailout. what does that mean fo

here you are in the valley you funded a bunch of companies.e money in a bank you assume is safe and then this happens. >> well, i'm a board member at a bank in california and i have 34 banking as -- banks. it made sv b's existing loans much less valuable the government raised the cost of being a bank, and svb picked a very bad day to take a loss. the net effect is, deposits started running away from the bank, and those of us that wanted to get out before the herd beat us, we were stuck. it's a very important lesson in the future, treasury management is something that everybody needs to think closely about. >> where did you wire the money to >> we have relationships with other institutions like jpmorgan chase. hopefully they're too big to fail >> let's all hope. did you have personal money at svb, as well that's one of the most interesting parts of the story, you intertwined everything was personal money, maybe mortgages of the like, what about you? >> no, i didn't. i try and keep my businesses affairs different from my personal affairs but one

and you saw what happened to silicon valley bank.hat they're sending, wouldn't you say a a lot of goeser thes are going to say, okay, i'm going to take out my money, and a lot of people in silicon valley had already set wire transfers for this morning to go elsewhere. wouldn't you start banking with a big four or five bank because you know your capital is safe concern. stuart: yes, i would. susan: those successicly risky -- systemically risky banks. stuart: the outcome is maybe the big banks get bigger. of. susan: right. which means there isn't any competition. in the end, that hurts depositors, you'll have less competition when it comes to the loans you can access. stuart: bring us up to speed on the technology companies, not all of them small, that was clients of svb. >> i think we need to start with circle in particular because if we can bring up circle, i don't know if we have a read on that, but there is some serious pressure on one of the largest stable coins over the weekend. circle had $3.3 billion stuck in sill silicon valle

that's been out of the can valley. now. everybody loves silicon valley. maybe it's good that we bid them out. maybe it's not on the lease where you, where you don't tell me what do you think about the start up executives, should they have done their homework better and maybe put their money somewhere else other than with as b, b, i me don't, they carry some responsibility here for what they do with their money. i think the rate i would say a venture capital and start a business that's a business of making wrist and very confident that these entities have the right to being bailed out by to do with government. but because that's what happened yesterday is some things that i think that figure a lot of the b because i mean, before we run out of time european stocks, they suffered some big losses today. should europeans, should they be worried that this is just the beginning of something that will not end well on this side of the atlantic as well? i don't think so. i mean, of course we'll see what comes with the next few days. and i've been surprised that you

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a dozen funds, all silicon valley bank customers.g partner and founder entrances now. thank you for joining us. how are you looking at this and how it is as to affect your clients ultimately and how do you navigate it? >> yes, first of all, thank you for having me. i really apologize. this is my first time on your show and here we are talking about the gloom and doom. i was listening to the previous segment, and it seems like it is widespread. last week i was not thinking about credit suisse or -- so it shows you how interconnected we are. as far as silicon valley bank is concerned, it hit me personally as well. i can acknowledge it now that we are over the hump. all of our operating accounts were also in silicon valley, so [indiscernible] i was trying to help our clients navigate to this unprecedented crisis. i was also trying to figure it out because it was an existential crisis from the un whether we would have the lights on next week or we could pay payroll. i'm happy to say that we are in a safer zone with the fed stepping in, b

silicon valley bank's fall was one of the fastest in history.'s largest bank run. my next guest has written about the curse that has underpinned this modern crisis. gillian tett is from the financial times. and welcome. and i want to ask you to put your head on as a anthropology, and the way this works culturally because what happened here was triggered by social media and by the kind of virality or the speed with which a communication happens today. is that at the heart -- at particularly the speed of this bank run? >> well, the roots of the credit comes from the latin meaning to believe and finance without trust is worth nothing. and one of the problems that bankers and regulators that grappling with is we live in an age of cyber flash mobs. because of this news could flash around the world and you get explosions of passion that flare-up and die down. now we saw the political implications with the arab spring and the implications in the fashion and music world where suddenly things become trendy and then disappear from sight. we've seen it in

and explains what happened t silicon valley bank.he end, where he writes, quote, in its prox statement, svb notes tha besides 91% of their board being independent and 45% women, they also have one black, on lgbtq+, and two veterans i'm not saying 12 white me would've avoided this mess, bu the company may have bee distracted by diversit demands. with us with more, our dea friend kara swisher, editor at large of new york magazine, an host of the podcast pivot an on air with kara swisher and also justin wolfers, professor of public policy a the university of michigan kara, refresh my memory. when the actual financia crisis happened, the entir investment banking industry wa led by white guys. what was under it was th festering subprime crisis. and there was not a band o lgbtq transgender mortgage brokers selling upside dow mortgages to people across thi country. what kind of nonsense argument are they making here >> it's nonsense, nonsense argument when i saw that, i was shot. and the same thing comer was saying he's completely ignorant