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Speaker 1: By from the Bloomberg Interacted Brokers Studios. Is Bloomberg day

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Speaker 1: Break for Thursday, March thirtieth. Coming up today, Big banks

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Speaker 1: may have to pay the price for recent bank failures.

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Speaker 1: A top name on Wall Street says the banking crisis

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Speaker 1: is mostly solvable. FED Chair J. Powell signals another rate

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Speaker 1: pike in the cards, and Russia detains a US journalist

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Speaker 1: on allegisfying charges. A heated moment in the House as

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Speaker 1: a New York congressman criticizes the GOP about gun blandings.

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Speaker 1: Plus the NYPD prepare security for passover celebrations. I'm Michael Barr,

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Speaker 1: Poor Ahead, I'm Dom Statch Alon Sports the next greetfiteat

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Speaker 1: shoot that win for the Islanders at its opening day

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Speaker 1: in Major League Baseball. That's all straight ahead on Bloomberg

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Speaker 1: day Break. The business news you need disturn your day

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Speaker 1: in just one fifteen minute podcast each pointing on Apples, Spotify,

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Speaker 1: the Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Nathan Hager and I'm Cameron Moscow. Here are the

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Speaker 1: stories we're following today. New developments in the banking crisis.

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Speaker 1: Bloomberg News has learned the big banks may have to

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Speaker 1: pay the price for recent failures. We get more from

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Speaker 1: Bloomberg's Valerie Titel in the FDIC has an insurance fund,

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Speaker 1: and it's estimating that the cost of bailing out the

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Speaker 1: uninsurance depositors when it comes to SVB and Signature Bank

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Speaker 1: is going to be around twenty three billion. So it's

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Speaker 1: going to look to top up this insurance fund in

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Speaker 1: some manner, and it has full discretion on how it

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Speaker 1: does that. And it's become clear in the way that

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Speaker 1: the chairman has communicated that they will be looking to

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Speaker 1: put less of the cost on smaller community banks and

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Speaker 1: perhaps charge the bigger institutions more when they look to

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Speaker 1: top up this fund. Bloomberg's Valerie Titel says representatives for

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Speaker 1: the FDIC, as well as JP Morgan, Bank of America,

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Speaker 1: and Wells Fargo all declined to comment on our story. Well, Nathan,

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Speaker 1: the bank failures have led to no shortage finger pointing

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Speaker 1: on Capitol Hill. After two days of hearings, FED Vice

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Speaker 1: Chair for Supervision Michael Barr is acknowledging that regulators could

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Speaker 1: have kept better tabs on Silicon Valley bag. We got

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Speaker 1: reaction from a former US Treasury spokesman John Rizzo. As

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Speaker 1: we get into this more, I think we're going to

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Speaker 1: find that there are probably multiple points of failure here,

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Speaker 1: both failure on the part of the financial institution, but

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Speaker 1: also more that regulators of overseers could have done to

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Speaker 1: intervene when signs of trouble emerge. Former Treasury spokesman John

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Speaker 1: Rizzo was a guest on Bloomberg Sound On What Joe Matthew.

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Speaker 1: Catch the show weekdays at one pm Eastern on Bloomberg

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Speaker 1: Radio or listen on demand wherever you get your podcasts. Well, Karen,

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Speaker 1: a big name on Wall Street, says the US banking

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Speaker 1: crisis is mostly solvable. In an interview in Tokyo Today,

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Speaker 1: Blackstone chairman Steve Schwartzman said, quote, the banking system is

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Speaker 1: not in any type of conventional crisis. Schwartzman blames the

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Speaker 1: turmoil on the after effects of the pandemic and technology

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Speaker 1: rather than bad loan. Well, turning to the economy, now, Nathan,

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Speaker 1: we're getting more hints that the Fed is not done

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Speaker 1: raising interest rates, and we get the details live with

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Speaker 1: the Bloomberg's John Tucker. John Good Morning. Karen Powell spoke

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Speaker 1: to a closed door meeting of conservative lawmakers, and there

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Speaker 1: wasn't much reason to have closed the door. He told

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Speaker 1: them the same thing that he's told everybody else. Follow

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Speaker 1: the dots. That's the dot plot or the summary of

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Speaker 1: economic projections from Fed officials. It lays out one more

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Speaker 1: rate hike from the Central Bank. Then a meeting was

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Speaker 1: scheduled before the collapse of Silicon Valley Bank, and according

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Speaker 1: to one of the lawmakers who attended, Paw said Congress

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Speaker 1: should reevaluate limits on the size of federally insured bank deposits.

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Speaker 1: Live in New York, I'm John Tucker, Bloomberg Daybreak, Thank

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Speaker 1: you John. In Asia today, Chinese Premier Lee Chiang is

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Speaker 1: painting an upbeat picture of the economy and calling China

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Speaker 1: an anchor for world peace. Bloomberg Daybreak Asia anchor Brian

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Speaker 1: Curtis has more from Hong Kong. Lee touted China's economic recovery.

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Speaker 1: He told the Boao Forum in Hainan, chaos and conflict

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Speaker 1: must not happen in Asia. He said China would not

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Speaker 1: take the path of colonization or plunder, and he called

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Speaker 1: for the world to stick to multilateralism. The four day

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Speaker 1: Gathering comes as Beijing rolls out a charm offensive for

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Speaker 1: overseas business and investment, China is no longer one of

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Speaker 1: the top three investment priorities for US firms, according to

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Speaker 1: the American Chamber of Commerce in China. In Hong Kong,

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Speaker 1: Bryan Curtis Bloomberg Day Break A right, Brian than. So

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Speaker 1: we now turn to a breaking story where following this morning,

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Speaker 1: Russia has detained an American journalist on alleged spying charges,

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Speaker 1: and we get the latest live with the Bloomberg Steve A. Rappaport.

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Speaker 1: It's Steve, good morning, Good morning, Karen and Nathan. Russian

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Speaker 1: security forces arrested Evan Gershkovitz in the city of Yakadinsberg

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Speaker 1: on espionage charges. The FSB agency says Gershkevitch tried to

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Speaker 1: obtain classified information about the activities of the Russian military

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Speaker 1: industrial complex. As for what those activities were, local media

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Speaker 1: reports suggest he was investigating a special operation involving a

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Speaker 1: network of mercenaries known as the Wagner Grew. Gershkevitch is

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Speaker 1: the first American reporter charged with espionage in Russias since

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Speaker 1: the Cold War. Live in New York, I'm Steve Rappaport,

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Speaker 1: Bloomberg Daybreak, Steve, thank you. Back here in the US,

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Speaker 1: We're pushing pause on a controversial story in politics, and

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Speaker 1: New York grand jury hearing evidence about Donald Trump's roll

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Speaker 1: in an alleged hush money payment looks like it's getting

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Speaker 1: a break. Bloomberg's Ed Baxter has the story. The first

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Speaker 1: announcement came they would not meet again this week. Then

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Speaker 1: Bloomberg News reported that the grand jury is not expected

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Speaker 1: to reconvene until April twenty fourth. We're told that Manhattan

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Speaker 1: District Attorney Alvin Bragg could still bring members back to

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Speaker 1: hear evidence in the Trump matter, but that it was

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Speaker 1: not officially going to be put on any docket. The

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Speaker 1: last testimony came from National Enquirer publisher David Pecker. Trump

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Speaker 1: has denied the affair in any wrongdoing and said the

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Speaker 1: probe is a political vendetta in San Francisco. I'm at Baxter,

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Speaker 1: Bloomberg day Break, All right, Ed, Thanks, So another geopolitical

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Speaker 1: news this morning, The president of Taiwan made a stop

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Speaker 1: over in New York and called the island's future a

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Speaker 1: test for the world. The Taiwan President's it may further

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Speaker 1: escalate tensions between the US and China. Beijing says the

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Speaker 1: visit will have a severe impact on its relationship with

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Speaker 1: Washington and staying in New York now caring. The latest

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Speaker 1: census numbers show Manhattan's population has grown. While New York

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Speaker 1: City's other four boroughs lost residents in the twelve months

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Speaker 1: through July first, Manhattan added more than seventeen thousand residents.

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Speaker 1: It is still about ninety eight thousand residents below pre

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Speaker 1: pandemic levels. Thirty two degrees right now in Manhattan, it'll

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Speaker 1: be breezy this morning. Sunny and cool today with highs

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Speaker 1: in the upper forties. We'll get down to the upper

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Speaker 1: thirties tonight under a Hartley cloudy sky. Time now to

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Speaker 1: take a look at some of the other stories making

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Speaker 1: news in New York and around the world with Bloomberg's

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Speaker 1: Michael bar Good morning, Michael, Good morning, Nathan. Hundreds of

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Speaker 1: people gathered at a candlelight vigil last night to mourn

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Speaker 1: the three children and three adults killed in Monday schools

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Speaker 1: shooting in Nashville. The Nashville Remembers vigil was hosted by

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Speaker 1: Mayor John Cooper. Picked the hand or touched the shoulder

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Speaker 1: of the person right next to you, especially they are

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Speaker 1: strangers and be there for one another, because we can

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Speaker 1: only get through this tragedy together. First Lady Jill Biden

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Speaker 1: and singer Cheryl Crowe were also at the event. Meanwhile,

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Speaker 1: in Washington, there were some tense moments off the House

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Speaker 1: floor about gun violence. Democratic Representative Jamal Bowman of New York,

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Speaker 1: a former middle school principal, says he's upset about in

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Speaker 1: action from Republicans. At one point, while he was talking

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Speaker 1: to reporters, Republican Representative Thomas Massey of Kentucky began to

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Speaker 1: engage with him on the topics that allows teachers to carry.

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Speaker 1: Representative Bowman told reporters to continue to press GOP lawmakers

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Speaker 1: on the issue. Pope Francis will remain hospitalized to treat

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Speaker 1: a lung infection. The Vatican says Francis, who is eighty six,

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Speaker 1: does not have COVID but require several days of therapy.

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Speaker 1: Passover preparations are underway. The New York City Police Department

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Speaker 1: held their annual pre passover security briefing. They went over

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Speaker 1: resources and action plans with the city's Jewish community. In

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Speaker 1: MYPD Commissioner Keeaching. Seul confirms while there are no specific

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Speaker 1: threats to any celebrations in the city, police will provide

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Speaker 1: extra patrols at synagogues and other sensitive sites. We are

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Speaker 1: always concerned about hate crimes in our great city. While

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Speaker 1: one is too many, we have seen a drop by

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Speaker 1: about fifty percent this year, but that is not enough.

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Speaker 1: We will stamp it out. We can tolerate it, we

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Speaker 1: will never accept it. Commissioners Sewell also says they are

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Speaker 1: monitoring online activity for any red flags. Global News twenty

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Speaker 1: four hours a day, powered by more than twenty seven

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Speaker 1: hundred journalists analyists in over one hundred twenty countries. Michael

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Speaker 1: barn this is Bloomberg, Nathan. Thanks Michael's time for a

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Speaker 1: Bloomberg sports update. Now here's John Stashower. Thanks Nathan. Big win,

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Speaker 1: but possibly a big injury for the Knicks at the Garden.

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Speaker 1: They beat the Heat one oh one ninety two and

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Speaker 1: nine nothing to run on the fourth quarter, second straight

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Speaker 1: game where their top two scorers were Emmanuel Quickly and

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Speaker 1: Quentin Grimes twenty four for IQ, twenty three for Grimes.

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Speaker 1: And Knicks now lead Miami by four games, so they

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Speaker 1: almost certainly will not be in that play in, but

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Speaker 1: the Knicks play of the second half without Julius Randelly

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Speaker 1: has started all seventy seven games, but he suffered a

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Speaker 1: sprained ankle, and the Knicks now away. Test results Today

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Speaker 1: at Barkley's, the Nets beat Lowly Houston one twenty three,

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Speaker 1: one fourteen. The two guys the Nets got and the

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Speaker 1: Kevin Durant train led the way camp Johnson thirty one

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Speaker 1: points to mckel Bridges twenty seven. Meanwhile, Durant, returned from

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Speaker 1: his ankle injury, played his first home game in Phoenix.

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Speaker 1: He shot just five of eighteen, but the Sons won

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Speaker 1: their game. Sacramento won by forty and the Kings are

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Speaker 1: in the playoffs first time since two thousand and six.

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Speaker 1: It was the longest drought for any team in the

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Speaker 1: four major sports. Islanders a two one win in a

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Speaker 1: shootout at Washington. It's opening day. Big changes in baseball.

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Speaker 1: Shifting is out, the pitchclock is in, and they've also

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Speaker 1: tweaked the schedule, fewer games within the division, more in

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Speaker 1: through the game. So the Yankees open up against the

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Speaker 1: San Francisco Giants at the Stadium. Garrett Cole on the

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Speaker 1: mound for the Yanks. I believe there's a book called

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Speaker 1: Time Starts on Opening Day. I think it's Thomas Boswell.

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Speaker 1: I've read most of it, and it's just like Cats,

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Speaker 1: the beginning of every baseball fan and every baseball player's calendars.

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Speaker 1: Opening Day Cole is on the Yes Network. Mets open

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Speaker 1: up in Miami with Max Scherzer facing Sandy contra heat.

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Speaker 1: Last season was the unanimous winner the NLCI Young Award

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Speaker 1: John Stashaller. Bloomberg splots live from coast to coast, from

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Speaker 1: New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar.

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Speaker 1: The collapse of Silicon Valley and Signature Banks has left

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Speaker 1: the agency that ensures the nation's bank deposits in line

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Speaker 1: for a nearly twenty three billion dollar hit, and now

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Speaker 1: the Federal Deposit Insurance Corporation the FDIC, maybe looking to

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Speaker 1: claud those losses back by taking aim at the nation's

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Speaker 1: biggest banks. And for more on this, we're joined by

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Speaker 1: Bloomberg's Valerie Titel So, Valerie, what's the plan. That's under

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Speaker 1: consideration here. Well, what we know at the moment is

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Speaker 1: they are going to put together this special assessment and

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Speaker 1: will hear more in May. But there are some reports

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Speaker 1: that they intend to limit the strain on the smaller

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Speaker 1: community banks and instead put the strain on the bigger

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Speaker 1: banks who have benefited the most from deposit inflows surrounding

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Speaker 1: this to three weeks of banking crisis that we've had.

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Speaker 1: This is something they have done in the past. The

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Speaker 1: FDIC does have full discretion on these special assessments and

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Speaker 1: how they raise money for their insurance fund. Now, it

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Speaker 1: has to be said as well that the FDIC is

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Speaker 1: under a lot of political pressure to avoid straining the

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Speaker 1: community banks even further. I mean, that has to be

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Speaker 1: a big part of the reason why it's considering it

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Speaker 1: in this way. Oh, definitely, definitely. I mean, the amount

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Speaker 1: of heat that the FDIC has gotten this week on

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Speaker 1: Capitol Hill is notable, and it is the politically palatable

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Speaker 1: option to be charging the bigger US banks a bit

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Speaker 1: more when they look to top up this insurance fund. Essentially,

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Speaker 1: in some way they might try to right the wrong

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Speaker 1: that they did in almost making it blatantly obvious to

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Speaker 1: the public that there is a two tier banking system

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Speaker 1: in the US, the implicitly backed too big to fail

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Speaker 1: banks and those community banks, which aren't systemically important and

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Speaker 1: as Yellen told us, are likely unlikely to get special treatment. Oh,

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Speaker 1: it's interesting to point out that there is a two

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Speaker 1: tiered banking system, that idea that there are these big

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Speaker 1: banks and the smaller banks. If the FDIC does consider

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Speaker 1: a plan like this, wouldn't that's to reinforce that idea. Well, Look,

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Speaker 1: they have had full discretion in the past on how

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Speaker 1: they do top up their investment fund. Back in two

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Speaker 1: thousand and nine, they went out on a special assessment

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Speaker 1: very much so like they've declared they're going to in

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Speaker 1: May to raise five and a half billion, and a

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Speaker 1: lot of that money was raised from the bigger institutions.

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Speaker 1: But the different thing back then is that the bigger

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Speaker 1: institutions back then were the risky ones. So right now

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Speaker 1: they're aiming to almost charge the larger banks more in

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Speaker 1: the fact because they aren't risky, and leave the you know,

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Speaker 1: shall we say a bit more risky smaller community banks

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Speaker 1: to have less of that burden in an attempt to

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Speaker 1: try to even the playing field. What's the risk that

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Speaker 1: that could put more of a burden on the banks though,

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Speaker 1: if they're the ones that bear more of this burden,

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Speaker 1: how much strain could have potentially put on these banks

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Speaker 1: if their task with given the FDIC back close to

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Speaker 1: any three billion dollars I mean, is that something that

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Speaker 1: they can shoulder? Yes, I think so. And because these

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Speaker 1: banks who have seen these large deposit inflows, they have

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Speaker 1: the ability to park that at the FED for a

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Speaker 1: five percent five percent yield, right, So in some ways

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Speaker 1: you can argue that the benefit to the bigger banks

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Speaker 1: because they have access to the FED overnight facilities, because

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Speaker 1: they get this decent return on deposits, they have benefited

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Speaker 1: way too much from from this deposit flight from the

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Speaker 1: small regional bank. So and I think that that is

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Speaker 1: something the FDIC, the Treasury, and the FED are aware

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Speaker 1: of and will essentially try to right that wrong when

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Speaker 1: we do hear about this special assessment that the FDIC

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Speaker 1: it tends to put forward in May. Now, as you mentioned,

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Speaker 1: as the FDIC has mentioned during these hearings, it does

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Speaker 1: have the discretion to target where the burden lies. But

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Speaker 1: how unusual is it or would it be for the

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Speaker 1: FDIC to target bigger banks specifically, how would this compare

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Speaker 1: to what the banks went through the last time we

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Speaker 1: had an even bigger financial crisis in two thousand and eight. Well,

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Speaker 1: the last time that they did go to top up

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Speaker 1: this insurance fund in two thousand and nine, they attempted

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Speaker 1: to raise five and a half billion, So it wasn't

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Speaker 1: nearly as much as the twenty three billion hit that

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Speaker 1: they've taken recently. And the reason why is because back

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Speaker 1: in two thousand and eight, two thousand and nine, ensuring

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Speaker 1: depositors wasn't really the issue back then, right, it was

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Speaker 1: the toxic assets on banks balance sheet. So in some way,

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Speaker 1: the FDIC has really taken more of a dents to

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Speaker 1: this insurance fund in this you know, twenty twenty three

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Speaker 1: example of a banking crisis, rather than back in two

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Speaker 1: thousand and eight. But back in two thousand and nine,

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Speaker 1: when they did do that fundraising JP Morgan, the FDIC

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Speaker 1: charged them six hundred billion, which did impact their bottom

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