Speaker 1: By from the Bloomberg Interacted Brokers Studios. Is Bloomberg day
Speaker 1: Break for Thursday, March thirtieth. Coming up today, Big banks
Speaker 1: may have to pay the price for recent bank failures.
Speaker 1: A top name on Wall Street says the banking crisis
Speaker 1: is mostly solvable. FED Chair J. Powell signals another rate
Speaker 1: pike in the cards, and Russia detains a US journalist
Speaker 1: on allegisfying charges. A heated moment in the House as
Speaker 1: a New York congressman criticizes the GOP about gun blandings.
Speaker 1: Plus the NYPD prepare security for passover celebrations. I'm Michael Barr,
Speaker 1: Poor Ahead, I'm Dom Statch Alon Sports the next greetfiteat
Speaker 1: shoot that win for the Islanders at its opening day
Speaker 1: in Major League Baseball. That's all straight ahead on Bloomberg
Speaker 1: day Break. The business news you need disturn your day
Speaker 1: in just one fifteen minute podcast each pointing on Apples, Spotify,
Speaker 1: the Bloomberg Business Appen everywhere you get your podcasts. Good morning,
Speaker 1: I'm Nathan Hager and I'm Cameron Moscow. Here are the
Speaker 1: stories we're following today. New developments in the banking crisis.
Speaker 1: Bloomberg News has learned the big banks may have to
Speaker 1: pay the price for recent failures. We get more from
Speaker 1: Bloomberg's Valerie Titel in the FDIC has an insurance fund,
Speaker 1: and it's estimating that the cost of bailing out the
Speaker 1: uninsurance depositors when it comes to SVB and Signature Bank
Speaker 1: is going to be around twenty three billion. So it's
Speaker 1: going to look to top up this insurance fund in
Speaker 1: some manner, and it has full discretion on how it
Speaker 1: does that. And it's become clear in the way that
Speaker 1: the chairman has communicated that they will be looking to
Speaker 1: put less of the cost on smaller community banks and
Speaker 1: perhaps charge the bigger institutions more when they look to
Speaker 1: top up this fund. Bloomberg's Valerie Titel says representatives for
Speaker 1: the FDIC, as well as JP Morgan, Bank of America,
Speaker 1: and Wells Fargo all declined to comment on our story. Well, Nathan,
Speaker 1: the bank failures have led to no shortage finger pointing
Speaker 1: on Capitol Hill. After two days of hearings, FED Vice
Speaker 1: Chair for Supervision Michael Barr is acknowledging that regulators could
Speaker 1: have kept better tabs on Silicon Valley bag. We got
Speaker 1: reaction from a former US Treasury spokesman John Rizzo. As
Speaker 1: we get into this more, I think we're going to
Speaker 1: find that there are probably multiple points of failure here,
Speaker 1: both failure on the part of the financial institution, but
Speaker 1: also more that regulators of overseers could have done to
Speaker 1: intervene when signs of trouble emerge. Former Treasury spokesman John
Speaker 1: Rizzo was a guest on Bloomberg Sound On What Joe Matthew.
Speaker 1: Catch the show weekdays at one pm Eastern on Bloomberg
Speaker 1: Radio or listen on demand wherever you get your podcasts. Well, Karen,
Speaker 1: a big name on Wall Street, says the US banking
Speaker 1: crisis is mostly solvable. In an interview in Tokyo Today,
Speaker 1: Blackstone chairman Steve Schwartzman said, quote, the banking system is
Speaker 1: not in any type of conventional crisis. Schwartzman blames the
Speaker 1: turmoil on the after effects of the pandemic and technology
Speaker 1: rather than bad loan. Well, turning to the economy, now, Nathan,
Speaker 1: we're getting more hints that the Fed is not done
Speaker 1: raising interest rates, and we get the details live with
Speaker 1: the Bloomberg's John Tucker. John Good Morning. Karen Powell spoke
Speaker 1: to a closed door meeting of conservative lawmakers, and there
Speaker 1: wasn't much reason to have closed the door. He told
Speaker 1: them the same thing that he's told everybody else. Follow
Speaker 1: the dots. That's the dot plot or the summary of
Speaker 1: economic projections from Fed officials. It lays out one more
Speaker 1: rate hike from the Central Bank. Then a meeting was
Speaker 1: scheduled before the collapse of Silicon Valley Bank, and according
Speaker 1: to one of the lawmakers who attended, Paw said Congress
Speaker 1: should reevaluate limits on the size of federally insured bank deposits.
Speaker 1: Live in New York, I'm John Tucker, Bloomberg Daybreak, Thank
Speaker 1: you John. In Asia today, Chinese Premier Lee Chiang is
Speaker 1: painting an upbeat picture of the economy and calling China
Speaker 1: an anchor for world peace. Bloomberg Daybreak Asia anchor Brian
Speaker 1: Curtis has more from Hong Kong. Lee touted China's economic recovery.
Speaker 1: He told the Boao Forum in Hainan, chaos and conflict
Speaker 1: must not happen in Asia. He said China would not
Speaker 1: take the path of colonization or plunder, and he called
Speaker 1: for the world to stick to multilateralism. The four day
Speaker 1: Gathering comes as Beijing rolls out a charm offensive for
Speaker 1: overseas business and investment, China is no longer one of
Speaker 1: the top three investment priorities for US firms, according to
Speaker 1: the American Chamber of Commerce in China. In Hong Kong,
Speaker 1: Bryan Curtis Bloomberg Day Break A right, Brian than. So
Speaker 1: we now turn to a breaking story where following this morning,
Speaker 1: Russia has detained an American journalist on alleged spying charges,
Speaker 1: and we get the latest live with the Bloomberg Steve A. Rappaport.
Speaker 1: It's Steve, good morning, Good morning, Karen and Nathan. Russian
Speaker 1: security forces arrested Evan Gershkovitz in the city of Yakadinsberg
Speaker 1: on espionage charges. The FSB agency says Gershkevitch tried to
Speaker 1: obtain classified information about the activities of the Russian military
Speaker 1: industrial complex. As for what those activities were, local media
Speaker 1: reports suggest he was investigating a special operation involving a
Speaker 1: network of mercenaries known as the Wagner Grew. Gershkevitch is
Speaker 1: the first American reporter charged with espionage in Russias since
Speaker 1: the Cold War. Live in New York, I'm Steve Rappaport,
Speaker 1: Bloomberg Daybreak, Steve, thank you. Back here in the US,
Speaker 1: We're pushing pause on a controversial story in politics, and
Speaker 1: New York grand jury hearing evidence about Donald Trump's roll
Speaker 1: in an alleged hush money payment looks like it's getting
Speaker 1: a break. Bloomberg's Ed Baxter has the story. The first
Speaker 1: announcement came they would not meet again this week. Then
Speaker 1: Bloomberg News reported that the grand jury is not expected
Speaker 1: to reconvene until April twenty fourth. We're told that Manhattan
Speaker 1: District Attorney Alvin Bragg could still bring members back to
Speaker 1: hear evidence in the Trump matter, but that it was
Speaker 1: not officially going to be put on any docket. The
Speaker 1: last testimony came from National Enquirer publisher David Pecker. Trump
Speaker 1: has denied the affair in any wrongdoing and said the
Speaker 1: probe is a political vendetta in San Francisco. I'm at Baxter,
Speaker 1: Bloomberg day Break, All right, Ed, Thanks, So another geopolitical
Speaker 1: news this morning, The president of Taiwan made a stop
Speaker 1: over in New York and called the island's future a
Speaker 1: test for the world. The Taiwan President's it may further
Speaker 1: escalate tensions between the US and China. Beijing says the
Speaker 1: visit will have a severe impact on its relationship with
Speaker 1: Washington and staying in New York now caring. The latest
Speaker 1: census numbers show Manhattan's population has grown. While New York
Speaker 1: City's other four boroughs lost residents in the twelve months
Speaker 1: through July first, Manhattan added more than seventeen thousand residents.
Speaker 1: It is still about ninety eight thousand residents below pre
Speaker 1: pandemic levels. Thirty two degrees right now in Manhattan, it'll
Speaker 1: be breezy this morning. Sunny and cool today with highs
Speaker 1: in the upper forties. We'll get down to the upper
Speaker 1: thirties tonight under a Hartley cloudy sky. Time now to
Speaker 1: take a look at some of the other stories making
Speaker 1: news in New York and around the world with Bloomberg's
Speaker 1: Michael bar Good morning, Michael, Good morning, Nathan. Hundreds of
Speaker 1: people gathered at a candlelight vigil last night to mourn
Speaker 1: the three children and three adults killed in Monday schools
Speaker 1: shooting in Nashville. The Nashville Remembers vigil was hosted by
Speaker 1: Mayor John Cooper. Picked the hand or touched the shoulder
Speaker 1: of the person right next to you, especially they are
Speaker 1: strangers and be there for one another, because we can
Speaker 1: only get through this tragedy together. First Lady Jill Biden
Speaker 1: and singer Cheryl Crowe were also at the event. Meanwhile,
Speaker 1: in Washington, there were some tense moments off the House
Speaker 1: floor about gun violence. Democratic Representative Jamal Bowman of New York,
Speaker 1: a former middle school principal, says he's upset about in
Speaker 1: action from Republicans. At one point, while he was talking
Speaker 1: to reporters, Republican Representative Thomas Massey of Kentucky began to
Speaker 1: engage with him on the topics that allows teachers to carry.
Speaker 1: Representative Bowman told reporters to continue to press GOP lawmakers
Speaker 1: on the issue. Pope Francis will remain hospitalized to treat
Speaker 1: a lung infection. The Vatican says Francis, who is eighty six,
Speaker 1: does not have COVID but require several days of therapy.
Speaker 1: Passover preparations are underway. The New York City Police Department
Speaker 1: held their annual pre passover security briefing. They went over
Speaker 1: resources and action plans with the city's Jewish community. In
Speaker 1: MYPD Commissioner Keeaching. Seul confirms while there are no specific
Speaker 1: threats to any celebrations in the city, police will provide
Speaker 1: extra patrols at synagogues and other sensitive sites. We are
Speaker 1: always concerned about hate crimes in our great city. While
Speaker 1: one is too many, we have seen a drop by
Speaker 1: about fifty percent this year, but that is not enough.
Speaker 1: We will stamp it out. We can tolerate it, we
Speaker 1: will never accept it. Commissioners Sewell also says they are
Speaker 1: monitoring online activity for any red flags. Global News twenty
Speaker 1: four hours a day, powered by more than twenty seven
Speaker 1: hundred journalists analyists in over one hundred twenty countries. Michael
Speaker 1: barn this is Bloomberg, Nathan. Thanks Michael's time for a
Speaker 1: Bloomberg sports update. Now here's John Stashower. Thanks Nathan. Big win,
Speaker 1: but possibly a big injury for the Knicks at the Garden.
Speaker 1: They beat the Heat one oh one ninety two and
Speaker 1: nine nothing to run on the fourth quarter, second straight
Speaker 1: game where their top two scorers were Emmanuel Quickly and
Speaker 1: Quentin Grimes twenty four for IQ, twenty three for Grimes.
Speaker 1: And Knicks now lead Miami by four games, so they
Speaker 1: almost certainly will not be in that play in, but
Speaker 1: the Knicks play of the second half without Julius Randelly
Speaker 1: has started all seventy seven games, but he suffered a
Speaker 1: sprained ankle, and the Knicks now away. Test results Today
Speaker 1: at Barkley's, the Nets beat Lowly Houston one twenty three,
Speaker 1: one fourteen. The two guys the Nets got and the
Speaker 1: Kevin Durant train led the way camp Johnson thirty one
Speaker 1: points to mckel Bridges twenty seven. Meanwhile, Durant, returned from
Speaker 1: his ankle injury, played his first home game in Phoenix.
Speaker 1: He shot just five of eighteen, but the Sons won
Speaker 1: their game. Sacramento won by forty and the Kings are
Speaker 1: in the playoffs first time since two thousand and six.
Speaker 1: It was the longest drought for any team in the
Speaker 1: four major sports. Islanders a two one win in a
Speaker 1: shootout at Washington. It's opening day. Big changes in baseball.
Speaker 1: Shifting is out, the pitchclock is in, and they've also
Speaker 1: tweaked the schedule, fewer games within the division, more in
Speaker 1: through the game. So the Yankees open up against the
Speaker 1: San Francisco Giants at the Stadium. Garrett Cole on the
Speaker 1: mound for the Yanks. I believe there's a book called
Speaker 1: Time Starts on Opening Day. I think it's Thomas Boswell.
Speaker 1: I've read most of it, and it's just like Cats,
Speaker 1: the beginning of every baseball fan and every baseball player's calendars.
Speaker 1: Opening Day Cole is on the Yes Network. Mets open
Speaker 1: up in Miami with Max Scherzer facing Sandy contra heat.
Speaker 1: Last season was the unanimous winner the NLCI Young Award
Speaker 1: John Stashaller. Bloomberg splots live from coast to coast, from
Speaker 1: New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar.
Speaker 1: The collapse of Silicon Valley and Signature Banks has left
Speaker 1: the agency that ensures the nation's bank deposits in line
Speaker 1: for a nearly twenty three billion dollar hit, and now
Speaker 1: the Federal Deposit Insurance Corporation the FDIC, maybe looking to
Speaker 1: claud those losses back by taking aim at the nation's
Speaker 1: biggest banks. And for more on this, we're joined by
Speaker 1: Bloomberg's Valerie Titel So, Valerie, what's the plan. That's under
Speaker 1: consideration here. Well, what we know at the moment is
Speaker 1: they are going to put together this special assessment and
Speaker 1: will hear more in May. But there are some reports
Speaker 1: that they intend to limit the strain on the smaller
Speaker 1: community banks and instead put the strain on the bigger
Speaker 1: banks who have benefited the most from deposit inflows surrounding
Speaker 1: this to three weeks of banking crisis that we've had.
Speaker 1: This is something they have done in the past. The
Speaker 1: FDIC does have full discretion on these special assessments and
Speaker 1: how they raise money for their insurance fund. Now, it
Speaker 1: has to be said as well that the FDIC is
Speaker 1: under a lot of political pressure to avoid straining the
Speaker 1: community banks even further. I mean, that has to be
Speaker 1: a big part of the reason why it's considering it
Speaker 1: in this way. Oh, definitely, definitely. I mean, the amount
Speaker 1: of heat that the FDIC has gotten this week on
Speaker 1: Capitol Hill is notable, and it is the politically palatable
Speaker 1: option to be charging the bigger US banks a bit
Speaker 1: more when they look to top up this insurance fund. Essentially,
Speaker 1: in some way they might try to right the wrong
Speaker 1: that they did in almost making it blatantly obvious to
Speaker 1: the public that there is a two tier banking system
Speaker 1: in the US, the implicitly backed too big to fail
Speaker 1: banks and those community banks, which aren't systemically important and
Speaker 1: as Yellen told us, are likely unlikely to get special treatment. Oh,
Speaker 1: it's interesting to point out that there is a two
Speaker 1: tiered banking system, that idea that there are these big
Speaker 1: banks and the smaller banks. If the FDIC does consider
Speaker 1: a plan like this, wouldn't that's to reinforce that idea. Well, Look,
Speaker 1: they have had full discretion in the past on how
Speaker 1: they do top up their investment fund. Back in two
Speaker 1: thousand and nine, they went out on a special assessment
Speaker 1: very much so like they've declared they're going to in
Speaker 1: May to raise five and a half billion, and a
Speaker 1: lot of that money was raised from the bigger institutions.
Speaker 1: But the different thing back then is that the bigger
Speaker 1: institutions back then were the risky ones. So right now
Speaker 1: they're aiming to almost charge the larger banks more in
Speaker 1: the fact because they aren't risky, and leave the you know,
Speaker 1: shall we say a bit more risky smaller community banks
Speaker 1: to have less of that burden in an attempt to
Speaker 1: try to even the playing field. What's the risk that
Speaker 1: that could put more of a burden on the banks though,
Speaker 1: if they're the ones that bear more of this burden,
Speaker 1: how much strain could have potentially put on these banks
Speaker 1: if their task with given the FDIC back close to
Speaker 1: any three billion dollars I mean, is that something that
Speaker 1: they can shoulder? Yes, I think so. And because these
Speaker 1: banks who have seen these large deposit inflows, they have
Speaker 1: the ability to park that at the FED for a
Speaker 1: five percent five percent yield, right, So in some ways
Speaker 1: you can argue that the benefit to the bigger banks
Speaker 1: because they have access to the FED overnight facilities, because
Speaker 1: they get this decent return on deposits, they have benefited
Speaker 1: way too much from from this deposit flight from the
Speaker 1: small regional bank. So and I think that that is
Speaker 1: something the FDIC, the Treasury, and the FED are aware
Speaker 1: of and will essentially try to right that wrong when
Speaker 1: we do hear about this special assessment that the FDIC
Speaker 1: it tends to put forward in May. Now, as you mentioned,
Speaker 1: as the FDIC has mentioned during these hearings, it does
Speaker 1: have the discretion to target where the burden lies. But
Speaker 1: how unusual is it or would it be for the
Speaker 1: FDIC to target bigger banks specifically, how would this compare
Speaker 1: to what the banks went through the last time we
Speaker 1: had an even bigger financial crisis in two thousand and eight. Well,
Speaker 1: the last time that they did go to top up
Speaker 1: this insurance fund in two thousand and nine, they attempted
Speaker 1: to raise five and a half billion, So it wasn't
Speaker 1: nearly as much as the twenty three billion hit that
Speaker 1: they've taken recently. And the reason why is because back
Speaker 1: in two thousand and eight, two thousand and nine, ensuring
Speaker 1: depositors wasn't really the issue back then, right, it was
Speaker 1: the toxic assets on banks balance sheet. So in some way,
Speaker 1: the FDIC has really taken more of a dents to
Speaker 1: this insurance fund in this you know, twenty twenty three
Speaker 1: example of a banking crisis, rather than back in two
Speaker 1: thousand and eight. But back in two thousand and nine,
Speaker 1: when they did do that fundraising JP Morgan, the FDIC
Speaker 1: charged them six hundred billion, which did impact their bottom
Speaker 1: line back then. This is Bloomberg day Break Today, your
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Speaker 1: your day right here on Bloomberg Daybreak