WEBVTT - U.S. to Limit China Investments: SpaceX Aftermath

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<v Speaker 1>The Bloomberg Interrupted Broker Studios. This is Bloomberg Daybreak for Friday,

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<v Speaker 1>April twenty. First coming up today, the US plans to

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<v Speaker 1>limit more investment in China. We have the latest on

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<v Speaker 1>this Bloomberg exclusive. President Biden may formally launch his reelection

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<v Speaker 1>bid as early as next week.

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<v Speaker 2>The SpaceX launch ends in flames, but still claim some

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<v Speaker 2>big wins for space exploration and more.

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<v Speaker 3>FED officials make the case for more rate heights.

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<v Speaker 4>Charges against actor Alec Baldwinner dropped in a fatal onset

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<v Speaker 4>shooting pluses a big rent increase in the future for

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<v Speaker 4>New York rent control departments. I'm Michael Barr Moore Ahead,

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<v Speaker 4>I'm John Stash.

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<v Speaker 5>Aaron sports the Rangers with another five to one win

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<v Speaker 5>at New Jersey, another Nets loss to the Sixers, wins

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<v Speaker 5>for the Mets and Yankees.

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<v Speaker 6>That's all straight Ahead on Bloomberg day Break, the business

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<v Speaker 6>news you need to sturn your day in just one

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<v Speaker 6>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 6>Business Appen everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Nathan Hager.

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<v Speaker 1>And I'm Amy Morris. Here are the stories we're following today.

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<v Speaker 2>Bloomberg News has learned President Biden plans to crack down

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<v Speaker 2>on US investment in key parts of the Chinese economy.

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<v Speaker 2>We get more from Bloomberg Chief Asia correspondent Steven Engle.

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<v Speaker 7>These new curbs would be done through executive order in

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<v Speaker 7>the coming weeks that could limit American investment in key

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<v Speaker 7>parts of the economy, particularly some of these advanced technologies

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<v Speaker 7>that the fear is could end up in the hands

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<v Speaker 7>of the Chinese military. Again, we're talking semiconductors, artificial intelligence,

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<v Speaker 7>quantum computing, and again it's going to focus on investments

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<v Speaker 7>where US firms play active roles in management, So that

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<v Speaker 7>includes of course venture capital, private equity, those industries already

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<v Speaker 7>feeling the chill of the US China bifurcation.

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<v Speaker 2>Bloomberg Chief Asia correspondent Steven Engle says the Biden administration

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<v Speaker 2>plans to take action around the time of the G

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<v Speaker 2>seven summit in Japan next month.

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<v Speaker 1>Meanwhile, Nathan Press sident Biden is eyeing a re election

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<v Speaker 1>announcement as soon as next week. Bloomberg's Ed Baxter has

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<v Speaker 1>that story.

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<v Speaker 8>Biden's aide's have planned for the possibility of making a

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<v Speaker 8>video announcement to coincide with the anniversary of his previous

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<v Speaker 8>campaign launch. He has time to do it, of course,

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<v Speaker 8>but Third Way co founder Matt Bennett says they may

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<v Speaker 8>be feeling pressure to go now.

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<v Speaker 9>I think they've decided that there's enough people asking questions

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<v Speaker 9>that they have to say something. But the problem is

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<v Speaker 9>there's no real imperative if you're the president to file,

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<v Speaker 9>because you've got the White House, you've got the logistical

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<v Speaker 9>support of the White House.

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<v Speaker 8>This, of course, could set up a Biden Trump rematch

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<v Speaker 8>in San Francisco. I'm at Baxter Bloomberg Daybreak.

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<v Speaker 4>Thank you, Ed.

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<v Speaker 2>Now let's get to the latest on the debt ceiling

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<v Speaker 2>debate in Washington. Democratic Senator Joe Manchin of West Virginia

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<v Speaker 2>is calling on the White House to quote negotiate now.

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<v Speaker 2>He is praising Republican House Speaker Kevin McCarthy for putting

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<v Speaker 2>out a debt limit proposal that cuts spending. We got

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<v Speaker 2>reaction from Democratic Congressman Brendan Boyle of Pennsylvania.

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<v Speaker 10>Obviously, Democrats are ready willing and able to negotiate with

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<v Speaker 10>Republicans on future spending. What we are not willing to

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<v Speaker 10>do is to give up anything in order to get

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<v Speaker 10>Republicans to do what is their responsibility, and that has

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<v Speaker 10>put a bill on the floor to raise the debt ceiling.

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<v Speaker 11>Queen.

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<v Speaker 2>Meanwhile, Republican Congressman Brian Donalds of Florida says, the Democrats

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<v Speaker 2>have created this impass.

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<v Speaker 11>When they passed they Omibus spending bill right before Christmas,

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<v Speaker 11>they could have increased the debt ceiling at that time.

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<v Speaker 11>They chose not to. They did not want to do it,

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<v Speaker 11>so they could have done it. Then they didn't want

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<v Speaker 11>to do it. They wanted to set up this, this sprinksmanship,

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<v Speaker 11>this fight, if you will, around the debt ceiling.

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<v Speaker 2>Congressman Donald's and Boyle were guests on Bloomberg's Sound On

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<v Speaker 2>with Joe Matthew and Kaylee Lines. Catch the show weekdays

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<v Speaker 2>at one pm Eastern on Bloomberg Radio.

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<v Speaker 1>And we now turn our attention to the Space program.

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<v Speaker 1>Engineers still trying to figure out what happened, but the

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<v Speaker 1>explosion of Elon Musk's space X starship yesterday shows just

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<v Speaker 1>how far he is from the Moon.

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<v Speaker 3>For the latest, we are joined by Bloomberg's John Tucker.

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<v Speaker 3>Good morning John, Yeah.

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<v Speaker 12>Good morning Amy. The initial launch of the most powerful

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<v Speaker 12>rocketing in the world appeared to be picture perfect, but

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<v Speaker 12>then four minutes later, high above the hazy Texas skies,

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<v Speaker 12>the uncrewed Starship exploded. And this is how the SpaceX

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<v Speaker 12>commentator described it.

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<v Speaker 13>Starship just experienced what we call a rapid unscheduled disassembly.

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<v Speaker 12>Well before the explosion, a few of the thirty three

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<v Speaker 12>Raptor engines appeared to flame out. The super heavy booster

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<v Speaker 12>was supposed to separate. That never happened. SpaceX says the

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<v Speaker 12>explode of the rocket on purpose when it started tumbling

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<v Speaker 12>through the sky. NASA's said its goal is to use

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<v Speaker 12>Starship to land people on the Moon in twenty twenty five,

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<v Speaker 12>but first Starship will need to prove it can get

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<v Speaker 12>into space in one piece. Live in New York. I'm

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<v Speaker 12>John Tucker Bloomberg, daybreak.

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<v Speaker 2>All right, John, thank you. It was certainly an eventful

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<v Speaker 2>day for Elon Musk. His wealth plunged almost thirteen billion

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<v Speaker 2>dollars to one hundred and sixty four billion after Tesla's

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<v Speaker 2>disappointing earnings. The stock dropped almost ten percent yesterday and

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<v Speaker 2>now it's for couping some of that up one and

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<v Speaker 2>a half percent in the pre market. The electrical vehicle

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<v Speaker 2>maker says it's boosting prices on its Model S and

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<v Speaker 2>X vehicles in the US.

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<v Speaker 1>Turning to the economy, FED officials making the case for

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<v Speaker 1>another rate high.

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<v Speaker 3>Cleveland FED President Lorettamester, I.

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<v Speaker 14>Anticipate that monetary policy will need to move somewhat further

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<v Speaker 14>into restrictive territory this year, but FED funds rate moving

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<v Speaker 14>above five percent and the real FED funds rates staying

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<v Speaker 14>in positive territory for some time.

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<v Speaker 1>Cleveland FED President Loretta Mester says, well, rates move higher.

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<v Speaker 1>The FED is monitoring the economic fallout from stresses on

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<v Speaker 1>the banking system.

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<v Speaker 2>Well, that recent termoil that hit regional banks amy did

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<v Speaker 2>not rise to the level of crisis. That's according to

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<v Speaker 2>Bank of America CEO Brian moynihan.

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<v Speaker 15>Well, I think at the end of the day, crisis

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<v Speaker 15>is too strong a word, and words like that get

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<v Speaker 15>used a lot. But at the end there was a

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<v Speaker 15>fair amount of disruption for a few weeks there. Well,

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<v Speaker 15>certain business models were sorted through, But on the other hand,

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<v Speaker 15>you could see and we could see the stability in

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<v Speaker 15>the other business models.

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<v Speaker 2>Bank of America's Brian moynihan spoken an interview with Bloomberg's

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<v Speaker 2>David Weston, and a.

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<v Speaker 1>Developing story out of Europe. This morning, UK Prime Minister

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<v Speaker 1>Rishis Sunex's deputy Dominique Robb has quit his post. The

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<v Speaker 1>resignation comes after an independent investigation criticized Rob's behavior toward

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<v Speaker 1>civil servants. This is Bloomberg.

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<v Speaker 2>Early fifty three degrees in New York. We'll have a

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<v Speaker 2>mix of sun and clouds today. Highs in the upper sixties,

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<v Speaker 2>getting down to the mid fifties tonight. Tim now to

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<v Speaker 2>take a look at some of the other stories making

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<v Speaker 2>news in New York and around the world with Bloomberg's

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<v Speaker 2>Michael Barr. Good morning, Michael, Good morning, Nathan.

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<v Speaker 4>Attorneys for actor Alec Baldwin say New Mexico prosecutors are

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<v Speaker 4>dropping the involuntary manslaughter charge against the movie star. While

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<v Speaker 4>rehearsing for the film Rust in twenty twenty one, the

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<v Speaker 4>prop gun Baldwin was holding went off, killing cinematographer Elena

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<v Speaker 4>Hutchins and injuring direct to Joel Susa. A few months

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<v Speaker 4>after the shooting, Baldwin claimed to ABC's George Stephanopolis that

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<v Speaker 4>he never actually fired the weapon.

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<v Speaker 3>It wasn't in the script for the trigger.

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<v Speaker 11>To be pulled. Well the trigger wasn't pulled.

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<v Speaker 3>I didn't pull the trigger, so you never pulled the trigger.

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<v Speaker 11>No, no, no, no no. I would never point to

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<v Speaker 11>go to pull a trigger at them.

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<v Speaker 10>Never.

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<v Speaker 4>The film's armorer, Hannah Gutierra's Reid, was also charged with

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<v Speaker 4>involuntary manslaughter and pleaded not guilty. Her pre trial hearing

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<v Speaker 4>is scheduled next month. The New York City Rent Guidelines

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<v Speaker 4>Board is considering a significant rent increase. It would affect

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<v Speaker 4>close to one million rents stabilized apartments. Mayor Adam's appointed

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<v Speaker 4>panel suggested an increase of almost sixteen percent for two

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<v Speaker 4>year leases, which would be the largest increase in decades.

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<v Speaker 4>It would be an eight and a half percent hike

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<v Speaker 4>for one year leases. The Supreme Court is facing a

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<v Speaker 4>self imposed deadline tonight to decide whether women's access to

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<v Speaker 4>a widely used abortion pill will stay unchanged. The justices

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<v Speaker 4>are when arguments allowing restrictions of a lower court involving

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<v Speaker 4>the FDA approved drug mifipristone. There are allegations that the

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<v Speaker 4>investigation into Hunter Biden is being mishandled and that President

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<v Speaker 4>Biden's son has been getting preferential treatment. The Justice Department

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<v Speaker 4>says that the Hunter Biden investigation is not being watered

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<v Speaker 4>down because he's the President's son. A whistleblower from the

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<v Speaker 4>IRS disagrees with that. Democratic Senator Richard Blumenthal was asked

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<v Speaker 4>about the Hunter Biden case so.

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<v Speaker 16>Much today it is politicized. We need to look at

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<v Speaker 16>the facts, follow both the facts and the law, and

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<v Speaker 16>really takes seriously any allegations, but at the same time

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<v Speaker 16>review what is missing from those allegations as.

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<v Speaker 4>Well as what's the Senator Blumenthal of Connecticut says, there

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<v Speaker 4>is less here than meets the eye. Global News twenty

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<v Speaker 4>four hours a day, powered by more than twenty seven

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<v Speaker 4>hundred journalist and anailists and over one hundred and twenty countries.

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<v Speaker 4>I'm Michael Barr. This is Bloomberg.

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<v Speaker 11>Nathan.

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<v Speaker 2>Thanks Michael. Time now for the Bloomberg Sports Update. Good morning,

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<v Speaker 2>John Stanshall.

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<v Speaker 5>Good morning, Nathan. Little deja vu in New Jersey Rangers

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<v Speaker 5>and Devil's Game two, and just like Game one, the

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<v Speaker 5>Rangers won by a five to one score. In both games,

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<v Speaker 5>Vladimir Terra Senko scored a goal and in both games

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<v Speaker 5>Chris Krider scored two, with both coming on the power play.

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<v Speaker 5>Rangers also got third period goals when Patrick Kine and

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<v Speaker 5>kappokact I was surprising how easily the Rangers have taken

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<v Speaker 5>the two nothing series lead. We'll see what happens when

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<v Speaker 5>the series moves across the Hudson. Game three tomorrow at

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<v Speaker 5>the Garden, where tonight it's the Nixon Cavs their Game

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<v Speaker 5>three that series tied at one. Cleveland coming off the

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<v Speaker 5>lopsided win in Game two, the Nets will face elimination

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<v Speaker 5>tomorrow afternoon at Barkley's where Philadelphia just went up three

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<v Speaker 5>games to none. Nets were down twelve, had a twenty

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<v Speaker 5>three to five run on the third courter and take

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<v Speaker 5>the lead, but Philly pulled it out one oh two

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<v Speaker 5>ninety seven tires. Maxi has surprisingly been the Sixers best

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<v Speaker 5>player in this series. He scored twenty five points. Mckel

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<v Speaker 5>Bridges led Brooklyn with twenty six. Devin Booker scored forty five.

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<v Speaker 5>Phoenix beat the Clippers for a two to one series lead.

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<v Speaker 5>Steph Curry scored thirty six Golden State over Sacramento, king

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<v Speaker 5>still on a two to one lead. Also in San

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<v Speaker 5>Francisco last night, the Mets made it seven or last eight,

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<v Speaker 5>scored five runs on the fourth inning It was then

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<v Speaker 5>five to four. In the fifth, Mets pulled away beat

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<v Speaker 5>the Giants nine to four home runs for Jeff McNeil,

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<v Speaker 5>Eduardo Escobar and Pete Alonzo with his already ninth of

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<v Speaker 5>the season. He leads the majors with so many injured

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<v Speaker 5>starting pitchers. Good thing the Mets signed CODEI Seinga. He's

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<v Speaker 5>three and zero. Max Scherzer is appealing the ten games

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<v Speaker 5>suspension he got for his ejection for sticky stuff. He's

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<v Speaker 5>cleaned his innocence at the stadium. Yankees meet the Angels

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<v Speaker 5>nine to three of five run first inning, with Jose

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<v Speaker 5>Travino getting the three run double.

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<v Speaker 4>Yanks have yet to lose a series.

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<v Speaker 5>They start wing tonight in the Bronx with Toronto Don Stashiellwer.

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<v Speaker 3>Bloomberg Sports.

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<v Speaker 6>Live from coast to coast, from New York to San Francisco,

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<v Speaker 6>Boston to Washington, d C. Nationwide on Sirius XM, The

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<v Speaker 6>Bloomberg Business Appen BOMG dot com.

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<v Speaker 3>This is Bloomberg Daybreak.

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<v Speaker 2>Good morning. I'm Nathan Hager. Don't call it a crisis.

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<v Speaker 2>That's the message from Bank of America Chief Executive Brian moynihan,

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<v Speaker 2>who says recent regional bank turmoil did not rise to

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<v Speaker 2>a crisis level. In a conversation with Bloomberg's David Weston

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<v Speaker 2>during Bloomberg's sell side leaders for him in New York City,

0:11:21.559 --> 0:11:24.640
<v Speaker 2>moynihan said the deposit insurance covered by lenders did a

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<v Speaker 2>good job of protecting consumers. He says he has no

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<v Speaker 2>doubts that the American banking system is in good shape.

0:11:30.480 --> 0:11:32.079
<v Speaker 2>Let's bring you part of that discussion.

0:11:32.600 --> 0:11:35.480
<v Speaker 13>Now that we are where we are looking back over it.

0:11:36.440 --> 0:11:37.800
<v Speaker 13>What do we take away from it? Was this a

0:11:37.840 --> 0:11:41.280
<v Speaker 13>banking crisis, Was it a mild disruption, was it a tremor?

0:11:41.640 --> 0:11:42.120
<v Speaker 8>What was it?

0:11:42.160 --> 0:11:43.679
<v Speaker 13>What is going to linger from it?

0:11:44.240 --> 0:11:47.079
<v Speaker 15>Well, I think at the end of day, crisis is

0:11:47.120 --> 0:11:50.040
<v Speaker 15>too strong a word, and words like that get used

0:11:50.080 --> 0:11:54.000
<v Speaker 15>a lot. But at the end there was a fair

0:11:54.000 --> 0:11:57.079
<v Speaker 15>amount of disruption for a few weeks there. Well, certain

0:11:57.080 --> 0:12:00.559
<v Speaker 15>business models were sorted through. On the other hand, you

0:12:00.559 --> 0:12:02.880
<v Speaker 15>could see and we could see the stability and the

0:12:02.880 --> 0:12:05.400
<v Speaker 15>other business models which would the way way banking is

0:12:05.440 --> 0:12:07.720
<v Speaker 15>down very grand learn business and stuff. And so the

0:12:07.760 --> 0:12:10.800
<v Speaker 15>good news is you're seeing the earnings by the broad

0:12:10.840 --> 0:12:14.520
<v Speaker 15>industry come out this week. You're seeing things have sort

0:12:14.520 --> 0:12:16.880
<v Speaker 15>of played out that way, which is very specific business

0:12:16.880 --> 0:12:20.280
<v Speaker 15>models because the unique circumstances of the last twenty four

0:12:20.320 --> 0:12:25.239
<v Speaker 15>months of thirty six months of massive amounts of cash

0:12:25.480 --> 0:12:29.040
<v Speaker 15>putting the system and then rates changing caught people and

0:12:29.240 --> 0:12:31.079
<v Speaker 15>those had to be sorted out. The good news is

0:12:31.120 --> 0:12:34.960
<v Speaker 15>the basic industry is to reported good earnings across the board.

0:12:35.559 --> 0:12:38.000
<v Speaker 15>Deposits have come down, but that's intended by the FED

0:12:38.080 --> 0:12:39.680
<v Speaker 15>taking money out of the system. It's got to come

0:12:39.720 --> 0:12:42.240
<v Speaker 15>out of somewhere. Banking system is what they want to

0:12:42.240 --> 0:12:45.280
<v Speaker 15>do to you, frankly, make credit tighter and help slow

0:12:45.320 --> 0:12:47.920
<v Speaker 15>down the economy. So that's gone on, but you look

0:12:47.920 --> 0:12:50.559
<v Speaker 15>at the capital, liquidity and earnings power of all these

0:12:50.559 --> 0:12:53.640
<v Speaker 15>companies have been tremendous and that's that's reassuring to people,

0:12:53.640 --> 0:12:55.000
<v Speaker 15>and that's good news because in the end of the day,

0:12:55.040 --> 0:12:59.040
<v Speaker 15>the banking system reflects economy and American economies around the world,

0:12:59.120 --> 0:13:02.480
<v Speaker 15>and you hope it's in good shape, and it is.

0:13:02.559 --> 0:13:03.520
<v Speaker 15>There's no question it's good.

0:13:03.520 --> 0:13:03.760
<v Speaker 10>Shit.

0:13:03.960 --> 0:13:06.600
<v Speaker 13>How the regulators do We were talking to them through

0:13:06.640 --> 0:13:08.800
<v Speaker 13>this period of time and they stepped in obviously took

0:13:08.840 --> 0:13:11.160
<v Speaker 13>the deposit insurance, and do you think they should be

0:13:11.200 --> 0:13:12.880
<v Speaker 13>making changes with future to make sure we don't go

0:13:12.960 --> 0:13:13.520
<v Speaker 13>through this again.

0:13:14.000 --> 0:13:16.040
<v Speaker 15>I think there will be a time to look at

0:13:16.400 --> 0:13:19.079
<v Speaker 15>the deposit insurance scheme in a rational way. It's never

0:13:19.240 --> 0:13:20.480
<v Speaker 15>the time to look at any of the stuff the

0:13:20.520 --> 0:13:22.800
<v Speaker 15>day after it happens, because people have opinions of what

0:13:22.840 --> 0:13:25.400
<v Speaker 15>happened never turns out to be as true as they thought.

0:13:25.520 --> 0:13:27.559
<v Speaker 15>And even in the financial crisis, there are a lot

0:13:27.559 --> 0:13:29.920
<v Speaker 15>of opinions about it started with Leming, well, that was

0:13:29.920 --> 0:13:32.240
<v Speaker 15>the last part of it. It started in two thousand

0:13:32.240 --> 0:13:34.480
<v Speaker 15>and six from what happened. Housing prices quick going up,

0:13:34.880 --> 0:13:37.880
<v Speaker 15>and so it took a little more rational thought to

0:13:37.880 --> 0:13:39.640
<v Speaker 15>think through all the different things that happened. So I

0:13:39.679 --> 0:13:44.079
<v Speaker 15>think the debate will be for transactional accounts should there

0:13:44.760 --> 0:13:48.079
<v Speaker 15>during the financial crisis two thousand and eight nine, I think,

0:13:48.120 --> 0:13:50.280
<v Speaker 15>going on for three or four years, there was a

0:13:50.320 --> 0:13:53.440
<v Speaker 15>guaranteed transaction accounts so the individual smaller companies didn't have

0:13:53.440 --> 0:13:55.320
<v Speaker 15>to be cash managed every day and figure out where

0:13:55.320 --> 0:13:58.240
<v Speaker 15>that the money was. And that's a scheme you could

0:13:58.280 --> 0:14:01.800
<v Speaker 15>do either sort of transaction money in the banking system.

0:14:01.800 --> 0:14:03.920
<v Speaker 15>There's savings money in the banking system, and the savings

0:14:03.920 --> 0:14:05.800
<v Speaker 15>money and banking system is there to get rate and

0:14:06.080 --> 0:14:08.960
<v Speaker 15>return the transaction money is there to help the economy going,

0:14:09.000 --> 0:14:12.320
<v Speaker 15>and the idea is you can ensure that more fully.

0:14:12.360 --> 0:14:14.040
<v Speaker 15>And that's what they did in the financial crisis to

0:14:14.080 --> 0:14:16.320
<v Speaker 15>stop people figure out in the end of the day,

0:14:16.440 --> 0:14:18.280
<v Speaker 15>a scheme like that would have changed nature of what

0:14:18.320 --> 0:14:20.280
<v Speaker 15>went on here because people were running around trying to

0:14:20.280 --> 0:14:23.320
<v Speaker 15>figure out is there two thousand, two fifty thousand dollars

0:14:23.360 --> 0:14:27.240
<v Speaker 15>in one in a small business or an entrepreneurial thing

0:14:27.520 --> 0:14:29.400
<v Speaker 15>or a big company. And so I think there'll be

0:14:29.440 --> 0:14:32.320
<v Speaker 15>time to talk about that. We'll see a playout. It's

0:14:32.360 --> 0:14:34.680
<v Speaker 15>worked pretty well. This is nice because the banking industry

0:14:34.680 --> 0:14:37.120
<v Speaker 15>pays for its own airs and then we have a

0:14:37.160 --> 0:14:39.120
<v Speaker 15>high instinct to clean it up. And so I think

0:14:39.280 --> 0:14:41.840
<v Speaker 15>playing with the thought process how to be carefully dealt

0:14:41.880 --> 0:14:44.760
<v Speaker 15>with only because it's been in place since the thirties

0:14:44.760 --> 0:14:45.880
<v Speaker 15>and it's worked pretty well.

0:14:46.360 --> 0:14:48.960
<v Speaker 13>Your bank and some others stepped in with First republic

0:14:49.000 --> 0:14:51.160
<v Speaker 13>to help them also deposit. It's led it reported by

0:14:51.440 --> 0:14:53.720
<v Speaker 13>Jamie Diamond. Is that something we should expect in the future.

0:14:53.720 --> 0:14:56.000
<v Speaker 13>I mean, is it First Republican to need more or

0:14:56.000 --> 0:14:58.320
<v Speaker 13>will other banks need more from the other banks.

0:14:58.760 --> 0:15:01.560
<v Speaker 15>I don't have any special ins about First Republic, talk

0:15:01.600 --> 0:15:03.240
<v Speaker 15>about why we did as an industry. It was to

0:15:03.240 --> 0:15:06.680
<v Speaker 15>stabilize one of our companies and provide liquidity because it

0:15:06.680 --> 0:15:07.440
<v Speaker 15>was a liquidy question.

0:15:07.480 --> 0:15:07.800
<v Speaker 6>They asked.

0:15:07.800 --> 0:15:08.240
<v Speaker 11>It's good.

0:15:08.320 --> 0:15:09.520
<v Speaker 15>This is kind of the odd thing because if you

0:15:09.760 --> 0:15:11.880
<v Speaker 15>if you're around, and if you're old enough to be

0:15:11.960 --> 0:15:14.880
<v Speaker 15>around in the late ads and nineties, that is when

0:15:14.880 --> 0:15:18.520
<v Speaker 15>the banking christ won. People think the GFC so called

0:15:18.640 --> 0:15:20.800
<v Speaker 15>was a banking crisis. Actually the issue is those companies

0:15:20.840 --> 0:15:23.760
<v Speaker 15>weren't banks. So whether it was all the different companies

0:15:23.760 --> 0:15:25.560
<v Speaker 15>you heard about that you know, caused trouble and cleaning,

0:15:25.560 --> 0:15:27.440
<v Speaker 15>they weren't banks, and they were brought in the banking

0:15:27.480 --> 0:15:31.440
<v Speaker 15>system put an umbrella around them so they could fix them. Wait,

0:15:32.040 --> 0:15:35.560
<v Speaker 15>in late ays and early nineties, you had a highly inflationary,

0:15:35.600 --> 0:15:38.040
<v Speaker 15>high interest rate environment of commercial real estate, and that

0:15:38.120 --> 0:15:41.880
<v Speaker 15>was that was a banking crisis. And so that that's

0:15:41.920 --> 0:15:44.040
<v Speaker 15>different and it happens at a slower pace, and so

0:15:45.080 --> 0:15:47.040
<v Speaker 15>we were able to step in and help because that

0:15:47.120 --> 0:15:50.080
<v Speaker 15>was an asset quality problem. Commercial real estate rolling real

0:15:50.200 --> 0:15:52.720
<v Speaker 15>estate started in Texas and oil and all this stuff.

0:15:52.720 --> 0:15:54.760
<v Speaker 15>You just ran through all the regional economies and these

0:15:54.760 --> 0:15:55.360
<v Speaker 15>companies had.

0:15:55.240 --> 0:15:56.040
<v Speaker 4>Great ask quality.

0:15:56.080 --> 0:15:57.960
<v Speaker 15>It's just they had a liquidity problem and that's why

0:15:57.960 --> 0:15:59.400
<v Speaker 15>we put the deposit in and it worked.

0:16:00.080 --> 0:16:02.760
<v Speaker 2>That was Bank of America CEO Brian moynihan speaking with

0:16:02.800 --> 0:16:06.360
<v Speaker 2>Bloomberg's David Weston at Bloomberg's Sell SI Leaders Forum in

0:16:06.440 --> 0:16:08.720
<v Speaker 2>New York City. You can listen to the full interview

0:16:09.040 --> 0:16:12.040
<v Speaker 2>on the Bloomberg terminal, Bloomberg dot com, and on the

0:16:12.040 --> 0:16:13.600
<v Speaker 2>Bloomberg Business app.

0:16:15.880 --> 0:16:18.920
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0:16:18.960 --> 0:16:22.400
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