1
00:00:01,320 --> 00:00:04,640
Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg

2
00:00:04,680 --> 00:00:07,720
Speaker 1: day Break for Wednesday, March fifteenth. Coming up today, the

3
00:00:07,800 --> 00:00:11,080
Speaker 1: FED weighs tougher rules for lenders following the collapse of

4
00:00:11,080 --> 00:00:13,840
Speaker 1: Silicon Valley Bay Bank of America rakes in more than

5
00:00:13,920 --> 00:00:17,480
Speaker 1: fifteen billion dollars in deposits after the failure of SVB.

6
00:00:17,760 --> 00:00:21,880
Speaker 1: TikTok considers splitting away from Byte Dance, and investors await

7
00:00:22,000 --> 00:00:25,720
Speaker 1: reports on inflation and retail sales. The State Department is

8
00:00:25,720 --> 00:00:28,600
Speaker 1: condemning Rush over the downing of a US drone plus

9
00:00:28,600 --> 00:00:32,400
Speaker 1: Ohio suing North Park Southern over last month's trained arailment.

10
00:00:32,560 --> 00:00:35,480
Speaker 1: I'm John Tucker. More Ahead, I'm John Stash Aaron Sports.

11
00:00:35,520 --> 00:00:37,559
Speaker 1: The next road trip ended with a win at Portland

12
00:00:37,560 --> 00:00:40,440
Speaker 1: and nets lost at Oklahoma City, The Rangers one, the

13
00:00:40,520 --> 00:00:45,239
Speaker 1: Devils and Islanders bothe Law. That's all straight Ahead on

14
00:00:45,360 --> 00:00:48,960
Speaker 1: Bloomberg day Break, The business news you need, disturn your day,

15
00:00:49,000 --> 00:00:53,400
Speaker 1: and just one fifteen minute podcast each pointing on Apples, Spotify,

16
00:00:53,600 --> 00:01:00,560
Speaker 1: The Bloomberg Business Appen everywhere you get your podcasts. Good morning,

17
00:01:00,640 --> 00:01:03,360
Speaker 1: I'm Amy Morris and I'm kieron Moscow. Here are the

18
00:01:03,400 --> 00:01:07,040
Speaker 1: stories we're following today, we begin with a continued fallout

19
00:01:07,080 --> 00:01:09,840
Speaker 1: from the collapse of Silicon Valley Bank. Bloomberg News has

20
00:01:09,880 --> 00:01:13,080
Speaker 1: learned the Federal Reserve is now considering changes to its

21
00:01:13,120 --> 00:01:16,640
Speaker 1: oversight of midsized banks. At the same time, former FED

22
00:01:16,760 --> 00:01:20,280
Speaker 1: Vice Chair for Supervision Randall Quarrels, is downplaying the role

23
00:01:20,360 --> 00:01:24,160
Speaker 1: of looser rules in svb's collapse. I think there will

24
00:01:24,200 --> 00:01:29,880
Speaker 1: be an effort to push down some of the regulation

25
00:01:29,920 --> 00:01:32,959
Speaker 1: that currently applies to larger banks down into the smaller banks.

26
00:01:33,360 --> 00:01:35,760
Speaker 1: I may self think that for the most part, that

27
00:01:35,800 --> 00:01:38,960
Speaker 1: will probably be a mistake driven by a misunderstanding of

28
00:01:38,959 --> 00:01:42,160
Speaker 1: what just happened. Randall Quarrels served as the fed's top

29
00:01:42,240 --> 00:01:45,200
Speaker 1: cop on Wall Street from twenty seventeen to twenty twenty.

30
00:01:45,280 --> 00:01:47,360
Speaker 1: Well over the past few days, amy we've seen the

31
00:01:47,360 --> 00:01:51,800
Speaker 1: collapse of SVB and state regulators see Signature Bank. Despite

32
00:01:51,800 --> 00:01:55,040
Speaker 1: all of that, Federal Reserve Governor Michelle Bowman says America's

33
00:01:55,040 --> 00:01:58,560
Speaker 1: banking system remains on steady footing. The US banking system

34
00:01:58,640 --> 00:02:03,480
Speaker 1: remains resilient and on a solid foundation, with strong capital

35
00:02:03,600 --> 00:02:07,760
Speaker 1: and liquidity throughout the system. FED Governor Michelle Bowman made

36
00:02:07,760 --> 00:02:11,320
Speaker 1: the comments at a banking conference in Honolulu. Despite that assessment,

37
00:02:11,360 --> 00:02:14,560
Speaker 1: some officials want more oversight set at Banking Chairman Shared

38
00:02:14,600 --> 00:02:17,359
Speaker 1: Brown is among them. He sees little chance Congress will

39
00:02:17,400 --> 00:02:20,920
Speaker 1: move to Titan regulations. He's urging the Fed to act unilaterally.

40
00:02:21,280 --> 00:02:26,359
Speaker 1: Every time the Silicon Valley bank and bankers so often

41
00:02:26,440 --> 00:02:30,400
Speaker 1: come to Congress to weaken rules, too often, Congress goes along,

42
00:02:30,480 --> 00:02:34,040
Speaker 1: and whatever we do here, we're going to strengthen oversight rules.

43
00:02:34,400 --> 00:02:37,280
Speaker 1: Senate Banking Chairman Jared Brown spoke with Joe Matthew and

44
00:02:37,280 --> 00:02:40,520
Speaker 1: Anne Marie Hordern on Bloomberg Sound On. Catch the program

45
00:02:40,600 --> 00:02:43,880
Speaker 1: weekdays from one until three pm Eastern on Bloomberg Radio

46
00:02:44,120 --> 00:02:47,639
Speaker 1: and download sound on wherever you get your podcasts. Now.

47
00:02:47,639 --> 00:02:50,360
Speaker 1: A key question in the fedsprobe of Silicon Valley Bank

48
00:02:50,360 --> 00:02:53,040
Speaker 1: Amy will Be who was managing risk? And we get

49
00:02:53,080 --> 00:02:55,880
Speaker 1: that part of the story from Bloomberg's Done Christner. For

50
00:02:56,000 --> 00:02:59,520
Speaker 1: much of last year, SVB didn't have a chief risk officer.

51
00:02:59,720 --> 00:03:04,320
Speaker 1: A twenty twenty three proxy statement shows Laura Eziureta stepped

52
00:03:04,320 --> 00:03:07,160
Speaker 1: down from performing the role in April, although she didn't

53
00:03:07,240 --> 00:03:10,400
Speaker 1: leave the company until December. It was in December when

54
00:03:10,520 --> 00:03:13,880
Speaker 1: Kim Olsen took the job after serving as chief US

55
00:03:14,040 --> 00:03:18,200
Speaker 1: risk officer for Sumi Tomo Mutsui Banking Corporation. Olson was

56
00:03:18,240 --> 00:03:20,919
Speaker 1: based in New York, across the country from most of

57
00:03:20,960 --> 00:03:24,080
Speaker 1: the rest of the svb's top brass. The months along

58
00:03:24,160 --> 00:03:26,959
Speaker 1: vacancy has drawn the attention of lawyers who are circling

59
00:03:27,160 --> 00:03:31,119
Speaker 1: SVB with an eye on bringing shareholder lawsuits in New York.

60
00:03:31,120 --> 00:03:34,000
Speaker 1: I'm Doug Prisoner Bloomberg Daybreak. Thank you, Doug. When it

61
00:03:34,040 --> 00:03:38,200
Speaker 1: comes to worry's over Signature Bank, sources say federal prosecutors

62
00:03:38,200 --> 00:03:42,400
Speaker 1: were already investigating the firm before its seizure by regulators.

63
00:03:42,480 --> 00:03:46,040
Speaker 1: Bloomberg's Jeff Bellinger reports the probe involved the bank's work

64
00:03:46,120 --> 00:03:49,960
Speaker 1: with crypto clients. People familiar with the matter tell Bloomberg

65
00:03:50,000 --> 00:03:53,360
Speaker 1: the New York bank was being investigated by Justice Department

66
00:03:53,400 --> 00:03:57,320
Speaker 1: officials in Washington and Manhattan. The authorities wanted to know

67
00:03:57,400 --> 00:04:01,320
Speaker 1: whether Signature was taking sufficient steps to detect possible money

68
00:04:01,400 --> 00:04:05,680
Speaker 1: laundering by clients. Sources say the Securities and Exchange Commission

69
00:04:05,760 --> 00:04:08,800
Speaker 1: was also looking into the bank's operations. There's been no

70
00:04:08,880 --> 00:04:11,920
Speaker 1: official comment from many of the agencies or the failed

71
00:04:11,920 --> 00:04:14,680
Speaker 1: bank at this point. The bank and its staff are

72
00:04:14,800 --> 00:04:18,920
Speaker 1: not accused of any wrongdoing. Jeff Bellinger, Bloomberg Day Break,

73
00:04:19,160 --> 00:04:21,680
Speaker 1: Ry Jeff, thanks well, it was rebound day for regional

74
00:04:21,720 --> 00:04:24,640
Speaker 1: banks after the recent carnage on Wall Street. First Republic

75
00:04:24,680 --> 00:04:27,880
Speaker 1: had its biggest single day gain ever yesterday, rising twenty

76
00:04:27,920 --> 00:04:31,040
Speaker 1: seven percent, PacWest gained a record thirty four percent, and

77
00:04:31,120 --> 00:04:34,880
Speaker 1: Western Alliance Bank Corps rose fourteen percent. While those regional

78
00:04:34,920 --> 00:04:37,640
Speaker 1: bank shares were falling, short sellers minted more than two

79
00:04:37,720 --> 00:04:41,359
Speaker 1: billion dollars in paper profits in just three days. Trading

80
00:04:41,360 --> 00:04:44,159
Speaker 1: from Thursday to Monday saw the Spider SNP Regional Banking

81
00:04:44,200 --> 00:04:48,840
Speaker 1: ETF fall twenty three percent, its biggest plun since twenty twenty. Well,

82
00:04:48,880 --> 00:04:51,960
Speaker 1: the pain in regional banks is paying big dividends. For

83
00:04:52,080 --> 00:04:54,839
Speaker 1: Bank of America, bef A mopped up more than fifteen

84
00:04:55,000 --> 00:04:58,000
Speaker 1: billion dollars in new deposits in just a matter of days.

85
00:04:58,320 --> 00:05:01,000
Speaker 1: JP Morgan, Chase, City Group, and Wells Fargo also ranked

86
00:05:01,000 --> 00:05:03,680
Speaker 1: in billions. So the figures have not yet been disclosed.

87
00:05:04,160 --> 00:05:07,440
Speaker 1: Another major story we're following this morning involved TikTok. We're

88
00:05:07,520 --> 00:05:11,159
Speaker 1: learning the Chinese company's leadership is discussing the possibility of

89
00:05:11,279 --> 00:05:14,440
Speaker 1: separating from its parent company Bike dance. Let's get the

90
00:05:14,520 --> 00:05:17,560
Speaker 1: latest Live with Bloomberg. Steve Rappaport. Good morning, Steve, Good

91
00:05:17,560 --> 00:05:20,800
Speaker 1: morning Amy and Karen. Divesting TikTok from its Chinese parent

92
00:05:20,839 --> 00:05:23,719
Speaker 1: company would be a last resort if the platform's existing

93
00:05:23,720 --> 00:05:27,800
Speaker 1: proposal with national security officials falls through. That's according to sources,

94
00:05:27,839 --> 00:05:30,960
Speaker 1: who also tell Bloomberg Beijing would ultimately have final say

95
00:05:30,960 --> 00:05:33,360
Speaker 1: on a split Congress. The White House and more than

96
00:05:33,400 --> 00:05:35,640
Speaker 1: half of US states banned the use of TikTok on

97
00:05:35,720 --> 00:05:38,919
Speaker 1: government issued devices. The Senate is taking up legislation for

98
00:05:38,960 --> 00:05:41,279
Speaker 1: a total ban in the US. Live from New York,

99
00:05:41,279 --> 00:05:44,360
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well.

100
00:05:44,360 --> 00:05:46,360
Speaker 1: On the economic front, where it coming off a day

101
00:05:46,360 --> 00:05:49,440
Speaker 1: where consumer prices showed inflation is still an issue. Now

102
00:05:49,480 --> 00:05:52,680
Speaker 1: we get another pair of key economic reports, and Bloomberg's

103
00:05:52,640 --> 00:05:55,920
Speaker 1: Michael McKee has the details. Two more reports on producer

104
00:05:55,960 --> 00:05:59,200
Speaker 1: prices and retail sales will help Fed policymakers decide what

105
00:05:59,360 --> 00:06:02,800
Speaker 1: still needs to be done to tame inflation and how quickly.

106
00:06:03,279 --> 00:06:06,040
Speaker 1: A week ago, investors were arguing over whether the Central

107
00:06:06,040 --> 00:06:08,719
Speaker 1: Bank should raise interest rates by a quarter or half

108
00:06:08,760 --> 00:06:12,440
Speaker 1: percentage point throw in one banking crisis, and some went

109
00:06:12,480 --> 00:06:15,440
Speaker 1: so far as to predict rap cuts. The Consumer Price

110
00:06:15,480 --> 00:06:19,720
Speaker 1: Report out Tuesday showed prices are still rising. However, today's

111
00:06:19,760 --> 00:06:23,320
Speaker 1: PPI will offer evidence of inflation in the pipeline, and

112
00:06:23,400 --> 00:06:26,839
Speaker 1: retail sales will show whether Americans still feel confident about

113
00:06:26,880 --> 00:06:30,440
Speaker 1: spending money. Michael McKee, Bloomberg Daybreak, Right, Michael, thank you,

114
00:06:30,480 --> 00:06:33,239
Speaker 1: and straight ahead. We have your latest local headlines, plus

115
00:06:33,240 --> 00:06:41,320
Speaker 1: a check of sports, and this is Bloomberg. Thank you, Karen.

116
00:06:41,400 --> 00:06:44,000
Speaker 1: Five h seven on Wall Street, thirty six degrees in

117
00:06:44,080 --> 00:06:46,599
Speaker 1: New York with partly Cloudy's guys going up to forty

118
00:06:46,600 --> 00:06:48,599
Speaker 1: five degrees. Time now for a look at some of

119
00:06:48,600 --> 00:06:51,000
Speaker 1: the other stories making news in New York and around

120
00:06:51,000 --> 00:06:53,640
Speaker 1: the world. For that, we're joined by Bloomberg's John Tucker.

121
00:06:53,640 --> 00:06:56,600
Speaker 1: Good morning John, Good morning Amy. A US unmanned aircraft

122
00:06:56,640 --> 00:06:59,560
Speaker 1: collimbed with the Russian fighter jet over the Black Sea.

123
00:07:00,040 --> 00:07:02,679
Speaker 1: Thirty two million dollar drone later crashed into the water.

124
00:07:03,200 --> 00:07:06,520
Speaker 1: US officials claimed the Russian pilots made close passes and

125
00:07:06,600 --> 00:07:09,800
Speaker 1: sprayed fuel onto the drone before the plane struck the

126
00:07:09,880 --> 00:07:14,240
Speaker 1: drone's rear propeller. State Department spokesman Ned Price We are

127
00:07:14,320 --> 00:07:18,480
Speaker 1: engaging directly with the Russians again at senior levels, to

128
00:07:18,560 --> 00:07:23,680
Speaker 1: convey our strong objections to this unsafe, unprofessional intercept which

129
00:07:23,720 --> 00:07:27,200
Speaker 1: caused the downing of the unmanned US aircraft. The State

130
00:07:27,200 --> 00:07:29,840
Speaker 1: Departments ned Price went on to call it a brazen

131
00:07:29,960 --> 00:07:34,400
Speaker 1: violation of the international law. Moscow insists its warplanes didn't

132
00:07:34,400 --> 00:07:37,800
Speaker 1: fire their weapons or hit the drone. The cleanup continues

133
00:07:37,840 --> 00:07:40,200
Speaker 1: from a north eastern north and west of New York City.

134
00:07:40,240 --> 00:07:42,920
Speaker 1: The governors of New York, New Jersey, and Connecticut issued

135
00:07:43,000 --> 00:07:46,720
Speaker 1: states of emergency yesterday. Some towns in Putnam County, New York,

136
00:07:46,760 --> 00:07:49,600
Speaker 1: are digging out for more than ten inches of snow.

137
00:07:50,280 --> 00:07:53,520
Speaker 1: New York lawmaker is floating a personal income tax increase

138
00:07:53,560 --> 00:07:56,600
Speaker 1: for individuals earning more than five million dollars and a

139
00:07:56,680 --> 00:08:00,840
Speaker 1: child tax credit expansion. Lawmakers also pitch raising the current

140
00:08:00,840 --> 00:08:03,880
Speaker 1: ten point nine percent tax rate to eleven point four

141
00:08:03,920 --> 00:08:08,320
Speaker 1: percent on taxpayers earning more than twenty five million dollars. Meanwhile,

142
00:08:08,360 --> 00:08:11,440
Speaker 1: State Senate and Assembly Democrats have pushed back on Governor

143
00:08:11,520 --> 00:08:15,480
Speaker 1: Hoko's plan to tie the minimum wage to inflation. They

144
00:08:15,520 --> 00:08:18,440
Speaker 1: say the hourly rate should first be boosted to ensure

145
00:08:18,480 --> 00:08:21,960
Speaker 1: workers earn a living wage. The deadline for lawmakers and

146
00:08:22,040 --> 00:08:24,559
Speaker 1: HOCO to agree on the proposed two hundred and twenty

147
00:08:24,560 --> 00:08:28,760
Speaker 1: seven billion dollars state budget is March thirty first. Ohio

148
00:08:28,880 --> 00:08:31,800
Speaker 1: is taking Norfolk Southern to court over last month's trained

149
00:08:31,800 --> 00:08:35,880
Speaker 1: deraimant and toxic fire in East Palestine, but State Attorney

150
00:08:35,920 --> 00:08:38,920
Speaker 1: General Dave Yo says the lawsuit aims to ensure the

151
00:08:39,000 --> 00:08:43,599
Speaker 1: railroad pays for the cleanup and environmental damage. This derailment

152
00:08:43,800 --> 00:08:49,880
Speaker 1: was entirely avoidable, and I'm concerned that Norfolk and Southern

153
00:08:51,080 --> 00:08:55,040
Speaker 1: maybe putting profits for their own company above the health

154
00:08:55,040 --> 00:08:59,360
Speaker 1: and safety of cities and communities that they operate in.

155
00:09:00,200 --> 00:09:02,640
Speaker 1: Yost also plans to force the company to pay for

156
00:09:02,760 --> 00:09:06,600
Speaker 1: groundwater and soil monitoring. Only years he had Global news

157
00:09:06,679 --> 00:09:09,000
Speaker 1: twenty four hours a day, power by more than twenty

158
00:09:09,000 --> 00:09:12,240
Speaker 1: seven hundred journalist and analysts more than one hundred twenty countries.

159
00:09:12,480 --> 00:09:15,760
Speaker 1: I'm John Tucker, this is Bloomberg Aby, all right, thank you,

160
00:09:15,840 --> 00:09:21,280
Speaker 1: John don now that the sports report brought to you

161
00:09:21,320 --> 00:09:23,920
Speaker 1: by try State Audi. For that, we bring in Bloomberg's

162
00:09:23,960 --> 00:09:25,920
Speaker 1: John's dash our all right. I mean Nicks have to

163
00:09:25,960 --> 00:09:27,640
Speaker 1: be happy they get a split of the four game

164
00:09:27,679 --> 00:09:30,080
Speaker 1: road trip. Considering Jalen Brunson only played a half of

165
00:09:30,120 --> 00:09:33,719
Speaker 1: one game, Emmanuel quickly has started in Brunsdon's place. At

166
00:09:33,720 --> 00:09:36,560
Speaker 1: in Portland, he scored twenty eight points at ten rebounds.

167
00:09:36,640 --> 00:09:39,600
Speaker 1: Nicks went from down thirteen to up nineteen. They meet

168
00:09:39,640 --> 00:09:41,720
Speaker 1: the Blazers one twenty three, one oh seven. They sit

169
00:09:41,880 --> 00:09:44,240
Speaker 1: fifth in the East game ahead of the Nets, who

170
00:09:44,280 --> 00:09:46,880
Speaker 1: ended their trip with Oklahoma City got outscored by twenty

171
00:09:46,880 --> 00:09:49,679
Speaker 1: four and the second half and OKC one one twenty

172
00:09:49,720 --> 00:09:52,880
Speaker 1: one one oh seven. Mcal Bridges led Brooklyn with thirty

173
00:09:52,880 --> 00:09:55,160
Speaker 1: fourth the Garden Rangers with a three goal first period

174
00:09:55,240 --> 00:09:57,720
Speaker 1: two by Meks Avantage. Add He's up to thirty four

175
00:09:57,760 --> 00:09:59,960
Speaker 1: goals on the year. The new Ranger Patrick Kane score

176
00:10:00,000 --> 00:10:02,959
Speaker 1: of the power play blue Shirt Street Washington five to three.

177
00:10:03,040 --> 00:10:05,280
Speaker 1: Devils lost to Tampa Bay four to one. Same two

178
00:10:05,280 --> 00:10:08,199
Speaker 1: teams play again in New York tomorrow. Islanders lost in

179
00:10:08,400 --> 00:10:11,200
Speaker 1: La five to two, Kings with four goals in a

180
00:10:11,240 --> 00:10:14,680
Speaker 1: ten minute span of the second period. NCUBAA Tournaments Underway

181
00:10:14,720 --> 00:10:17,600
Speaker 1: pit where the one point went over Mississippi State. Tonight

182
00:10:17,760 --> 00:10:21,600
Speaker 1: in Dayton, Fairleigh Dickinson takes on Texas Southern. Who's got

183
00:10:21,600 --> 00:10:24,520
Speaker 1: a record of ten and sixteen. FTU got into the

184
00:10:24,600 --> 00:10:27,360
Speaker 1: NC double As despite losing the n EC Attorney Final

185
00:10:27,400 --> 00:10:30,280
Speaker 1: to Merrimack, whose new to Division One and not yet

186
00:10:30,320 --> 00:10:33,480
Speaker 1: eligible for the NC Doubaas n IT Seaton Hall lost

187
00:10:33,520 --> 00:10:37,520
Speaker 1: by one of Colorado. Hofstra beat Rutgers in overtime. The

188
00:10:37,720 --> 00:10:40,280
Speaker 1: Giants traded a third round draft pick to the Raiders

189
00:10:40,320 --> 00:10:42,960
Speaker 1: for tight end Darren Waller. The Jets signed free agent

190
00:10:43,000 --> 00:10:47,240
Speaker 1: white out Alan Lazard. Will that lead to acquiring Lizard's

191
00:10:47,240 --> 00:10:51,199
Speaker 1: teammate at Green Bay Aaron Rodgers? Perhaps, but hasn't happened yet.

192
00:10:51,240 --> 00:10:54,600
Speaker 1: Better than QB Andy Dalton sign Carolina The Colts expected

193
00:10:54,679 --> 00:11:01,760
Speaker 1: release quarterback Matt Robert John stash Allen. Bloomberg Sports live

194
00:11:02,000 --> 00:11:05,000
Speaker 1: from coast to coast, from New York to San Francisco,

195
00:11:05,160 --> 00:11:09,000
Speaker 1: Boston to Washington, d C. Nationwide on Sirius, Exam of

196
00:11:09,120 --> 00:11:13,720
Speaker 1: Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak.

197
00:11:14,800 --> 00:11:17,280
Speaker 1: Good morning. I'm Amy Morris, and we continue to track

198
00:11:17,400 --> 00:11:20,679
Speaker 1: the fallout after the collapse at Silicon Valley Bank. Turns

199
00:11:20,679 --> 00:11:23,240
Speaker 1: out we're seeing some larger banks benefit, but there's more

200
00:11:23,240 --> 00:11:25,800
Speaker 1: going on here too. We're joined now by Bloomberg Finance

201
00:11:25,880 --> 00:11:28,880
Speaker 1: reporter Jenny Sorain. Jenny, it's a pleasure, thanks for taking

202
00:11:28,880 --> 00:11:33,160
Speaker 1: the time. What is going on with Bank of America. Yeah,

203
00:11:33,200 --> 00:11:36,000
Speaker 1: that was the big news yesterday was that they've actually

204
00:11:36,080 --> 00:11:39,840
Speaker 1: soaked up more than fifteen billion in deposits in the

205
00:11:39,880 --> 00:11:44,720
Speaker 1: aftermath of svb's collapse last week. So you're really seeing,

206
00:11:44,760 --> 00:11:48,200
Speaker 1: you know, these bigger banks see just a huge influx

207
00:11:48,240 --> 00:11:54,040
Speaker 1: of customers as they seek you more stable and more

208
00:11:54,120 --> 00:11:58,200
Speaker 1: rights reliable banking partners during this time, So customers are

209
00:11:58,240 --> 00:12:00,360
Speaker 1: then saying, we don't want to deal with mid size

210
00:12:00,360 --> 00:12:02,400
Speaker 1: banks anymore. We want to find a bank that's too

211
00:12:02,400 --> 00:12:06,560
Speaker 1: big to fail. Um. That's one way of putting it. Um.

212
00:12:07,280 --> 00:12:09,560
Speaker 1: I mean, I think this really did spook a lot

213
00:12:09,600 --> 00:12:11,880
Speaker 1: of folks, and it's, you know, in a time where

214
00:12:11,880 --> 00:12:14,320
Speaker 1: it's hard to know, um, you know exactly what the

215
00:12:14,320 --> 00:12:17,400
Speaker 1: stability of your banking partner is, folks do tend to

216
00:12:17,440 --> 00:12:19,760
Speaker 1: go with the biggest players, and so I think that

217
00:12:19,880 --> 00:12:23,480
Speaker 1: is one thing that regulators and outside experts are worried about,

218
00:12:23,559 --> 00:12:26,000
Speaker 1: that this will cause this kind of flight to quality

219
00:12:26,040 --> 00:12:28,880
Speaker 1: in a way and just make these big banks even bigger.

220
00:12:29,280 --> 00:12:31,520
Speaker 1: Are there any other banks that are seeing an upside.

221
00:12:31,520 --> 00:12:34,640
Speaker 1: I know, Bank of America's the big headline. Yeah, no,

222
00:12:34,720 --> 00:12:36,800
Speaker 1: We've actually heard from a lot of other banks, you know,

223
00:12:36,880 --> 00:12:39,880
Speaker 1: City Group, JP, Morgan, Chase, Wells, Fargo also seeing really

224
00:12:39,920 --> 00:12:42,480
Speaker 1: really big influence right now. So I think it's it's

225
00:12:42,480 --> 00:12:44,600
Speaker 1: across the board. But we do have that, you know,

226
00:12:44,640 --> 00:12:47,320
Speaker 1: hard number for Bank of America fifteen billion, just to

227
00:12:47,320 --> 00:12:49,040
Speaker 1: give us kind of a sense of the scale of

228
00:12:49,080 --> 00:12:52,280
Speaker 1: the increase that these guys are seeing. So what are

229
00:12:52,320 --> 00:12:54,559
Speaker 1: some of the regulators doing now to make sure this

230
00:12:54,679 --> 00:12:59,840
Speaker 1: doesn't happen again? Yeah. You know, it's interesting because here's

231
00:12:59,880 --> 00:13:03,480
Speaker 1: an years ago. Back in twenty eighteen nineteen timeframe, we

232
00:13:03,559 --> 00:13:07,560
Speaker 1: saw a big rolling back of regulation for these midsized banks,

233
00:13:07,559 --> 00:13:09,439
Speaker 1: and a lot of folks in the past few days

234
00:13:09,480 --> 00:13:12,080
Speaker 1: have really been pointing to that time frame and those

235
00:13:12,120 --> 00:13:15,160
Speaker 1: moves by regulators as what sort of got us here today.

236
00:13:15,559 --> 00:13:18,520
Speaker 1: Back then, you know, they said, okay, for the regional

237
00:13:18,520 --> 00:13:21,400
Speaker 1: banks of SVB size, they no longer need to think

238
00:13:21,440 --> 00:13:24,920
Speaker 1: about these losses in the securities portfolio as part of

239
00:13:24,920 --> 00:13:27,360
Speaker 1: their capital. They did a few other things to kind

240
00:13:27,360 --> 00:13:29,840
Speaker 1: of lessen the load for these guys, and so a

241
00:13:29,840 --> 00:13:31,320
Speaker 1: lot of folks have been wondering, you know, if that

242
00:13:31,360 --> 00:13:33,800
Speaker 1: hadn't happened, would we be where we are today? And

243
00:13:33,800 --> 00:13:35,839
Speaker 1: so I think that's what regulators are really looking at

244
00:13:35,880 --> 00:13:39,040
Speaker 1: and looking to try to answer for folks, and looking

245
00:13:39,080 --> 00:13:41,679
Speaker 1: at ways that maybe they can undo some of what

246
00:13:41,720 --> 00:13:45,160
Speaker 1: they did just a few years ago. I wondered about that, Jenny.

247
00:13:45,240 --> 00:13:47,559
Speaker 1: There is a debate now over whether they need to

248
00:13:47,679 --> 00:13:50,959
Speaker 1: enforce the regulations that are still are already in place,

249
00:13:51,400 --> 00:13:53,400
Speaker 1: or if they do need to claw back and get

250
00:13:53,480 --> 00:13:56,439
Speaker 1: more of those regulations back from the twenty eighteen twenty

251
00:13:56,520 --> 00:13:59,440
Speaker 1: nineteen timeframe. What are you hearing? There's a lot of

252
00:13:59,440 --> 00:14:03,520
Speaker 1: finger pointing here. Yeah, it's definitely. I think, as you

253
00:14:03,600 --> 00:14:06,640
Speaker 1: might imagine in DC especially, it's become something of a

254
00:14:06,720 --> 00:14:09,720
Speaker 1: blame game. You know, you've got Democrats on one side saying, oh,

255
00:14:09,800 --> 00:14:13,079
Speaker 1: this was happening under Trump when he, you know, encouraged

256
00:14:13,120 --> 00:14:15,959
Speaker 1: the rollback of all these different regulations. You've got Republicans

257
00:14:15,960 --> 00:14:17,960
Speaker 1: on the other side saying, no, this all happened under

258
00:14:17,960 --> 00:14:20,680
Speaker 1: Biden's watch, and his regulators weren't, you know, they were

259
00:14:20,720 --> 00:14:22,680
Speaker 1: asleep at the wheels. So I think we're going to

260
00:14:22,760 --> 00:14:25,880
Speaker 1: see a lot more of that. And and you know,

261
00:14:26,240 --> 00:14:29,120
Speaker 1: I totally expected in some ways, but but I do

262
00:14:29,160 --> 00:14:31,560
Speaker 1: think you see regulators really digging in here and looking

263
00:14:31,560 --> 00:14:33,920
Speaker 1: for ways to make sure that something like this really

264
00:14:33,920 --> 00:14:36,640
Speaker 1: doesn't happen again. So how does this bound a factor

265
00:14:36,680 --> 00:14:39,960
Speaker 1: into the Fed's decision next week or will it? No?

266
00:14:40,320 --> 00:14:42,520
Speaker 1: I think that's a really important question, and when we're

267
00:14:42,520 --> 00:14:45,880
Speaker 1: trying to track very closely. I mean, I think the

268
00:14:45,920 --> 00:14:48,040
Speaker 1: one interesting aspect of all of this is, you know,

269
00:14:48,080 --> 00:14:51,040
Speaker 1: with these big big banks now seeing this huge influx

270
00:14:51,080 --> 00:14:54,080
Speaker 1: of deposits, it really has taken away the pressure for

271
00:14:54,120 --> 00:14:56,040
Speaker 1: them to pass on some of the FED rate hikes

272
00:14:56,080 --> 00:14:58,800
Speaker 1: to their customers. You know, that was something we really

273
00:14:58,800 --> 00:15:01,800
Speaker 1: thought we'd start seeing this and so it's already, um,

274
00:15:02,080 --> 00:15:04,480
Speaker 1: you know, you're already seeing some of the ways that

275
00:15:04,800 --> 00:15:07,720
Speaker 1: this you know, transmission mechanism from d rate hikes is

276
00:15:07,920 --> 00:15:10,840
Speaker 1: already starting to break down. So UM, I think it will.

277
00:15:11,000 --> 00:15:13,640
Speaker 1: There's no way it won't factor in, But hard to

278
00:15:13,680 --> 00:15:17,040
Speaker 1: say exactly how this might shake out. Has the death settled?

279
00:15:17,160 --> 00:15:20,440
Speaker 1: Is another shoe gonna drop? That's what we're watching. So

280
00:15:20,880 --> 00:15:23,760
Speaker 1: you know, I think it's hard to say. We've had

281
00:15:23,840 --> 00:15:26,600
Speaker 1: Moodies come out with a lot of more um, you know,

282
00:15:26,720 --> 00:15:30,200
Speaker 1: putting a lot more banks on ratings downgrade watch. Um,

283
00:15:30,200 --> 00:15:32,880
Speaker 1: they actually downgraded the entire sector yesterday. So it feels

284
00:15:32,880 --> 00:15:35,520
Speaker 1: like the rating agencies at least think there's more to come.

285
00:15:36,280 --> 00:15:39,520
Speaker 1: But regulators, they really tried to bring the full force

286
00:15:39,520 --> 00:15:42,480
Speaker 1: of the federal government who bear on Sunday, and so

287
00:15:42,760 --> 00:15:45,520
Speaker 1: I think they're hoping this is contained for now. But um,

288
00:15:45,800 --> 00:15:47,640
Speaker 1: but now you've got you've got folks on different sides

289
00:15:47,680 --> 00:15:50,360
Speaker 1: of the aisle on that one. Before we let you go, Jenny,

290
00:15:50,360 --> 00:15:52,800
Speaker 1: about a half a minute here, what are you watching

291
00:15:52,840 --> 00:15:55,960
Speaker 1: for in the next few days. I mean, I think

292
00:15:56,000 --> 00:15:58,280
Speaker 1: we're really paying attention to some of these regional banks

293
00:15:58,280 --> 00:16:01,360
Speaker 1: that had a really high rate show of uninsured deposits,

294
00:16:01,400 --> 00:16:03,520
Speaker 1: because those are the folks that might start to see

295
00:16:03,680 --> 00:16:07,280
Speaker 1: a real big pickup in deposit plate and that was

296
00:16:07,320 --> 00:16:10,800
Speaker 1: really what prompted the failure of SCB on Friday. So

297
00:16:10,840 --> 00:16:14,000
Speaker 1: I think that's what we're mostly looking for, looking for

298
00:16:14,040 --> 00:16:19,760
Speaker 1: any signs that you're seeing a big outflows, and beyond that,

299
00:16:19,800 --> 00:16:22,160
Speaker 1: you know, just continuing to track what goes on with SVB.

300
00:16:22,280 --> 00:16:24,720
Speaker 1: You know, there's been reports out there that the FDAC

301
00:16:24,880 --> 00:16:27,320
Speaker 1: has restarted the auction for that. As for those assets,

302
00:16:27,360 --> 00:16:29,520
Speaker 1: so we'll see how it all shakes out, but there's

303
00:16:29,520 --> 00:16:33,360
Speaker 1: still a lot of moving pieces here. You're listening to

304
00:16:33,400 --> 00:16:37,120
Speaker 1: Bloomberg Daybreak today, your morning brief on the stories making

305
00:16:37,160 --> 00:16:40,440
Speaker 1: news from Wall Street to Washington and beyond. Look for

306
00:16:40,560 --> 00:16:44,160
Speaker 1: us on your podcast feed at six am Eastern each morning,

307
00:16:44,240 --> 00:16:47,560
Speaker 1: on Apple, Spotify, and anywhere else you get your podcast.

308
00:16:47,760 --> 00:16:50,960
Speaker 1: You can also listen live each morning starting at five

309
00:16:51,040 --> 00:16:54,320
Speaker 1: am Wall Street Time on Bloomberg eleven three zero in

310
00:16:54,360 --> 00:16:58,520
Speaker 1: New York, Bloomberg ninety nine one in Washington, Bloomberg one

311
00:16:58,520 --> 00:17:02,040
Speaker 1: oh sixty one in Boston, and Bloomberg nine sixty in

312
00:17:02,160 --> 00:17:06,040
Speaker 1: San Francisco. Our flagship New York station is also available

313
00:17:06,080 --> 00:17:10,359
Speaker 1: on your Amazon Alexa devices. Just say Alexa play Bloomberg

314
00:17:10,440 --> 00:17:14,400
Speaker 1: eleven thirty plus. Listen coast to coast on the Bloomberg

315
00:17:14,440 --> 00:17:19,080
Speaker 1: Business app, Sirius XM Channel one nineteen, the iHeartRadio app,

316
00:17:19,200 --> 00:17:22,520
Speaker 1: and on Bloomberg dot Com. I'm Amy Morris and I'm

317
00:17:22,600 --> 00:17:25,800
Speaker 1: Karen Moscow. Join us again tomorrow morning for all the

318
00:17:25,880 --> 00:17:28,560
Speaker 1: news you need to start your day, right here on

319
00:17:28,600 --> 00:17:29,680
Speaker 1: Bloomberg Daybreak