PRIMARIES AND THE PRESIDENT
HOPES WE HAVE SHORT MEMORIES.
STEVE FORBES WITH ME THIS
MORNING.
THE PRESIDENT ANNOYED THE LEFT
WITH THE POLICY REVERSALS AND
HOW MUCH DOES THAT HURT IN 24?
>> DOESN’T HURT THEM AT ALL BUT
TRIES TO REASSURE DEMOCRATS,
MODERATE DEMOCRATS THEY HAVE A
CANDIDATE THAT MIGHT WIN THE
ELECTION AND APPEAL TO
INDEPENDENTS AND THAT WILLOW
PROJECT, THE LEFT SHOULD SEE IT
AS REALLY VERY CLEVER ON HIS
PART.
IT’S GOING TO BE REGULATIONS
BEFORE THOSE PROJECTS CAN BE
DONE.
HE SET ASIDE A LOT OF ACREAGE
AND THAT SCALED DOWN PROJECT.
WHO KNOWS WHERE THEY’LL
ULTIMATELY SEE THE LIGHT OF DAY
ONCE THE ELECTION IS OUT OF THE
WAY.
STUART: GOOD POINT.
>> HE’S THROWING CRUMBS OUT
THERE BUT IN TERMS OF REAL
THRUST OF HIS FAR LEFT POLICIES,
UNCHANGED.
HE HASN’T WITHDRAWN THAT
TERRIBLE BUDGET, HAS HE?
STUART: HE HAS NOT.
TIME WILL IT.
IT GOES BY.
STUART: MARCUS WEIGHED IN ON THE
SILICON VALLEY BANK COLLAPSE.
WATCH THIS.
>> CAN’T WAIT FOR BIDEN TO GET
ON THE SPEECH AGAIN AND TALK
ABOUT HOW GREAT THE ECONOMY IS
AND HOW IT’S MOVING FORWARD AND
GETTING STRONGER BY THE DAY.
MAYBE THE AMERICAN PEOPLE
FINALLY WAKE UP AND UNDERSTAND
THEY WERE LIVING IN VERY TOUGH
TIMES THAT IN FACT THE RECESSION
MAY HAVE STARTED TO GO AFTER
THEM.
THEY’RE A WOKE COMPANY SO I
GUESS NOT AND HE’LL PROBABLY GET
AWAY WITH IT.
STUART: A WOKE COMPANY.
HAS WOKE MANAGEMENT GOT ANYTHING
TO DO WITH THIS BANKING CRISIS?
>> SPENDING MORE TIME ON TRYING
TO APPEASE THE FAR LEFT AND
REGULATORS RATHER THAN FOCUSING
WITH BANKING ITSELF AND THE
MISTAKES OF SILICON VALLEY BANK
WERE UNBELIEVABLE AND THAT BANK
HAS A GREAT REPUTATION FOR
SERVICE AND STARTUPS LOVE GOING
THERE BECAUSE THEY GET BETTER
SERVICE THAN THE OTHER BANKS AND
THEY’VE MADE A MIS-ICK MISTAKE.
THEY BOUGHT -- MISTAKE AND
BOUGHT LONG TERM AND DIDN’T
HEDGE THE INTEREST RATES AND
THEY KNEW FOR OVER A YEAR AS
OTHERS POINTED OUT THAT INTEREST
RATES WERE GOING UP AND FED SAID
INTEREST RATES ARE GOING UP AND
THEY MADE THIS FUNDAMENTAL
BANKING MISTAKE AND MADE BY
BANKS FOR HUNDREDS OF JEERS AND
SHORT TERM DEPOSITS AND LONG
TERM INVESTMENTS AND, BOOM, YOU
GET SQUEEZED.
STUART: CLASSIC BANKING PROBLEM.
>> IT IS.
STUART: THE AUTHORITIES
BACKSTOPPED THESE TWO BANKS AND
DEPOSITORS DON’T LOSE A DIME AND
GET EVERYTHING BACK IF THEY WANT
IT.
THE PRESIDENT ADDRESSED SAYING
THE BANKING SYSTEM IS STRONG,
IT’S SAFE, HE’LL DO WHATEVER IT
TAKES, AND THE MANAGEMENT OF
THESE BANKS WILL BE FIRED.
HAS HE DONE ENOUGH, HAVE THE
REGULATORS DONE ENOUGH TO STOP
THE ROT?
>> WELL, AFTER THE 2008-2009
CRISIS, ONE OF THE THINGS THE
REGULATORS DEMAND OF BANKS WAS
SUBSTANTIALLY INCREASE CAPITAL
AND SO CALLED REGULATIONS FOR
THE WORLD BANKS AND THEY DID
IMPROVE THEIR BALANCE SHEETS SO
OVERALL THE BANKING SYSTEM IS IS
IN A STRONGER POSITION ANNE
DONOVAN IN 2008/2009 FINANCIAL
CRISIS AND BANKS MADE MISTAKES
GOING INTO BITCOIN A LITTLE TOO
MUCH AND MISTAKES THAT SILICON
VALLEY BANK MADE AND SURVIVED
AND BAILING OUT STOCKHOLDERS AND
UNSECURED CREDITORS AND
DEPOSITORS SAFE AND THAT’S GOOD
FOR SACKMARY VARIETY OF REASONS
BUT STOCKHOLDERS UNSECURED
CREDITORS AND MANAGEMENT WILL
TAKE A HIT.
THAT’S WHAT YOU WANT.
STUART: IF IT LOOKS LIKE BIG
MONEY CENTER BACKS IF THERE’S A
RUN ON THEIR STOCK, THEN YOU
KNOW THAT THE CRISIS IS NOT OVER
WHEN THEY EXPAND BUT ONLY UNDER
THAT CIRCUMSTANCE.
>> ONLY UNDER THAT CIRCUMSTANCE
AND I’M NOT A MONEY MANAGER AND
IF THEY GET HIT MORE, THEY’RE
GOING TO BE A BARGAIN.
THE ECONOMY WILL EVENTUALLY COME
BACK AT A PRICE ANYTHING IS AND
LOOKS GOOD.
I THINK IT’S COMING THERE WITH
THE BANKS.
STUART: STEVE FORBES, YOU’RE ALL
RIGHT.
>> AS MY GRANDFATHER SAID
SELLING THE ADVICE AND NOT
FOLLOWING IT.