THANK YOU SO MUCH.
IT’S GOOD TO SEE YOU.
THIS NEWS COMING IN, LET’S BRING
IN FOX NEWS CONTRIBUTOR LIZ
PEEK.
YOU KNOW, LIZ ARE LIZ, WE’RE
WATCHING THE REGIONALS, HEARING
REPORTS TRADING DESKS ARE REALLY
CONCERNED THE WHITE HOUSE AND
CONGRESS NOT READY FOR POSSIBLY
MORE BANK FAILURES.
LOOK AT THE REGIONAL BANKS
TAKING HITS TODAY JUST A DAY THE
AFTER JPMORGAN AGREED TO THE
TAKE AFTER PAIRS REPUBLIC --
FIRST REPUBLIC BANK, LIZ.
>> YEAH.
AND I THINK THE JAMIE DIMON SAID
THAT WAS IT, WE COULD NOW
BREATHE.
YOU KNOW, LIZ, THE PROBLEM IS WE
HAD CHARLIE MUNGER AT BERKSHIRE
HATHAWAY, ANOTHER GURU OF OMAHA,
TALKING ABOUT COMMERCIAL REAL
ESTATE, AND THAT THAT KIND OF
GOT ALL THE ANALYSTS ON THE
STREET LOOKING AT WHAT THE
COMMERCIAL REAL ESTATE EXPOSURE
WAS FOR A LOT OF SMALLER AND
REGIONAL BANKS.
GUESS WHAT?
THERE IS SOME.
SO THAT WAS A PROBLEM.
AND LOOK, HERE’S THE INCREDIBLE
THING, WE HAVE NEVER, EVER HAD A
FINANCIAL SHOCK SUCH AS BANK
FAILURES, THE SECOND, THIRD AND
FOURTH LARGEST BANK FAILURES IN
OUR HISTORY AND HAD FED CONTINUE
TO HIKE RATES.
SO WHY ARE BANKS FAILING, LIZ?
BECAUSE OF THE FED RATE HIKES.
WHAT IS THE FED POISED TO DO
ORIGIN?
HIKE RATES AGAIN.
IT IS ALMOST UNIMAGINABLE TO ME.
IS SO, YES, WE HAVE A PROBLEM.
ALL THESE BANKS HAVE A LOT OF
UNDERWATER ASSETS, AND THAT’S
THE PROBLEM HERE.
ELIZABETH: SO WHAT LIZ JUST
SAID, LET’S BRING IN CONGRESSMAN
BETH VAN DUYNE FROM HOUSE WAYS
AND MEANS.
CONGRESSMAN, IS THE WHITE
HOUSE -- IS CONGRESS READY?
BECAUSE MARKETS ARE NOW TAKING
OUT THE WEAKEST LINKS.
REGIONALS CONTINUE TO
UNDERPERFORM THE BROADER STOCK
MARKET BY THE BIGGEST MARGIN
EVER.
THEY’RE DOING MUCH WORSE THAN
HOW THEY PERFORMED IN THE 2008
FINANCIAL CRISIS.
BIDEN WHITE HOUSE TRIES TO THE
CLAIM FIRST REPUBLIC, SILICON
VALLEY, SIGNATURE BANK JUST
OUTLIERS BUT, CONGRESSMAN,
MARKETS ARE WARNING A POSSIBLE
TENTH STRAIGHT RATE HIKE
TOMORROW FROM THE FED TO STOP
INFLATION UNDER WHITE HOUSE WILL
SLAM THE REGIONALS.
THE BANKS’ SOURCES ARE TALKING
TO "EVENING EDIT."
THERE ARE NO MORE WHITE KNIGHTS
LEFT TO THE TAKE OVER THE NEXT
BANK FAILURE.
THE BANKS ARE ALREADY STRETCHED
THIN.
>> DEFINITELY STRETCHED THIN.
THE BANKS THAT THAT MADE THEIR
BUSINESS MODEL WITH, YOU KNOW,
0% INTEREST ARE PROBLEMS.
THEY DID NOT SELF-CORRECT WHEN
THEY SHOULD HAVE.
BUT THE PROBLEM IS BECAUSE AS A
DIRECT RESULT OF THE BIDEN
POLICIES.
YOU KNOW, THE BIDEN POLICIES,
THE EXTRA SPENDING, THE
EXTRAORDINARY THE AMOUNT OF
SPENDING, THE TRILLIONS OF
DOLLARS THAT THEY THREW OUT INTO
THE ECONOMY EXPECTING, THEY
SHOULD HAVE EXPECTED THAT
INFLATION WAS GOING TO INCREASE.
WE HAVE SEEN IT NEARLY EVERY
SINGLE MONTH AN INCREASE SINCE
BIDEN GOT ELECTED.
WHAT WE WERE TOLD WAS IT’S
TRANSITORY.
OKAY, IT’S BEEN TWO YEARS, IT’S
NOT TRANSSTORY.
THE BIDEN ADMINISTRATION’S AS
TRUST WORE U THINK AS GAS
STATION SUSHI.
THE FACT IS, IS THAT THEY’VE
BEEN LYING TO US.
[LAUGHTER]
REPUBLICANS HAVE BEEN WARNING
THEM FOR YEARS, STOP WITH THE
SPENDING, STOP THROWING MONEY
OUT.
GET PEOPLE BACK TO WORK.
THEY’VE IGNORED IT, AND WHAT
YOU’RE SEEING IS THE BANKS THAT
ARE GOING OUT OF BUSINESS.
THEY’RE GOING TO CONTINUE TO GO
OUT OF BUSINESS.
AND YOU’RE RIGHT, YOU KNOW,
THERE’S ONLY GOING TO BE SO MANY
WHITE KNIGHTS TO COME IN AND
SAVE THE DAY.
JPMORGAN, YOU KNOW, DID IN THIS
TIME THE, BUT WHO’S GOING TO DO
IT THE NEXT TIME?
ELIZABETH: YEAH.
LIZ, WHO’S GOING TO DO IT THE
NEXT TIME?
COMMERCIAL REAL ESTATE ACTING
LIKE BOAT ANCHORS IN THIS
DRUNKEN PARTY THE BANKS WENT ON
WITH BUYING UP WAREHOUSES,
CONOCOS, REAL ESTATE
DEVELOPMENT, HEALTH OFFICIALS,
YOU KNOW?
ALSO THIS, THERE’S TALK, LIZ,
THE TRADING DESKS ARE TALKING,
AND MOODY’S AND FITCH HAS
ALREADY WARNED THIS, THERE COULD
BE ANOTHER U.S. DEBT DOWNGRADE.
WE SAW THAT IN 2011, THE OBAMA
WHITE HOUSE WENT BALLISTIC WHEN
S&P TOOK THE U.S. DEBT, CREDIT
RATING DOWN TO AA+.
GA AO FOUND THE GOVERNMENT
WASTED MORE THAN A QUARTER
TRILLION DOLLARS IN IMPROPER
PAYMENTS FROM 20 THE 21 THROUGH
LAST YEAR.
SO WHAT WOULD HAPPEN IF THE
BIDEN WHITE HOUSE WAS HIT WITH A
U.S. DEBT DOWNGRADE?
IT WOULD BE EMBARRASSING FOR THE
U.S. AROUND THE WORLD.
>> WELL, I THINK IT’S MORE THAN
EMBARRASSING.
FIRST OF ALL, LIZ, WHAT WOULD
HAPPEN?
THEY’D BLAME IT ON DONALD TRUMP.
I DON’T KNOW HOW, BUT THAT’S
WHAT THEIR FIRST RESPONSE WOULD
BE.
LOOK, I DON’T THINK THAT’S GOING
TO HAPPEN, ALTHOUGH IT COULD
HAPPEN, AND WHAT WE’RE SEEING IN
THE MARKET TODAY, IN FACT, I
JUST TWEETED THIS OUT, 3-YEAR
TREASURIES YIELDING 5.2.
SORRY, 3-MONTH TREASURIES.
I’M NOT SURE I’VE EVER SEEN THAT
BEFORE.
A YEAR AGO THEY WERE UNDER 1%.
AGAIN, WHAT WE’VE WITNESSED OVER
THE LAST YEAR IS AN UP
PRECEDENTED ACCELERATING RATE
HIKE RESPONSE FROM THE FEDERAL
RESERVE.
CONGRESS WAS EXACTLY RIGHT, THIS
IS, IT WAS TOO LATE AND,
THEREFORE, IT’S BEEN TOO ABRUPT,
AND THE BANKS WERE NOT ABLE TO
ADJUST.
I THINK, LOOK, I DON’T THINK ANY
OF THE BIG BANKS ARE VULNERABLE
IN THIS AT THIS POINT.
I DO THINK THERE’S GOING TO BE
SOME COMMERCIAL REALITY LOANS
THAT GO -- REAL ESTATE LOANS
THAT GO BAD.
I DON’T THINK THAT’S ENTIRELY
THE FAULT OF THE LENDERS --
ELIZABETH: BUT WE COULD HAVE A
BANK FAILURE WHERE NO BANK BUYS
THAT ROTTEN, YOU KNOW, BANK
ASSETS.
THAT COULD HAPPEN, LIZ.
>> YEAH, BUT DON’T FORGET THERE
WERE IF FIVE OR MORE BIDDERS ON
THE MOST, ON THE MOST RECENT
ONE, ON THE MOST RECENT BANK.
AND WE HAVE OTHER BANKS LIKE
BANK OF AMERICA AND SOME OTHERS
THAT WERE IN THAT MIX.
ELIZABETH: I HEAR WHAT YOU’RE
SAY, BUT THOSE BANK STOCKS ARE
UNDER PRESSURE.
TEAR NOW GETTING EVEN BIGGER
DESPITE, YOU KNOW, FAR LEFT
COMPLAINTS ABOUT BIG BANKS.
CONGRESSWOMAN, THE WHITE HOUSE
PRESS SECRETARY SAID TODAY
PRESIDENT BASICALLY WANTS
UNLIMITED SPENDING.
SO SPEND THE DEBT LIMIT WITHOUT
CONDITIONS.
AND HE’S, THE PRESIDENT STILL
WON’T NEGOTIATE OVER THE SAME
REASONABLE SPENDING REFORM AND
CUTS HE AGREED TO THE AS SENATOR
AND AS VICE PRESIDENT.
HE HASN’T TALKED TO SPEAKER
McCARTHY SINCE FEBRUARY 1ST.
LET’S GET YOUR REACTION TO
SENATOR MOMMY ON THIS. -- MITT
ROMNEY.
WHY IS THE PRESIDENT DELAYING
WITH TWO WEEKS TO GO?
>> WE’VE KNOWN THIS WAS COMING
FOR A LONG TIME THE, AND THE
WHITE HOUSE KEEPSES SAYING WE
WON’T NEGOTIATE.
I’M, FRANKLY, A LITTLE APPALLED
THAT LEADERSHIP IN THE WHITE
HOUSE HAS NOT TAKEN THIS
SERIOUSLY ENOUGH TO SIT DOWN AND
NEGOTIATE MANY IF GOOD FAITH AND
GET SOMETHING DONE ON A TIMELY
BASIS.
WE’RE IN MAY NOW, ALL RIGHT?
WE’VE GOT TO MOVE.
AND IT’S SIMPLY ACCEPTABLE --
UNACCEPTABLE FOR PEOPLE TO BEGIN
TO WORRY WHETHER THEY’RE GOING
TO GET SOCIAL SECURITY CHECKS.
IT’S A LITTLE LATE NOW.
IT’S MAY 2ND.
LET’S GET TOGETHER AND GET THIS
CONE.
IT SHOULD NOT HANG OVER THE
AMERICAN FAMILY LIKES.
ELIZABETH: THAT’S RIGHT.
AND YOU KNOW WHO GETS HURT IN A
BANK CRISIS AND A U.S. DEBT
DOWNGRADE I CRISIS?
S IT IS THE AMERICAN FAMILY,
CONGRESSWOMAN.
IT’S THEIR 401(K)s, THEIR
RETIREMENT, THEIR PENSIONS,
THEIR SAVINGS ACCOUNTS ALREADY
TAKING HITS PAYING HIGHER BANK
FEES FOR THESE FAILURES.
WHY IS THE PRESIDENT PUTTING
INTO DANGEROUS PLAY THE FULL
FAITH AND CREDIT OF THE UNITED
STATES FOR HIS BIG SPENDING AND
CLIMATE CHANGE AGENDA THE THAT
ACTUALLY COST TRIPLE WHAT HE
INITIALLY SAID WITH LITTLE TO
THE NO OVERSIGHT?
SPENDING REFORM THAT HE AGREED
TO IN THE PAST IS NOT MAGA, IT’S
NOT DRACONIAN.
WHY IS HE SITTING ON HIS HANDS?
>> BECAUSE HE KNOWS HE’S GOT
VERY, VERY BAD APPROVAL RATINGS,
AND HE’S DOING EVERYTHING HE CAN
TO TO TRY TO BUY VOTES.
THIS IS ALL ABOUT APPEASING THE
FAR LEFT, HIKING THAT’S GOING TO
GET HIM BACK INTO THE WHITE
HOUSE FOR ANOTHER FOUR YEARS.
THE FACT IS IT’S NOT JUST
WORKING FAMILIES, IT’S ALSO
SMALL BUSINESSES.
IT’S NOT JUST THE SMALL
COMMUNITY BANKS THAT ARE GOING
OUT OF BUSINESS, BUT IT’S ALL OF
THESE SMALL COMPANIES, THESE
SMALL, YOU KNOW, START-UP MOM
AND POP, WORKING FAMILY
BUSINESSES THAT ARE GOING OUT OF
BUSINESS BECAUSE OF THE RAGING
INFLATION, BECAUSE OF THE
HORRIBLE SUPPLY CHAIN CRISIS
THAT WE’VE GOT AND THE FACT THAT
WE’VE BEEN PAYING PEOPLE MORE TO
STAY HOME THAN GO TO WORK.
ELIZABETH: AND RATE HIKES.
AND RATE HIKES GOING UP.