OVER TO YOU.
WILL: THANK YOU, RICK.
SO, BANKS ACROSS THE COUNTRY
FEAR UNCERTAINTY IN THE WAKE OF
THE SVB COLLAPSE, BUT COMMUNITY
BANKS ARE PAINTING A DIFFERENT
PICTURE.
AT LEAST IN NORTH DAKOTA.
THE BANK OF NORTH DAKOTA IS THE
ONLY GOVERNMENT-OWNED
GENERAL SERVICE BANK IN THE
UNITED STATES AND OUR NEXT
GUEST SAYS ITS SUCCESS SUDDEN BE
NOTED.
MR. WONDERFUL IS HERE WITH THE
INSIGHT, KEVIN O’LEARY,
CHAIRMAN OF O’LEARY VENTURES
JOINS US NOW.
KEVIN, GLAD TO HAVE YOU.
I’VE SEEN YOU SAY THIS.
I DON’T THINK IT’S DISCONNECTED.
I THINK I SAW YOU SAY I WOULD
NOT DO BUSINESS IN CALIFORNIA.
NOW I HEAR YOU SAY LOOK WHAT’S
HAPPENING IN NORTH DAKOTA, IT’S
A SUCCESS.
EXPLAIN.
>> YES, THERE ARE STATES THAT
ARE GO-TO STATES AND NO-GO
STATES.
BAD POLICY, HIGH TAXES IN NEW
YORK, MASSACHUSETTS, NEW JERSEY
AND OF COURSE CALIFORNIA.
THEY AREN’T REALLY IN BUSINESS.
THE REGULATORY ENVIRONMENT IS SO
UNSTABLE THERE.
THAT’S WHEN YOU START TO LOOK AT
NEW PLACES TO INVEST CAPITAL,
AND THAT’S WHEN I STUMBLED INTO
NORTH DAKOTA.
VERY PRO-BUSINESS.
A REMARKABLE ECONOMY.
FASTEST GROWING GDP PER-CAPITA.
THIRD LARGEST OIL AND ENERGY
PRODUCER IN AMERICA AND A STATE
WITH ITS OWN SOVEREIGN BANK,
SETUP IN 1919.
WHO KNEW AN INCREDIBLE SITUATION
THERE, AND SO WHY YOU CARE ABOUT
THAT IS REGIONAL BANKS WERE
SETUP DECADES AGO, 40, 50, 60
YEAR AGO TO TAKE CARE OF THE
LOCAL ECONOMY.
IN THE CASE OF NORTH DAKOTA,
FARMERS THERE WERE UNHAPPY WITH
THE INTEREST RATES BEING CHARGED
IN MINNESOTA, SO WHAT THEY DID
IS THEY SETUP THEIR OWN BANK.
THEY GOT THEIR OWN CHARTERS.
ONLY ONE, SO WOW DOES THAT WORK.
WILL: SO OKAY, KEVIN, I LOVE
WHAT YOU HAVE SAID SO FAR, BUT
I’M HAVING TROUBLE RECONCILING
WHAT YOU JUST SAID WITH
SOMETHING I’VE HEARD YOU SAY IN
SEVERAL LOCATIONS RECENTLY
INCLUDING HERE ON THE FOX NEWS
NETWORK AND TALKING TO TUCKER SO
LET’S LISTEN TO WHAT YOU TOLD
TUCKER AND THEN COME BACK AND
YOU AND I DISCUSS IT.
>> MANY OF THESE REGIONAL BANKS
WERE FOUNDED 50 YEARS AGO.
IT WAS A DIFFERENT ECONOMY, A
DIFFERENT WORLD.
THERE WAS NO DIGITAL AGE AT ALL,
AND PEOPLE NEEDED THE TOUCH
POINT OF A BANK IN THEIR
COMMUNITY.
OBVIOUSLY, THAT’S COMPLETELY
CHANGED BECAUSE 99% OF BANKING
TODAY IS DONE ONLINE.
THERE’S A WHOLE GENERATION OF
PEOPLE POST-PANDEMIC WHO HAVE
NEVER BEEN IN A BRANCH IN A
REGIONAL BANK OR ANY BANK, SO
THE QUESTION BECOMES NOW AND THE
NARRATIVE IS QUICKLY LOOKING
AT ALL OF THIS BECAUSE OF THESE
FAILURES WHAT DO WE NEED TINY
REGIONAL BANKS FOR IN THE FIRST
PLACE?
WILL: SO KEVIN, I LIKE WHAT YOU
HAD TO SAY ABOUT NO-GO AND PRO-
BUSINESS AND ANTI-BUSINESS
STATES TALKING ABOUT THE
LABORATORIES OF DEMOCRACY.
WHY NOT THE SAME THING FOR BANKS
WE NEED SMALL REGIONAL BANKS TO
HAVE THAT CONNECTION TO A
COMMUNITY LIKE YOU JUST POINTED
OUT IN NORTH DAKOTA.
>> WELL, I HAVE NO PROBLEM WITH
THAT STATEMENT, IF YOU THINK AND
YOU HAVE A STATE, LET’S TAKE
CALIFORNIA FIRST.
IF YOU BELIEVE YOU NEED REGIONAL
BANKS IN CALIFORNIA TO SUPPORT
THE UNIQUENESS OF ITS ECONOMY
WHICH IS SUPPOSEDLY TECH-
ORIENTED, WHY DO I AS A
FARMER IN FLORIDA HAVE TO BAIL
YOU OUT WHEN YOU BLOW UP YOUR
BANK LIKE THE SILICON VALLEY
BANK?
I DON’T WANT TO OWN THAT.
THE STATE SHOULD EAT THAT.
WILL: OKAY.
>> IF YOU WANT TO HAVE TINY
REGIONAL BANKS IN THE STATE LET
THE STATE MAINTAIN THOSE.
JUST LIKE THEY DO IN NORTH
DAKOTA.
WILL: I LIKE THAT.
I LIKE THAT STATEMENT, SO I’M
ASKING THIS.
ARE YOU ADOPTING AN ABSOLUTE NO-
BAIL-OUT PROPOSITION OR
PRINCIPLE?
OR ARE YOU ARGUING THE SAME AS
JANET YELLEN, WE BAIL OUT THE
BIG BANKS BUT NOT THE SMALL
BANKS.
>> THERE’S TOO BIG TO FAIL
CONCEPT AROUND MONEY CENTER
BANKS.
THERE’S AN IMPUTED BAILOUT IN
THERE EVEN THOUGH WE KNOW THE
MAX IS 250,000.
NO ONE IS GOING TO LET A MONEY
CENTER BANK GO TO ZERO AND THE
WHOLE ECONOMY KNOWS THAT.
THE WHOLE WORLD KNOWS THAT.
I COULDN’T CARE LESS WHAT
HAPPENS TO FIRST REPUBLIC OR
SILICON VALLEY BANK OR
SIGNATURE BANK.
THEY CAN GO TO ZERO BECAUSE THEY
ARE POORLY MANAGED.
IF YOU RUN A BANK WITH IDIOTS
IT’S GOING TO GO TO ZERO AND
THAT’S EXACTLY WHAT HAPPENED.
DOESN’T CHANGE THE ECONOMY IN
ANY WAY.
HOWEVER, IT’S FAIR, BECAUSE WE
ARE A DEMOCRACY.
IF YOU WISH TO SUPPORT TINY
REGIONAL BANKS IN YOUR STATE,
YOU EAT THEM.
YOU OWN IT.
THEY FIGURED THAT OUT.
THEY ARE RESPONSIBLE IN NORTH
DAKOTA.
THE BANK OF NOTER DOES NOT
COMPETE WITH THE REGIONAL BANKS
IT SUPPORTS THEM.
I DON’T WANT TO TAKE THIS.
WILL: I WANT TO HAVE A DEEPER
CONVERSATION WITH YOU.
I AGREE LET IDIOTS PAY FOR THEIR
DECISIONS BUT THAT SHOULD APPLY
FOR THE BIG AS WELL AS SMALL
GUYS AND IF WE DON’T APPLY THAT
PRINCIPLE, WE ARE EFFECTIVELY
KILLING THE LITTLE GUYS AND
SHOVING ALL OF THE CUSTOMERS TO
THE BIG GUYS.
I’M ON FOX & FRIENDS THIS
MORNING AND SO ARE YOU AND
SO OUR TIME IS TIGHT BUT I WOULD
LOVE TO HAVE THAT CONVERSATION
WITH YOU DEEPER AND LONGER IN
THE FUTURE KEVIN O’LEARY.