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tv   CNN This Morning  CNN  March 13, 2023 5:00am-6:00am PDT

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witness that we indict a former president behind. >> we'll find out. david schoen, thank you so much for that analysis. >> thank you. and "cnn this morning" continues right now. good morning, everyone. top of the hour. we're glad you're with us this monday. wow, what a weekend it was. two different banks failing back to back. the biden administration trying to ease panic and prevent an all-out financial crisis. the president will speak a little bit later this morning at the white house, as the federal government steps in to protect and shore up america's banking system. >> we're watching that very closely as we look at live pictures of the white house. and we're going to talk to the ceo of a tech start-up after his company's primary bank suddenly collapses. we'll also speak with shark tank star and investment mogul, kevin o'leary. how concerned should we be about the economy?
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plus this. and the oscar goes to -- navowni. >> that is well deserved as it gets. cnn's documentary on alexei navalny who is in prison in russia took home an oscar last night. the director will join us live to talk about this moment. what it means for alexei navalny, putin's jailed critic. we do begin, though, with the biden administration trying to prevent financial contagion after two banks failed back to back in the last three days. a live look now at the white house, where the president will speak this morning as the federal government takes emergency action. silicon valley bank collapsed on friday, it became the largest u.s. bank failure since the 2008 financial crisis. regulators also shut down signature bank based here in new york. we learned about that late last night. they said signature bank was on the brink of collapse and threatened the broader banking system. so at the direction of the
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president and the treasury secretary, the fdic is now stepping in. they are guaranteeing that customers, depositors of the both signature and svv will be able to get their money back starting today. the government is also insuring emergency loans to other banks in case they need a liquidity bridge. wall street very concerned. regional bank stocks are tumbling. take a look at shares of first republic, off more than 60% in pre-market trading. there are big questions about other banks right now. let's bring in senior white house correspondent mj lee who joins us. so the president will speak in a little less than an hour. do we know what he's going to say? is this about just reassuring the american people this monday morning? or are we going to hear new announcements. >> poppy, that is certainly going to be the overarching goal, so to try to reassure the american public that there is no need for a panic, that there is not going to be some broader domino effect after we saw silicon valley banks collapse. you know, we saw this all hands on deck effort over the weekend try to contain the fallout, and
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that's why we saw this dramatic announcement last night, that said that all depositors will have access to their funds starting today. and that there's going to be a new emergency lending program created by the federal reserve, so that other banks that are eligible can have access to these extra funds. you know, in his remarks this morning, which is expected within the next hour or so, we will probably hear the president echoing some of what we heard from top u.s. officials over the weekend, as they try to be reassuring to the american public, saying that the u.s. economy is a lot more resilient now than back around the 2008 financial crisis. that the reforms that were put in place after that financial crisis will work. and just the reassurance that the federal government is committed to protecting in particular small businesses, because, remember, small businesses really made up a huge bulk of the depositors with silicon valley bank. you know, the president said in a statement last night, that he's going to hold everyone
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responsible for what happened accountable. so we'll see whether he guess into this in his speech. in terms of how he finds responsible and what accountability looks like. but poppy, i think it is very clear that in the coming days and weeks, there are going to be some very serious conversations about some of these financial regulations that were loosened and relaxed over the course of the last few years, and whether they need to be strengthened and brought back, clearly given the fact that we've now seen three serious bank failures over the course of one week, poppy. >> and it all fell within the size that was given more lax regulation after that vote. mj lee, thanks very much. also this morning, we're getting new insight from actually inside silicon valley bank. cnn's matt egone was speaking with employees who worked there, one who worked in asset management and told him, quote, it was absolutely idiotic that the ceo publicly acknowledged the extent of the financial troubles before lining up support to ride out the storm. cnn's christine romans has been covering this all weekend, ever
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since this happened on friday. mj is right, there will be a lot of focus on the rollback of regulations, but also the scrutiny on the federal reserve, and what are they going to do, you know, a week and a half from now when they're meeting, because the interest rates is a major factor in all of this. >> so there'll be scrutiny on management of the company. and i think that's what matt egan was getting to there. management of the company should have been able to raise $2 billion without sending the whole thing down the tubes, right? that's what the complaints are inside the company. this management should have been able to manage interest rate risk, which is how you run a bank, you manage interest rate risk, and they did not do that properly. and what kind of pressure to your point does this put on the federal reserve? goldman sachs this weekend in a note to clients said, they don't think the fed will raise interest rates at all because of this. because there's stress in the banking system right now, and we know that this bank broke and other banks have broken because of the rapid pace of interest rate increases. >> is that good for consumers that they're not going to do that. >> it is, unless inflation is a
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real bad problem. and this delays their ability to get inflation under control. it's a bunch of tough choices over at the fed. >> the reality is, gary becker, the ceo was also, until a few days ago, on the board of san francisco federal reserve. banks have to know how to manage interest rate risk. you have to know that if you're holding on to a lot of long-term bonds and securities, and the rates are lower when you're holding them, people are going to want ones with higher rates and your assets are going to be less attractive. you have to know that. and still, the question is, it could have such broad implications that it could dictate fed policy, because of what appears to be mismanagement. >> one bank's management fatal flaw, fatal flaw of judgment could have implications for the entire banking system, and you're right, and the federal reserve. that's remarkable, isn't it? >> that's a huge! the only tool the fed has to fight inflation may now be curved because of what this bank chose to do and not do. >> or the fed could choose to go
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ahead and raise interest rates and this could all be a tempest in a teapot right here, and they've solved the problem with sbb. but, look, we've got stress in the banking sector today, no question. major banks are down, pre-market trading. some of these mid-sized regional banks are down a lot. first republic is down a lot. first republic, it's interesting, because it actually got some fed banking this weekend and also backing from jpmorgan chase. and i bank at first republic and i got an email yesterday from the ceo who said, by the way, we have plenty of capitol, everything is fine here, but people get nervous. the technocontagion is hard to e in the banking sector. and i think that's why the white house was so careful to go with a muscular approach here this weekend, to try to prevent any contagion. >> before we let you go, can i ask you about the potential acquisition of svb, because they were asking people -- they were taking bids. do we know where we are with that? >> there was an auction yesterday, they did not get a match. the terms were not attractive
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enough for a bank to take it, but they did sell hbc is buying the uk component of this company. and so there is a deal that is on the table for that. we'll watch and see. the cleanest thing would be for another bank to buy this bank. but right now, the government is -- the government is running it, people, if you bank at svb, your money will be available when it opens this morning, you know, later this morning. so we'll watch all of that. >> and also this morning, president biden is going to come out and say, the u.s. banking system is safe and secure, trying to reassure people for that panic and that contagion. christine romans, you've been on all morning. i feel like you're just here with us at the desk permanently. you're going to move in. >> lucky me. >> thank you, christine. we'll be carrying the president live for you. meanwhile, start-ups and small businesses are barely hanking on as they wait to get more information to see how they actually access the funds from silicon valley bank. the biden administration promised customers they will have access to their money starting today. we'll hear from the president in just moments and we'll carry it for you live. but let's bring in jack zsing,
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the founder of the company whose primary bank was svb and he has already had to police with his personal funds. thank you for joining this. first off, have you checked? do you have access to your funds yet? >> we don't. we're still waiting to hear back on how to access them, whether it's through silicon valley bank account or the new entity that the government has created. we understand that they should be available today, but we don't know how to access them just yet. we don't have any instructions around it. >> at the moment, what are your concerns. >> i think the concerns are how soon we would be able to actually access and then move the funds to the accounts of our choosing. the other one is obviously, with this happening, what's the next bank, what's the right bank to pick so we are not in a similar
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situation again as well. and then we have been in damage control internally, just talking to employees, keeping them available, with customers and vendors. and that's just the weekend stuff that we've been able to focus on. we haven't thought about the long-term repercussions of this just yet. >> let's talk a little bit more about that. i'm sure you're concerned about the seriousness. how serious this could be for your company. will you potentially need to continue to dip into personal funds? are you going to furlough or layoff employees? >> i think those are all the things that are top of mind right now. we have been fortunate enough right now to sustain the first payroll. but if we don't have access to the funds, that is a very real conversation that we will be having between that management team over the course of the next month or so. i think with what happened, it's just, we feel like it wasn't our responsibility as depositors to
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maintain faith in the bank, but it should be the bank's responsibility through sound judgment to take care of the funds that we deposited with them, in which silicon valley bank failed to do so. >> so what do you say to svb, if you had the opportunity to speak with them. someone who could hear what you had to say and make a difference in what's happening to you? >> i think -- i mean, we are here now. for us, it was really looking at more communication from them, once this happened, but also ensuring that whenever these employees going in the future, they learn from this and don't let this happen again at different banks that they work at. >> this is a personal question, and i'm not sure if you can ask, generally, how much did you at svb? >> we had substantially over the $250,000 limit, and that is where the concern was. but again, that fund -- those funds were there for us to do
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our day-to-day operations. and we are a profitable start-up, but again, at the same time, majority of those funds were sitting there for expenses. being the nature of the start-up is sometimes you have to sell your lunch to buy dinner. and we are in similar shape right now. >> sometimes you have to sell your lunch to buy dinner, yeah. what do you say to people who say that this is -- this is a bailout. do you think it's a bailout? >> i've been having those discussions and defending that this isn't a bailout. it isn't bailing out the bank, it is bailing out the depositors, the hard-working depositors, the employees of those who are banking with silicon valley bank. there are many people living paycheck-to-paycheck, and if this was delayed any further, i can't imagine what the ramifications for a lot of those fo folks would be. >> i understand that your son, who's 6 years old, offered to help you. can you tell our viewers how he
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offered to help? >> yes. we were, as the day happened on thursday, i was stressing out, having a couple of conversations on the phone and my wife, and he was there at home -- he wasn't feeling well, so he had a day off from school and he overheard me and saw me stressed out. and i was about to head out of the house. he sort of ran inside his room and he has a small little wallet. he brought that over to me, the entire wallet, and he's like, hey, dad, this is a little bit of money for you, hopefully it will help you. and it was just touching and i felt bad that i had to rush out of the house without acknowledging him properly, but when i came back, i did let him know that the money helped. >> jack, thank you for that and thanks for bringing this home to our viewers, how personal it is for you and for many people around the country. good luck. >> thank you. >> thank you very much. >> i think, poppy and kaitlan,
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what he said, sometimes you have to sell your lunch to pay for your dinner, and the gentlemen you interviewed who said, i'm just a toy store owner, i'm not an economist, you know, that's real. that's the real stuff. >> yeah. the kid -- the 6-year-old, my gosh, that ran to him to try to help him. this is what a lot of these companies are going through. but they're going to be okay, thanks to this morning, the government stepping in. meantime, former vice president mike pence made his strongest comments yet at this dinner in d.c. over the weekend about former president donald trump's role in the january 6th attack. how the former running mates back and forth could affect 2024. former maryland governor larry hogan just announced that he'll be watching the race from the sidelines. he's here in studio to talk about that and a lot more. a "let's dig in" day... mm. ...a "chow down" day... a "takake a big bite" day... a "perfectly delicious" day... - mm. [ chuckles ] - ...a "love my new teeth" day.
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all right, this morning. former vice president mike pence making some of the most blistering comments he's made so far about his former boss. this was at a dinner in washington, d.c. over the weekend. no cameras were in the room, we should note, but pence said, quote, about january 6th this. "president trump was wrong, had no right to overturn the election, and his reckless words endangered my family and everyone at the capitol that day. i know that history will hold donald trump accountable." just to give you a sense of how remarkable those comments are coming from pence, this is what he said about january 6th back in 2021. >> i know the media wants to distract from the biden administration's failed agenda by focusing on one day in january, they want to use that one day to try to demean the character and intentions of 74 million americans who believed we could be strong again and prosperous again and supported
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our administration in 2016 and in 2020. >> this as several republican candidates or potential candidates for the 2024 republican nomination, including pence and trump, are traveling around the country. they're speaking with primary voters. joining us now someone who will not be in that pool, former republican governor of maryland, larry hogan. he has said that he is not running for the re-election. i want to talk about that decision and what went into that. but on what pence said, do you think he's right that history is going to hold trump accountable for january 6th? >> well, he's absolutely right. i've been saying this since january 6th. and i'm really glad that he came out and said it. i have a lot of respect for mike pence. i think he did the right thing on january 6th. and i'm glad that he's now speaking out more strongly than he did before. >> some of the criticism is, well, you know, he's not -- he didn't testify before january 6th. he's trying to not fully testify, give a full testimony to jack smith, the special counsel. >> i think it's really important that we have as much transparency as possible.
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and that we get to the bottom of it. but, look, a lot of people have been afraid to say anything about it. and i think the fact that mike pence is getting stronger and speaking out more is a good thing. and, you know, i worked very closely with him the whole time he was vice president, all during covid, as i led the nation's governors. i think he's doing the right thing. and i'm going to be with mike pence in iowa this weekend. >> it sounds like you think that he should testify? >> i don't know whether he should testify or not. i'm not his lawyer and i don't know what the details of the request are. but i think it's good that he is pretty strongly saying that donald trump should be held accountable. >> why the change from him? kaitlan was at the gridiron dinner and he heard the comments, usually it's ha-ha-ha, laugh, laugh, laugh, and then everyone -- were you there? >> i missed this one. >> why the changes. he fought the special counsel, didn't speak to the january 6th committee, and he also praised the media, is my understanding from kaitlan. why the change for mike pence all of a sudden?
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you said he's getting stronger, but what does that mean? >> i think pence has been one of the few that have been,, you know -- he stood up pretty strongly on january 6th. his life was being threatened. he was in the garage of the capitol and came back and did his job, which people as were chanting, "hang mike pence," not the first time he's stood up, in my opinion. but i don't know why the -- now, more and more people are starting -- i've been saying this for two years, but more and more people are starting to say, this was wrong, and we need to move in a different direction away from trump. and mike pence is one of those people. >> can we talk a bit about the direction you think the party should go in? kaitlan anchored "state of the union" yesterday and did a really fascinating interview with a name maybe not as familiar to many in the party as you, but vivek ramaswami, who is an entrepreneur, whose well known in conservative circles, who said, your party just got it wrong on the vision. here's what he told kaitlan. >> and i think the -- the
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opportunity for the gop now is not just to complain about wokeness or gender ideology or climate ideology, but actually to go upstream and fill that black hole with a vision of american national identity that runs so deep that it dilutes these agendas to irrelevance, and actually unipfies us as a country. and i'm running, because i believe genuinely that i'm the candidate best positions to deliver national unity. >> i should note, he's written even books on wokeness. but that's the argument he makes that we that as -- some of the loudest voices, like trump, desantis, are focusing on the wrong things if we want to win. >> i agree with that completely. it's what i've been saying for eight years and what i spoke about the reagan institute about a week after the 2020 election. it's what i spoke about at the reagan library this summer. we've got to focus on a hopeful, more positive vision for america. we've got to, you know, successful politics is about addition and multiplication.
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it's not about substtraction an division. our party has been a lot of dividing and subtracting. and we haven't focused on the things that the average american cares about. it's what my entire efforts have been about. >> that's what's so confounding for people -- you're not running. >> well, you know, there's a whole lot of people that i think that are moving into that lane that are starting to say those kind of things. th maybe they weren't speaking out as loudly as they were, but they are now. i said a couple of years ago, i felt like i was in a lifeboat by myself, the s.s. "titanic" trump was going by. more people were jumping off the boat, we now need a bigger boat. >> you ruled out running for the gop nomination. you haven't totally ruled out an independent bid. it's very hard. i don't have to tell you. >> yeah, no, it's nearly impossible. and it wasn't something that i'm thinking about or really considering, but, you know, there was a hypothetical, would you rule that out? it was like, well, you never
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know. >> so what is your role in 2024? are you a foe to trump? >> i would like to make sure that the party does not nominate donald trump. i think that's really bad for the republican party and bad for the country. and probably bad for donald trump. so i'm going to try to see if we can't find the best possible candidate that can appeal to a broader group of people and not only can win a primary, which everybody seems to be focused on, but that can have a message that appeals to a broader group of people and could actually, you know, win in a general election in november. >> it seems more people who are in the party who are trying to sink, what'd you call it, the "ss trump," are trying to sink it more than are trying to keep it afloat. so now among the group, who potentially -- who would have the best chance? >> no one's really risen up. i can't point to one person and say, i'm really excited. this is the one. but we have a long time to -- we
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don't know who's going to run. there are only a couple of candidates in race and we have a long time until the first primary takes place. >> how do you feel about the ron desantis approach vis-a-vis big corporations. is that just a one-off with, we want to punish disney for their stance -- >> which the debate criticized. >> i spoke out against a couple of those steps that ron desantis took. he's got every right to have his opinions. i think he's out there making a case, he's capturing a lot of attention. but i don't -- it didn't seem like small government conservatism to have a governor, you know, ordering businesses to agree with him or he's going to put them out of business. >> can i ask you one thing before you go about nikki haley. she is in the campaign trail, she is in the race. she suggested raising the retirement age for beneficiaries. people in their 20s now say they should raise it. you agree with her? >> i didn't hear her say that.
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entitlements are an issue we'll hear them. i'm not sure i agree with that. >> you don't agree with that? >> no. >> why not? >> i don't think it's the right thing to do. >> all right, well, that was fascinating conversation. i mean -- >> that answers that. >> when you've said enough, we'll leave it there. >> i think, governor, it's interesting that, you know, people who are considered to be sort of traditional conservatives outside of the maga wing of the party, it's disappointing to, you know, moderates or people who are in the center that you're not running. >> well, thank you very much. i say i come from the republican wing of the republican party. we're going to hopefully get back on track. >> we'll find out. >> thank you, governor. >> thank you, governor hogan. all right. well, this is a very exciting night for all of us here at cnn. if you were watching the oscars, you saw a cnn first. the film "navalny" has won an academy award for best feature documentary. fresh off the win, we'll speak with the director and -- look at
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and the oscar go
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goes "navalny." >> that is a night i can tell you that we were all praying for here at cnn, for so many reasons beyond this network. cnn film documentary "navalny" winning best documentary feature last night at the oscars. it is the first oscar win for cnn. the documentary film released last year explores the attempted assassination of russian occupation leader alexei navalny and who was behind it. joining us now is daniel rohrer, the director of the academy award-winning film. it sounds so good to say. the academy award-winning cnn film -- >> still in his tux shirt, by the way. >> i haven't slept. i have been up all night. and i was just about to go to bed when i remembered i had to speak with you guys -- or i got to speak with you this morning. i jumped out of bed, put my shirt back on, and here i am. >> i was saying in the intro,
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it's about so much more than, yes, it's a big deal for cnn and all of you to win, but this is about imprisoned navalny. this is about what it means to stand up for what is right and justice and the consequences of that in putin's russia. >> that's exactly right. i mean, last night was extraordinary for my colleagues and i, it was amazing recognition of the work that we did, but more than anything, it was a megaphone for alexei navalny and his plight. the world heard the name navalny last night and for me, that is the greatest prize. >> and they heard -- his wife was on stage last night. let's listen to her message. >> my husband is in prison just for telling the truth. my husband is in prison just for defending democracy. al
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al alexi, i am dreaming of the day you will be free and our country will be free. stay strong, my love. >> an important message coming from you, from the wife, but this is more than just about you. it's about the family and also about freedom and democracy. it's a big -- it's bigger than just that. >> you know, it's about a vision for what russia can be. right now, russia is experiencing, you know, its darkest moment in the last 25 years with this brutal war in ukraine, and what alexei navalny offers for millions and millions of people is a flickering light of hope. and that i think for his supporters, especially in russia, you know, this win is meaningful for them. this win reminds the world that we have not forgotten about alexei navalny and that his plight is in the headlines. and that is extraordinarily meaningful. >> and daniel, what's remarkable, the kremlin is already weighing in on what -- >> what did they say?
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>> the fact that you won this, we heard from dmitry peskov, who as you know, is putin's spokesperson, he was asked about it at a conference call with reporters, he said, although i have not watched it, meaning the doc, he said, i dare to assume that there is a certain element of politicization of the topic here. hollywood also sometimes does not shun the topic of politicization at its work. what do you make of that comment from the kremlin? >> you know, i'm not surprised to hear it. i actually think peskov has seen it and he probably really liked it and he's obviously not allowed to say that. but, look, these are guys who lie and lie and lie. if they don't call it politicization, they'll call it, you know, a cia project or is financed by the state department. this is what they do. they deflect and make things up. i'm not surprised that they would try to write it off. but they can't write this off. this is the academy award for best feature documentary. that is a huge honor. and as i said earlier, a huge
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megaphone, for while dmitry peskov and the kremlin can try their best to minimize it, that's not what this is. this is filmamaking and recognition for alexei navalny's courage and bravery. >> do you still believe that alexei navalny may be president of russia one day? >> i think so seem dark right now, i think alexei's core value or core orientation in life is towards optimism. and something that he asks of his supporters is to be optimistic. if we don't have optimism, what do we have? in the spirit of alexei, i say absolutely. there is not only a chance that he will survive this ordeal and have a big impact on the future of russia and russian politics. >> before you go, i want to give a shout-out to one of our own, i'm sure you were with them all night, but this is, you know, amy and courtney and that team bet on you guys. what does it feel like for all
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of you. >> and show us that trophy. >> yeah, how heavy is it? >> a lot heavier than you'd think. it's extraordinary. the team at cnn films believed in this project from day one. so many other studios and companies said to us, it sounds amazing, but we're just not interested in taking on the kremlin. we're afraid of being hacked, we're afraid of what could possibly happen. we needed to find special partners who were unafraid to walk through the fire with us. and in cnn films and amy telis and courtney sexton and ryan robinson and alex hannibal, that's exactly who we found and we were lockstep and cnn and the entire corporation had the courage to pursue this. that's why we're here, for all of them and cnn films, and all of our pretends at cnn. >> it takes courage to do great things and change the world. you all had it and we're grateful to you. >> daniel roher, thank you so much. >> daniel says you can just wave
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that in hollywood right now, probably and beyond, it's like a magic wand. >> pretty much. >> get into it any place. >> get some sleep, daniel? >> thank you. thank you so much. >> thanks, guys. >> if you haven't seen it and you want to watch -- how can you not -- it's the academy award winning cnn film "navalny." it is streaming now on hbo max. also right now, we are tracking the major news happening here in the u.s. and it's having impacts around the world. a look at the stock futures this morning. the white house is closely watching these, i can tell you. how the markets are going to react any moment now to the collapse of silicon valley bank and signature bank, which was shut down yesterday. the president is going to speak soon. we have new cnn reporting about what he's expected to say. and guess what? it's time! right? to fill in your march madness brackets. so is it possible, is it possible to pick a perfect match, a perfect -- whatever it's called. >> bracket! >> bracket! >> oh, boy. >> i'm a little tired this
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morning. harry enton has more on this morning's number. >> war you doing? >> he's dribbling! >> bring a real basketball! ♪hit it!♪ to make a thing go right♪es o ♪ ♪it takes two to make it outta sight♪ ♪one, two, get loose now! it takes two to make a-♪ stay two nights and get 8,000 bonus points. book now at
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the conference's two signature basketball programs. >> now it's up to the player to deliver a real show. this is las vegas. >> that's what they need to do. >> nothing like the sound of the sneakers on that court, the hardwood, the games will come down to the wire, and as you put together your march madness bracket. >> yours is empty. >> mine's filled out. it all rready has a winner on i. >> humble bragging. did you do yours yet? >> what do you think? >> no! >> so you're probably thinking, what are the odds of it being perfect, like me? >> harry enten has this morning's number. is a perfect bracket possible? >> well, don, this morning's number is one in nine quintillion. that is the chance of getting a perfect bracket if you pick randomly, very difficult. there are 18 zeros in that.
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i had to look that up. but of course, if you pick with some skill, you have a 1 in 120 billion chance. perhaps a little bit better than the quintillion, but still better than 1 in 120 billion. quite low odds. i want to put that into some perspective for you. what are the chance of some happy events happen. 1 in 120 billion if you pick the perfect ncaa bracket. 1 in 300 million of winning the mega millions, or 1 in 156,000 for a royal poker flush. so by far, the chance of a perfect ncaa bracket is the lowest. you have a better chance of playing the lottery and winning hundreds of millions if not a billion dollars that way. has there ever been one? the answer is, no, not that we know of. the closest will ever was in 2015. there was a perfect through round two of six. that gives you an understanding, very, very difficult. in 2022, there were no perfect brackets after round one.
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how long could it be until we get a perfect bracket? could be hundreds if not thousands of years, guys. >> well, perfection is overrated. and people, despite that, are still clearly very hopeful, because, harry, a lot of people do fill out brackets. >> a lot of people do. this gives you an understanding of how popular it was. there were 17.3 million brackets in 2022 that were filled out on alone. the winner, this gives you an understanding of how good you actually have to be, picked 50 of the 60 three games right, and that 17.3 million brackets filled out, compare that to the 16.6 million who watched the oscars in 2022. and the idea of filling out a bracket has become more and more popular, at least on look at this. in 2007, there were just 3.3 million, that jumped up to 6.5 in 2012, 13.3 in 2017, and last year, look at that, 17.7 million. i wouldn't be surprised if coming up this year, we get even 20 million and millions more in other places, guys?
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>> what's bigger, quintillion or a gazillion km. >> i think that my ego is a gazillion while yours is a quintillion. but i'm not sure which is bigger. >> i'm not even going there. >> thanks, harry, bye-bye. in a little less than an hour, we'll get a sense about how investors are feeling about not one, but two banks collapsing. markets open at 9:30. we'll talk about what it means for your money, with no one better than "shark tank" judge, kevin o'leary, mr. wonderful. ♪ ♪ a feeling this powerful is invite only. ♪ fortunately, you're invited. experience the capability of the complete line of suvs at the invitation to lexus sales event.
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cnn is now getting new information about what president biden plans to say in his remarks any moment now. mj lee at the white house says he is going to emphasize that the u.s. banking system is, quote, safe. we are also just a short time away from the opening bell of wall street, where we'll get the real reaction to what is going on. and that's when we'll start to get the sense of hinvestors are seeing. that's after the collapse of silicon valley bank on friday and the subsequent closing of signature bank just yesterday. for more on this amazing events that have transpired over the last several days, i want to bring in "shark tank" judge kevin o'leary, what are you hoping to hear from president bi biden? >> well, i think i know what he's going to say. i don't think he'll say it in the way i'm suggesting, but what effectively happened over the weekend is that he nationalized the american banking system.
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it's no longer a risk, it's no longer private in any sense. it is now backstopped by the government, ultimately, the taxpayer. so it doesn't matter how bad you are, as a bank manager. a good example is what happened to the silicon valley bank. that was the combination of a negligent board of directors and idiot management. that's a very powerful cocktail when put together. and it completely wiped out that bank. that's what should have happened. we knew before the weekend started, with every account, with $250,000 or less was insured, and anything beyond it was not, but that's all changed. now you have no risk in any bank, any time, and you as the taxpayer bear that going forward. >> when we spoke on friday, you said, how big a deal is this, kevin? you said, next week the real trouble starts when they can't make payroll. now it looks like they will be making payroll, i would imagine. what do you think?
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do you think that maybe the pressure is off now, that things are going to go back to normal. or is there still more fallout here? >> no, they'll never go back to normal. two things are going to happen. this quick move, this policy decision was to try and stop a run on small banks, mid-sized banks. i don't think long-term, that's going to work, because why would you take even 1% of risk keeping your money or at least all of it in a small regional bank. you're going to diversify. and i think that's the first lesson that wasn't being adhered to, is when you have liquid assets, you want to make sure it's diversified. and the rule we've put in place for our powerful companies is no more than 20% in any one financial institution. because you never know where the black swan is swimming. in other words every single institution has an idiot manager. big ones, small ones, that's been proven by history. you just don't know where they are. and that's the same for every sector of the economy. but the banking system is
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different. we have 11 sectors in our economy. the banking system, financial services, is one of them. but it services all other ten. what's really happening when the president steps out in a few moments is he's basically saying, look, i can't take this risk anymore, i'm just going to nationalize the whole thing. that's the way we should look at bank going forward. nothing more than highly regulated utilities. that has profound impacts for you as an investor. if you thought putting your money into bank stocks was a good idea, you should change your mind forever. and should you own bank bonds? never. if you owned equity in silicon valley bank, it's worthless. if you owned the bonds, it's worthless. >> kevin, i -- >> sorry to interrupt, kevin. i want to push back on that, because you've got to differentiate between the small and medium-sized banks that were given more lax requirements in that 2018 legislation and the big guys. the big guys closed up on friday and there's a flight to safety to jpmorgan, to citigroup, et
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cetera. >> that doesn't mean they're -- you should not assume just because they're big they can't fail. managers make mistakes -- >> no, but they are held to higher -- wait, wait, they are held to stress test requirements, higher capital and liquidity requirements because of dodd/frank. that didn't get diminished for those big ones. >> and you should assume that stage is going to be lifted even higher on them, so they're going to be even more regulated as they become more concentrated and far less profitable. that's my point. this really does make you think about owning bank stocks long-term. i think they'll be underperforming index for decades to come, that's my personal opinion. but it's the behavior of you as an investor and the actual accounts. if you're a business, you can't put it all in one financial institution. certainly everybody learned that lesson over the weekend. so diversification is going to matter. but this has fundamentally changed the way you should look
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at bank weing, because i'm not really comfortable that all of a sudden we've dhe-risked everyboy all of the time. it was a good idea to de-risk $250,000 and headache more sophisticated investor think about their behavior and how they should put their capital to work. get diversity. you don't have to do that anymore, according to what the president says. you have zero risk, and that has consequences. there's no such thing as a free lunch. and this is going to be very expensive for shareholders of banks long-term. i would never put my money into a bank's pocket ever again. >> kevin o'leary, always appreciate your perspective. we've got to run, because the president will speak soon and we've got to get our quick break in. thank you very much. we'll see you soon. >> thanks, kevin. >> we'll be right back. don't just connect your business. (dock worker) right on time. (vo) make it even smarter. we call this enterprise intetelligence. every day, millions of things need to get to where they're going. and at chevron, we're working to help reduce
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and somehow, i ended up here on hollywood's biggest stage. >> for all the little boys and girls who look like me watching tonight, this is a beacon of hope and possibilities. this is proof that dreams -- dream big and dreams do come true. >> amen. >> amen. amazing moments, all night last night at the oscars. so meaningful, for everyone, and so representative of the talent of the asian community. it was great to see. what a night. so thanks for being with us. a very busy morning. let's get straight to "cnn newsroom" as the president prepares to speak on the silicon valley bank collapse.


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