responsible completely. welcome to fox fox news live, i m eric shawn. hey, arthel. arthel: hello, everyone, i m arthel neville. new questions today about what led to this e epic collapse. in 48 hours, the go-to bank for tech start-ups and small businesses went belly up. the fdic, which insures bank deposits up to $250,000, says customers will have access to their money by tomorrow morning. here s secretary yellen earlier today. what i do want to do is emphasize that the american banking system is really safe and well capitalized. it s resilient. during the financial crisis, there were investors and owners of systemic large banks that were bailed out. we re not going to do that again. eric: well, is this going to cause a meltdown the on wall street and elsewhere? nate foy is here following other breaking news. reporter: in her remarks this morning, secretary yellen kid the not say how regulators plan to help depositors, only that they will. and she assured that the u.s.
bring in former obama economic adviser robert wolf, founder and ceo of 32 advise isers, also a fox news contributor. so when comparisons are made to the banking industry collapse in 2008, what s your response? i think it s absolutely nothing similar. i was running ubs at the time. i was there at the lehman weekend. this is not going to cause global contagion. these are not the largest bank withs in the world globally having issues with meetingly equiedty. meet liquidity. the leverage in the system is night and day. this is a situation where a bank took in deposits, it grew too fast, it doubled its assets in a year even though its market cap got halved in a year. and with the assets, they went out and purchased long-term treasuries and long-term mortgages and other things and had a mismatch on their assets and their liabilities, more so to the s&l crisis in the 80s
congress. if not for that change, the bank with would have been urn incredible scrutiny under incredible scrutiny, and the stress tests would have shown a lot of that, and they would have been much more better capitalized. arthel: so are you saying, and i have to go, are you saying that that was a good move or a bad move? it was an awful move of because what we did is we allowed a myriad of banks to not have the same stress tests we had as the larger banks even though all of these banks, in my opinion, should be is regulated in a way that s to make sure that they are safe and secure. that s why people put their money in deposits. i don t know if we need to to go back to the 50 billion or we should go to 100 billion, but it s clear that the 16 isth bank is 16th bank is an important financial institution and should be regulated at the highest standard. arthel: and really last one, for real this time, so can that that be done? can the biden administration do that instantly? no, th
venture capitalist david saks wieting in part, quote: announce that all deposits are safe, end the crisis. svb actually has plenty of assets to pay off goes depositors, the cost will be far greater if they underreact. house speaker kevin mccarthy said on sunday morning futures today he expects another announcement from secretary yellen soon. they are working to try to come forward with some announcement before the markets open, and i m hopeful that something can be announced today. this bank is a unique bank where they do have assets. they have an amazing clientele. it s something that could be very possible for someone to purchase this bank. reporter: former fdic chair sheila bair said this morning finding a buyer would be the best outcome here, but so far one has not emerged. back to you, eric. eric: nate, thanks so much. arthel: for more on this, let s
cause a meltdown the on wall street and elsewhere? nate foy is here following other breaking news. reporter: in her remarks this morning, secretary yellen kid the not say how regulators plan to help depositors, only that they will. and she assured that the u.s. banking system is, quote, safe and well capitalized. that is certainly not how customers feel at silicon valley bank. the fdic promises up to $250,000 of insured deposits monday morning, but over 95 percent of the bank s deposits were uninsured. if those investments aren t safe, it could lead to at least two big problems. number one, if customers lose faith in smaller and mid-sized banks, expert think it could trigger a bank run trillions of chars in size, way bigger than we saw on thursday when customers took out $42 billion from the bank. number two, this could kill thousands of start-ups and small businesses. many of them won t be able to make payroll week unless they get help.