banking system matters, banks are an important conduit to the rest of the economy, they see a pull back in the banking system you can pretty quickly see that translate into pull back in jobs and wages and all the things we care about. i think the second thing that matters and we haven t seen this yet, is there have been a lot of headlines about this, i ve been writing about this every day for the last month, a lot of my colleagues have as well and sometimes you can see a situation where that will trickle out to consumer sentiment, make people feel less confident, again, we haven t seen that show up in the data yet but that doesn t mean it s not coming. in terms of the average american out there, someone who s deposits in the bank are well below what they re fully insured. is there anything the average american and small business should be doing today? i think we are at the watch and hope phase of the stage. it seems like the bank failures are likely to be contained, it seems like w
washington mutual, but they are breathing a sigh of relief in washington and on wall street about how this deal gets done. the fact that jpmorgan is stepping up with a private sector solution is certainly better than a situation where the government had to control this bank and rescue uninsured depositors. john? matt egan, appreciate you kicking us off with the clear expla explanation. gina supply lek of the new york times is with us. matt describes this is allegedly the way the system is supposed to go. this is ben harris, economist for vice president biden, he said the system worked here, don t worry, listen. we got a very well-established bank obviously taking the bank over from the fdic which is exactly how the system is supposed to work. really feels like the stress is unique to these three banks that have failed and it doesn t look here we are, the first day of may, doesn t look like this will seep out into the rest of the financial system.
about what this was going to look like. what s your sense of what happens now? i was talking to a top house republican who say, they basically saw this as unfinished business from svb. i think that s a fair characterization. here we are, 8:00 a.m. eastern this morning, and there s a lot to digest with this deal, but i think there are sort of two key takeaways. the first is that the resolution was largely what markets expected. we didn t know there would be jpmorgan buying, but there are a lot of bidders, and eventually we got very well established bank, obviously, taking the bank over from the fdic, which is exactly how the system is supposed to work. and the second point is that this really feels, and this could obviously change, it really feels like the stress is unique to these three banks that have failed. and it doesn t look, here we are, you know, the first day of may, it doesn t look like this will seep out into the rest of the financial system. so it does look like everything
the fed made clear that some of those roll backs probably mattered in the case of silicon valley bank which is the one that really tipped off all of these problems. so i think the question is how do we beef up bank regulations and supervision going forward to make sure that those problems that allowed these problems to grow, how do we make sure that that doesn t happen again. that s the next phase of the conversation. last phase legislatively, unlikely anything will pass. first from the perspective of you are the president of the united states and just formally announced your reelection campaign and at the moment 35% just more than a third of americans approve of your handling of the economy. nearly two thirds, 63% disapprove. how much of a threat is this? you mention we re moving into the next phase of this. how much of a threat is it to the overall direction of the economy which is proven from a job creating standpoint and a growth standpoint remarkably resilient but there s always
on the rich. i find it hard to believe they re not going to crack on the deli owner, the dry-cleaner, the gas station owner, because of revenue in, revenue out. that s how they drill down and get the real estates out to fund social programs. could you feel as though i always thought they would combine with the fbi if they thought there was a possible hostile situation. i did not know they would be law enforcement essentially. the fbi and the irs do work closely together. but, brian, look, they re claiming they re only going after people that make more than $400,000 a year. i guess that s where the rubber has to meet the road if that s really going to happen, or to your point if they go after the deli owners. the small business owners, which makes up 80% of the economy in this country. thank you so much. appreciate it. yep. thanks for having me.