regional bank and they don te have to move the deposits to a bank that may very well have challenges because they re so large but that they do have the backing of the federal government behind them, and they re a cfius, and the mediu and small banks that do the vast majority of the commercial lending and the small communities across the entire united states. it seems pretty clear to me that you do not believe that the 2018 rollback of medium-sized bank regulation was a mistake. so do you blame regulators for not overseeing this bank betterk well, let s go back in and make this clear. this was a liquidity problem with regard to the failure with svb right now, it was not a capital problem. and when we talk about the ly 28
mortgage-backed securities in its vaults than anyone else. the firm has been buffeted by constant rumors of a looming liquidity problem. they maintain that the capital petitions are all strong. questioning a wall street s firm liquidity is akin to yelling fire in a crowded movie house. should i be worried about bear stearns in terms of liquidity, no! bear stearns is fine, do not take your money out. our liquidity position has not changed at all. our balance sheet has not weakened at all. if you have to prove that you have credit, you don t have any. if you have to prove these assets are worth what you say they are, they are not. that daunting fear that all of these mortgages might not be strong and reliabl e, suddenly
are under pressure that similar risk profiles for that is problematic to small businesses in communities across the country depend on them with comparisons to 2008 living we asked americans how they are feeling. this will scary to know the smaller banks are not all that small could have a trickle effect and affect the entire economy. banks feel like they have an insurance policy when there really is no incentive for them to clean up their practices. got to pay the taxes to prop up these companies again. and we shouldn t. if it s going to fail, let it fail. once you are really hearing the fear of contagion. and in practice that bear could end up being just as dangerous as an actual liquidity problem, back to you. neil: thank you kelly, i think. want to go down to how the president is responding to all of this and how far you go with rescues, if you go that far because they ve already had some pricing once but let s go to alexandria hoff with more for the white house. tightening my pre
very different, so it brings its own set of challenges. set of challenges. absolutely, i think there set of challenges. absolutely, i think there is set of challenges. absolutely, i think there is a set of challenges. absolutely, i think there is a few set of challenges. absolutely, i think there is a few things - set of challenges. absolutely, i think there is a few things that l set of challenges. absolutely, i i think there is a few things that are at play here. firstly, you are right, they want to make sure this does not have any resemblance to what happened in 2008, and that i think that is why so many people are saying, look, we are not letting the people at the bank get off scot free, they are going to be held responsible, they re going to lose theirjobs, they are looking investigations into the bank, what happened, and at the individuals themselves. the other thing to remember when it comes to the financial crisis is, remember all those rules that were put in place to
bank out in silicon valley. they had invested in ten year treasuries, for example.s are then all of a sudden the peopleg want their money back , interest rates are higher, and now they re selling those treasuries treasuries at a major loss. is that what happened? well, more or less. look, a well, more or less. i mean, look, a couple points. barney frank, liberal democratoa barney frank, said today thatlaa this was not a regulatory problem as the bidens areli charging trump that this is a by liquidity problem. a and barney frank, i know he s a liberal democrat, but he s pretty smart guy. t and it was a bipartisan vote to relieve some of the onus bank regulations of the obama biden administration. so that s one point a second onr point is in my service in the government under president trump, he often called it seven a.m., call,nine o clock was a late c, nine a.m., third point, bidens t