insulated bank. a big bank, nonetheless. sort of focusing on a specific sector of the economy. very important part of the economy. but a secular insulated part of the economy. i think the reason why the fed stepped up as quickly as they did is to prevent the risk to people like everyone watching at home. right? to protect other regional banks. so that we have confidence in the banking system and that s why we saw the type of response we did. i don t know, justin. i mean, you point first they were down 30%. we have images of the long lines of people going to first republic over the weekend trying to take money out. they re standing. signature is not. these are not just banks that cater to silicon valley. you wrote in your piece about how this exposes some of the vulnerabilities that we still have. sure. this is all based on confidence, right? and the whole financial system.
this community is resilient. it is strong. when the waters recede, the river is going to rise. this is such a great hardship on this community. we know we ll get through this. so the energy today is crews from california, contractors trying to but as many boulders into that levee brief to shore it up before the river system of this season in this area of california. when you were asking a couple seconds ago how people are coping, this community is filled with migrants here. living their american dream. so they are depending on the speed of the contractors to try to fix this levee as much as possible. they have everything here to lose, poppy. so glad you pointed that out, mike. thank you for the reporting there. all right. i cannot believe i m saying. this alabama is a number one
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important is what the government is doing now and they re setting up this emergency lending facility. so part of the reason that svb got into a lot of trouble is that they had to sell the long term treasuries at a loss. then they went to try to capital raise last wednesday. spooked. they tried to get $2 billion. and they and depositors, look, and investors saw the loss and they pulled out money and saw you re selling these at a loss. interest rates have gone up. securities are not as as attractive anymore. this would prevent someone else having to do a capital raise like that, right? that s exactly it. banking is about confidence. confidence in the system. confidence that if you or i or anyone here at this table puts their money into a bank, if we need it tomorrow, that money will be there. but what happened here with svb was a lack of confidence. so you started to see all of these depositors rush to get all of their money out and that s what led to this panic. so what the fed
ainsley: ashley celebrated her birthday over the weekend. we re glad you were born. ashley: thank you so much. a florida deputy is in the hospital after being shot while chasing a suspected car thief last night in pinellas county. police say a witness tried confronting the suspect before he took off of when they caught up to the suspect on foot, police say he started shooting. officers confirming the suspect was killed in the shootout. the deputy is stable. californians are bracing for another powerful storm after parts of the state were pummeled by an atmospheric river system this weekend leaving two dead and thousands displaced. the california national guard sharing footage of rescue efforts as residents were trapped in their cars by floodwaters. meanwhile a powerful nor easter forming off the coast of new england bringing a foot of snow to the northeast this week expected to impact trail travel.