Bailout even if taxpayer bailout prepare for it. and state very clearly. state very, very clearly they are not going to go under. not going to do it i know it s not popular. steve: about a local business we know in new jersey who has his big account at a regional bank. regional bank called him and said, listen, i know there is a lot of stuff in the news, i just want you to know that we can protect your assets up to $150 million that s not the fdic that s just what the bank has, the problem for a lot of americans right now with the svb and signature they changed the rules because they guaranteed any account in those banks now people at a regular bank are going are mine protected through the roof? and the answer is no. there is a coalition of banks, mid size banks that say please extent fdic protection to all deposits above $250,000. the bank that you are talking
Credit suisse or first republic as its going down right now, jamie dimon is trying to find a buyer to prevent that from collapsing. the banks generally, mid size banks, have the same stuff on their balance sheet that doom signature. silicon valley and first republic, they have the similar mismatch of assets and liabilities. they lent to companies that are having a hard time. put that together, there s 25 out there. during the thrift crisis, you and i are old enough to remember that in the 80s and early 90s, about 1,000 banks went under, s&ls, known as thrifts. when you think about it in numbers, 25 doesn t sound like a lot. the banking system is more concentrated today. if you took the 25 largest banks after j.p. morgans and wells and them, you re talking about
Writes the complexity financia regulations and the dullness o balance sheet minutiae i shoul not allow misunderstanding what ha happened in the bank failed the government failed. once again, and the american people are propping up a financial system incapable o rendering itself safe. joining us now is andy lowry staff writer at the atlantic and the author of give peopl money. annie, my friend it s great to see you. thank you for being. yeah it s great to see yo too. thank you for having me. i wish we were talking abou cheery or things i do want to get your thoughts on, let s start with the regulatory rollbacks i think it was a bipartisa effort to rollback some of these dodd-frank protections i 2018, it was 13 democrat worked to repeal those parts o the dodd-frank act, thes mid-sized bags, mid size banks that had 200 billion dollar in assets my question to you as. these are people, democrats wh
2018, it was 13 democrat worked to repeal those parts o the dodd-frank act, thes mid-sized bags, mid size banks that had 200 billion dollar in assets my question to you as. these are people, democrats wh names we no michael bennett of colorado chris coons of delaware, tim kaine of virginia, kristen sinema of arizona, jon teste of montana, mark warner of virginia well was it about the politica climate in 2018, that made these democrats went across th aisle to do something like this, and how did anyone convinc them that a bank with 20 billion dollars in assets was mom and pop shop these are great questions and they re not great answers. we ve seen again, and agai that wall street and other financial firms are relentless lobby here is against thes regulations. they argue that the regulation hurt the american economy by preventing landing, by makin it such that it s only the biggest banks that can see the united states one of the guardians being made at thes regional banks, smaller bank
To better insulate their portfolio from that risk. that is a failure of management. maybe a failure of regulation in terms of the supervisors from the state of california and maybe even the fed. so svb had a unique and somewhat different business model than most community banks and most mid size banks. they heavily rely on corporate and venture capital and they heavily rely on very high levels of ininsured deposits. that makes them different from the others. i think there s something unique here and i m hoping and i think it s true that that is part why this is different from 2008. neil: yeah, hope so. thanks, charles. good catching up with you under these weird conditions a year after these rate hikes began. so what has the impact been on purchases and the like with each