A new story from Bloomberg Daybreak


Trading. Let's get you up to date on the news you need to know what this shower, following days of uncertainty, the CEOs of 11 banks have offered a lifeline to stop the panic on Wall Street. Big banks have agreed to deliver a total of $30 billion to shore up first republic bank. Treasury secretary Janet Yellen, one of the architecture of the deal says the banking sector is secure. I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them. And treasury secretary Yellen proposed the idea of a group bank effort on Tuesday in a call with fed chair Jay Powell, Yellen also spoke to JPMorgan's CEO Jamie Dimon, who reached out to heads of city, Bank of America, and Wells Fargo to backstop first republic. Yesterday was a volatile one for first republic shares, they plunged 35% but closed up 10%, and right now shares are down about 6 and a half percent in early trading. And Karen, we're learning more about the role of fed chair J Powell played in transparency surrounding SVB rescue. According to The New York Times, The White House wanted the statement on the matter to spotlight shortcomings in financial regulation for the collapse of SVB, but the paper says Powell blocked that effort. And any billionaire Bill ackman, among those who are critical of the rescue, the Pershing square founder tweeted that spreading risk of financial contagion to achieve a false sense of confidence in first republic is bad policy. Now with the march FOMC meeting just days away, the Federal Reserve is contending with both high inflation and a crisis of confidence in the banking sector. Consensus calls for a hike of 25 basis points, but former fed economist Claudia psalm says the Central Bank should probably pause. It's not like the fed caused this what happened with Silicon Valley bank. But they did set up a situation in which we were more grown to this kind of volatility with these big rate increases. Former Fred economist Claudia Somme says, raising rates hard and fast created a fragile environment. Well, Amy Charles Schwab is another firm we have our eyes on this morning. We're getting word that clients pulled billions of dollars out of Schwab's prime funds this week at the same time are told Schwab's government and treasury funds have had inflows. Banking turmoil is also focused in Europe we watch shares of Credit Suisse Bloomberg news has learned Credit Suisse and UBS are opposed to a forced combination both banks see a takeover as a measure of last resort following days of chaos and uncertainty shares of Credit Suisse now down more than 4%. And futures this morning higher S&P futures up a tenth of a percent or 5 points this morning straight ahead your latest local headlines plus a check of sports and this is Bloomberg

Coming up next