3 Burst results for "Midland Bank"
The Hugh Hewitt Show: Highly Concentrated
"midland bank" Discussed on The Hugh Hewitt Show: Highly Concentrated
"And I encourage all of you head over to Hugh Hewitt dot com and the banner at the top or you can call 8 5 5 three 5 9 46 73. From studio west, congressman ro Khan has been a guest on the program before Democrat from the 17th congressional district in California. Ro Khanna represents Silicon Valley and that's what she's been in the news a lot, defending the blue bank bailout that we had over the weekend of the Silicon Valley bank in Silicon Valley and of course her signature bank in New York City. And so I extended him invitation because I am too mind. I know that a lot of my conservative Friends in the banking business and small businesses wanted this to happen because they were afraid of a run of many other banks. And some of my political friends say this never would have happened if it hadn't been a blue bank. Congressman ro Khanna welcome, great to have you. Give us give us the version of what's been going on in your life for the last 96 hours. Well, thank you for having me back on. My view is the principle is pretty simple. We want to have community banks regional banks in this country. I have no sympathy for the people who were the investors in the bank. Certainly not for the executives in the bank who clearly mismanaged the situation. I do believe that the people who just said money in the bank outlined their they didn't know that those deposits were at risk. And they should be protected. If we don't do that, the results would have been that we'd have four banks in this country. Everyone from every regional bank, not just in Silicon Valley, but in red and blue states would be pulling their money and putting it in JPMorgan Citibank Bank of America and Wells Fargo. As it is, people are doing that. And those banks are having a field day. One final point is for people who say, well, this is just because it's a blue bank. Powell, when he was a Treasury Department in 1991, actually guaranteed all depositors in the bank of New England under a Republican administration and the rationale for that is the same as it is for this. Let's protect community and regional banks in this country. Well, now, if that in fact happens, I will be happy, but the concerns I hear from people and senator cotton was on yesterday said, look, if it was a Midland Texas bank, and it was the deposit of oil and gas companies which are not favored by team Biden FDIC or team Biden treasury or team Biden, fed reserve, they would have been allowed to fall apart and the depositors would have been screwed. What do you think about that ro Khanna? I would have protected it. And look, if people can look at my record, I've been pretty tough on big oil. I have the executives in front of my committee and said they have been misleading the country on climate from the 1970s on. Some people were critical. I mean, no one is going to think that I am a friend of Exxon or Chevron. I proposed a windfall profit tax with some may agree some only great, but if you ask me today, that big will election Chevron, we're in a bank and some of their profits were in a Midland bank as a depositor. Would I protect that middle and bank and then Midland bank was going to have a run absolutely because it did the same results if you don't protect that, you're going to start to have all of the depositors move to the big four banks. And I guess the question is you want banks in Texas and California and Ohio, I would think that Republicans will believe in federalism wouldn't want the only banks in this country to be in New York City. Now, congressman Khanna, I do believe in federalism, but I also believe in one rule of law, and I am concerned, and I know small business people over the weekend who were sweating bullets that the FDIC would not step in if their bank ran into a liquidity crisis. And so they were moving money to the big four. The real deal here is has the FDIC de facto raise. Deposit insurance to an unlimited amount. Well, here's the thing. Here are the facts. There is about $10 trillion in this country that falls under the FDIC in short. Accounts that have less than $250,000. There's about 8 trillion more that is currently uninsured. That does not fall under the under 250,000. My view of that is that if we want to guarantee depositors, which by the way, we basically end up doing anyway since 1933 to look at the history when banks fail. It's very rare that we don't say that depositors are guaranteed. We should increase the bank premium and that bank premium should fall on the largest account holders in terms of the cost. And that would make sure that depositors are protected..
The Hugh Hewitt Show: Highly Concentrated
"midland bank" Discussed on The Hugh Hewitt Show: Highly Concentrated
"Now, you're a member of the Intel committee senator. Can you find out that Chinese Communist Party connected companies that banked at sbv through the Intel committee? I don't need to Intel committee. You obviously, it's widely known. Why do I know in Silicon Valley in Washington that Silicon Valley bank was an access point for Chinese companies to get American capital? And in almost all cases, those companies are linked implements or associated with the Chinese Communist Party and the People's Liberation Army. And these are not just companies coming up with pleasurable apps for the Chinese people to pass their spare time. I mean, China wants access to foreign capital to continue to fuel its rise and inherent and its system of state direct state directly directed economics is a tie between those companies and the PLA and the patient safety. Let me put three dots on a map for you, senator. Toronto's, Sam bankman freed, and now as the sbv. Is there a cultural problem in Silicon Valley? And then let me add Stanford law school acting like children. So there are four dots, can we diagnose something based upon for disconnected, but geographically proximate? Well, scandals. And a lot of those cases too, you had people businesspeople who were celebrating left wing causes and essentially buying themselves political risk insurance when they should have been buying himself interest rate risk insurance. Celebrating Democratic Party or progressive causes, basically putting down a future foot option that if they got in trouble, they could run off to their pals in Washington, D.C. and hope to be bailed out. They're still a con valley bank was. Now, let's close our senator. If a bank crisis occurs today and the markets indicate one, moody's downgraded, the whole banking sector, I think the president has to come out and say, we're going to everything that we did for sbv and signature, we will do for every bank in America. It's a lot of money, but I think he has to say that for depositors, otherwise we could have a real crisis on our hands. What will be your reaction if he says that? We have a minute. Well, here, I don't want to speculate about what might happen in the market today or what the Biden administration response might be, but it's clearly been a failure of Silicon Valley bank and trade will find some other banks when it comes to its own managers, risk management practices, but industry supervision responsibilities. And I certainly hope that they are carefully examining all the banks that might face similar kinds of interest rate risk and urging them to take immediate steps to protect themselves and therefore their depositors against the risks. Yeah, keep that Midland bank Texas hypothetical in mind. That is truly illustrative of the problem that we face with two legal systems and two political systems for banks. Senator Tom cotton always a pleasure. Thank you, senator. But they couldn't stop jackal the waters..
Bloomberg Daybreak Weekend
US-China rivalry hinders a struggling HSBC
"We've seen fall out over the UK is World Way decision suspensions of extradition treaties on most recently. Hong Kong considering on election delay That could mean HSBC's business shift may prove untenable under its current structure being listed in the UK and Hong Kong while supporting China's national security law, expectations of more drastic action on earnings, they are increasing well for more on this. We're joined by Bloomberg Finance reporter Harry Wilson. Thank you so much for being with me, Harry. Look, first of all on H S B. C. It was unusual, wasn't it? That HSBC made the statement that it did about China's controversial A new law that effects Hong Kong. Why do you think they did that? I can only surmise they come on the enormous amount of pressure to say something on it. Normally, banks, particularly HSBC have like to remain entirely apolitical. Getting into politics just isn't in the DNA. And I think the fact that they felt they had to come out and say something publicly shows that probably not saying something will was seen as a school, too. So we certainly have picked up in the last couple of months that our thanks senior to perfectly are getting a little hum. I think a lot of cools a lot of Um ah, imploring from their Asian businesses to basically toe the line of it more when when it comes to Christo. Events in Hong Kong and China. Okay, so that on the security law on the flipside, of course, the pressure in response to that Was was also apply from the UK side. So it's kind of ratcheted up the political pressure you know, on in both parts of their business, surely Yes. So they are getting pressure from all sides. Not just something you came to. The U. S. Is also called him out over this and they're really in a very difficult position because effectively theory some game we'll have You say that since Beijing China onside Is seen in the West to UK us being, uh, essentially going against Western policy, so there isn't really a wind for them haters. In some positions, they can take the fetal sides happy so But trying to be trying to walk a line between them, which sees the increasingly difficult Do you think things matters are going to get worse? And how does it affect the business going forwards? It's a UK bank, but that makes most of its money in Asia. Well, exactly of you should go back with the ancient history of HSBC in the late eighties early nineties recognized this issue, which is why they part of reason why they decided first byway and size of Midland Bank and build up a business. Outside of Asia more than they had at the time, and that was, in part at least a recognition that the situation could become more difficult. Posi handover of Hong Kong in 1997 Now what we've seen since 1997 attempts become a global bank has hit some some brake blocks from headwinds off late, So now they find themselves in a situation where There probably is exposed to Asia optically Hong Kong as they have ever been on that places them in a very difficult position. Because see they want to continue doing business in Hong Kong that increasing against me that they got here to the lines of China, But of course that puts a man on a collision course with Earth. With the U K and the Y the West. So how do you think that this is going to be expressed then? Potentially in earnings? I don't think we're going to really see anything. Take Lee and the earnings on this Aziz yet we're really in the Very early stages off this spook growing political contest between between China and Hong Kong itself. These Already in a family, the procession and that that is really with us China trade tensions or the problems we've we've been talking about just now, that's more to do with Corona virus before about the political people. We saw lately in Hong Kong. I think they probably were looking more 5 10 years out. It could be the case that you start to see a kind of maybe death of 1000 cups and those who have so little losses here and there now see that that is very well aware of that on there going to be looking through everything they can to make sure that that happens. Things are they increasingly difficult environments in which to do business, particularly in a country like China. Where are you? Nate is very important that You are being It seemed to be supportive off Chinese