Page 24 - The Fed News Today : Breaking News, Live Updates & Top Stories | Vimarsana

I think the regulators post 2008 could take credit and so we're starting in a much, much different place for the financial system as a whole. doesn't mean there wouldn't be issues in one institution or another as the case with silicon valley bank. >> when you look at the situations right now, what -- and it is a moving situation but what the government has done right now, can most americans, most depositors, all depositors feel our money is safe, we don't need to go not bank to withdrawal? >> i think the answer is kind of yes, with an ellipse. because the government is partly as a result of th...

System. there is big policy decisions here. you ask about the future of banking. is it a virtue that america has well over 4,000 banks. most countries have a few big banks with branches. we have branches that are dedicated to regions, that focus on particular industries, silicon valley bank is an example. it may be the oil patch. particular groups like some community banks and loan associations and connected to unions. we also have the fastest growing large economy in the world and i'm not sure that that is not a reason. our credit system for the largest economy is in the communities and in th...

Lack of absolute certainty. >> now there is a lot of people who feel this is in some way a bailout and one more example of capitalism for the poor and socialism for the rich. that is the whole bunch of these tech companies, where the cfo's should have been managing their accounts properly and left huge amounts of money in uninsured deposits, roku had $500 million in cash in -- in an account. presumably there are other regional banks that made the same mistakes that svb made that are now going to get backstopped by the fed. is it fair to say that the government has helped a lot of people who in...

Economy down. it's highly likely, it seems to me, that these -- all these bank crises are going to do some version of that. so should the fed stop raising interest rates? >> you know, the market as we speak here, the market is projecting a 70% chance that the fed raises 25 basis points. i personally -- i personally think it would be okay to stop here. to your direct question about with respect to the current situation and the effect on the economy, it is a certainty that this will -- that this situation will cause -- will act in a way that's similar to a rate rise in some ways. banks will have...

System, which they did in 2008. instead, it left them with the power acting in concert with the fdic and the treasury to -- if they find a systemic emergency, to guarantee the deposits of entity by entity, bank by bank, i think what we heard from the fed, that in this moment, this fragile moment, they are implying that they will regard any event or any run on a bank as systemic and the implication is that they will use that authority that they have but they can't announce that in advance and they can't declare it. but they've come as close as they possibly can to do it. but they don't have the...