00:00:28.000I wish in my soul, I wish that any of these people had a conscience.
00:00:33.880Ask yourself, what is my task and what is my purpose?
00:00:37.640If that answer is to save my country, this country will be saved.
00:00:43.980War Room. Here's your host, Stephen K. Vance.
00:00:53.040All eyes are on Wall Street this morning.
00:00:55.420After a rollercoaster day of trading, cent stocks sliding,
00:00:59.020with nervous investors worrying about the health of the banking system.
00:01:03.120We have yet another day of banking concerns dragging down the market.
00:01:06.540The focus now, Zurich-based Credit Suisse, one of the largest banks in the world.
00:01:12.060Customers pulling their money out of the firm led the Swiss National Bank to pledge help if necessary.
00:01:17.200Overnight, Credit Suisse accepted that help, saying it would borrow up to $54 billion in an effort to reassure investors.
00:01:25.900Here in the U.S., the focus is on California-based First Republic.
00:01:29.920Two credit ratings agencies downgraded the bank, with S&P ratings citing elevated risks of customers pulling their funds.
00:01:37.140The company declined to comment on the downgrades.
00:01:39.240If more banks domestically were to fail, what would that do to the economy?
00:01:45.620Well, if we saw widespread failure, that would significantly weaken the lending growth, the growth to businesses and households.
00:01:53.020That would undermine the economy, and we would go into recession.
00:01:55.680Those concerns causing some First Republic customers to visit their branches, shortly after Silicon Valley and Signature Banks went under.
00:02:03.040I got scared and came down to talk to them, and was going to take out the little bit of money that I had.
00:02:08.620I feel confident that I'm not taking money out, I'm putting money in.
00:02:11.620Experts say those worried about their savings accounts should remember that insured banks and credit unions protect up to $250,000 per depositor.
00:02:20.320For the people that are looking at the news and going, do I need to pull money out of my bank, what do you say?
00:03:26.440You're looking at Bitcoin back at $25,000.
00:03:30.140Meantime, just mentioned Credit Suisse.
00:03:31.560Credit Suisse shares surging right now in Swiss trading after the company said it would borrow nearly $54 billion from the Swiss National Bank.
00:03:40.400It comes as shares of Credit Suisse plunged to an all-time low yesterday when top investor, Saudi National Bank, said it wouldn't pump any more cash into it.
00:03:48.660That was due to regulatory restrictions.
00:03:50.160Now, the Swiss National Bank and the Swiss Financial Market Supervisory Authority saying in a statement that Credit Suisse, quote,
00:03:55.860meets the capital and liquidity requirements imposed on systemically important banks.
00:04:00.600And so the question, of course, now is, has the tide been stemmed, at least on the Credit Suisse side?
00:04:24.660Treasury Secretary Janet Yellen will offer some comfort to Americans that their banking deposits are safe in testimony today before the Senate Finance Committee.
00:04:32.540In just released prepared testimony, Yellen has this to say.
00:04:36.240I can reassure the members of the committee that our banking system remains sound and that Americans can feel confident that their deposits will be there when they need them.
00:04:45.160This week's actions demonstrate our resolute commitment to ensure that depositors' savings remain safe.
00:04:52.100Now, Janet Yellen is going to be testifying on the Hill today.
00:04:55.880This is part of a ongoing budget committee hearing on the president's budget plan.
00:05:02.200That's not what we're expecting her to hear about.
00:05:04.620We also expect Janet Yellen to say today that she's going to credit the Biden administration with stepping in quickly to solve the crisis last week and protect depositors at two failed banks,
00:05:15.380pointing out that customers were able to access all their money in their accounts on Monday morning.
00:05:20.760And we're going to hear her emphasize today that no taxpayer money is being used or put at risk here because the money is coming from the deposit insurance fund,
00:05:29.820which raises money through fees on the bank.
00:05:32.460Still, as I say, Andrew, Yellen is sure to face questions here today from senators about the prospects for additional contagion
00:05:39.720and may be drawn into the debate over whether the government's action this week was technically a bailout or not.
00:05:45.700Officially, this hearing, as I say this morning at 10 a.m., is about the president's budget proposal,
00:05:50.020so we can expect a lot of questions there about the politics of the Biden administration's spending priorities, too.