Amazon announces another 9,000 layoffs; Fed works to bring down inflation

>>> AMAZON SAYS IT PLANS TO CUT 9000 MORE JOBS FROM ITS WORKFORCE. THAT’S IN ADDITION TO THE 18,000 THEY ANNOUNCED AT THE END OF JANUARY AND ANOTHER 10,000 EARLIER THIS MONTH. >> THAT IS A BIG NUMBER. THE LAYOFFS COMES AS THE RESERVE IS MONITORING INDICATORS AND THE CENTRAL BANK WILL MEET THIS WEEK TO MAKE A DECISION ON WHETHER AND BY HOW MUCH TO RAISE INTEREST RATES IN AN EFFORT TO COOL OFF THE ECONOMY. LET’S BRING IN THE FORMER CHIEF INVESTMENT OFFICER OF THE FEDERAL DEPOSIT INSURANCE GROUP , FDIC, THANK YOU FOR JOINING US. I CAN

IMAGINE SOMEONE BETTER TO TALK TO ABOUT THIS. YOU WORK FOR THE FDIC. HOW IS THE RESPONSE TO THE SILICON VALLEY BANK AND OTHER BANKS DIFFERENT, THE RESPONSE TODAY, DIFFERENT THAN WHAT WE’VE SEEN IN THE PAST? >> THE LAST TIME WE HAD A BIG BANKING CRISIS LIKE THIS WAS A 2008. YOU HAD HUNDREDS OF BANKS THAT HAD EXPOSED BALANCE SHEETS TO A VARIETY OF ISSUES, ESPECIALLY MORTGAGE-BACKED SECURITIES. HERE WE ARE SEEING A SMALL NUMBER OF BANKS, LESS THAN 10, THAT ARE OVEREXPOSED TO THEIR BALANCE SHEETS BECAUSE OF THE FEDERAL RESERVE INTEREST RATE HIKES. IT IS IMPORTANT

TO REMEMBER IN THE LAST YEAR THEY HAVE RAISE INTEREST RATES MORE AND FASTER IN THE MOST TOTAL AMOUNT EVER. THAT IS FOR A LOT OF BANKS THAT

HAVE A LOT OF INVESTMENT ESPECIALLY IN THINGS DIRECTLY CORRELATED TO THOSE INTEREST RATES. IT HAS BEEN A BIG PAIN FOR THEM. AS WE HAVE SEEN. >> ONE MORE QUESTION AND THIS IS MY OWN IGNORANCE. YOU ARE THE GUARANTOR OF DEPOSITS UNDER $250,000. IF I HAVE THAT RIGHT AT LEASE. WHAT IS YOUR RELATIONSHIP TO INTEREST RATES TO THE FEDERAL RESERVE, IF ANY, TO SUPPORT FOR THESE BANKS? THERE IS A

SIGN OF ROLE YOU PLAY? I THINK PEOPLE NEED TO KNOW YOUR ROLE BESIDES THE INSURANCE. >> SURE. THE FDIC HAS TWO FUNCTIONS. THE FIRST IS THE DEPOSIT INSURANCE FUND WHICH COVERS $250,000 ON ANY DEPOSITORY ACCOUNT AND THAT IS FUNDED BY THE BANKS, BY THEIR OWN FEES. NOT BY THE AMERICAN TAXPAYER. THERE IS $130 BILLION IN THE FUND AND IN THE LAST TWO WEEKS WE HAVE SPENT TWO AND HALF BILLION OF THAT MOSTLY ON SIGNATURE BANK. THE REST OF THE ACTIVITIES THAT WE’VE HEARD ABOUT, FOR EXAMPLE THIS NEW FED FACILITY AND LENDING MONEY TO THE BANKS

AS WELL AS SOME OF THE BANKS LIKE J.P. MORGAN AND OTHERS INVESTING DIRECTLY OR LENDING MONEY TO SMALLER BANKS IS ENTIRELY DEPENDENT OF THE FDIC. THE SECOND THING THE FDIC IS FUNDAMENTALLY EXAMINE THE BANKS OF THE UNITED STATES. WE HAVE ABOUT 4500 BANKS IN THE UNITED STATES AND 85% ARE DIRECTLY EXAMINE, MEANING WE HAVE STAFF THAT WALK AROUND IN THOSE INSTITUTIONS AND MAKE SURE THEY ARE RUNNING THOSE BANKS IN A SAFE AND SOUND MANNER. THAT IS PROBABLY 85% OF THE STAFF OF THE FBI’S — FDIC THAT DO THAT. >> AND THAT IS A FUNCTION, HOW

WE CANNOT FORESEE WHAT HAPPENED? HOW MUCH MONITORING, TRANSPARENCY, DATA IS BEING EVALUATED IN REAL TIME TO PREVENT GETTING TO THIS POINT, ESPECIALLY WITH SMALLER BANKS? >> IT’S A GREAT QUESTION AND THE ANSWER IS, ALMOST ZERO. WHEN I WAS INSIDE THE AGENCY, I TRIED TO CREATE REAL-TIME ANALYTICS TO FIND THINGS LIKE THIS. THE FDIC IS A REALLY WIRED FOR THAT AND IT IS ONE OF THE REASONS I ENDED UP LEAVING. I WAS RATHER FRUSTRATED AT THE FEAR OF TECH KNOWLEDGE HE FOR DOING THIS KIND OF THING, BUT AT SOME POINT, ALL OF THE BANKS WILL HAVE

TO BE EXAMINED IN SOMETHING CLOSE TO REAL TIME. >> THANK YOU VERY MUCH FOR TH

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