The Hill's 12:30 Report — Biden assures 'our banking system is safe' after SVB collapse
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*Ha. Haha. Hahah. Sniff. Haha. Sniff. Ha--breaks down crying hysterically.
NEWS OF THE MORNING
Biden: ‘Our banking system is safe’:
President Biden on Monday addressed the American people following a weekend of uncertainty in the banking system, after federal regulators seized Silicon Valley Bank (SVB) on Friday. Adding to the uneasiness, news broke on Sunday that a second bank — Signature Bank in New York — had been taken over by state regulators.
The main message in Biden’s four minutes of remarks this morning: The U.S. banking system is safe.
"The bottom line is this: Americans can rest assured that our banking system is safe. Your deposits are safe. Let me also assure you, we will not stop at this. We’ll do whatever is needed,” Biden said.
More on Biden's reassurances from The Hill’s Brett Samuels.
SAVED BEFORE THE OPENING BELL:
The remarks came one day after the Treasury Department, Federal Reserve and FDIC announced that it was backstopping all SVB deposits, a significant intervention that was meant to calm markets ahead of Monday’s opening bells.
Key details:
- SVB depositors will have access to their money starting today
- Taxpayers will be responsible for the costs of backstopping SVB depositors
- Shareholders, certain unsecured debtholders and senior management will not be protected
Biden reiterated on Monday that Sunday night’s announcement was *not* a bailout, after Treasury Secretary Janet Yellen and lawmakers from both sides of the aisle ruled out that possibility.
“No losses will be — and this is an important for point — no losses will be borne by the taxpayers. Let me repeat that, no losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund,” he said.
The Hill’s Alex Gangitano has you covered on that message.
BIDEN TO BANK LEADERS: YOU’RE FIRED:
Biden this morning said the leaders of Silicon Valley Bank and Signature Bank “will be fired” after regulators took over their institutions.
“The management of these banks will be fired. If the bank is taken over by FDIC, the people running the bank should not work there anymore,” he said.
WALL STREET CHECK-IN:
How are the markets lookin’ today after a weekend of scrambling?
The Dow Jones Industrial Average and S&P 500 both opened down this morning but ticked above their previous closes later into the day.
Follow today’s market movement with CNBC’s live updates.
It’s Monday, March 13. I’m Mychael Schnell, filling in for Cate today, with a quick recap of the morning and what’s coming up. Did someone forward this newsletter to you? Sign up here.
In other news
Michael Cohen to testify in Trump hush money investigation:
Former President Trump’s ex-personal attorney Michael Cohen is scheduled to testify before a Manhattan grand jury today as part of the investigation into hush money payments he made to adult film star Stormy Daniels shortly before the 2016 presidential election.
The $130,000 payment was part of a nondisclosure agreement Daniels said she had with former President Trump following an affair. Trump, however, has denied the affair.
Cohen’s scheduled testimony comes days after prosecutors at the Manhattan prosecutors extended Trump the opportunity to testify before the grand jury, a move suggesting that Manhattan district attorney Alvin Bragg (D) may be inching closer to a Trump indictment.
Get up to speed ahead of Cohen’s testimony with The Associated Press.
THE VIEW FROM TEAM TRUMP:
Trump attorney Joe Tacopina told ABC’s George Stephanopoulos this morning “we have no plans on participating in that proceeding” when asked if Trump will testify.
Is he expecting an indictment? “I expect justice to prevail and if that’s the case, George, there shouldn’t be an indictment. I mean, this case is outrageous.”
Check out Stephanopoulos’ full interview with Tacopina, here.
Also, Trump’s office this morning blasted out a Friday letter from Tacopina to the New York City Department of Investigation calling for “an independent investigation into the unprecedented multi-year probe” of Trump by the Manhattan DA.
Read the full letter, with the subject line “Weaponization of the New York County District Attorney’s Office Against President Donald J. Trump,” here.
BRAGG SPEAKS:
A tight-lipped Bragg joined Rev. Al Sharpton on his MSNBC show “Politics Nation” this weekend, offering few details about his ongoing probe. He did, however, say his team is working with “professionalism and rigor.”
Watch the interview, here.
ICYMI: The Hill’s Zach Schonfeld zeroed in on the 5 key figures in the DA’s probe last week.
???? 2024
Trump heads to Iowa:
While Cohen dishes on Trump in Manhattan, the former president is heading west to Iowa, marking his first visit to the Hawkeye State since officially launching his 2024 presidential bid.
Trump is scheduled to deliver remarks in Davenport, a person familiar with the speech told CNN, and will touch on his 2024 education platform, trade, energy and agriculture.
DON VS RON:
Trump’s visit to the first-in-the-nation state for the GOP primary process comes days after Florida Gov. Ron DeSantis (R) paid Iowans a visit during his book tour.
DeSantis, who is widely seen as a potential 2024 presidential candidate, did not name Trump during his remarks but, according to CNN, the governor “contrasted his administration in Florida with the chaos and leaks that at times engulfed the Trump White House.”
"There’s no drama in our administration,” DeSantis said. “There’s no palace intrigue. (My staffers) basically just sit back and say, ‘OK, what’s the governor going to do next?’ And we roll out and we execute.”
POLL: Trump’s support slips in the Hawkeye State, DeSantis trails closely behind.
A Des Moines Register/Mediacom Iowa Poll released Friday found that 80 percent of Iowa Republicans view Trump favorably, down from 91 percent in September 2021.
DeSantis, however, was not far behind, with 74 percent of self-identified Republicans having a favorable outlook towards him.
Additionally, 47 percent of Iowa Republicans would “definitely” vote for Trump if he leads the ticket in 2024, a decrease from the 69 percent who said the same in June 2021.
More on the Iowa poll from The Hill’s Caroline Vakil.
In the White House
Willow gets the go:
The Biden administration this morning approved a large drilling project in Alaska, known as the Willow Project, a move that is expected to irritate the president’s liberal and climate-minded allies.
The decision allows oil company ConocoPhillips to proceed with the 30-year project despite objections from environmental groups.
The Hill’s Rachel Frazin has more on the announcement.
AUKUS MEET UP: Later today, Biden will highlight the nuclear submarine deal the U.S. struck with the United Kingdom and Australia. He’s slated to appear alongside British Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese in San Diego.
Get up to speed with The Hill’s Alex Gangitano.
In Congress
McCarthy, Jeffries forge relationship amid partisan fire:
Two months into the new Congress, Speaker Kevin McCarthy (R-Calif.) and House Minority Leader Hakeem Jeffries already have something that then-minority leader McCarthy and at-the-time-Speaker Nancy Pelosi (D-Calif.) did not: a working relationship.
The two leaders are frequently seen huddling off the House floor, they both attended a recent meeting, and they teamed up on a new task force that will set the ground rules for blocking members from committee posts.
“Certainly not going to call them best friends,” said Rep. Garret Graves (R-La.), a close ally of McCarthy. “But I do think that some degree of communication is important. And they return one another’s calls, which makes it in stark contrast to what has gone on before.”
More on the working relationship from The Hill’s Emily Brooks and yours truly.
Senate Democrats face fragile majority amid absences:
After celebrating their one-seat pickup in the 2022 midterms — which brought the chamber from 50-50 to 51-49 — Democrats have once again found themselves faced with an evenly split chamber amid medical absences.
Sens. John Fetterman (D-Pa.) and Dianne Feinstein (D-Calif.) have both been on the congressional sidelines in recent weeks, bringing the chamber back to an even split and forcing Democrats to delay some votes or call in Vice President Kamala Harris to break ties.
REPUBLICANS ARE SEEING ABSENCES TOO: Senate Minority Leader Mitch McConnell (R-Ky.) was hospitalized last week after falling, and he is being treated for a concussion. On Thursday, his office said “He is expected to remain in the hospital for a few days of observation and treatment.” It is unclear when he will return to the Capitol.
More on the Senate’s absences from The Hill’s Al Weaver.
???? Notable tweets
It’s time to start dancing … :
The NCAA released the 2023 March Madness brackets last night, kicking off one of the most exciting times of the year for collegiate sports.
The No. 1 seeds for men's: Alabama, Purdue, Houston, Kansas.
The No. 1 seeds for women’s: South Carolina, Stanford, Indiana, Virginia Tech
Check out the brackets, and don’t forget to make your picks!
Michelle Yeoh makes history at the Oscars:
Actress Michelle Yeoh became the first Asian woman to win the Academy Award for best actress Sunday night for her role in “Everything Everywhere All at Once.”
Check out her acceptance speech, from Brut America.
⏱On tap
The House and Senate are out today. President Biden is en route to California.
- 8:00 a.m.: Biden received the President’s Daily Briefing
- 9:50 a.m.: Biden departed the White House for Joint Base Andrews
- 10:10 a.m.: Biden departed Joint Base Andrews for San Diego
- 3:40 p.m.: Biden arrives in San Diego
- 4:30 p.m.: Biden participates in a trilateral meeting with Australia Prime Minister Anthony Albanese and UK Prime Minister Rishi Sunak
- 5:45 p.m.: Biden participates in a bilateral meeting with Sunak
- 7 p.m.: Biden participates in a bilateral meeting with Albanese
- 8:35 p.m.: Biden departs San Diego for Del Mar, Calif.
- 8:50 p.m.: Biden arrives in Del Mar
- 9:45 p.m.: Biden participates in a reception for the Democratic National Committee
- 10:30 p.m.: Biden departs Del Mar, California for San Diego
- 11:05 p.m.: Biden arrives in San Diego
All times Eastern.
????What to watch
- 9 a.m.: Biden delivered remarks on the economy. Watch.
- 1:30 p.m.: White House press secretary Karine Jean-Pierre gaggle on Air Force One. Livestream
- 5 p.m.: Biden delivers remarks on the AUKUS partnership. Livestream
In lighter news
Today is National Coconut Torte Day.
Here’s a recipe to help you properly celebrate, from Taste of Home.
And because you made it this far, check out this animal, which looks like it can use *a little* help getting the goods out of that bag.