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00:00> > FROM THE WORLD OF POLITICS TO THE WORLD OF BUSINESS, THIS IS BALANCE OF POWER. LIVE FROM WASHINGTON, D.C. > > FROM BLOOMBERG'S WASHINGTON D.C. STUDIOS, WELCOME TO BALANCE OF POWER. ANNMARIE: THE FED MAKES ITS MOVE HIKING ANOTHER QUARTER-POINT. JAY: WE ARE DOING A REVIEW OF REGULATION. MY ONLY INTEREST IS THAT WE IDENTIFY WHAT WENT WRONG, HOW DID THIS HAPPEN. JOE: AS CONGRESS PREPARES TO HEAR EARRINGS ON WHAT LED TO THE SVB COLLAPSE, WE WILL TALK TO THE SENATORS OF BOTH PARTIES. MICHAEL BENNET AND SHELLEY MOORE CAPITO IN -- > > THE COMPANY CEO OF TIKTOK IS SET TO TESTIFY IN FRONT OF A CONGRESSIONAL COMMITTEE, TOMORROW. > > SOME POLITICIANS HAVE STARTED TALKING ABOUT BANNING TIKTOK. THIS COULD TAKE TIKTOK AWAY FROM ALL 150 MILLION OF YOU. ANNMARIE: WE WILL SPEAK WITH THE DHS OFFICIAL IN CHARGE UNDER STRATEGY FOR POLICY AND PLANS. TOMORROW IT WILL BE ALL TIKTOK, AND THE CEO COMING OUT, ASKING HIS USERS, IF YOU WANT YOUR ELECTED OFFICIALS NOT TO BAN THE PLATFORM YOU COME TO KNOW AND LOVE. JOE: NOT JUST USERS WE ASSOCIATE TIKTOK WITH, BUT 5 MILLION AMERICAN BUSINESSES THAT HAVE A PIPELINE TO CUSTOMERS THROUGH TIKTOK. WILL THEY CUT THAT OFF? ANNMARIE: THE BIG STORY IS THE FED AND THE TREASURY SECRETARY INTENTIONALLY MOVING MARKETS. JOE: A LOT OF PEOPLE WERE WATCHING JAY POWELL BUT RIGHT AT THAT SCENE POINT JANET YELLEN MAKES NEWS ON THE OTHERS. ANNMARIE: YOU HAVE TO WONDER WHO IS SCHEDULING HER HEARING AND WITH HIS PRESS CONFERENCE. JOE: MAYBE THEY DID NOT WANT US TO WATCH IT, SHE DID MOVE MARKETS. ANNMARIE: SHE DID, AS DID HE. JOINING US OUR BLOOMBERG'S JOSH WINGROVE AND KATE DAVIDSON. BEFORE WE BOTH GET INTO YOUR TAKES OF TODAY, POWELL, YELLEN, INFLATION, BANKING CRISIS, LET'S HEAR WHAT JAY POWELL HAD TO SAY. TAKE A LISTEN. JAY: IT'S TOO EARLY TO SAY WHETHER THESE EVENTS HAVE HAD MUCH OF AN EFFECT. IT'S HARD FOR ME TO SEE HOW THEY WOULD'VE HELPED THE POSSIBILITY, BUT I GUESS I WOULD SAY IT'S TOO EARLY TO SAY WHETHER THERE HAVE REALLY BEEN CHANGES IN THAT. THE QUESTION WILL BE HOW LONG THIS TIME IS SUSTAINED. ANNMARIE: JAY POWELL. MARKETS HAVE CLOSED. I WANT YOUR TAKE QUICKLY, THE POLITICS. ALL THESE QUESTIONS, SO MUCH ABOUT IT WAS ABOUT THE BANKING CRISIS. THESE WELCOMING AN OUTSIDE PROBE, ALMOST SIDING WITH THEM AT HER ELIZABETH WARREN, WHO CALLED HIM A DANGEROUS MAN. > > THERE HAVE BEEN A NUMBER OF LAWMAKERS WHO HAVE SAID THIS PROBABLY SHOULD BE SOMETHING FOLKS OUTSIDE OF THE FED TAKE A LOOK AT. THE FED ANNOUNCED THEY WOULD LAUNCH AN INTERNAL INVESTIGATION LED BY THE FED VICE CHAIR FOR SUPERVISION, MICHAEL BARR. AND POWELL SAID TODAY THAT HE'S NOT GOING TO BE INVOLVED IN THAT BECAUSE THAT WAS AN ISSUE SOME FOLKS THAT HAD -- WHAT WILL IT LOOK LIKE IF HE PLAYS A ROLE? NEVERTHELESS, DEMOCRATS AND REPUBLICANS THINK IT WOULD BE BETTER TO HAVE SOMEONE OUTSIDE, MAYBE THAT COULD BE CONGRESS, MAYBE THAT COULD BE AN IG. THEY HAVEN'T BEEN SPECIFIC BUT POWELL SAID WE ALWAYS EXPECTED AN OUTSIDE INVESTIGATION AND WE WELCOME IT. I DON'T THINK HE COULD'VE ANSWERED ANY OTHER WAY. JOE: HE SAID 25 PIPS AND DONE WHEN HE TALKED TO BLOOMBERG. IS THAT WHAT WE HEARD FROM JAY POWELL? KATE: NOT REALLY. IF WE LOOK AT THE PROJECTIONS FED OFFICIALS PUT OUT, THEY SAID THEY SEE THE POTENTIAL FOR RATES TO MOVE HIGHER. MAYBE ANOTHER QUARTER BASIS POINT HIKE. BUT POWELL WAS NONCOMMITTAL. IT WAS CONDITIONAL ON HOW THINGS CONTINUE TO DEVELOP. THE MESSAGE FROM POWELL AND THE FED SAID THEY ARE WORRIED ABOUT INFLATION, WHICH IS A PROBLEM THEY KNOW THEY HAVE RIGHT NOW AND THEY'VE HAD FOR A WHILE THAN THEY ARE WORRIED ABOUT THE POSSIBILITY THAT THE BANKING TERM ARE ALL COULD SPILL INTO THE BROADER ECONOMY. ANNMARIE: POWELL WENT WITH INFLATION INSTEAD OF SAYING WE COULD GO WITH THE CONCERNS IN THE FINANCIAL MARKET. HOW DIFFICULT OF A POSITION DOES IT MAKE THE BIDEN ADMINISTRATION BECAUSE THE REPUBLICANS ON CAPITOL HILL HAVE COME TO JOE AND I SAYING THEY HAVE TO KEEP HIKING RATES BECAUSE INFLATION, JUST INDUCED BY ITS FISCAL SPENDING. > > WE ARE AT A POINT WHERE BIDEN IS STEPPING BACK FROM THE FRAY SAYING, WE HAVE TAKEN THE STEPS WE WANT TO TAKE, NOT ONLY ON THE DEBT CEILING FIGHT, BUT ALSO ON STABILIZING THE BANK SITUATION AND ON DOING WHAT THEY CAN TO TRY TO EASE INFLATION, WHICH IS RUNNING WAY TOO HIGH, BUT BIDEN HAS TRIED TO PUT A FRIENDLY FACE ON. I THINK WE WILL CONTINUE TO SEE HIM DOING THAT AND SAY IT'S UP TO CONGRESS TO TALK TO ME ABOUT A DEBT CEILING SITUATION, WHICH IS TECHNICALLY NOT NEGOTIATING ON. CURRENT NEGOTIATION ON FISCAL REFORM AND IT'S UP TO CONGRESS TO HAVE OVERSIGHT ON WHAT HAPPENED WITH BANKS. I THINK HE'S TRYING TO BE LEFT NOT HOLDING THE BAG OR MAKE SURE THAT -- FOR AN ANALOGY OF MUSICAL CHAIRS, BECAUSE WITHOUT ONE. THERE'S A LOT OF TEAM SOFT LANDING PEOPLE IN THAT WORLD AND THE BIDEN ECO-WORLD. AND TODAY DOES NOT -- IT FEELS LIKE TEAM NO LANDING. I THINK THE UNCERTAINTY IS STILL HANGING OVER THE WHITE HOUSE. JOE: THIS WHITE HOUSE HAS BEEN DELIBERATE ABOUT MAINTAINING INDEPENDENCE FROM THE FED. EVERY TIME YOU ASK A QUESTION THAT GETS CLOSE, YOU HEAR THE DISCLAIMER. JOSH: OTHER THAN HIRING THE FED CHAIR. JOE: DONALD TRUMP WOULD'VE TREATED AT JAY POWELL TODAY. HOW CONCERNED IS THIS PRESIDENT ABOUT THE LAGGING IMPACT OF ANOTHER HIKE? JOSH: THE PHRASING THEY USES WE WANT TO PRESERVE THE GAINS IN THE LABOR MARKET. THEY MEAN YOU DON'T HAVE TO SQUINT TOO CLOSELY TO PUT MILLIONS OF PEOPLE OUT OF WORK TO BRING INFLATION DOWN. IT'S NOT TOO FAR A LEAP TO SAY THEY THINK THEY WOULD BE OK WITH INFLATION RUNNING A TAD HIGH IF IT MEANS MILLIONS OF MORE PEOPLE ARE WORKING HEADING INTO AN ELECTION YEAR. WE ARE WAITING ON JOE BIDEN TO MAKE THAT ANNOUNCEMENT. THEY HAVE BEEN VERY TIGHTLIPPED THIS WEEK, VERY TIGHTLIPPED TODAY ABOUT THE PAIN CRISIS AND LEO RENAULT'S REPLACEMENT. WE DON'T KNOW WHEN THEY WILL NAME A NEW VICE CHAIR, WHO ARE LOOKING AT. THE SIGNAL IS THERE HAS BEEN A FRONT RUNNER, HAS ANY OF THIS CHANGE? THEY HAVEN'T INDICATED PUBLICLY OR PRIVATELY, THERE'S A LOT OF BALLS IN THE AIR. ANNMARIE: WHERE ARE WE ON THE VICE FED CHAIR SEARCH? THE FED -- WE HAVE 6% INFLATION, THE FED IS TECHNICALLY AND SOMEWHAT OF A CRISIS, THREE BANKS JUST FAILED. THEY DO NOT HAVE A NUMBER TWO. HOW IS THIS NOT AGENDA ITEM NUMBER ONE FOR THE ADMINISTRATION? KATE: IT'S IMPORTANT TO NOTE THAT DODD-FRANK CREATED TO NUMBER TWO SO THEY HAVE A VICE CHAIR FOR SUPERVISION AND REGULATION AND MICHAEL BARR AND HE'S THE PERSON WHO WOULD TAKE THE LEAD IN ADDRESSING SOME OF THIS. HE WILL BE LEADING THAT INTERNAL REVIEW, SO THEY DO HAVE THAT. I THINK BEFORE IT HAPPENED IT WAS A HIGH PRIORITY FOR THEM. THEY HAD SAID THEY WANTED TO MOVE QUICKLY TO GET SOMEONE IN THERE BECAUSE IF INFLATION BEING HIGH. MY SENSE IS IT'S THE PROBLEM OF ALL DECISION-MAKERS SO PREOCCUPIED WITH WHAT'S HAPPENING WITH THE BANK. I THINK IF THINGS ARE CALMING DOWN, THEY HAVE THIS PANIC CONTAINS, THEY WILL TURN BACK TO THIS DECISION FAIRLY QUICKLY. IT HAS CERTAINLY TAKEN THEIR EYE OFF OF THAT DECISION FOR NOW. JOE: WITH US ON BALANCE OF POWER FOR THE LAST WEEK AND A HALF YOU'VE HEARD US TALK ABOUT THE CAP BOND FDIC'S DEPOSIT INSURANCE, LAWMAKERS ON BOTH SIDES OF THE AISLE HAVE WEIGHED IN. IT SEEMS TO BE THE TREASURY WAS LOOKING FOR A SHORT-TERM SOLUTION. DOESN'T SEEM SO MUCH WHAT WE HEARD FROM THE TREASURY SECRETARY, JANET YELLEN. IN THE TESTIMONY ANNMARIE MENTIONED TODAY ON CAPITOL HILL. JENNA: IT'S NOT CONSIDERED OR DISCUSSED ANYTHING HAVING TO DO WITH BLANKET INSURANCE OR GUARANTEES OF DEPOSITS. JOE: SO WE WON'T SEE PROGRESS ON THIS? IS THIS NOT SOMETHING THE WHITE HOUSE WAS CONSIDERING? I THOUGHT THEY WERE BACKING ALL DEPOSITS? JOSH: WHAT DOES BLANKET DEPOSITS MEAN? BUT SHE IS PUMPING THE BRAKES, FOR SURE. HE HAD A REPORTING OF BLOOMBERG THAT THEY HAVE LOOKED AT OPTIONS SAYING LESS OUT OF THINKING THEY WILL NEED THEM BUT MORE THAT THEY KNOW, WHAT DOES THIS BUTTON DO IF WE PRESS IT. WHAT POWERS DO THEY HAVE. THAT REPORTING WAS THAT THEY THINK THEY MIGHT HAVE EXECUTIVE POWERS UNDER EMERGENCY AUTHORITIES, OR AT LEAST THEY WERE STUDYING WHETHER THEY DO TO TEMPORARILY OFFER GUARANTEES. IT'S UP IN THE AIR. I THINK PART OF THE REASON SECRETARY YELLEN SAID THAT TODAY IS THEY ARE REALLY OF THE MIND THAT THIS IS NOT ON A DOWNSWING, THAT THINGS ARE NOT CONTINUING TO GET WORSE, THEY THINK THINGS ARE STABILIZED, NO ONE IS SAYING THEY ARE OUT OF THE WOODS, BUT THAT'S WHY THEY ARE WARY OF TALKING ABOUT IF IT GETS WORSE, WHAT WILL YOU DO. OR IS THAT AS WE WOULD SAYING CANADA, NATURALLY. THEY DON'T WANT TO GO THERE BECAUSE OF COURSE, IF YOU THINK ABOUT WE NEED 10 MORE FIRETRUCKS IN HERE, EVERYONE WILL ASK, THE FIRES GETTING BIGGER. THAT'S WHERE THEY ARE AT. JOE: AFTER FIRST REPUBLIC TODAY, 20% DEPOSIT WITHDRAWAL, I'M SURPRISED YOU CHOSE TO SAY THAT. ANNMARIE: I DO THINK JOSH MAKES A GOOD POINT, IS IT THE TERM BLANKET DEPOSIT. IS IT THE NUANCE IN HER WORDING? BECAUSE WE KNOW THEY ARE LOOKING AT IT AS A DUE DILIGENCE POINT OF VIEW BUT SHE WAS TRYING TO PUMP THE BRAKES ON WHAT THE SPECTRUM OF THOSE DEPOSITS WERE. JOE: WE WILL SAY THIS CONVERSATION ISN'T OVER YET. GREAT TO HAVE JOSH WINGROVE AND KATE DAVIDSON. MANY THANKS. IT'S ALL ABOUT TIKTOK PREPARING FOR ITS BATTLE WITH CONGRESS TOMORROW. WE WILL TALK WITH ROBERT SILVERS NEXT ON BALANCE OF POWER ARMED -- POWER ON BLOOMBERG ♪. ♪ -EVERYBODY IS TALKING ABOUT TIKTOK. > > A LOT ARE CONCERNED ABOUT PRIVACY. > > THE RISK OF INSECURE INFORMATION AND COMMUNICATION TECHNOLOGY. > > WE NEED CONGRESS TO MOVE BEYOND THE WHACK-A-MOLE SITUATION. I THINK WE WILL PASS THIS. JOE: U.S. LAWMAKERS CONSIDERING LEGISLATION THAT COULD LEAD TO A BAND OF TIKTOK. THE COMPANY'S CEO TAKING HIS MESSAGE TO THE APPS USERS DIRECTLY AHEAD OF TESTIMONY ON CAPITOL HILL. > > SOME POLITICIANS HAVE STARTED TALKING ABOUT BANNING TIKTOK. THIS COULD TAKE TIKTOK OVER ALL 150 MILLION OF YOU ALL BECAUSE -- I WILL BE TESTIFYING BEFORE CONGRESS TO SHARE ALL THAT WE ARE DOING TO PROTECT AMERICANS USING AT AN DELIVER ON A MISSION TO INSPIRE CREATIVITY AND TO BRING JOY. ANNMARIE: HE'S REALLY GOING AFTER THE USERS. THOUSANDS OF COMMENTED SAYING, WE WANT TO KEEP OUR APP. JOE: 150 MILLION USERS? ANNMARIE: ALL OF THESE USERS HAVE ELECTED OFFICIALS. JOE: AND THERE ARE 5 MILLION BUSINESSES ON THERE, WHICH HE WENT OUT OF HIS WAY TO REMIND PEOPLE OF. IT'S NOT JUST TEENAGERS ON TIKTOK, IT'S A CONDUIT FOR BUSINESS. ANNMARIE: THE CEO WILL TESTIFY TOMORROW ON ENERGY AND COMMERCE. HERE WITH US TO DISCUSS IS ROBERT SILVERS. THE UNDERSECRETARY FOR POLICY AT THE HOMELAND SECURITY. I'M SURE YOU HAVE SEEN THIS, I COME IN PEACE, MOMENT FROM THE CEO OF TIKTOK. HE'S TRYING TO RALLY THESE USERS TO REACH OUT TO THEIR ELECT OFFICIALS. I KNOW TIKTOK IS UNDER REVIEW BY THE U.S. GOVERNMENT, BUT I HAVE REPORTING THAT THE U.S. GOVERNMENT HAS TOLD BYTEDANCE, YOUR BEST BET IS TO FACE A BAN OR SELL IT. WHERE DO THINGS STAND RIGHT NOW? > > THANK YOU. GOOD TO BE ON THE SHOW AND CONGRATULATIONS ON THE NEWS SHOW. OUR ADMINISTRATION HAS NATIONAL SECURITY CONCERNS ABOUT THIS APP AND THAT'S ESSENTIALLY WHY PRESIDENT BIDEN, LAST YEAR, SIGNED LEGISLATION THAT BANNED THE APP FROM FEDERAL GOVERNMENT PHONES. WE HAVE CONCERNS ABOUT ANY APP OR ANY TECHNOLOGY THAT SUBJECT TO CHINESE GOVERNMENT CONTROL WHERE YOU ARE TALKING ABOUT ACCESS TO HUGE DROVES OF AMERICANS PERSONAL DATA. THE WAY THE CHINESE SYSTEM WORKS IS IF THE CHINESE GOVERNMENT ASKS FOR DATA THAT A COMPANY HAS, THE COMPANY HAS TO PROVIDE IT. WHEN YOU ARE TALKING ABOUT AN ENVIRONMENT IN WHICH AMERICANS AND LARGE NUMBERS ARE GIVING THEIR LOCATION DATA, WHO THEY ARE TALKING TO, WHAT THEY LIKE TO DO ONLINE, THAT BECOMES REALLY SIGNIFICANT AND BECOMES A NATIONAL SECURITY CONCERN. ESPECIALLY SO WHEN KIDS ARE INVOLVED AND WHEN A LOT OF USERS ARE YOUNG. THAT ALSO BECOMES A CONCERN FROM A NATIONAL SECURITY PERSPECTIVE OF, DO WE WANT TO EMPOWER THE CHINESE GOVERNMENT TO PUSH ITS AGENDA, ITS PROPAGANDA, IT'S INFORMATION FLOW INTO THE UNITED STATES? THAT'S SOMETHING WE THINK ABOUT AS WELL IN THE CONTEXT OF ANY APP, ANY TECHNOLOGY THAT WILL BE ULTIMATELY REPORTING INTO THE CHINESE GOVERNMENT. SO WE ARE LOOKING AT THIS AND IT'S SOMETHING WE TAKE SERIOUSLY. JOE: AS WE LEARNED, THE APP IS HOME TO 5 MILLION BUSINESSES, IT'S NOT JUST MILLIONS OF TEENAGERS OUT THERE. IS THERE A CONCERN IN THE DEPARTMENT ABOUT UNDERCUTTING OR COMPROMISING BUSINESSES USING THIS AS A PIPELINE TO THEIR CUSTOMERS? > > WE ARE EXTREMELY SUPPORTIVE IN EVERY RESPECT OF SMALL AND MEDIUM-SIZE BUSINESSES. I THINK WHEN YOU LOOK AT THE PENETRATION OF AN APPLE OR A TECHNOLOGY, CONSIDERING WHAT ITS NATIONAL SECURITY IMPLICATIONS ARE. IF THE USAGE IS BECOMING MORE AND MORE WIDESPREAD, THAT CAN GROW THE LEVEL OF NATIONAL SECURITY CONCERNS THAT YOU DEVELOP BECAUSE, ULTIMATELY, IN WHOSE CONTROL ARE THESE TECHNOLOGIES AND WHAT HAPPENS TO THE USERS THAT ARE ON THEM? IT'S OUR JOB IN THE SECURITY AGENCIES OF THE FEDERAL GOVERNMENT TO BE REALLY VIGILANT TO WHAT RISKS ARE WE PUTTING AMERICANS INTO WITH TECHNOLOGIES AND APPS THAT ARE UNDER CONTROL OF GOVERNMENTS LIKE CHINA, LIKE RUSSIA OR OTHERWISE. ANNMARIE: YOU KNOW THAT TIKTOK HAS BEEN PUSHING THIS PROJECT TEXAS PLAN. THEY WANT TO ISOLATE U.S. USER DATA IN THE UNITED STATES. I SPOKE TO A SOURCE THAT SAID JUST BECAUSE TIKTOK SAID IT'S AN UNPRECEDENTED WAY OF SECURING DATA, DOESN'T MEAN IT'S SUFFICIENT. WHAT DO YOU KNOW ABOUT PROJECT TEXAS? DO YOU THINK IT WOULD BE ENOUGH TO PROTECT USERS DATA? ROBERT: I WANT TO RESPECT THE PROCESS. WE HAVE A LOT OF SECURITY AGENCIES THAT COME TOGETHER AND LOOK AT THINGS FROM EVERY ANGLE AND WE HAVE NEGOTIATIONS AS PART OF THAT. I DON'T WANT TO VIOLATE THOSE DISCUSSIONS, BUT I WILL SAY THAT WE ARE LOOKING AT ALL CASES LIKE THIS VERY, VERY CLOSELY. NO QUESTION ABOUT IT. AND WE ARE LOOKING AT ALL TOOLS AVAILABLE FOR CASES THAT INVOLVE PERNICIOUS INFLUENCE, LIKE FOR EXAMPLE, BY THE CHINESE GOVERNMENT OR OTHERS. IT IS A REALLY STRONG SET OF TOOLS, BUT WE ARE ALSO WORKING WITH CAPITOL HILL. WE HAVE BEEN PLEASED TO SEE BIPARTISAN LEGISLATION THAT HAS BEEN ADVANCED BY SENATOR WARNER, SEVEN -- SENATOR THUNE, A DEMOCRAT AND REPUBLICAN THAT WOULD EQUIP THE ADMINISTRATION WITH ADDITIONAL TOOLS WHERE YOU HAVE TECHNOLOGY DEPLOYMENTS THAT ARE PUTTING IN JEOPARDY SENSITIVE AMERICAN TECHNOLOGY, SENSITIVE CRITICAL INFRASTRUCTURE, OR SENSIBLE -- SENSITIVE PERSONAL DATA. THIS IS SOMETHING WHERE WE ARE BRINGING A LOT OF CAPABILITY TO BEAR, AND IT HAS BEEN TERRIFIC TO SEE BIPARTISAN CONSENSUS COME TOGETHER IN THAT RESPECT, AND WHY THE WHITE HOUSE HAS ENDORSED THAT BILL. JOE: I'M CURIOUS IF YOU COULD TELL OUR VIEWERS, KNOWING THIS IS THE MOST POPULAR APP IN THE WORLD, 150 MILLION PEOPLE ARE WATCHING THIS UNFOLD IN WASHINGTON, WHAT DO THEY NEED TO KNOW? ARE THERE FILES ON ALL OF THEM IN CHINA? WHAT DO THEY KNOW ABOUT THEIR MOVEMENTS, PERSONAL ROUTINES, SHOPPING HABITS, ETC.? ROBERT: I WILL SAY, AT THE GENERAL LEVEL, WHENEVER YOU HAVE A TECHNOLOGY THAT ULTIMATELY REPORTS INTO CHINA, IT'S AT THE MERCY OF THE CHINESE GOVERNMENT UNDER THEIR LEGAL SYSTEM. IF THE CHINESE GOVERNMENT REQUEST DATA, THAT DATA HAS TO BE PROVIDED. WHEN WE THINK ABOUT LOTS OF USERS DOING THEIR MOST SENSITIVE COMMUNICATIONS, WORK, WHERE THEY ARE, WHAT THEY LIKE, WE WILL TAKE THAT SERIOUSLY. THAT'S SOMETHING I THINK USERS NEED TO ACCOUNT FOR, SOMETHING PARENTS NEED TO ACCOUNT FOR. SOMETHING THE SECURITY AGENCIES OF THE UNITED STATES GOVERNMENT WILL ACCOUNT FOR. THAT'S WHAT WE ARE DOING. ANNMARIE: EARLIER THIS MONTH THERE WAS A NEW CYBERSECURITY RELEASE FROM THE BIDEN ADMINISTRATION ABOUT THE SOFTWARE, NOT JUST THE COMPANY'S THAT USE THAT SOFTWARE THAT NEED TO SHORE UP CYBERSECURITY GUARDRAILS. POTENTIALLY PUTTING THE ADMINISTRATION ON A CRASH COURSE WITH TECH COMPANIES. WHERE DOES YOUR OUTREACH STAND WITH THOSE SOFTWARE COMPANIES? ROBERT: WHEN IT COMES TO CYBERSECURITY, WE SEE A ENOUGH ATTEMPTED AND SUCCESSFUL INTRUSIONS EVERY DAY TO KNOW IT IS NO TIME TO BE COMPLACENT. THE THREAT LANDSCAPE WHEN IT COMES TO CYBER IS AS MENACING AS EVER. EVERYTHING FROM RANSOMWARE GANGS. THIS IS THE KIND OF THING THAT CAN BRING A COMPANY TO ITS KNEES , WITH NO NOTICE WHATSOEVER. IT CAN BE OPERATING, AND ALL OF A SUDDEN IT LOST ACCESS TO ITS COMMUNICATIONS, ITS ABILITIES TO REACH CUSTOMERS, TO REACH COUNTERPARTIES. THIS IS SOMETHING THAT NEEDS TO BE TAKEN EXTREMELY SERIOUSLY BY GOVERNMENT, BUT ALSO THOSE IN THE FINANCIAL SERVICES SECTOR IN EVERY PART OF OUR ECONOMY. THE GOOD NEWS IS, DEFENSE MATTERS AND THERE IS A LOT OF HIGH IMPACT LOW COST STEPS THAT COMPANIES CAN MAKE. EVERY DAY WE WORK WITH COMPANIES, INCLUDING SMALL AND MEDIUM-SIZED BUSINESSES TO SHARE INFORMATION ABOUT THREATS, TO GET THEM FREE RESOURCES AND HOW TO ASSESS THEIR OWN SECURITY AND GIVE THEM FRAMEWORKS TO MAKE SURE THEY ARE DEFENDING UP. IN UKRAINE, AS IT WAS CLEAR RUSSIA WAS GOING TO INVADE, THE UKRAINIAN GOVERNMENT REALLY ACCELERATED THEIR WORK ON CYBER DEFENSE. ALL IN ALL, THEY HAVE BEEN MORE SUCCESSFUL IN REPELLING RUSSIAN CYBER ATTACK THAN ANYBODY EXPECTED. IT SHOWS DEFENSE MATTERS. YOU HAVE TO TAKE THE STEPS. CEO'S AND POOR DIRECTORS NEED TO PUT THEIR HANDS ON THE WHEEL AND WORK WITH US. EVERYDAY WE DO THAT WITH MORE AND MORE COMPANIES. ANNMARIE: THANK YOU FOR THAT INSIGHT. ROBERT SILVERS, UNDERSECRETARY. CHAIR POWELL REACTS TO THE TURMOIL IN THE BANKING SECTOR. J: 100% CERTAINTY THERE WILL BE INDEPENDENT INVESTIGATIONS. WHEN A BANK FAILS, THERE ARE INVESTIGATIONS AND WE WELCOME THAT. ANNMARIE: THE TAKEAWAYS FROM TREASURY SECRETARY YELLEN, HER TESTIMONY IS COMING UP. THIS IS BALANCE OF POWER. ANNMARIE: BREAKING NEWS COMING FROM BLOOMBERG REPORTING, COINBASE RECEIVED A NOTICE FROM SEC STAFF. NOTICE THAT STAFF MADE A PRELIMINARY DETERMINATION TO RECOMMEND THE SEC FILED ENFORCEMENT ACTION ALLEGING VIOLATIONS OF FEDERAL SECURITIES LAW. I NOTIONALLY BOSTICK HAS BEEN ALL OVER THE STORY AND THIS IS SOMETHING WE WILL DELIVER MORE. THIS IS COINBASE GLOBAL. THEY GOT A WELLS NOTICE FROM THE SEC STAFF. MARKETS TODAY GETTING WHIPSAWED AS REACT -- MARKETS REACT TO COMMENTS FROM TREASURY SECRETARY JANET YELLEN. HERE TO TAKE US THROUGH IT ALL IS KAILEY LEINZ. > > THEY WERE SPEAKING AT THE SAME TIME AND SOME TIME CONTRADICTING THEMSELVES. THEY SAID WE HAVE SHOWN ME WE HAVE THE TOOLS TO PROTECT DEPOSITORS. AT THE SAME TIME YOU HAD TREASURY SECRETARY YELLEN SAYING ON THE HILL, WE WON'T DO ANYTHING BLANKET LIEN TERMS OF ENSURING ALL DEPOSITS. HARD FOR THE MARKET TO FIGURE OUT WHO'S ON THE FRONT. BUT IT WAS TANKING STOCKS, BANK STOCKS IN PARTICULAR BECAUSE WE ARE CONCERNED ABOUT DEPOSITS. JOE: BLOOMBERG'S KAILEY LEINZ WITH US ON BALANCE OF POWER. WASHINGTON FACES THE AFTERMATH OF SILICON VALLEY BANK'S COLLAPSE. JOE: BREAKING NEWS. COINBASE GLOBAL GOT A NOTICE. YOU'RE LEARNING MORE ABOUT THIS. THIS SMACKS OF CRACK IN. WE ARE TALKING ABOUT RELATING TO THE SPOT MARKET AND STAKING SERVICE. GARY GENSLER STRIKES AGAIN. ANNMARIE: A LOT OF CONCERN BECAUSE INVESTORS ESSENTIALLY FACING THESE LOSSES, BUT THIS COMES AFTER WE KNOW THE SEC IS LOOKING INTO SAM BANKMAN-FRIED AND HIS CRYPTO EXCHANGE COMPANY. LOTS OF QUESTIONS ROLLING AROUND WASHINGTON WITH WHO WE'VE TALKED TO ABOUT HOW THEY ESSENTIALLY SHOULD OR SHOULD NOT REGULATE THIS. JOE: VERSUS THE WHACK-A-MOLE APPROACH. KAILEY LEINZ IS HERE. HOW LUCKY WE ARE TO HAVE THE ANCHOR OF OUR CRYPTO SHOW HERE WITH US. DOES THIS FEEL LIKE THE LATEST WHACK-A-MOLE FROM THE SEC CHAIR? /KAILEY: -- YES, WE'VE SEEN THESE INCREASING. I WOULD NOTE THIS IS NOT AN ENFORCEMENT ACTION. IT INDICATES ONE MAY BE COMING. WE WILL LOOK FOR CLARITY. COINBASE HAS RECEIVE THESE NOTICES BEFORE. THE THING WE HEAR SO OFTEN FROM COINBASE AND OTHER CRYPTO COMPANIES IS THAT THE SEC IS REGULATING BY ENFORCEMENT BECAUSE THERE IS A JURISDICTIONAL QUESTION OVER WHAT THE SEC HAS CONTROL OF WHEN IT COMES TO CRYPTO. THE SEC WANTS TO DEFINE MOST DIGITAL TOKENS AS SECURITIES AND WANTS EXCHANGES TO REGISTER THEM WITH THE SEC. THERE IS A QUESTION AS TO WHETHER OR NOT THAT SECURITIES DEFINITION IS APPLICABLE TO DIGITAL ASSETS, WHICH IS WHY WE HAVE SEEN SUCH ENFORCEMENT ACTIONS. THE CASE BETWEEN RIPPLE IN THE SEC. THIS IS AN ONGOING CONVERSATION. THE REASON COINBASE IS SIGNIFICANT IS -- WE ARE ABLE TO QUOTE THE SHARE MOVE BECAUSE THIS IS A HUGE PUBLIC COMPANY, THE LARGEST PUBLICLY LISTED EXCHANGE. JOE: KAILEY LEINZ, THANK YOU FOR THE ANALYSIS. AS WASHINGTON WAYS NEXT STEPS AMID THE NATIONAL BANKING CRISIS, WE CONNECT THE DOTS WITH THE HELP OF SENATOR MICHAEL BENNETT OF COLORADO. SENATOR, IT'S GREAT TO SEE YOU. WE WELCOME YOU BACK TO BLOOMBERG. NEWS BREAKING ABOUT COINBASE, BUT IT'S THE LATEST SALVO FROM THE SEC WHILE MANY LAWMAKERS CALL FOR MORE CONCERTED, COMPREHENSIVE APPROACH TO REGULATING CRYPTO. WHAT'S YOUR REACTION TO WHAT YOU ARE SEEING TODAY? IS THIS THE RIGHT DIRECTION? SEN. BENNETT: THANK YOU FOR HAVING ME AGAIN. I THINK WE HAVE TO LOOK AT ALL OF THIS. THE PEOPLE I REPRESENT IN COLORADO ARE THE ONES BUFFETED BY THESE UPS AND DOWNS IN OUR BANKING SECTOR. THEY NOTICE THAT ONE OF THE BANKS HAS GOTTEN INTO TROUBLE RECENTLY. HAD ABOUT A FIFTH OF ITS ASSETS AND CRYPTO, AND THEY WONDER ABOUT THAT. THE QUESTION WE NEED TO BE ASKING OURSELVES IS, WHAT ACTUALLY HAPPENS? LET'S UNDERSTAND THE DECISIONS THAT WERE MADE THAT PUT SILICON VALLEY BANK IN THE TROUBLE IT WAS IN, AND LEGISLATE THE RESULT OF THE KNOWLEDGE INSTEAD OF REACTING TO TODAY'S HEADLINES. THAT WON'T PUT US IN THE RIGHT PLACE IN THE LONG RUN. ANNMARIE: SPEAKING OF WHAT HAPPENED WITH SILICON VALLEY BANK, YOU HAD TREASURY SECRETARY JANET YELLEN ON THE HILL. SHE SAID THERE WON'T BE ANY BLANKET INSURANCE WITH THE FBI SEE WHEN IT COMES TO BANKS. IN CONGRESS, A LOT OF LAWMAKERS ARE DEBATING WHETHER THE FBI SEE SHOULD BE LIFTED, SHOULD TIME "BLOOMBERG MARKET: EUROPEAN OPEN." "BLOOMBERG MARKET: EUROPEAN OPEN." FRAMES BE EXTENDED GIVEN THE CRISIS? -- SHOULD THE TIME FRAMES BE EXTENDED? SEN. BENNETT: PEOPLE SAID MAYBE WE SHOULD FIGURE OUT A WAY TO PUT A TWO-YEAR MORATORIUM ON THIS WHERE WE WILL ENSURE DEPOSITS FOR TWO YEARS UNTIL WE FIGURE OUT THE REGIME WE NEED TO PUT IN PLACE. SOME LEGITIMATE QUESTIONS HAVE BEEN RAISED ABOUT WHAT PURPOSE IT HAS SERVED IN HAVING SOME DEPOSITS INSURED, SOME UNINSURED. WE ARE DRAWING THAT LINE AT $250,000. . THESE ARE ALL THINGS WE SHOULD LOOK AT, WE SHOULD HAVE HEARINGS AND HAVE EXPERTS TESTIFY. IN THE LONG RUN WE NEED TO MAKE SURE THE AMERICAN PEOPLE AND THE BUSINESSES THEY OWN HAVE ACCESS TO CAPITAL AT EVERY LEVEL OF THE ECONOMY. WE REGULATE THIS IN A WAY THAT MAKES SENSE FOR THE LARGEST BANKS THAT MAY BE DIFFERENT FROM THE WAY WE WANT TO REGULATE THINGS FOR SMALL AND RURAL BANKS. ONE OF THE THINGS I WAS CONCERNED ABOUT COMING OUT OF THE 910 DOWNTURN WAS THAT OUR SMALL BUSINESSES ARE FARMERS AND MANY RURAL FOLKS LOST ACCESS TO BANKS AS A RESULT OF THE DOWNTURN, BUT ALSO AS A RESULT OF THE INCREASED FIXED COST THAT WE WERE THEN REQUIRING BECAUSE OF CONCERNS ABOUT REGULATIONS OF THE LARGEST BANKS IN AMERICA. THIS CONGRESS, AT SOME POINT, WILL HAVE TO LEARN HOW TO WALK AND CHEW GUM AT THE SAME TIME AND HAVE A RATIONAL SET OF REGULATIONS THAT DRIVES ECONOMIC GROWTH AND PROTECTS THE AMERICAN CONSUMER AND PROTECTS SMALL BUSINESSES ALL ACROSS THE COUNTRY. JOE: THIS IS COMING AGAINST THE BACKDROP OF WHAT IS SUPPOSED TO BE A BUDGET DEBATE IN A DEBATE OVER RAISING THE DEBT CEILING, NEITHER OF WHICH SEEM TO BE MOVING THE NEEDLE. I TALKED TO YOU ABOUT YOUR REAL DEAL WHEN HE RAN FOR PRESIDENT. YOU PROPOSED SOMETHING CALLED MEDICARE X. WE DON'T HAVE ENTITLEMENTS ON THE TABLE NOW. WHAT IS THERE TO NEGOTIATE AS REPUBLICANS CALL FOR CUTS? SEN. BENNETT: THUNK -- THANKS FOR NOTICING I RAN FOR PRESIDENT, ALMOST NOBODY DID. I APPRECIATE THAT. IT DOESN'T HAPPEN VERY OFTEN AND I THINK WHAT WE NEED TO HAVE IS A SERIOUS DISCUSSION IN THIS COUNTRY ABOUT HOW WE BRING OUR REVENUE LINE AND OUR COST LINE INTO ALIGNMENT WITH EACH OTHER. WE HAVEN'T DONE THAT SINCE BOTH OF THOSE THINGS WERE 19% OF OUR GDP. ACTUALLY, WHAT I'VE HEARD ON THE REPUBLICAN SIDE IS THEY ARE SAYING THESE DAYS, WE DON'T WANT TO TOUCH THESE PROGRAMS LIKE MEDICARE, SOCIAL SECURITY, BECAUSE THEY ARE POPULAR. I THINK THERE ARE IMPORTANT REFORMS WE CAN MAKE ON THE HEALTH-CARE SIDE THAT WOULD DRIVE COSTS DOWN FOR THE AMERICAN PEOPLE AND MAKE THESE PROGRAMS LESS EXPENSIVE OVER TIME. I THINK WE COULD LIFT THE CAP ON SOCIAL SECURITY TAX AND THAT WOULD HELP KEEP SOCIAL SECURITY SOLVENT. I THINK WE CAN'T IGNORE THE REVENUE SIDE. THE REALITY IS THAT THE PERMITTED EXTENSION OF THE BUSH TAX CUTS, WHICH I VOTED AGAINST, THE TRUMP TAX CUTS, THE VAST MAJORITY OF WHICH WENT TO THE TOP 1% OF PEOPLE IN THIS COUNTRY. TOP 5% OF PEOPLE IN THIS COUNTRY, AND THAT WE BORROWED MONEY FROM THE AMERICAN PEOPLE, FROM POLICE OFFICERS AND FIRE FIGHTERS AND TEACHERS, WE NEVER PAID FOR ANY OF THAT. I THINK ALL THESE THINGS TOGETHER WE WILL HAVE TO PUT IN THE MIDDLE OF THE TABLE. IN THE MEANTIME, IT WOULD BE USEFUL AND CONSTRUCTIVE FOR US NOT TO BLOW UP THE CREDIT RATING OF THE UNITED STATES OF AMERICA BY TRIPPING OVER THE DEBT CEILING, WHICH IS POLITICAL. THIS IS POLITICS AT ITS WORST, LET'S HAVE AN AGREEMENT THAT SAYS, LET'S MAKE -- LET'S NOT MAKE MATTERS WORSE FOR STUPID POLITICS AND INSTEAD GET PEOPLE INTO A ROOM AND HAVE THEM HAVE A REAL NEGOTIATION. ANNMARIE: SENATOR BENNETT, WHILE I LOVE TO TALK ABOUT THE DEBT CEILING, I WANT TO ASK YOU ABOUT TIKTOK. THE CEO WILL BE ON CAPITOL HILL TOMORROW, WHO YOU MET IN FEBRUARY. BUT HE HAS SAID LET ME STATE THIS UNEQUIVOCALLY, BYTEDANCE IS NOT AN AGENT OF CHINA OR ANY OTHER COUNTRY. HAVING SPENT TIME WITH THIS EXECUTIVE, DO YOU BELIEVE HIM? SEN. BENNETT: I DON'T HAVE ANY REASON TO THINK HE'S NOT SAYING WHAT HE BELIEVES IS TRUE. BECAUSE WE LIVE IN A FREE COUNTRY, I'M GLAD HE'S COMING TO TESTIFY. HE IS FROM SINGAPORE, NOT FROM CHINA OR FROM BEIJING. AND WE WILL NEED TO LISTEN TO WHAT HE SAYS. I CAN TELL YOU I FOUND HIM COMPLETELY UNCONVINCING ON THE STUFF I CARED ABOUT. THE IDEA THAT WE SHOULD SOMEHOW TURN A BLIND EYE WHEN BYTEDANCE WHOLLY OWNS TIKTOK AND BYTEDANCE , NOTWITHSTANDING WHAT HE SAYS, IS SUBJECT TO THE PRIVACY LAWS OF THE CCP, WHICH COULD LEAD THE CCP FORCING TIKTOK TO DISCOURSE THEIR DATA IF THEY CHOSE. IN MY OFFICE HE SAID THAT WAS TRUE, THAT THAT REPRESENTATION OF THE LAW IS TRUE. NOW HE'S SAYING SOMETHING DIFFERENT. I'M NOT SAYING HE'S NOT SAYING SOMETHING UNTRUE, I'M JUST SAYING IT'S NOT THE SAME THING HE SAID WHEN HE TALKED TO ME. ANOTHER IMPORTANT POINT TO ME IS , AT THE END OF HIS TESTIMONY, I READ IT TODAY, HE MAKES THE POINT THAT TIKTOK IS NOT AVAILABLE IN CHINA. THERE'S A REASON FOR THAT. THEY CALL IT DIGITAL OPIUM. THEY ARE HAPPY TO EXPORT SOMETHING HERE THAT 150 MILLION AMERICANS ARE CONSUMING THREE WEEKS A YEAR ON A PLATFORM THAT'S RUN BY THE CCP THAT MAY SERVE THEIR INTEREST IN HOOVER RING UP DATA FROM THE AMERICAN PEOPLE. I WOULD SEE WHY -- I CAN SEE WHY HE BE INTERESTED IN PROTECTING PEOPLE YOU'RE THE AMERICAN PEOPLE WOULD CHOOSE A DIFFERENT PLATFORM AND I THINK THAT'S WHAT WE SHOULD DO. ANNMARIE: SENATOR, THANK YOU FOR YOUR TIME. I AM GOING TO ASSUME YOU ARE NOT ON TIKTOK. SEN. BENNETT: I AM NOT. DON'T TELL MY KIDS. DON'T TELL THEM. ANNMARIE: COMING UP, MORE ON TIKTOK. WE WILL CONTINUE THAT CONVERSATION. SENATOR SHELLEY MOORE CAPITO OF WEST VIRGINIA, THIS IS BALANCE OF POWER. ♪ ANNMARIE: THIS IS BALANCE OF POWER ON BLOOMBERG TELEVISION. WHAT A FASCINATING CONVERSATION WITH THE SENATOR. JOE: PEOPLE GET ANIMATED ABOUT TIKTOK. WHETHER YOU ARE TALKING TO A TEENAGER OR A LAWMAKER IN WASHINGTON, IT GIVES YOU A SENSE OF HOW ANIMATED THIS HEARING WILL PROBABLY BE. ANNMARIE: THE CEO WILL BE THERE ON CAPITOL HILL. ALREADY HE'S GIVEN THIS OUTREACH TO USERS, WANTING THEM TO CALL THEIR ELECTED OFFICIALS LIKE SENATOR BENNETT AND SAY, PLEASE, KEEP OUR SOCIAL MEDIA. HE SPENT TIME WITH THIS INDIVIDUAL IN THE QUOTE WAS, UNCONVINCING. JOE: WHICH MEANS HE DIDN'T BELIEVE A WORD OF IT. ANNMARIE: AHEAD OF TIKTOK TESTIMONY, SENATOR SHELLEY MOORE CAPITO OF WEST VIRGINIA JOINS US TO DISCUSS. SENATOR, YOU WILL BE IN THE ROOM, WHAT'S YOUR FIRST QUESTION TO THE CEO? SEN. CAPITO: MY FIRST QUESTION WOULD BE, WHAT KIND OF DATA ARE YOU GATHERING, AND WHAT KIND OF INFORMATION ARE YOU GATHERING FROM ALL THE TIKTOK USERS IN THIS COUNTRY AND WHAT ARE YOU DOING WITH IT? SEE IF WE COULD GET ANY TRUTH FROM THIS MY EXPECTATIONS ARE LOW. I THINK LIKE MY FELLOW SENATOR, SENATOR BENNETT WAS JUST EXPLAINING. JOE: EXPLAIN TO US WHY NOT JUST BLOCK THE TALK, AS MARCO RUBIO SAYS. HE HAS HIS OWN BILL THAT WOULD DEAL WITH THIS SPECIFIC COMPANY. I REALIZE THE OTHER LEGISLATION GIVES A ROD APPROACH TOOLS TO THE TREASURY THAT MIGHT APPLY TO OTHER COMPANIES, BUT WE ARE TALKING ABOUT TIKTOK. THE CEO IS IN TOWN. PEOPLE ARE WORRIED ABOUT PRIVACY ON THIS PLATFORM ON THE MOST POPULAR APP. WHY NOT JUST BAN IT? SEN. CAPITO: I THINK WE SHOULD LOOK AT IT. THE RESTRICT ACT HAS A BROADER VIEW. IT HAS OTHER IMPLICATIONS WHETHER IT WOULD BE HUAWEI AND OTHER COMPANIES THAT COULD HAVE AN EFFECT ON MINING DATA AND VIOLATING PRIVACY, GROOMING PEOPLE FOR CERTAIN BEHAVIORS, AND ALL THESE THINGS WE SEE GOING ON ON TIKTOK. I THINK TO BAN, WHAT I UNDERSTAND THE WAY YOUNG PEOPLE ARE COMMUNICATING THROUGH TIKTOK , I THINK IS A BIGGER QUESTION. MAYBE THAT'S WHERE WE END UP, BUT FOR NOW, WE OUGHT TO HAVE A RISK TO BASE PROFILE OF HOW WE ARE LOOKING AT THESE COMPANIES AND WHAT THEY ARE DOING TO US. THAT WILL BE THE MEAT OF A LOT OF QUESTIONS. ANNMARIE: THE LEGISLATION YOU ARE SIGNING UP BEHIND, HOW IS THAT GOING IN TERMS OF GETTING THE INDIVIDUALS YOU NEED ON THE HOUSE SIDE SO WANT TO MAKE SURE THAT'S THE PIECE OF LEGISLATION, GIVEN THE COMMERCE DEPARTMENT A LOT MORE OF THIS WEIGHT TO BLOCK SOME OF THESE POTENTIAL FOREIGN, WHETHER OR NOT IT'S TECHNOLOGY OR OTHER INSIGHTS INTO THE U.S. MARKETPLACE? DO YOU THINK HOUSE LAWMAKERS WILL SIGN UP FOR YOUR ACT? SEN. CAPITO: THE REALITY OF THE SENATE IS THAT WE HAVE TO HAVE 10 PEOPLE FROM ONE PARTY OR THE OTHER JOIN WITH THE OTHER PARTY TO GET SOMETHING THROUGH. THE SPONSORS OF THIS BILL, WHICH WERE SENATOR THUNE AND SENATOR WARNER, VERY METHODICALLY ADDED A REPUBLICAN AND DEMOCRAT AT THE SAME TIME. I'M ONE OF THE ORIGINAL COSPONSORS OF THEIR BILL FOR THIS REASON BECAUSE IT STRENGTHENS THE BILL, IT HAS A BROADER LOOK AND A GREATER CHANCE OF PASSING IF YOU ALREADY HAVE BUY-IN FROM BOTH SIDES. WHEN IT GOES TO THE HOUSE, I THINK THE DETERMINATIONS OF THE HOUSE WILL BE, DOES IT GO FAR ENOUGH, AND MAYBE THE HOUSE WILL WANT TO BAD TIKTOK. IT HAS TO COME INTO A CONFERENCE COMMITTEE. SENATOR RUBIO HAS A DIFFERENT VIEW AND DIFFERENT WAY OF LOOKING AT IT. I THINK -- BLOCK THE TALK. I SHOULD'VE GOTTEN THAT. JOE: IT'S ALL ABOUT THE ALLITERATION'S ON CAPITOL HILL. I KNOW THIS IS BEAT ON TIKTOK WEEK AND IT IS ITS OWN UNIQUE STORY, BUT HOW CONCERNED ARE YOU ABOUT FOREIGN INVESTORS GETTING PERSONAL DATA OR HAVING ACCESS TO THE ALGORITHM AT TWITTER? IS THIS A SOCIAL MEDIA WIDE ISSUE? SEN. CAPITO: I'M CONCERNED ABOUT THE CHINESE GETTING ANY FURTHER INTO WHETHER IT'S FARMLAND, WHETHER IT'S AN APT, WHETHER IT'S OUR UNIVERSITIES WITH A CONFUCIUS INSTITUTIONS. WHETHER IT'S BUYING UP OUR ENERGY ASSETS HERE. I WAS IN MEXICO WHERE THEY ARE BUYING ENERGY ASSETS. ALL OF THIS IS EXTREMELY CONCERNING BECAUSE I THINK IT HAS RAMIFICATIONS GOING FORWARD. IT STRIKES AT OUR POWER, IT STRIKES AT OUR INNOVATION. IN THE CASE OF TIKTOK AND OTHER THINGS, IT GOES TO OUR YOUNG PEOPLE, WHICH ARE THE MINDS OF TOMORROW AND THEY WILL BE FORMULATING WHAT THEY WANT THE DIRECTION OF THIS COMPANY. I THINK THESE ARE VERY CONCERNING ISSUES AND I THINK WE NEED TO BE, AT THIS POINT, AT LEAST GIVING THE COMMERCE DEPARTMENT THE TOOLS TO RESTRICT BASED ON RISK, BUT ARE ALSO LOOKING FURTHER IN SAYING IF THE NEXT PUNITIVE ACTION IS BLOCKING THE TALK. MAYBE THAT IS THE DIRECTION WE GO. ANNMARIE: I'M GLAD YOU BROUGHT UP YOUR CONGRESSIONAL DELEGATION TO MEXICO. HOW CONFIDENT ARE YOU THAT THEY WILL CRACK DOWN AT THE PORTS WHEN IT COMES TO PRECURSORS OF FENTANYL COMING INTO MEXICO AND INTO THE UNITED STATES? SEN. CAPITO: WE KNOW FENTANYL IS COMING THROUGH THE SOUTHERN BORDER AND INTO OUR STATES. CERTAINLY. WE TALKED WITH HIM AND SAID, THE PRECURSORS ARE COMING IN FROM CHINA, THEY ARE COMING INTO YOUR PORTS. HE HAS TAKEN A MUCH ACTION IN TERMS OF PUTTING THE MILITARY IN CHARGE OF PORTS INSPECTIONS TO TRY TO GET RID OF THE CORRUPTION. HE TALKED ABOUT THAT A LOT, BUT HE ALSO WENT FURTHER WITH US AND THAT HE SAID HE WOULD BE MORE FORCEFUL, MORE FACE-TO-FACE AND WITH THE CHINESE TO CUT BACK ON THE PRECURSORS OF THIS DEADLY, DEADLY SUBSTANCE THAT'S KILLING AMERICANS AND IT'S ALSO FEEDING THE CARTELS AND THE CORRUPTION IN MEXICO. SO I FELT LIKE IT WAS A VERY DEFINITIVE STATEMENT THAT HE MADE. WE TALKED A LOT ABOUT COOPERATION. TALKED ABOUT THINGS WE ARE CONCERNED ABOUT WITH MIGRATION AND OTHER THINGS, BUT I THINK WE ARE PARTNERS HERE, BOTH OF OUR COUNTRIES, WE NEED TO ENHANCE OURSELVES AS A UNIT BECAUSE I THINK THAT WILL BE STRONGER IN TERMS OF PRECURSORS TO FENTANYL BUT ALSO IN TERMS OF THE MIGRATION GOING THROUGH OUR SOUTHERN BORDER, THEIR NORTHERN BORDER. JOE: THERE'S A LOT MORE WE'D LIKE TO TALK TO YOU ABOUT. I HOPE YOU WILL COME SEE US SOON. WEST VIRGINIA SENATOR SHELLEY MOORE CAPITO. SEN. CAPITO: THANKS A LOT. JOE: PRESIDENT TRUMP'S LEGAL TROUBLES IN THE SPOTLIGHT AND HE'S TALKING AGAIN. AND YOU STATEMENT OUT. MORE ON THAT CONVERSATION WITH OUR POLITICAL POWER -- PANEL. THIS IS BALANCE ON BLOOMBERG TV. JOE: THIS IS BALANCE OF POWER ON BLOOMBERG TV. I'M JOE IN SIGN WASHINGTON. RON DESANTIS PUNCHING BACK AGAINST DONALD TRUMP. LISTEN. > > WHAT'S YOUR FAVORITE NICKNAME TRUMP HAS GIVEN YOU SO FAR. > > I DON'T KNOW HOW TO SPELL IT. I DON'T KNOW IT MEANS, BUT I KINDA LIKE IT, IT'S LONG, IT HAS A LOT OF VOWS, WE WILL GO WITH THAT, THAT'S FINE. YOU COULD CALL ME WHATEVER YOU WANT. JOE: RON DESANTIS TALKING WITH PIERS MORGAN. APPARENTLY THAT IS THE PLATFORM HE CHOSE TO THROW BACK ON DONALD TRUMP. WE BRING IN OUR POLITICAL POWER -- POLITICAL PANEL. SENIOR POLICY DIRECTOR AND FORMER NEW YORK CONGRESSMAN. FORMER DEPUTY ASSISTANT SECRETARY FOR PUBLIC AFFAIRS AT DHS. I WILL START WITH YOU BECAUSE THIS IS THE MOMENT YOU BEEN WAITING FOR, DONALD TRUMP PUT OUT A STATEMENT, IT'S VERY LONG. IT SAYS IN SHORT, RON IS AN AVERAGE GOVERNOR, BUT THE BEST BY FAR AND THE COUNTRY IN THE CATEGORY PUBLIC RELATIONS. I GUESS WE'LL HAVE TO WAIT FOR THE DEBATE STAGE. > > IT'S INTERESTING HOW RESTRAINED RON DESANTIS HAS BEEN IN REGARDS TO NOT ENGAGING. YOU SAW IN THAT INTERVIEW WITH THE CLIP YOU PLAYED, HE IS MAKING THE CASE OF VERY EARLY THAT HE IS THE GOVERNOR OF FLORIDA, HE WILL WAIT UNTIL THE LEGISLATIVE SESSION IS OVER BEFORE HE STARTS ENGAGING. ALTHOUGH YOU SEE THESE SOFT PLAYS INTO THE PRESIDENTIAL, I'M INTERESTED TO SEE WHAT HAPPENS WHEN HE ACTUALLY ANNOUNCES. THE CONTRASTY PAINTS, HOW HE HANDLES TRUMP'S ATTACKS BECAUSE TRUMP HAS BEEN GOING AFTER HIM FOR A WHILE SINCE HE SECOND IN THE POLLS FOR ALL ACCOUNTS, AND EARLY FAVORITE FOR THE PRESIDENTIAL. WE WILL SEE. IT WILL BE AN INTERESTING RACE. ANNMARIE: INTERESTING BECAUSE EVERYONE HAS BEEN WAITING FOR RON DESANTIS TO SAY SOMETHING BACK. HOW DO THE DEMOCRATS PLAY THIS? > > THAT WAS MORE PERSONALITY I'VE SEEN OUT OF DESANTIS EVER. HE WAS A VERY DEMURE MEMBER OF CONGRESS, VERY TO HIMSELF. THIS HAS A LONG WAY TO GO. I THINK DEMOCRATS ARE STILL EYEING DONALD TRUMP. KNOWING THAT THERE ARE OTHER PLAYERS OUT THERE, AND WHO WILL WIN THE PRIMARY, THAT'S WHEN IT COMES DOWN TO. I DON'T GETS FOCUSING ON ANYONE ELSE AT THIS POINT UNTIL THEY HAVE A BETTER IDEA OF WHO THEY ARE FACING. JOE: DO YOU EXPECT THAT -- SHE'S LOSING WEIGHT, HE IS MAKING ALL THE SIGNALS TO YOUR POINT. > > LOSING WEIGHT IS A TELLTALE SIGN, A BOOK, IOWA, NEW HAMPSHIRE VISITS, DONOR MEETINGS. I DON'T THINK THIS IS THE RACE, TO BE HONEST. I THINK THERE IS STILL A LONG WAY TO GO. WE HAVE A LONG TIME UNTIL ELECTIONS. YOU WILL REMEMBER ALMOST EVERY REPUBLICAN PRIMARY THERE IS THE HIGHEST, THE LOWS, THE EARLY WINNERS, AND THEN THEY DROP OUT. ETHIC IT'S TOO EARLY TO TELL, I'M CURIOUS TO SEE HOW IT GOES. DOES TRUMP STAY IN? THERE'S A LOT OF QUESTIONS? DOES TIM SCOTT GET IN. THIS POMPEO RUN? A LONG ROAD AHEAD OF US. ANNMARIE: IT WILL BE A LONG ROAD. THAT DOES IT FOR US TODAY. OUR THINGS TO JOKE CROWLEY AND LAUREN THOMASON. THANK YOU FOR JOINING US ON BALANCE OF POWER. TOMORROW WE WILL SPEAK WITH JOHN KIRBY, THE COORDINATOR FOR STRATEGIC COMMAND OCCASIONS AT THE NATIONAL SECURITY COUNCIL. WHAT DOES HE HAVE TO SAY? JOE: TIKTOK BACK TOMORROW. ANNMARIE: MORE ON CHINA, MORE ON TIKTOK. THIS IS BLOOMBERG. ♪

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Balance of Power Full Show (03/22/2023)

On Balance of Power Wednesday March 22nd 2023, Robert Silvers, Undersecretary at the Department of Homeland Security on the administrations issues with TikTok. Senators Michael Bennet (D-CO) and Shelley Moore Capito (R-WV) on the upcoming TikTok hearing. (Source: Bloomberg)