things are looking up as the us economy continues to grow the fed signals its nearing an end to hikes and big tech comes back in a big way this is bloomberg wall street week im david westin this week former white house economist laura tyson on why the fed just may have an ace up its sleeve he thinks this time we can engineer he can engineer a soft landing ralph schloss none of evercore on how dealmakers are getting ready for the next surge were certainly beginning to see a significant play a greater amount of activity and deron williams a southern banker on the continuing shake up in the ranks of regional banks that make of the merger between cac west and bank of dallas that made sense probably for them it seems that thats going to be a stronger institution there were some puts and takes but overall global wall street had a pretty good week big tech seems to be back on track with strong earnings reports from alphabet setting up a move for ruth porritt up to president and chief investment officer so shes going to be cfo up until september the first one this got this newly created role its going to be the ceo and president and shes going to remain with the business until they find a successor and then media reported more users more advertising revenue and promises of even better yet to come were really excited about what we think that this is going to bring to bear for the consumer experience and of course also eventually for businesses to connect with consumers across the family of apps too ups had a somewhat different moment in the sun when the union representing ups drivers reached a tentative deal to avoid a strike and teamsters chief sean obrien wasted no time in saying hes eager to move on to amazon amazon is definitely going to be a target to organize were going to take this historic agreement and use it as a template to show the amazon workers what they will receive when they join the teamsters union and we organize them things were a bit rockier for president g over in china who removed foreign minister qin gang after only seven months in office and brought back his predecessor wang yi i think wang yi is going nowhere and then there was the case of british real estate magnate joe lewis arraigned in manhattan court for allegedly giving illegal stock tips to the staff on his super yacht his private jet pilots and his girlfriends but the big one this week was the feds much awaited july decision which brought another 25 basis points in rate increases which surprised no one but left open the possibility it may be done or nearly done with tightening its really a question of how do you balance the two risks the risk of doing too much or doing too well and you know i would say that you know were coming to a place where where there really are risks on both sides its hard to say exactly where whether theyre in balance or not but as our as our stance has become more restrictive and inflation moderates we do increasingly face that risk as the odds for that soft landing seemed to increase the us economy came in significantly stronger than expected and inflation continued to ease its a better than expected gdp report for the second quarter this is going to have the fed changing some of its forecasts and if all that werent enough at the end of the week the bank of japan shook the global bond markets by saying its ceiling for ten year jgbs will now be a reference point rather than a fixed ceiling for all the drama bond markets ended the week relatively calm as the yield on the ten year us treasury spiked to over four on the boj news on thursday but then settled back down to 394 stocks meanwhile were all about the fed and the strong economic numbers with the s  p 500 up 1 on the week powered in part by earnings per share coming in so far and an average of 223 compared with the bloomberg ls expectation of 213 for year end the nasdaq once again outperformed the s  p up just over 2 for the week to give us his take on what we are seeing welcome back now greg peters he is pjm coceo for fixing them greg great to have you back on wall street week here it really was sort of a bond week if i can put it that way fixed income as your kind of weak first start with the fed what did we hear from the fed what did you hear from the fed what does it mean for the bond markets yeah so the fed is kind of dancing along the knife set here inflation is now much more under control than where we were a year ago so were moving in the right direction but its far from declaring victory and so theyre very open to being day dependent and somewhat ambiguous and whats really unique about this cycle david is that the markets are embracing that ambiguity typically that is evolve producer but in this case its having the opposite effect so the the fed is doing somewhat of a master class here on dampening market concerns which i think is important of course is what are the bond markets telling us if anything about the likelihood of a recession because on the one hand we got really strong economic numbers this this week surprised a lot of people we dont see a lot of weakness in the market at the same time as i understand we still are pricing in price rate cuts coming up next year yeah so i think its important to remember that the bond markets been wrong now for a better part of a year or so so the curve has been inverted that typically suggests that a recession is imminent this has been the most forecasted recession that hasnt come about yet so i think you know the economy the nominal part of the economy gdp has been quite robust and quite strong i think thats surprised a lot of pundits thats the first thing but whats curious in the market as well is the fact that were still seeing rate cuts priced in so investors are quite bullish around the outlook your risk assets are you know taking off and doing quite well but youre still seeing back in rate cuts being priced in and to us we just see that as incongruent you cant have your cake and eat it too right you cant have a situation where risk assets do really well and the fed is cutting because of economic weakness so you have to choose a side and i think theres some confusion here on that front greg what does that tell you as a bond investor where do you invest if at all right now is this a good time to be in fixed income and if so what parts of fixed income yes so i actually think its a great time to be in fixed income and its very simple premise and that is the income piece and the yield so yields are much higher than where we were a year or two years ago i think that is a fantastic starting point so the income producing nature of fixed income really starts to assert itself were where we see value is twofold one is leaning against those rate cuts so we think the hurdle for the fed to raise interest rates or im sorry cut interest rates is really quite high even if there is a tweak was being priced in is too much in our minds so we see value being kind of short a yields here at least in the front end and we see a lot of value in high quality assets within fixed income so no longer do you have to reach out the risk curve in order to achieve those income goals and target so we think its a great time to invest in fixed income where you get a lot of safe carry and a really kind of good earnings along the way so high quality fixed income are you being compensated for the risk when it comes to high yield or leveraged loans i think thats where its a little more tricky david i look at or we look at the parts of the high yield market we look at the levered loan market we look at the private credit market and really question whether youre being appropriately compensated for the risks there so these are still you know highly levered entities theres been a lot of leverage added to capital structures over the past decade or so kind of feasting off the low interest rates but as those interest costs continue to kind of reset higher as the cheaper debt rolls off into more expensive debt i think that puts a lot more pressure on these companies in that segment of the market and even without a recession and i think youll have a higher default experience than what weve observed over the past just called five or seven years greg we cant let you go without talking about what happened with the bank of japan because it shook a lot of people when that report came out that thursday afternoon there was a lot of move in the markets actually at the time at least for a short period of time what did you make out of what happened and doesnt have a long lasting effect i think its too early to tell so it was you know in the price over the past couple of days or so but either way ten year jgbs kind of jumped ten basis points which is a pretty big move in that market but essentially the bank of japan is drafting off of other global central banks so well see so they have this last mover advantage and so a lot of the the tightening has kind of happened away from them and so theyre just catching up but but i think its a rationalization thats finally occurring in the japanese markets but i think its a long ways to go so you know our strong sense is yields will continue to move higher in demand but in japan past that 1 threshold but were finally starting to see some movement out of the bank of japan whos been stuck very much in this this highly accommodative stance for a very long time do you expect to see this result in flows back into japan insofar as people are taking it away from japan because it got yields better in other parts of the world including the united states us treasuries is there a risk here it could go the other way now i think that risk is somewhat overblown to a degree i think you need to see a substantial change in kind of a hedge cost thats really highly predicated on the shape of the yield curve so you know we dont see a lot of movement but its clear that the preferred habitat for japanese investors is in japan but theyve been outside that jurisdiction for so long so i think its going to take a lot more than this move to move assets back into japanese assets but it is something to watch out for but i dont expect to see a fundamental shift or a sea change by any stretch and we are almost to the end of the month so there may be some repositioning overall portfolios on top of all that so we may have to take a lot of this with a grain of salt as we get into the 1st of august many thanks now greg always great to have you with us thats greg peters of pjm coming up were going to go over what the fed told us and also what it left unsaid with economist laura tyson of the berkeley high school of business and then next week were going to take you to aspen for a special edition of wall street week from the aspen economic strategy groups annual meeting well sit down with former council of economic advisors chair cecilia rouse atlanta fed president rafael bostic chicago fed president austan goolsbee and more only on wall street week on bloomberg this is wall street week im david westin the fed spoke again this week and raised interest rates again this time by 25 basis points hoping it is doing enough to deal with inflation but not too much a risk that isnt new for the fed as louis rukeyser described on wall street week back in july of 2001 back in the days of alan greenspan the fed chairman misread the economys signals so embarrassingly in 1999 and 2000 that he was raising interest rates to guard against inflation when he should have been lowering them to guard against what has proved to be the biggest economic collapse in a decade to take us through the risks facing this fed and this fed chair in 2023 we welcome back laura tyson professor at the berkeley high school of business dr tyson served both as chair of the council of economic advisers and as director of the national economic council under president clinton so dr tyson thank you so much for being back with us so a lot that we heard from the fed and from chair powell was not a big surprise was there anything you found surprising really surprising but that forward looking or going out a little bit to say for a variety of reasons he thinks this time we can engineer he can engineer a soft landing he noted that thats very rare but he did talk about the fact that we have an economy which is stronger than expected stronger than expected and his own fed forecasters have taken out a recession for this year and put in stronger growth but he noted also we have inflation coming down we have quits coming down we have job openings coming down we have a kind of sense that the labor market may be easing without creating unemployment and that growth may still be strong and that would be a soft landing and underscore what youre saying dr tyson the day after the feds decision we got gdp numbers out that really were substantially stronger than we expected indicating the economy is doing quite well at the same time weve raised interest rates a lot at this point a lot in a very short period of time how do you account for the fact we dont have more unemployment because a lot of people i think predicted that if you raise interest rates at that high that fast youre going to have higher unemployment right well lets look at the strength of the economy so interest rates are one thing that determines the strength of the economy but we do know that consumers continue to be a spend out of their savings they continue to create strong demand for output both services now and increasingly products and powell mentioned that yesterday the importance of the shifting of spending back towards goods because that way you can ease some of the inflationary pressures on the services side and on the good side as he pointed out the supply chain is really quite strong now theres a lot of supply so the demand for consumer goods and the shift in consumer goods important he mentioned investment as well and i think theyre the change in technology the the artificial intelligence breakthroughs and the rush by firms to to figure out a way to invest in that technology thats boosting investment so you have sources of demand at home consumption and investment demand stronger and thats whats keeping the economy going certain interest rate sectors housing you dont see that strength obviously but for a variety of reasons demand remains strong artificial intelligence is all the rage these days at least to talk about im not sure if were seeing it show up yet but there are some really speculate it could have a significant effect on productivity do you expect that it may have that effect and if so how long does that take to have to really show up in the numbers so one of the interesting omissions yesterday in the discussion of chairman powell and this is a standard omission because fed chairs dont talk a lot about productivity but if youre thinking about inflation and youre thinking about well as our rate is going up is that going to drive inflation up further theres an intermediate variable there that is wages productivity growth and prices if productivity growth picks up and you have that allows for stronger wage growth without an effect on price growth so productivity is really important it is very hard to predict i have to smile at the fact that you started with 2000 the federal reserve chairman greenspan president clinton were absolutely surprised by the strength of productivity growth note no one predicted it and there was a very significant uptick in productivity growth associated with the rollout the very rapid rollout of internet internet technology which really occurred from the late 1990 so you had a decade of a much stronger percentage point stronger growth rate in productivity and that changed the inflation outlook it changed the course of monetary policy so i think about today and i would say perhaps because i mostly spend my time in northern california but there are a number of scholars for example mckinsey global institute just did something on this looking at how ai is affecting already productivity in major business functions and sales functions and accounting functions in major sectors of the economy like finance so its already looking to generate a productivity burst and it could be quite rapid just the way the internet productivity burst was quite rapid so say over the next decade and thats what i think theres a lot of theres reason to be optimistic about this and it makes it more likely then that we would have a soft landing because the wage pressure that comes out from continued strong labor markets does not generate the same amount of price pressure because workers are more productive so dr dyson you were there in the white house when the internet phenomenon was really taking hold as an economist so often the economic numbers are backward looking how long did it take you to see that productivity increase in the numbers how long did it take you to figure out this is actually whats going on well we saw that numbers pretty quickly we were surprised at the numbers i want to say i oftentimes tell the story that i used to brief president clinton regularly on the outlook for the deficit and that depended very much on the outlook for economic growth and that depended very much on the outlook for productivity growth and i used to give him the pretty standard economists answers that productivity growth was likely remain slow and we shouldnt expect significant change we needed to be cautious and we therefore were constantly surprised at the extent of the productivity gains and they really started to come in early the artificial intelligence revolution is going to be as significant as the internet revolution is actually probably going to be more significant than that and the question therefore becomes how fast will the effects be felt a very good positive indicator here is that in some sectors which are early adopters you already see some amazing productivity gains in some of the work being done by economists you see use you know there are cases where they all sort of look at the application of ai to a call center and see how much the productivity of each call center worker increases and its not just the quantity thats the productivity number but the quality they do a better job and the customers like it more so i think weve got a lot pieces of evidence all around that this productivity effect is going to be large and its going to be quick but very we do not have good economic models to make this prediction so we have to look at i mean you know i heard yesterday a lot of companies so even though the interest rate is high the cost of capital is high credit conditions are restrictive companies are rushing out to invest in this technology because they realize its maybe signaling a fundamental change so the long term you have to look at your investment decisions now for the long term you know not a certainty but something we could certainly hope for thank you so much doctors always a pleasure having you wall street week that is professor laura tyson of the harvard school of business at berkeley university coming up loan defaults rise as lending falls are the two related thats next on wall street week on bloomberg this is wall street week im david westin this week we saw a continued rise in bond defaults and a decided drop off in lending especially in europe to take us through the two developments and whether they may be connected welcome back now bloomberg international and economics correspondent michael mckee can you have too much of a bad thing to control inflation central banks raise interest rates credit becomes more expensive fewer people and companies borrow and economic activity slows monetary policy is working by that book in europe this week the european central bank reported demand for loans among companies in the eurozone plunged by the most on record in the second quarter demand for mortgages and other consumer borrowing also fell could that be a sign the policy has gone too far well banks play a dominant role in financing the european economy and the eurozone has seen two consecutive quarters of economic contraction its a different story in the us where growth has remained stronger than expected there is bank lending of course and its flattened out in recent months but the capital markets play a much bigger role here and there are incipient signs of trouble in those markets defaults are beginning to rise no surprise particularly for commercial real estate but a new york fed index shows stress in the bond market is up even for investment grade bonds for the fed like the ecb the trick from here is to keep the pressure on inflation without turning lending stress into economic distress david many thanks to bloombergs michael mckee coming up those higher rates brought deal making almost to a halt but there are some indications now that things may be coming back soon well ask well schleifstein out of evercore certainly the amount of dialogue among our clients is up quite dramatically and our backlogs are up this is wall street week on bloomberg mergers and acquisitions they make the investment bankers world go round and just two short years ago it was going around pretty fast when a record 38 trillion worth of deals were done in 2021 we are continuing to see just tremendous momentum in usa but then inflation came along and the fed decided it had to raise interest rates fast to get things under control leading to all sorts of uncertainty in terms of our own business so yes it has a big effect because when when the volatility is so high and the vix this morning was 32 and a half i think thats when the day started people hesitate they want to step back and wait for the smoke to clear and the environment to settle and so transactions slow down theres no doubt about it all of which took that 38 trillion and deals in 2021 all the way down to 26 trillion last year and the pace this year so far is down another 40 from that but now markets think we may be nearing the end of those rate hikes leading some people like michael che of blackstone to think the deals are about to come back i think market participants are now you know seeing that were nearing the end of this dramatic rate increase cycle and therefore feeling like theres a little less uncertainty a little more certainty and are readier to transact though betsy graseck morgan stanley says it may be next year before we really see mergers and acquisitions get their mojo back we are you know one of those who is looking for an acceleration in deal activity as we go into next year part of the reason is understanding what the terminal rate is in rate hikes and to bring us up to speed on exactly where we are in mergers and acquisitions we turn to a true authority hes welsh last time he is chairman emeritus of evercore ralph thanks so much for being back on wall street week we hear a lot about the fact that m  a dropped off as we know from those record numbers back in 21 are they coming back were certainly beginning to see a significant li greater amount of activity it hasnt manifested itself yet in announced transactions but announced m  a for the first six months of the year was down the dollar volume was down 40 i dont expect it will be quite as bad in the second half of the year but certainly the amount of dialogue among our clients is up quite dramatically and our backlogs are up a big change from 21 for example as interest rates yes in the fed has been adding interest rate basis points as fast as it could how does that change the nature and that going forward i mean are they going to look different the deals that you do well it does it unquestionably affects the amount of leverage that you can put on a transaction and that of course affects the private equity firms particularly not as much industrial companies because theyre all are many of them are investment grade rated and you know the ultimately the banks or the lenders which are increasingly nonbank you know calculate how much debt a company can support by you know some measure of interest coverage so when rates are up that limits somewhat the amount of debt that a debt a private equity firm can put on a company however they also look at the way a mortgage is done you know whats the amount of loan to value a traditional loan to value analysis and that doesnt really change that much so its a balancing act between interest coverage and the fact the loan to value analysis you mentioned private particularly private credit to what extent is private credit really taking up the slack right now particularly as banks feel they manage to pull back some well there was a period probably five six months ago when almost all leveraged loans or leveraged buyout transactions were financed by private credit and by the way thats not a terrible thing because theyre separated from the deposit insurance function and so thats taking actually credit risk out of the banking system so theres probably you know 1000000000000 of private credit balance sheet out there and so thats become a significant competitor for the banks but thats probably a healthy thing for the financial system what is the shake up if i can put it that way m  a doing to the investment banking business itself because we saw credit suisse now is really obviously essentially pulling out of the business of direct goldman sachs has been laying off bankers is it changing the personnel situation for a place like evercore well the interesting thing is that so advisory you know m  a restructuring but m  a obviously being the biggest part of it is almost our only business we have a research business and we have a underwriting business but at their peak they were maybe 14 15 of our revenue so the vast majority of our revenues come from advisors goldman sachs which has the largest advisory business advisory is about 5 of their revenues so its the most prestigious part of their business but its not something that dramatically affects you know the profitability of the business although when you put it together with equity underwriting and debt underwriting and other things thats not great for goldman sachs in terms of our business you know where our growth comes from adding a plus and a talent and we just announced our earnings yesterday weve had a record number of very very talented what we call senior managing directors which is our most senior title join us or commit to join us in the first half of the year so disruption in the large firms you know causes people to stick up their head and say gee do i want to be in a place where what i do is the core business of the company rather than you know five or 7 of revenues in the case of places like you know jp morgan and b of a theyre so big still important still prestigious but its a very small part of their revenues lets talk about regulation for a second theres a lot of talk has been since the beginning of the biden administration about antitrust enforcement and now weve just had a new proposed merger guidelines come out which are decidedly more restrictive particularly involving private equity potentially how much of a chilling effect is that having on businesses as they think about mergers acquisition now well i think i may have been asked this a couple of years ago when the appointments were made to the ftc and the antitrust position and i said that there definitely will be a more aggressive enforcement but for it to actually dramatically limit activity there would have to be law change in congress and i was very skeptical about that happening that has not happened its not going to happen in my view so weve gone through a cycle in my view youve gone through a period where theres been more enforcement more second requests more challenges to transactions and you know some of those transactions companies chose to not proceed because they didnt want to go through the the pain of contesting the ftc or the antitrust divisions contesting now weve seen two or three or four instances where companies have said you dont really have a basis in law for challenging this merger so were going to go to court and their record in court has not been great because the law hasnt changed and so now what youre hearing a little bit more from clients is i recognize that this will probably be challenged but let them take me to court because well win but it must increase the friction costs that take longer itd be more expensive you have litigation you have to pay for so is that a deterrent at all or it is do people just blow past that it raises the bar but if the bar went up because of the challenges six or eight or ten months ago its now come down a little bit because theyve lost in court and challenging them illegally has become a more accepted practice so finally ralph let me ask you to look in your crystal ball here about mergers and acquisitions we started this by saying its down 40 year over year for the first year you think itll be somewhat better if you look at the entire year if in fact the fed and we dont know whats thats going to do if the fed actually holds where it is or maybe only goes up 25 basis points and then some point next year starts to come back down what does that do for your business well for m  a activity to be strong you need a number of things you need supportive equity markets which were getting to you need liquid debt markets not necessarily really low interest rates but a lot of liquidity you need confidence about the direction of the economy a lack of uncertainty the biggest thing that the cloud over m  a for the last six or nine months has been uncertainty about the economy are we going to have a recession are we not going to have a recession is the fed going to stop are they not going to stop and ive encountered a phenomena that ive never seen before which is when you visit with a ceo they tell you their business is great but theyre really worried about the economy and so if you think about it or somebody elses business you know whos going to buy a business when they think their business is really good and the other guys or womans isnt so that uncertainty you know which part of it is related to the fed part of it is related to how does the interest rate increase the remaining flow of stimulus from the pandemic that we still have on consumers balance sheets and the general momentum in the economy how do those interact and where will we be six or 12 months from now in terms of real economic activity once we get a resolution or a clearer picture of that we will see a pickup in activity and the wonderful thing about our business is its a cyclical business it has high highs and lows lows but its a secular growth business and if you look back since 1980 every single low has been higher than the previous low and every single high has been higher than the previous high im talking about dollar volume of activity so you know thats why evercore is investing in talent today because we know you know the downturns have typically been 2 to 3 years so were a ways through that already so we want to be ready when the market does turn rough its really great to have you on thank you so much for be back on wall street thats ralph then he is chairman emeritus of evercore coming up the fallout for regional and local banks continues on global wall street we check in with the head of a community bank darren williams of southern bancorp to see where things stand i wish i could say that you see the end of it i believe youll probably see more thats next on wall street week on bloomberg this is wall street week im david westin it was another week of changes for the banks bank of california bought pac west and yet another consolidation of regional banks and federal bank regulators finally came out with those new proposed regulations an increase in capital requirements to bring us the community bank perspective we welcome now darren williams ceo of southern bancorp so darren thank you so much for being with us we love having you on wall street because you have that perspective a community bank so lets start first of all with this new regional bank consolidation is the latest one give us your take from your point of view in arkansas whats causing this and have we seen the end of it or should we expect more yes so i wish i could say that you see the end of it i believe youll probably see more on the dramatic raising interest rates thats having an impact on all banks particular community banks those that have securities that are popular that may be experiencing significant unrealized loss but the particular merger between pac west and bank of california that made sense probably for them it seems that thats going to be a stronger institution youve seen their stock price bubble up and so hopefully thatll be better for folks in california merging two good institutions together to make one stronger institution so were seeing a fair amount of consolidation i think its fair to say in banking right now at the regional level im not sure ive seen as much at the community level do you expect more consolidation is that a good thing or a bad thing well you know its hard to look at it so what we always think about is do the folks who typically dont have access to capital to banking services will they continue to have access and youve seen it over the last several years tremendous consolidation in the banking space and so at one time you go back 20 years or the 15000 banks now theyre less than 4500 and what typically happens is those who are least able to bear that bear the brunt of it because rural communities underserved minority communities those are the communities often lose their banks and so were troubled when we see that consolidation particularly that means that people are move out to move further and further away from a bank and not have access to capital credit and of those services where you have a relationship with drive that drives the ability to have capital the other big development of the week was the announcement of these proposed regulations coming out of the three federal bank regulators does that affect your bank at all or is it just the big guys so the way theyre structured right now its those banks 200 billion assets above and were at about 25 billion you know most community banks you think about it 10 billion unless its not going to to affect us because right now that marks about 100 billion assets above you a lot of relationships with some of those big banks including as investors in southern bancorp insofar as theyre feeling more pressure because they have to have more capital requirements could it trickle down to you well im not seeing it right now i can tell you that our relationships with the larger banks are jp morgan chase is a customer as an investor im sorry bank of america is an investor even some larger regionals like cadence like regions like simmons bank those banks our partnerships remain very very strong with there continue to double down on their relationships with us and were trying to find ways to continue to work together to better serve our customers and to serve those who are often been left behind left out of access the capital and the banking system so you fill a particular niche in the banking system with some of the people small businesses individuals people who are perhaps not at the top of the socioeconomic strata if i can put it that way and sometimes underbanked people give us a sense of how the economy the us economy looks to those people your customers right now yes so we serve a lot of customers they are mississippi delta one of the most economically challenged communities of all the united states and that community has been suffering for a long time and so when inflation hits them harder right so groceries utilities gas prices those things are getting worse and so theyre struggling it is a challenge for our consumers there are small business customers they seem to be holding steady you dont see them investing in their business as they have in the past theyre not taking out a lot of loans that are holding steady but its those small consumers who we make small consumer loans to were starting to see their pastas tick up just a little bit its not material to our asset quality but were seeing were noticing that just a little bit and so i do worry about them as these inflation numbers you know continue to were trying to get it under control because the fed just raised rates and thats an effort to get inflation under control but it has a double edged sword for them so when you raise rates their cost of borrowing goes up but then if you dont get inflation they control that money then go as far so its a its a tough balance that were trying to try to help them navigate what is the role of technology as technology develops and trying to serve your customers better or more of your customers frankly its its very important and were investing heavily in technology we have several apps that our bank has developed internally to reach customers we have apps what were really trying to train people how to save to help them become savers but also im actually right now im in a meeting with my team and were working on strategies including technology to bring our financial education services to the mobile device some people are are much more comfortable using their mobile device and sitting across the table and talking to someone about their financial health you know going to one of our credit counselors or homebuyer counselors and sit down and talk with them and being very vulnerable about your financial situation its a stress is stressful people dont want to talk about the mistakes they made so were trying to see can we bring some of our resources to a mobile device can we employ a chat box and other types of services that where people can maybe in their perhaps their own home get the education necessary in a inappropriate manner that actually allows them to make good use of that information and move themselves from being a underbanked to being fully backed and having full access to the banking system the federal government response to the pandemic has injected a fair amount of fiscal stimulus in and we still have some of that to come through particularly when it comes to things like infrastructure the chips and science act are you seeing any of that money flow down to your customers yes so were starting to see that and we hope will help we see more in flight and inflation production there is a 27 billion greenhouse gas reduction fund thats being created and epa is rolling out the rules right now and were rolling out the competitions to reapply for those dollars but theyre trying to ensure that some of those dollars go to underserved communities disadvantaged communities because we know the impact of climate change doesnt affect everyone the same those communities at least often they have the least amount of resources are hit harder by the impact of climate change so those dollars coming into those communities will not only help stimulate the economy but also may provide you know a buttress or buffer from the impact of climate change on those underserved communities so thats one thing that were seeing now but we believe that the support in place for reduction act those infrastructure dollars will have a positive impact on the communities including some of the rural and underserved communities that we serve darren its always such a treat to be able to talk to you thank you so much for being back on wall street thats deron williams hes the ceo of southern bancorp coming up unemployment is just a number unless youre the one out of a job thats next on wall street week on bloomberg finally one more thought when knows the answer one reason is really as good as another an awful lot of employees seem to be getting a no when it comes to their jobs these days whatever the reasons it certainly is hitting goldman for goldman to make cuts this steep is very concerning because the question is when do deals come back in a way to justify these swollen workforces all across wall street and big tech heavyweights most of these layoffs at scale are happening in the soup is why theyre happening in the matters theyre happening in the facebooks theyre happening in twitter and to a degree its just kind of right sizing a fair number of people are being shown the proverbial door without a key to get back in are you going to need your keycard and its not just the rank and file who are feeling a bit less secure in their jobs think about bob chapek out as ceo of disney after only 21 months we think park failed to win the hearts and minds of the troops in the creative businesses at disney and we think there is quite literally nobody on earth as well qualified to do that as bob iger or chris licht being shown the door at cnn after 13 months as cnns ceo chris light has stepped down from the cable news channel parent company warner brothers discovery says his departure is immediate and that theyre scouting for a new leader this comes after the backlash over a trump town hall in may and an unflattering profile of him by the atlantic so with all the turnover out there its good to know that theres still one place where you can keep your job pretty much no matter what one place that just doesnt know what a pink slip looks like those in higher education have long enjoyed tenure going back as far as the 1600s the idea originally served to protect academics from religious prejudice making sure they could not be removed no matter how the times changed but this summer all that is coming into a bit of question as a professor at harvards business school was put on administrative leave after challenging some data she used in several published papers next came the president of stanford who abruptly announced hed be stepping down at the end of the summer after questions were raised by the stanford student newspaper about data hed relied on for some seminal work on alzheimers the president said yesterday he would resign so there is an interim study yes hell be leaving at the end of august and interim coming in in september but the reason is kind of shocking that over the last 20 years there were issues in research that he did not correct and last week came word that the president of texas a  m stepped down after a furor over mishandling of the hiring of a prominent black professor from ut austin to head texas a  m journalism program apparently because of the politics over diversity hiring all of this couldnt come at a worse time for students whove run up debt to pay those schools for their sky high tuition theyll steal your wallets theyll pull in your baby shoes they will shrink themselves down to two inches high hide in your pocket and take that money back one dime at a time but if your student debt wont be forgiven maybe you should consider simply asking for your money back that does it for this episode of wall street week im david westin this is bloomberg see you next week