National

House Speaker Kevin McCarthy said Sunday he wants no protests or violence if former President Trump is indicted or arrested.

Why it matters: Media reports and the former president's own comments signal that an indictment from the Manhattan district attorney's office could be imminent, with Trump urging supporters to "[p]rotest, take our nation back!"

Driving the news: At a press conference to kick off House Republicans' annual retreat in Orlando, Florida, McCarthy told reporters: "I don't think people should protest this, no."

The House speaker also defended Trump, arguing he "doesn't believe that either" and is "not talking in a harmful way," though he said the two of them haven't actually spoken about the matter.

"Nobody should harm one another in this. ... We want calmness out there," McCarthy said. "I do not believe there should be any violence [in response] to this."

The intrigue: McCarthy joins a surprising hardline House Republican also discouraging protests — Rep. Marjorie Taylor Greene (R-Ga.).

"We don't need to protest," Greene tweeted on Saturday, arguing that Democrats are "sealing their own fate" in the 2024 election if Trump is indicted.

The backdrop: The local prosecutors are investigating whether Trump violated campaign finance laws with hush money payments he allegedly paid to adult film star Stormy Daniels.

McCarthy has slammed the probe, led by Manhattan District Attorney Alvin Bragg, a Democrat, as politically motivated and said he will direct House committees to investigate whether Bragg's office is using federal funds to conduct the investigation.

McCarthy revealed at the press conference that Rep. Jim Jordan (R-Ohio), the chair of the Judiciary Committee, would take charge of the probe.

"I talked to Chairman Jim Jordan today, I think you’ll see action tomorrow," he said.

McCarthy calls for no protests or violence if Trump is arrested

"We want calmness out there," McCarthy said.

House Speaker Kevin McCarthy, wearing a blue suit, white shirt and green tie, speaks in front of an American flag and a large portrait.

House Speaker Kevin McCarthy. Photo: Niall Carson/PA Images via Getty Images

Kevin McCarthy

Politics & Policy

UBS has struck a deal to purchase troubled Credit Suisse for $3.2 billion, as bank solvency fears continue to batter global markets. 

Why it matters: Aggressive central bank action to arrest stubborn inflation has shaken investor confidence, with financial institutions caught in the crosshairs.

The details: Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares, for a total consideration of 3 billion Swiss francs ($3.2 billion). The deal is expected to be finalized by year-end. 

UBS offer represents a fraction of the bank's roughly $8.5 billion market capitalization as of Friday's close.

The Swiss National Bank agreed to lend up to 100 billion francs to UBS to support the transaction. 

Finma, the Swiss financial regulator, took the extraordinary step of enforcing that $17 billion worth of higher-risk Credit Suisse’s bonds would be wiped out. The regulator also eliminated the need for shareholders to vote on the deal.

Flashback: After years of mismanagement and scandal-ridden headlines, the storied 167-year-old European banking giant was laid low by a crisis rattling the banking sector in the wake of Silicon Valley Bank's failure.

Credit Suisse, one of a handful of global financial institutions deemed "systemically important," posted a fourth-quarter loss of over $1 billion. Over the last few days, it has suffered mass outflows as problems mounted and bank sector concerns festered, pushing its stock to record lows.

What they're saying:  “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome," Axel P. Lehmann, Credit Suisse's chairman said in a statement. 

"This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome," he added.

Zoom out: A jittery Wall Street has pummeled bank stocks over the last few weeks, with some fearing another worldwide liquidity crisis. 

Capital Economics wrote in a note on Friday that "more problems may yet emerge at other commercial banks in the US. But the industry there as a whole doesn’t have a worryingly high uninsured deposit ratio or unrealized losses on 'held-to-maturity' securities in excess of capital." 

"And if more skeletons do emerge from the closet, this is more likely to be the case for banks that have been relatively lightly regulated because they pose less of a risk to the economy," the firm added.

UBS agrees to buy Credit Suisse for $3.2 billion

Swiss regulators manage takeover of 167-year-old European banking giant.

UBS Chairman Colm Kelleher (center) speaks to Swiss Finance Minister Karin Keller-Sutter (right) next to Credit Suisse chairman Axel Lehmann (left) at the March 19 press conference. (Photo by Fabrice Coffrini/AFP via Getty)

Banking

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The banking sector is poised to head into a third week of existential questions and whipsaw volatility, despite official efforts to stabilize markets and reassure depositors.

Meanwhile, the search for causes, lessons, and blame is already well underway.

What we're watching: The fate of Silicon Valley Bank, whose financial fault lines spurred the recent banking earthquake, is still up in the air.

Its former parent filed for bankruptcy protection Friday. The commercial bank — which was taken over by the U.S. government last week — is not included in that process.

A second effort to sell the now FDIC-owned bank is underway, after the regulator was unable to find a buyer last weekend.

Separately, UBS is said to be exploring a deal for all or part of embattled rival Credit Suisse, under the urging of the Swiss National Bank and the country's financial regulator, the FT reports. 

A separate report by the publication said BlackRock was evaluating options for a rival bid, which the U.S. firm denied.

Credit Suisse failed to find a bottom for its shares Friday, two days after securing its own $50 billion lifeline from the Swiss National Bank. The stock fell another 8% Friday in Europe.

And First Republic Bank investors are running...again. Shares were buoyed on Thursday by news of a $30 billion lifeline. But hours later it announced it was suspending its dividend. The stock cratered another 32% Friday.

On the hunt for causes, President Biden put a target on executives Friday, calling on Congress to enact tougher penalties for those who oversee failed banks, Axios' Kate Marino writes.

The Fed, meanwhile, said Monday it intends to review whether there were any possible regulatory or supervisory missteps leading up to SVB's collapse, Axios' Courtenay Brown writes. Its broad review on the bank's failure is expected by May 1.

Editor's note: This story has been updated with additional information on Credit Suisse

Banks brace more drama with SVB, Credit Suisse up in the air

The banking sector is poised to head into a third week of existential questions and whipsaw volatility.

Illustration of a hand holding a bank building.

Silicon Valley Bank

The world's leading central banks jointly announced new action to try to keep U.S. dollars flowing easily through the global banking system, returning to a strategy used extensively in past crises.

Driving the news: The Federal Reserve, along with the European Central Bank, Bank of England, Bank of Canada, Bank of Japan, and Swiss National Bank, with their Sunday evening (U.S. time) aimed to make dollar swap lines more readily available.

It comes after Swiss bank UBS took over its rival Credit Suisse with substantial financial guarantees from the Swiss government and its central bank earlier Sunday.

It is a sign of the severity of the risk global central banks see from the series of strains in the banking system worldwide since Silicon Valley Bank failed nine days ago.

Between the lines: In times of financial stress, global banks often become more reluctant to lend dollars to each other, creating additional tightening of global credit.

Swap lines, used extensively in the 2008 global financial crisis and again in the early days of the pandemic in 2020, allow overseas central banks to access dollars direct from the Fed, and in turn, make dollar loans to their domestic banks.

It places the Fed in a role, in effect, as a global lender of last resort.

The swap lines are now part of a standing liquidity arrangement between leading central banks, but the announcement Sunday is aimed at increasing their effectiveness by making the liquidity available daily instead of weekly.

Global central banks announce joint action to keep dollars flowing

Dollar swap lines were also used extensively in 2008 and 2020 to keep dollars flowing.

The Federal Reserve in Washington. Photo: Alex Wong/Getty Images

Federal Reserve

Tel Aviv

Axios from Tel Aviv

President Biden spoke on the phone with Israeli Prime Minister Benjamin Netanyahu on Sunday and expressed his concerns over the Israeli government’s judicial overhaul plan, a senior U.S. official told reporters. 

Why it matters: It is the first time Biden and Netanyahu have discussed the Israeli government’s controversial plan to weaken the country's Supreme Court. 

What they're saying: A senior U.S. official said in a briefing with reporters that during the call Biden expressed concerns “and said as a friend of Israel, that he hopes a broad consensus can be found around the judicial reform." 

“The call was frank and candid … they both have a lot of experience in legislation and they exchanged ideas on this issue," the U.S. official said.

In a readout after the call, the White House said that Biden "also underscored his belief that democratic values have always been, and must remain, a hallmark of the U.S.-Israel relationship, that democratic societies are strengthened by genuine checks and balances, and that fundamental changes should be pursued with the broadest possible base of popular support."

"The president offered support for efforts underway to forge a compromise on proposed judicial reforms consistent with those core principles," the statement added. 

The Israeli Prime Minister's Office said that on the judicial plan, "Netanyahu told President Biden that Israel was and will be a strong and vibrant democracy."

Catch up quick: The judicial overhaul plan, presented by the most right-wing government in Israel's history, has created an unprecedented constitutional crisis in the country, with growing fears that the confrontation between the government and the opposition will escalate into violence and chaos.

Netanyahu last week rejected Isaac Herzog's proposal for compromise on constitutional and judicial reforms that the Israeli president had hoped would replace the overhaul plan. 

Biden told the New York Times earlier this year that any fundamental changes in Israel’s judicial system should be based on a consensus to get legitimacy from the public and be sustainable.

"The genius of American democracy and Israeli democracy is that they are both built on strong institutions, on checks and balances, on an independent judiciary," Biden said.

The big picture: During the 30-minute call, Netanyahu also briefed Biden about the shooting attack against Israeli civilians in the occupied West Bank town of Hawara earlier on Sunday, the Prime Minister’s Office said. 

“Netanyahu told Biden that Israel will continue to take action in any place against terrorists and the terror architects," the Prime Minister’s Office said. 

The two leaders also discussed Iran and efforts to broaden the Abraham Accords, which saw Israel normalize relations with several Arab countries, the Prime Minister's Office added. Netanyahu thanked Biden for his commitment to Israel’s security.

Go deeper: Blinken's civics lesson for Netanyahu

Editor's note: This story has. been updated with additional details throughout. 

Biden expresses concern over Israel's judicial overhaul in call with Bibi

It is the first time the two leaders have discussed the controversial plan to weaken Israel's Supreme Court.

Biden and Netanyahu in March 2010. Photo: Amos Ben Gershom/GPO via Getty Images

Netanyahu and Biden in March 2010. Photo: Amos Ben Gershom/GPO via Getty Images

Benjamin Netanyahu

Israel

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

This Week With George Stephanopoulos-9 10 44 Am - 9 11 23 Am-2023-03-19

Former Vice President Mike Pence said that former President Trump "let me down" on Jan. 6 and that he had hoped that he "would come around" and recognize the violence of that day.

Driving the news: "I had actually hoped that he would come around in time, that he would see the cadre of legal advisers that he surrounded himself with led him astray, but he hasn't done so," Pence said Sunday on ABC's "This Week." 

"I think it's one of the reasons why the country just wants a fresh start," Pence added.

He said that he and Trump have gone "separate ways" since leaving the White House. 

Pence said that in the week after Jan. 6, he was "very direct" with Trump about his experience that day and they "parted amicably and respectfully."

"But in the months that followed, [Trump] returned to that same rhetoric he was using before Jan. 6, rhetoric that continues much up to this day and that's why we've gone our separate ways," Pence said.

The big picture: Pence is still mulling a rare bid against a former running mate and he said in the ABC News interview that he is still deciding with his family whether he will seek the Republican nomination.

He said he's undecided about whether he would ever support Trump for president again and said: "I think we'll have better choices."

"We're going to decide as a family whether we offer ourself as one of them, but I think different times call for different leadership." 

Go deeper ... Pence: "History will hold Donald Trump accountable" for Jan. 6

Pence: "History will hold Donald Trump accountable" for Jan. 6

Mike Pence: President Trump "let me down" on Jan. 6

Pence added that he and Trump have gone "separate ways" since leaving the White House.

Mike Pence

Former Vice President Mike Pence tells ABC News that ex-president Trump is to blame for Jan. 6 Capitol attack 

This Week With George Stephanopoulos-9 25 05 Am - 9 26 53 Am-2023-03-19

Sen. Elizabeth Warren (D-Mass.) called for an independent investigation into the Federal Reserve and the banking regulatory system during an appearance on ABC's "This Week" on Sunday.

Why it matters: The banking sector is poised to head into a third week of existential questions and whipsaw volatility, despite official efforts to stabilize markets and reassure depositors, Axios' Pete Gannon writes.

The fates of Silicon Valley Bank and Credit Suisse remain up in the air.

State of play: "I'm calling for an independent investigation of the Fed and the whole regulatory system here. The fed doesn't just get to do its own investigation," Warren told the program.

Warren also called on the Fed to reverse the deregulation enacted during the previous administration and to "look at these banks with much more scrutiny."

Congress should also curb the ability of the Fed to weaken regulations, she added.

The CEOs of failed banks must also be held accountable, in order to ensure that their bonuses and salaries can be clawed back and that they are banned from banking in the future, Warren added.

The senator made similar remarks during an appearance Sunday on NBC's "Meet the Press," telling the program that the "Fed doesn't just get to investigate itself."

Regarding Federal Reserve chair Jerome Powell, Warren noted that he had "two jobs."

"One is to deal with monetary policy, one is to deal with regulation. He has failed at both," she said.

The big picture: The Federal Reserve said last week that it would conduct a review of the collapse of Silicon Valley Bank — including any possible regulatory or supervisory missteps.

President Biden called on Congress last week to enact tougher penalties for executives who oversee failed banks.

deregulation enacted during the previous administration

Warren calls for investigation into the Fed amid banking turmoil

"The fed doesn't just get to do its own investigation," Warren said.

Elizabeth Warren on ABC's "This Week" discussing banking crisis.

Manhattan District Attorney Alvin Bragg reassured staff in a memo Saturday that efforts to intimidate them or threaten the rule of law will not be tolerated.

Driving the news: The move comes after former President Trump issued a call on social media Saturday for his supporters to protest in light of what he claimed is his impending arrest.

Citing "illegal leaks" from the Manhattan District Attorney's Office, Trump wrote that he would be arrested on Tuesday amid the office's investigation into a hush money payment allegedly made to adult film star Stormy Daniels.

"Protest, take our nation back!" he wrote.

State of play: Bragg told staff that their safety was a "top priority" and that law enforcement partners would fully investigate any "specific or credible threats" against the office.

"We do not tolerate attempts to intimidate our office or threaten the rule of law in New York," he wrote in the memo, which was first reported by Politico.

While Bragg did not mention Trump by name, the letter to staff alluded to the "press attention and public comments surrounding an ongoing investigation by this office."

The big picture: Trump was invited to testify before a New York grand jury earlier this month as part of the Manhattan district attorney's office investigation into the hush money payment Daniels.

House Speaker Kevin McCarthy (R-Calif.) on Saturday accused Bragg of an "outrageous abuse of power” and announced a congressional investigation into the matter.

Go deeper: Timeline: The probe into Trump's alleged hush money payments to Stormy Daniels

Timeline: The probe into Trump's alleged hush money payments to Stormy Daniels

Manhattan DA reassures staff of their safety after Trump protest call

Bragg told those on staff their safety was a "top priority" and that threats against the office would be investigated.

Alvin Bragg, Manhattan district attorney, speaks during an interview in New York in December 2022. Photo: Christopher Goodney/Bloomberg via Getty Images

Donald Trump

Closer

Axios Closer

A coalition of midsize U.S. banks is calling on the government to insure all deposits for the next two years, in the wake of Silicon Valley Bank's emergency rescue that insured all of the firm's deposits regardless of size.

Driving the news: The Mid-Size Bank Coalition of America sent a letter to regulators arguing that a temporary suspension of the FDIC's deposit insurance limit is necessary to ensure that smaller banks can navigate the current banking crisis, Bloomberg reported.

"Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures," the letter said, according to Bloomberg.

Tesla CEO Elon Musk also endorsed the idea in a Twitter post early Saturday, saying the move was needed to "stop bank runs."

Why it matters: After the sudden collapse of Silicon Valley Bank and New York's Signature Bank, the spotlight is on banks that may also be vulnerable to a sudden outflow of deposits.

The FDIC currently insures deposits up to $250,000, though the agency's decision to protect SVB and Signature depositors suggests a broader willingness to back customer funds.  

Separately, Bloomberg also reported that billionaire investor Warren Buffett was in contact with the White House, heightening speculation that he could provide financial support to regional banks. 

The recipients: The MBCA sent its letter to Treasury Secretary Janet Yellen, the FDIC, the comptroller of the currency and the Fed, according to Bloomberg.

What we're watching: Whether Washington answers the growing clamor to broaden FDIC deposit protection. California Democratic Rep. Ro Khanna is preparing to introduce legislation that removes the agency's coverage cap, Dealbook reported on Saturday.

Midsize banks plead for unlimited FDIC backstop for two years

A coalition of midsize U.S. banks is reportedly calling on the government to insure all deposits for the next two years.

A large round government logo on the ground in front of a stately building

 Photo: Celal Gunes/Anadolu Agency via Getty Images 

Federal Deposit Insurance Corporation (FDIC)

House Speaker Kevin McCarthy (R-Calif.) on Saturday announced a congressional investigation into the local prosecutors reportedly preparing to indict former President Trump.

Driving the news: Trump said in a Truth Social post on Saturday he expects to be arrested on Tuesday as part of a Manhattan District Attorney investigation into hush money payments he allegedly made to adult film star Stormy Daniels.

Law enforcement agencies are reportedly preparing for the fallout from an indictment of Trump as soon as next week.

What they’re saying: McCarthy accused Manhattan DA Alvin Bragg of “an outrageous abuse of power” and of “pursu[ing] political vengeance against President Trump” in a tweet posted Saturday morning.

“I’m directing relevant committees to immediately investigate if federal funds are being used to subvert our democracy by interfering in elections with politically motivated prosecutions,” McCarthy said.

Leading GOP hardliners in the House, including Reps. Chip Roy (R-Texas) and Marjorie Taylor Greene (R-Ga.), signaled support for the probe.

"[McCarthy] is right, and I fully support his call for an investigation," tweeted Sen. Rick Scott (R-Fla.). "No federal dollars should be used to prop up this radical, Soros-backed activist attorney or his gross political attacks."

The big picture: The new probe would fit into a network of investigations House Republicans are pursuing against other government bodies who they’ve accused of “weaponizing” federal resources to target conservatives.

Spokespeople for the House Oversight Committee and the Judiciary Committee, which have led most of the probes, did not immediately respond to a request for comment.

McCarthy and Bragg did not immediately respond to requests for comment. 

The other side: Democratic lawmakers quickly accused McCarthy of his own abuse of power by using the federal government to crack down on local law enforcement.

Rep. Stacey Plaskett (D-V.I.), the ranking member of Judiciary's "weaponization" subcommittee, said McCarthy is trying to "weaponize Congress to interfere in the rule of law and use committees to re-elect the twice impeached former president."

“Speaker ... who has no idea what evidence the state DA has in support of grand jury indictment seeks to 'weaponize' the federal government to undermine the rule of law for political purposes," tweeted Rep. Dan Goldman (D-N.Y.), another member of the panel.

Trump predicts he’ll be arrested Tuesday, calls for protests

McCarthy orders probe of district attorney investigating Trump

The investigation will look at whether federal funds are being used.

Kevin McCarthy, wearing a blue suit, white shirt and pink tie.

House Speaker Kevin McCarthy. Photo: Jabin Botsford/The Washington Post via Getty Images.

House GOP investigations

Former President Trump said in Truth Social posts Saturday morning he believes he will be arrested on Tuesday amid a Manhattan district attorney's investigation into a hush money payment to adult film star Stormy Daniels.

Why it matters: Trump would be the first sitting or former president in U.S. history to face criminal charges.

Driving the news: "The far [and] away leading Republican candidate [and] former president of the United States of America will be arrested on Tuesday of next week," he wrote, citing "illegal leaks" from the Manhattan District Attorney's Office.

"Protest, take our nation back!" he added.

In a separate post on Saturday morning, Trump said America is "now third world" and "dying." He added that "American patriots are being arrested and held in captivity like animals," while also being critical of crime, inflation, prisons and mental institutions.

The district attorney's office invited Trump to testify before the grand jury as part of its investigation. Daniels and Michael Cohen, Trump's former personal lawyer, both met with prosecutors earlier this week.

A Trump spokesperson said in a statement to Axios: 

"There has been no notification, other than illegal leaks from the Justice Dept. and the DA’s office, to ... fake news carriers, that the ... Democrat prosecutor in Manhattan has decided to take his Witch-Hunt to the next level.“

"President Trump is rightfully highlighting his innocence and the weaponization of our injustice system. He will be in Texas next weekend for a giant rally."

Trump's lawyer, Joseph Tacopina, told CNBC on Friday that the former president will surrender to face criminal charges, should he be indicted.

“Will follow normal procedures if it gets to that point,” Tacopina told CNBC.

Worth noting: Trump, who has 24-hour protection from the Secret Service, is currently living at his Mar-a-Lago estate in Florida.

Background: A grand jury in Manhattan could indict Trump for his alleged role in the hush money paid to Daniels before the 2016 presidential election. Daniels claims she had an affair with the former president, which Trump has denied.

Cohen pleaded guilty to federal campaign finance violations in 2018 and was sentenced to three years in prison related in part to the $130,000 paid to Daniels.

Cohen later alleged that Trump directed him to make the hush money payments amid the 2016 presidential election campaign. Cohen said Trump then reimbursed him for the payment through the Trump Organization and the company cited it as legal expenses.

Legal experts have raised questions about the strength of Manhattan District Attorney Alvin Bragg's case against Trump, saying the district attorney will face several hurdles, per The Washington Post.

If felony charges are sought against Trump, Bragg would likely have to prove that Trump falsified business records to cover up Cohen's campaign finance violations, Axios' Zachary Basu writes.

The big picture: The grand jury in Manhattan could turn the 2024 campaign on its head by indicting Trump.

Trump would likely play the victim and vengeance card for 2024, which are already major themes of his campaign, Basu writes. The former president has already identified any and all investigations as "witch hunts."

But, there's no precedent for what's about to happen, leaving the United States political system in uncharted waters.

Go deeper: Looming Trump charges threaten to inject chaos into 2024 campaign

Editor's note: This story has been updated with additional details throughout 

Looming Trump charges threaten to inject chaos into 2024 campaign

"The far [and] away leading Republican candidate [and] former president of the United States of America will be arrested on Tuesday of next week," he wrote on Truth Social.

Former US President Donald Trump arrives on stage.

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