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U.S. Stocks Tumble Amid More Banking Sector Fears; FAA Safety Summit In Wake Of Multiple Runway Close Calls; Report 1 In 9 U.S. Seniors Has Alzheimer's, Could Double By 2050. Aired 3:30-4p ET

Aired March 15, 2023 - 15:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:30:00]

BIANNA GOLODRYGA, CNN HOST: A wild day on Wall Street amid fears about the banking sector overall. Right now, the Dow has come back from its lows of the day just down over 300 points. But it has been a rocky day to say the least. Obviously, this coming after a big sell-off in European markets over banking concerns as well over there.

VICTOR BLACKWELL, CNN HOST: Shares of Credit Suisse dropped by more than 20 percent today, a record low. Joining us now Mark Zandi, chief economist at Moody's Analytics. The U.S. Treasury Department says it is monitoring Credit Suisse, the situation there.

Mark, put the situation of Credit Suisse into context of what we've been talking about for a week now. Because what we're seeing there is really about the Saudi National Bank and saying we're not going beyond the 9.88 percent that we own already to the 10 percent that would puts us in a different regulatory conversation. So, in what context should we put Credit Suisse?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, it's a large bank, a large global bank and has relationships with large global institutions all over the planet including here at home. So in that context, you know, if it runs into trouble, and can't get the equity that it needs to continue to operate, you know, obviously that would be an issue.

[15:35:10]

But having said that, this particular institution crisis, we just had trouble for quite sometime and so it is not surprising. I mean, it's surprising what happened today, but generally not surprising that it's struggling. So I'd be surprised if other large global financial institutions haven't already factored that in, in terms of the business that they're doing with Credit Suisse.

So, you know, it is not great. It is certainly not great in the context of the bank failures that we suffered here earlier this week. You know, everyone is on edge and just adds to the angst. But in the grand scheme of things I don't think this is the thing that's going to do us in or be the cause of any kind of recession.

GOLODRYGA: Yes, the timing of course is unfortunate because as you noted this is a bank that has struggled with its business model for years now. But it comes at a time when there are a lot of people nervous and questioning the state and health of the global financial system.

And like some of these regional banks, there is concern that some of the European banks though they may be well capitalized and stronger, also hold a lot of long term treasury that has been devalued as we have seen interest rate hikes go up around the world. How much should Americans be focused on the health of larger financial institutions in Europe and the United States right now?

ZANDI: Well, not in the United States. I mean, I think U.S. -- large U.S. banks, financial institutions, are on very solid ground. In the world after the financial crisis over a decade ago lots of reforms were put into place and these large institutions have been required to build a lot of capital.

That's the cash cushion that they hold to digest any losses they might suffer on their lending or securities. So, they're in really good shape. I don't see any problem there.

You know, obviously institutions overseas, it depends. It depends on the -- where we're talking about in the institution but generally even globally, I think because of what happened in the financial crisis over a decade ago most places in the world have instituted reforms that make their banking system stronger.

And you know, obviously, you know, what matters most to most Americans are our banks, particularly our large, financial institutions. And again, you know, they're on very solid ground.

BLACKWELL: OK, so I made a promise before we went to break. I told everyone at home I'd tell you what this means for you. So, Mark, for the average person, Peggy in payroll who I always use, who is watching, I wonder if I've got my checking account and my savings account at the first bank of name your moderate sized city, what does any of this mean for my money for me? What does it mean?

ZANDI: You know, I say nothing. Just relax. I mean, you know, your money is safe. Look, the government -- that's the Federal Reserve, the FDIC, the administration, Treasury Department said point blank on Monday that they're going to do whatever it takes to make sure the banking system is on solid ground and that depositors get their money whether they're small or big. So, for the average American household, you know, this is just a drama on the television screen.

GOLODRYGA: So, Peggy in payroll can relax right now. We'll check back in with her after the Federal Reserve decision next week.

BLACKWELL: Christmas fund is safe.

GOLODRYGA: Yes, well we got the Fed announcing his decision next week. So, then will check back in with her and Mark when that time comes. Mark Zandi, thank you.

BLACKWELL: Thank you Mark. GOLODRYGA: Very reassuring to hear that from you today. And tune in for CNN primetime "BANK BUST, WHAT'S NEXT FOR AMERICA'S MONEY." How did the SVB collapse happen and what does it mean for the American banking system at large? That is tonight at 9:00 p.m. Eastern.

BLACKWELL: The federal aviation administration kicked off a major safety Summit today. It comes amid, as you know, a seventh investigation now into a close call on a runway this year. What officials are saying about the troubling uptick, that's next.

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(COMMERCIAL BREAK)

BLACKWELL: There's been another close call on a U.S. runway. This is the seventh incident just this year. It happened at Reagan National Airport near Washington, D.C.

GOLODRYGA: A Republic Airways jet crossed a runway last week without clearance that a United Airlines flight was using for take-off.

(BEGIN VIDEO CLIP)

UNITED 2003 PILOT: Cleared for takeoff, rolling, United 2003.

CONTROLLER: United 2003, cancel takeoff clearance!

UNITED 2003 PILOT: Aborting takeoff, aborting takeoff, United 2003.

(END VIDEO CLIP)

GOLODRYGA: That is frightening. FAA officials say the Republic Airways pilot turned on the wrong taxiway. These close calls were the focus of today's emergency FAA Safety Summit with top aviation officials.

CNN's Gabe Cohen is here with the key takeaways -- Gabe.

GABE COHEN, CNN CORRESPONDENT: And so, Victor, Bianna, we've already heard a range of ideas to make the aviation industry safer. Increase funding, more staff, better technology. But to be clear, today's summit is really just the start of this sweeping safety review of the entire U.S. aviation industry in the wake of those close calls you mentioned.

And this morning we heard from Transportation Secretary Pete Buttigieg who stressed that the U.S. has the safest, most complex aviation system in the world and, yet they are seeing this uptick in alarming incidents and more mistakes than usual happening across the system and happening on runways. Here's what he told our colleague Pete Muntean just a little earlier.

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PETE BUTTIGIEG, TRANSPORTATION SECRETARY: Would be one thing if we found a certain piece of technology in the cockpit or a certain control tower where there were a lot of issues. But instead, what we are finding is that pilots, ground crews, and controllers alike seem to be experiencing this uptick. Some have described it a kind of rust. But that needs to turn into a very concrete diagnosis and specific action steps. We're not going to wait for something worse to happen to act now.

(END VIDEO CLIP)

[15:45:00]

COHEN: So, a couple key takeaways already from this summit. First the head of the Air Traffic Controllers Union pointed to an alarming staffing issue that they're down roughly 1,200 certified controllers from a decade ago. The acting FAA administrator responding to that is saying they're working to fix it. Now on pace to hire 1,500 controllers this year and another 1,800 next year.

And we also heard the chair of the NTSB speak quite critically of inaction by other federal regulators, saying that her agency has made seven recommendations in recent years just on runway collisions that at this point have not been enacted.

She told the crowd, quote, how many times are we going to have the -- have to issue the same recommendations over and over and over again?

So, Victor, Bianna, you can hear the frustration that some of these agencies are feeling as all of these incidents are unfolding.

BLACKWELL: Yes, certainly can. Gabe Cohen, thanks for the reporting.

Let's bring in now Peter Goetz. He's a CNN aviation analyst and a former managing director at the NTSB. Peter, good to see you. Rust, the secretary says.

PETER GOETZ, CNN AVIATION ANALYST: Good to see you.

BLACKWELL: What does that mean that there is rust? What does it mean for a pilot for an airline?

GOETZ: Well, the secretary and the administrator, the acting administrator, were largely talking in generalities and platitudes this morning. The only person that went forward with specific steps to be taken today to make the skies safer was Jennifer Homendy from the NTSB.

As Mr. Cohen pointed out there are seven open recommendations on runway incursions that go back years. The FAA needs to either act on these recommendations or identify why they're not acting. Secondly, she pointed out that the most important step was extending the recording time of the cockpit voice recorders from two hours to 25 hours.

They don't have the information to decipher and determine what happened at these events because the recorders only record two hours and they don't catch the event because they record over them. Those two steps alone can advance safety today if they were implemented. BLACKWELL: Those are action items, right. The things that people can

do, be held accountable if they do not. But they're recommendations. Why can't they become regulations especially that regardless of party people don't want their airplanes clipping one another, God forbid there is something more serious that happens on the runway.

GOETZ: That's right. The system that we have in place is the NTSB as an independent agency makes recommendations to the FAA. The FAA has a period of time to either respond affirmatively or to explain why they're not responding. And they frankly have not responded on runway incursions effectively.

So, there are seven recommendations that the NTSB has sitting out there that have not been acted on. And I think if the secretary wanted to take a step immediately, he would ask acting administrator Nolan to report back to his office on the status of all open NTSB recommendations that are older than six months and say, why aren't they being implemented? Why can't we do these today?

BLACKWELL: Well, you called most of what we saw generalities and platitudes. Hopefully we get more than that moving forward. Peter Goelz, thanks so much for the insight.

And tomorrow night join CNN's Kate Bolduan for a new primetime special "FLIGHT RISK" all about what is happening with the nation's air travel. We'll be back.

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(COMMERCIAL BREAK)

GOLODRYGA: A new report shows more than 1 in 9 seniors in America are battling Alzheimer's disease with expectations that the numbers will only rise in the coming decades. CNN's senior medical correspondent Elizabeth Cohen joins us with more on this. So, what's going on here? How worrisome is this?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: It's definitely worrisome, when you think about all of the medical services that are going to be needed to take care of these folks, and we just don't have what's necessary. This is all about the baby boomers getting older. Let's take a look at the numbers.

If you're looking at this year, about 6.7 million Americans over the age of 65 will be diagnosed with Alzheimer's dementia. If you move forward to 2050, that number becomes 12.7 million. That is a huge jump in such a short period of time. What needs to happen, according to experts, is more geriatricians. We need more geriatricians to take care of older people and we also need better treatment.

There are two treatments that slow the progression of Alzheimer's but there are two concerns. One, there has been some criticism that they have don't work all that well. Number two, they're extremely expensive. So, there's an excellent chance that your insurance is not going to pay for it. Another area of concern is that a lot of people don't want to go to

the doctor when they fear that they are having signs of Alzheimer's disease. Because they don't want to be stigmatized. Because they're scared.

So, let's go over what some of the symptoms are of mild cognitive impairment, which is sort of you can think of it is kind of a precursor to Alzheimer's. Things like losing things often. Forgetting events or appointments. And having trouble coming up with words compared to other people your age.

[15:55:02]

So, doctors say it's really important do go see someone, to go see your physician when this happens. They might not be able to prescribe anything all that helpful, but it can think through the kind of care you're going to need in the future -- Victor, Bianna.

GOLODRYGA: The earlier the diagnosis, the better. Though he right, there is frustration that there is not more treatments out there just yet. Elizabeth Cohen, thank you.

BLACKWELL: And "THE LEAD WITH JAKE TAPPER" starts after a short break.

(COMMERCIAL BREAK)

JAKE TAPPER, CNN HOST: Is the banking industry suffering from a crisis of confidence? "THE LEAD" starts right now.

Markets around the world tumble, as concerns grow over yet another possible bank failure. What might that mean for your money?

Then, a Texas judge may overrule a decision made by doctors and scientists 20 years ago. The hearing today that could block access to medication abortion.

Plus, as one plane speeds down the runway to take off, another plane makes a wrong turn.

(BEGIN VIDEO CLIP)

UNITED 2003 PILOT: Cleared for takeoff, rolling, United 2003.

CONTROLLER: United 2003, cancel takeoff clearance!

UNITED 2003 PILOT: Aborting takeoff, aborting takeoff, United 2003.

(END VIDEO CLIP)