that's kate rooney trying to make some sense of all this news, which, josh, i'm sure you have an opinion about, too i just go back to the sbf tweet, xtf is fine and we find ourselves with this news today and i ges i'll use the word liquidity crunch >> crypto is like this massive multiplayer online role playing game where the object is to bet on the con man who is most reputable like relative to all the other con men. and what really makes it tough we're not yet at the place where securities, regulators have the same amount of oversight like they have in institutions for example or traditional security exchanges. and it's coming. and we don't know the exact structure but that's all definitely going to happen and every week there's no reason for the rest of us who are trying to live in this economy to say, yes, let's have some oversight because the boy wonders, the international men of mystery, et cetera, they just -- they can't police themselves nobody really can. so here's a situation where coin desk did a -- coin desk is a journalism outfit and they did a piece saying if you actually lo

in sports, kate rooney has the details on their latest loss. mom, we need to talk to you about yiorgos. don't you think it's a little odd he showed up in your life right when you became a gigillionaire?! he's a gig-digger, mom! he's using you for your at&t fiber. now that it has hyper-gig speeds. he spends half day shirtless, playing vr games. kids. why do you think i became a gigillionaire in the first place? yes, i am yiorgos. we know. live like a gigillionaire with at&t fiber, now with speeds up to 5 gigs. limited availability. >> well, every once in a while you have to go big or go home when it comes to dining out tonight on dine and dish, we're taking you backstage at one of the most amazing kitchens in san francisco for a unique experience with the elusive chef at king say. >> you may know the rustic italian restaurant in san francisco's historic jackson square where its mouth watering, pastas and farm to table pizza created in the restaurant's wood-burning oven. could is the casual cousin of next-door quince. >> in fact, that only means

our kate rooney is in the bahamas where crypto are headquartered. did you speak to sam bankman-fried there? >> reporter: absolutely. here in the bahamas in nassau where bankman-fried is located all of the ftx fallout is having a ripple effect from what we're seeing in washington the chair of the senate agriculture committee announcing a december 1st hearing called why congress needs to act. lesson learned from the ftx collapse and we heard from senator sherrod brown on banking. he's call for a hearing on sofi's crypto activity sofi responded by saying it takes regulatory compliance seriously and believes they have been fully complaint with the mandates of their bank license and laws, and sara, all of this stems from the downfall of the crypto conglomerate based here and i spoke to sam bankmanfried and despite being ousted from the company and the bankruptcy he's still trying to broker a bailout declined to talk about some of the financial details around the fallout of ftx and on camera interview we tried to get some answers wouldn't answer the quest

kate rooney will tell us how the astros used their gloves to take the upper hand next. in sports. mom, we need to talk to you about yiorgos. don't you think it's a little odd he showed up in your life right when you became a gigillionaire?! he's a gig-digger, mom! he's using you for your at&t fiber. now that it has hyper-gig speeds. he spends half day shirtless, playing vr games. kids. why do you think i became a gigillionaire in the first place? yes, i am yiorgos. we know. live like a gigillionaire with at&t fiber, now with speeds up to 5 gigs. limited availability >> 2 powerball players in california matched the first 5 numbers in last night's drawing to win 1 million dollars. each one of the winners is in the bay area because one of the tickets was bought of a 7.11 in milpitas worth more than 1 million 44 thousand dollars. and today, of course, people were lining up to buy tickets for the next drawing. >> i buy a i had those outside with >> all the when we had >> it. >> so which 1 billion dollars a to have it? >> there was no big powerball winner last night. as you probably kno

kate rooney on ftx. >>> meantime, could tebe with c tessa brewer, headlines. >> fourth straight monthly drop, of course, over the past year. prices at wholesale level have risen 8% walmart shares popping 7% hitting a six-month high retail giant reported strong quarterly results and tighter inventories saying consumers are sperndsing more on food and less on general merchandise walmart also raised guidance, added $20 billion to its stock buyback plan and agreed to pays 3ds.1 billion to settle opioid lawsuits from 43 states. home depot posted smaller gains. up 2% and strong results, but left guidance for rest of the year unchanged implying weaker sales growth for the holiday season keep our eye on that and head of warner brothers discoveries offering a bleak view of the after thing market ceo zaslav says declined and worse than at any point during the pandemic certainly not good news for media in general, carl >> contessa, thanks. contessa brewer. meantime, today is the deadline for funds to disclose holdings as of the third quarter and a big trend. some big beds on media names like param

rooney right before the show, and i said, okay, they're claiming $8 billion in losses, or at least that's the report. so my questionto kate and to you is very simple what are these $8 billion in losses this is an exchange. if uber loses $1 billion a quarter, i get it, because they have operating expenses that are outstripping the revenue that happens a lot this is an exchange. it's supposed to be asset-lite do you have any idea what these $8 billion of losses actually represent? >> again, there's a lot of speculation and some of that speculation is that he did use customer funds to bail out alameda, his hedge fund venture, and this is a knockdown effect from the terra luna collapse and it had massive ripple effect in the industry. and he bailed out alameda, who was heavily involved in that, and terra luna as well and it seems like this could potentially be that he overleveraged himself. he stepped up, they tried to save a lot of companies that were impacted by the terra luna collapse, and it seems like he just got a little overleveraged and did some things he probably shouldn't have done.

next in sports, kate rooney will look back at the storied career. ray guy. >> kron 4 is your local election headquarters is coming tuesday. oakland voters will choose a new mayor. that's right. and we asked each candidate who met our polling criteria, how they would address issues like crime, homelessness and about their stance on the proposed a's ballpark. here's kron four's ella sogomonian interview with lauren taylor. >> lauren taylor is a 3rd generation oakland or where he is now raising his own family. he's an engineer with an mba from uc berkeley and is the founder of custom tailored solutions, a consulting firm that works with nonprofits and small businesses in oakland allies that i'm a kid from oakland who was seen where my city is headed and i can't stand on the sidelines anymore. i and oakland or through and through prioritizing the future of oakland, particularly those who have been underserved under resourced. many who look just like me >> but just haven't been given those opportunities. taylor recognizes the feeling that there's a sense

and kate rooney is with us to help us kick off the hour. you have been digging through the bankruptcy filing. what have you found even at first glance there is an estimate of a $10 billion to $50 billion in liblgts? liabilities >> and i'm told that that could change it is hard to mark up some of the liabilities. also the shear amount of companies. so 134 affiliates are listed here the parent company of ftx technically, but it ranges in the countries. so the global impact of this is likely much bigger than any of the big braups cases we've talked about or alleged or potential fraud cases in the case of theranos these are global companies so the reach is massive and the other number, more than 100,000 creditors. so these are individuals on the platform that are owed money it will take a long time to really parse through some of the issues here. and experts in the bankruptcy area have been talking saying that it is one thing to restructure a bank, one thing to figure out what is going on with a brokerage firm but with crypto, a lot of the curr

our kate rooney has been following this story from the beginning and has the latest >> ftx went from a $32 billion company to bankruptcy in the matter of just four days or so sam bankman-fried is step down he tweeted this morning i'm really sorry again we ended up here hopefully things can find a way to recover and this can bring some amount of transparency, trust and governance to customers. he also says he was shocked to see things unravel the way they did earlier this week. this bankruptcy filing includes bankman-fried's quant trading from alameda research and 134 affiliated companies all over the world. you've got places from nigeria, uganda, south africa to europe, hong kong and switzerland. the estimated liabilities stand between $10 billion to $50 billion. ftx also has more than 100,000 creditors according to these documents. it was a stunning reversal for sam bankman-fried. he had been bailing others out this year. we also heard from anthony scaramucci, an ftx investor. bankman-fried had also made an investment in his funds sky bridge earlier this week here's what he said ear

look law next in sports, kate rooney will answer that question. how many cowboys can you fit in the cat out? >> and we've been enjoying some record breaking temperatures around the bay area, but that could soon change. maybe a little rain. very cold weather could be headed our way. we'll talk about that next. and as we head to the commercial break law for celebrating the bay area's remarkable women. >> if you know someone that you would like to nominate who's making a difference in her community, she'll have a chance to be awarded woman of the year. you can enter your nomination by scanning the code on your screen or go to kron 4 dot com. we'll be right back. i'm karen. i'm living with hiv and i'm on cabenuva. for adults who are undetectable, cabenuva is the only complete, long-acting hiv treatment you can get every other month. it's two injections from a healthcare provider. i really like the flexibility. and for me, it's one less thing to think about while traveling. don't receive cabenuva if you're allergic to its ingredients or if you taking c

deirdre bosa is here as well and kate rooney on the fintech movers paul, the broad market the dow up 360 the s&p ending the week it looks like we have taken a leg higher up 1.25% and tech is rebounding, but apple slower fifth day in a row, tesla is not part of the tech rally, microsoft, nvidia alphabet getting a little bit of a bid today. this week clearly all about the fed, higher interest rates for longer, more restrictive for longer is the take away that these stocks are too risky >> you know, i think to your point, sara, is that the -- this week has all been about the mega cap stocks coming in if you look at the performance of the s&p 500 relative strength of the equal weight versus the index you've seen that -- you've seen outperformance from the cap weighted index there are some good things to like about the market here but every time the fed comes up, every time something good happens a fed official rears their head and they seem to think that they need to be very aggressive, continued very aggressive going forward even when the economy is showing signs of slower momentum, hou

find kron. 4 sports reporter kate rooney. okay after the game, there's a sense a high things aren't great right now. but in the meantime, steph curry davel to get. >> we can always count on stuff for a couple of great performances, right? it kind of seemed like that technical foul that he incurred lit a fire under not just stuff but the warriors. steph, is having a special night from the get-go about 5 minutes into the game when he had 7 points on the board. you just had a feeling that everything was going to be cooking for him tonight. is there more beautiful stat line than 47 points? 8 rebounds and 8 assists. steph curry flirting with a triple-double here tonight. jason, just a vintage performance. the kind that really gets this chase center crowd fired up and exactly what the warriors needed to inject a jolt of confidence into them. after that miserable 5 game losing streak. hopefully this is going to the start of another good streak and we're not going to talk about that dismal road trip much in the future. it still is re

and as always, we've got reinforcements at chase center kron. 4 sports reporter kate rooney. she joins us live now. k? >> long-term, there's still a lot of issues. but in the short term, we've got to talk about steph and that performance. >> you know, it's funny. jay sent about 5 minutes into that game. stepan scored 7 points. you just had a feeling it might be one of those nights. 47 points, 8 rebounds, 8 assists and absolutely beautiful stat line. the funny thing is it's almost commonplace for steph curry. you're not too shocked to see a stat line like that anytime he's on the court and the warriors really needed this jolt of hope because losing 5 games on the road, no matter how deep you are, no matter how good you know, you are no matter how early in the season as well. it doesn't feel good. but now they're getting back on track. and the good news is they're not going to practice tomorrow. the practice on wednesday and thursday. they got a lot of rest before that game on friday. so chance here for them to press the reset button and figure out some of those things that you

. >> kate rooney, thank you. much more on the crypto fallout this hour in "power lunch. so, so silt downs with brian armstrong. stay tuned for that. >>> our next guest says value stocks have outperformed growth in the last year the question is, will that trend continue loreen gilbert, ceo of wealthwise financial thank you for being here >> thank you >> do you see that trend continuing with everything we're seeing, the cpi report, the fed potentially hiking rates again, a lot of people expecting another 75-point basis hike? >> yeah. the good news today with the cpi number shows that the area that the fed does not really control in food and energy are starting to roll over that is good news because the fed can't really control that and we need to see those numbers come down. when it comes to the markets and where we are, we have the stay-at-home play, the reopening play, and now we have an old economy play that's happening right now. and some of those value names and where we see those value names, we think can outperform the growth names for the sustainable future >> real

kate rooney joins us now with a special guest and interview. hey, kate. >> good morning. three arrows capital is one of the most controversial names in crypto the now bankrupt hedge fund was borrowing billions from crypto lenders and as a result played a central role in this summer's price meltdown as one of its biggest bets collapsed, three arrows defaulted on those loans and faced cascading margin calls unable to pay those, they filed for bankruptcy this summer joining us now is kyle davies, the co-founder of three arrows kyle, we appreciate your time today. >> yeah, thank you for having me >> so before we get to ftx, we have to talk about what's going on here with your fund, so three arrows liquidators claim you and your co-founder haven't been cooperating, lawyers have said earlier this summer that your physical whereabouts were unknown, ahead of certain court hearings where are you now and what are you doing to get your investors' money back >> well, i mean, first of all, i'm in bali. second of all, we have been contacted by the liquidator and the entire time. every

. >> kate rooney, thanks for bringing us the latest >>> here to help us break down the fallout is the leader of the american arm of the world's longest standing crypto exchange thanks for being with us i'll start with the same question i asked the ceo of another exchange yesterday how can you assure your own investors and customers that you haven't leveraged their money or their reserves short of publishing your balance sheet? >> great question. at bit stamp you mentioned the longest running crypto exchange. we've made this topic specifically regulatory compliance and the safety and security of our customer assets the center of our company. so we absolutely segregate customer accounts. we absolutely never repurpose or use customer funds for anything. we're not affiliated or operating any trading operations or other investment schemes. we're on the other side of that ledger completely. now, in terms of proving that, we are working on several things we had a proof of reserves process in play or in operation for a while that we hope to be able to release soon because the public and speci

kate rooney has made her way there and joins us now >> hey, joe, good morning. i spoke briefly to sam bankman-fried on friday, and despite being ousted from ftx in the company's bankruptcy, he says he's spending most of his time trying to broker a bailout. he declined to talk about the financial details around the fall of tfx and what we really want to know we're also trying to get a longer talk on the record. he is hunkered down, though, here in the bahamas in a pretty upscale neighborhood he did tell me there are billions of dollars of potential funding out there to make customers whole, as he put it. he also talked about getting as much value to users. he says he hates what happened here and deeply wishes he had been more careful. he also maintains there are billions of dollars in customer assets, he says, available, despite not having access to his corporate email or any ftx systems at this point. guys, this is, of course, a long shot right now and legal experts tell me he would be no different than any other third-party bidder at this point but white collar

kate rooney joins us with the latest >> david, good morning lawyers for ftx now say it has roughly 1 million creditors from the crypto company filed its bare bones paperwork on friday ftx said it could have more than 100,000 creditors. we do expect to get a list of its 50 biggest creditors by friday ftx also saying over the past few days it's been in contact with dozens of regulators in the u.s. and abroad, including u.s. attorney's office, s.e.c., and the cftc it says ftx faced what they called severe liquidity crisis that necessitated the filing on an emergency basis last week alvarez and marsal and lawyers pointing out the complexity with over 100 ftx entities involving what they call nontraditional assets, or cryptocurrencies it mentioned ftx's governance. ftx did not have a board or a cfo. john ray is the new restructuring officer. and for a reminder, this is the same john ray who worked to restructure enron. he's now working with an external legal team for ftx and cyber security as well as forensic investigators to secure customer money in addition, ftx hired independent direct

we continue to follow the ftx fallout with genesis now the latest name feeling the impact our kate rooney has more this morning. good morning, kate. >> good morning. genesis and its parent company are the most imminent risk investors i'm talking to, here is context it's considered the birthplace of lending in crypto capital markets. really the first lending desk out there. it's created about a decade ago. suspended withdrawals last week and is reportedly considering bankruptcy genesis responding to that saying it wasn't imminent and it's having constructive conversations with its creditors. its loan book had been around $14 billion earlier this year. it took about a billion dollar hit and had a billion dollars of exposure to the now bankrupt hedge fund three arrows. also got about $175 million locked up in ftx in the most recent quarter the book was under $3 billion. there are also potential effects around the parent company. digital currency, dcg, is one of the most valuable in the space the ceo saying we have weathered previous crypto winners. like this one may feel more severe, we'll c

our kate rooney joins us now to catch us up on all the latest. kate >> david, good morning we have new reporting with our cnbc investigative team on how all of this unraveled at ftx according to a source familiar with company operations, the qua quaunt trading firm, alameda was using funds from ftx in a way that flew under the radar of investors, employees and auditors we spoke to sources who say ftx and alameda kept these assets off of their balance sheets and ftx drastically underestimated the amount it needed to keep on hand if customers wanted to cash out. part of that issue was the way the exchange was accounting for margin trades. according to the source, it allowed clients to borrow crypto from one another and not properly tracking the value of those. alameda was trading on margin and using a cryptocurrency created by the ftx exchange called ftt as chatollateral. we spoke to current and former employees that said it was a small inner circle that knew about the mishandling of funds bankman-fried refused to xhebt but he said margin took a hi

rooney has more >> good morning. yeah, it was all about cost cutting. so paypal, block and coin base touted a more disciplined approach to spending these were really the growth darlings and they now have to show wall street that they can show a little more discipline through a tougher economic cycle. block saw a pretty strong quarter for its seller business. on expenses, the cfo talked about a continuation of discipline and an ability to dial back expenses in real time, a focus on operating more efficiently and what she called a meaningfully slower pace of expense growth as well as significantly moderating hiring. paypal also beat but a lower revenue outlook. you can see it is down as well and the ceo is anticipating what he called a very difficult economic cycle and that their cost structure is in line with that and focused on efficiency paypal looking to drive about 1.3 billion in cost savings next year and coinbase cfo telling me that they are being prudent on spending and reiterated what it called a lost guard ra

going back to a word kate rooney used earlier in the week he seems like he's disassociated from what's playing out in realtime >> talking about chapter 11 being a mistake. i have two weeks to raise $8 billion. we'll have more on ftx and crypto coming up on tech check and you will not want to miss an interview with airbnb brian chesky talking about the coming year and patrick spence of sonos is on the heels of earnings as they see some trends stabilizing. "tech check" begins at the top of the hour. ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. what if you were a global energy company?

nassau has become -- i talked to kate rooney about it as well, nassau has become a hub for crypto >> and insurance it's everything. hub for, you know, wow it's interesting the marines were born today. i always think the shores of tripoli. >> how about this tweet from sbf? number one, i'm sorry. that's the biggest thing words we can't use here. but messed up and should have done better. i also should have been communicating more recently, transparency, my hands were tied during the duration of the possible binance deal. i wasn't particularly allowed to say much publicly. some of this is what has been reported by some firms looking at internal staff memos at ftx >> well, a lot of people are taking this advantage to buy this oh my. he's using all caps. david, he's using all caps i was not very careful with my words. i'm not a good dev i've never said he was a good dev, and probably misdescribed something. all right, all right, can we just back up david, we were talking about jpmorgan >> well, we were talking about it, but we were also being, in a way, pointing to the absurdity of it all

boggles the mind if you blinked you missed it or some of it, kate and kate rooney joins us now from the latest. >> that is right we have some new reporting with our cnbc investigative team on how ftx unraveled. according to a source familiar with company programs, they were using money from crypto ftx that flew under the radar of investors and auditors ftx and alameda kept the assets off the balance sheet and ftx ubd uestimated to cash out. part of the issue was the way the exchange accounted for margin trades. it allowed clients to borrow crypto from one another and it wasn't properly tracking the value of the cryptocurrencies and alameda was using a cryptocurrency created by the ftx exchange called ftt as collateral we spoke to current and former employees who said it was a smaller inner circle who knew about this and bankman fried did say a margin position took a huge hit as he put it. a lot of other news over the weekend. around ftx, moving quickly, some u users appear to move money off the exchange through a back door some digital collectibles that traded for around $9 just a few w

they had a liquidity crunch and customer flaws kate rooney has more on what this means for investors in ftx, crypto at large. ftx, that's good sbf is involved. cz is involved it's all alphabet soup, isn't it, kate >> ftt there's a ton of acronyms here, joe. good morning good to see you. binance's takeover of ftx may clear it up. they say customer assets will be covered. other high profile investors will likely be wiped out they raised money in a $32 billion valuation from some of the biggest names in venture capital. soft space, tomo bravo sequoia. they're planning to write this off as a loss. the deal hasn't closed it bought the rights to brand ambassadors as well as investors. all of this is spooking crypto markets. bitcoin taking a heit. shares of robinhood down coin base also getting hit even though it had no exposure to ftx. and they're saying raise cash in the event of any additional draw downs and said based on the number of unknown skeletons that could still be hiding, it could be prudent the story is not over at least for crypto markets. >> contagion is incredible i don't kn