caroline: from bloomberg world headquarters in new york, i'm caroline hyde. romaine: let's take a look at where the market stand. embracing big tech, pushing the nasdaq and s&p to a record high. joe: the question is "what'd you miss?" caroline: did the industry build up a stockpile of cash and it

may be the largest ever. sonali basak is here to walk us through. what are we hoping to see from the bank? >> we were expecting one by one, bank by bank. if you compare them to previous years, you compare them to wall street expectations. that banner number, the biggest was from j.p. morgan at more than $12 billion. for the lower end of the bar, it's goldman sachs, a smaller bank than the rest. now will they be or go below that is what we will be watching. romaine: we are getting region

financial saying it does plan to consider a dividend read -- a dividend increase in morgan stanley saying a 100% boost. expected? sonali: repurchase authorization , the expectation was $4 billion, that goes to show you how much more money they had on hand. dividend at $.70, they double their dividend. that's what they've done at morgan stanley and these numbers are still coming in. that sets the bar quite high. $12 billion and that's what people expected j.p. morgan to bring in alone. joe: obviously investors don't like it when banks can't do dividends and buybacks. obviously there was a time that

was limited in the wake of the virus. do you think it's to compensate for that in subsequent quarters? sonali: part of it is compensating for what they couldn't do before but even with that capital before everything became a huge issue for them in terms of the markets and in terms of covid-19, they had done two of the biggest deals since the financial crisis. they had enough money to invest in their business and give that money back to shareholders. when you get to big commercial banks, you have the political issue about using that money to lend when the lending ratios have been on the decline or using it to give it back to shareholders. the question you will see for j.p. morgan, bank of america and wells fargo. joe: more record highs -- seems like a quiet day but stocks are going up. >> what's interesting is

financials weren't doing that well throughout the session and in the post-market, we are seeing them surge, so you see with some of those caps, maybe tomorrow, we might see today's trader verse a little bit but today was risk off and defensive end tomorrow might be a tad more cyclical, perhaps more excitement in the market. romaine: morgan stanley up in the post-market, still awaiting some of the other companies to make their announcements as well. the interesting thing was the idea big tech reasserted itself. we saw the microsoft and amazon and they really became the darlings once again after they fell out of favor about a month ago. sonali: you are seeing a reversal of a trade that has been in play for about five months. there has been a lot of that turning it on its head. you are seeing a little of that hawkish pivot turn into a risk

off positioning story. when people aren't favoring those tech stocks as much, inevitably that does reverse. what does go up does come down and vice versa. if you compare it, growth has been outperforming value. caroline: j.p. morgan saying they plan to increase the quarterly stock dividend. indeed, the dividend is subject to approval by the board of directors but we want to see -- you've got the latest on the dividends being up by state street. romaine: state street posting their quarterly dividend and we have morgan stanley and state street, j.p. morgan, still waiting on some of the others. caroline: how much does the

cyclical maneuver have to run right now? when you've got facebook announcing the rulings in the antitrust case, it's not always what we anticipated. money still going to big tech when you have the risk off face? sonali: you go to old favorites and what is comfortable. as far as regulatory scrutiny for these tech companies, it takes years. david westin used to be a lawyer and he made the point that this does take years. when you see headlines, sure it is a negative but it takes months to hash out and for that reason, it's a big benefit for some of these companies that have that global exposure and still have that global reach and aren't solely looking at what their operations are, stateside in particular. we are talking about regulation and facebook -- you did see that

immediate but then it came right back. joe: bitcoin getting a lift today. did the piling up of applications make it any more likely or does it just mean more rejections? sonali: your guess is as good as mine, but you see the area get a lot of momentum. eventually something will seep through. if you see this many applications in this much momentum, especially through an etf, which is really interesting, it's a more liquid way to play bitcoin, which is already a fairly liquid asset. caroline: everyone with the documents are allowed to go buying crypto. great to break us down in terms of old tech that is that bank.

coming up, we turn our attention to the about-face, winning the dismissal of cases filed by the federal government. this is bloomberg. ♪

caroline: the big corporate news of the day -- facebook managing to fend off a couple of lawsuits coming from the ftc. they have 30 days to go back and us a bit them again but a dismissal of this particular complaint. nevertheless, the stock market like that. joe: a nice rally today for facebook and i didn't realize

what a micro cast facebook was. all these big ones have crossed the $1 trillion mark along time ago. finally facebook hitting a trillion dollars. joining us now is david kirkpatrick, author of the facebook effect. these lawsuits, someone in d.c. or the european union, i lose track but this is a good reminder that it is hard to put an end to these companies. >> your right and it's hard to keep track of all the action against facebook, but let's keep that in mind. there are that many actions, they are not necessarily out of the woods. one of the things i think is increasingly apparent given the range of different types of governmental pushback going against facebook and the other internet giant is it is more likely that legislation is in

the end going to be the biggest problem rather than regulatory action, even though both will continue. today, major regulation by the ftc and states were thrown out, six bills were voted out of the house subcommittee that would seriously affect this company. romaine: several bills coming out, including one that could make it to the finish line in the president desk. we know it's easier sometimes to sway legislation then to sway the court. is there a sense that even if facebook does when the legal battle that any new laws that come out of congress could be a little more damaging than whatever current cases there are? david: yes.

i think facebook is going to do it darndest to use -- to sway legislation, but there is tremendous anger on both sides of the aisle against facebook and among many parties in europe. but one thing i think is not being remarked on because this is such new news, if i was a legislator in washington who saw these bills coming out last weekend was on the fence -- i really don't want to support those bills and i might be more inclined to support them after today if it looks like the ftc is failing in the states are not going to do it. maybe we in congress have to do it. it could be a bolstering for some or all of those bills after today. caroline: meanwhile, the ftc was meant to be helmed by an anti-tech voice coming to the helm.

you cannot broad brush and say it's all going to be affected in an equal manner. what form of legislation does it take? do you think that becomes a reality? david: one of the bills would set the grounds for potential breakup. so it is not out of the question. i think it's unlikely that the most draconian bills, there's a really negative one on breakup and purchasing of new companies and not favoring their own services. some version of each of those may be passed but they will get significantly watered down from the way they are today. the big message in my opinion, these companies have to fear government. we are in an untenable situation

in the united states and globally where we have allowed a small number of companies to gain such vast power with essentially no governmental oversight. that's not going to continue despite however happy investors might be today. joe: is that the issue? people talk about antitrust and the problem seems to be a lot of these traditional measures don't necessarily fit very well. but what you are describing is just a raw exercise of power. who gets to speak and who gets to have a voice? who gets to run for office if they have access? is this something for politicians to keep their feet to the fire on this? david: politicians are of a mixed mind because they have benefited from facebook and let's face it, their influences

probably the single most obvious way their macro power has been distorting society in recent years. the european digital services act, what it is going to do -- and that was introduced last year -- it's going to be almost certainly acted upon within the next year or two. that will significantly restrict and change the way they have to manage their content and that may be the place where the reforms are most needed. ultimately, none of the bills will past out of the house will target that, interestingly. it's how they moderate information, particularly misinformation and hate speech that has probably gotten more people upset than any other single phenomenon in terms of their failures. there are a lot of failures but the europeans are a little more methodical about how they are approaching this.

it's not just sheer power, it's power has distorted politics and is distorting the economy and those things are not going to be allowed to stand long term. romaine: it will be interesting to see whether or not there is a will and the way in washington to push on this. a lot of people have tried and a lot of people have failed. david kirkpatrick, giving his stuff here on all things technology. we want to bring you back to the world of finance. we did get the results of the stress tests on the big u.s. banks. those banks now announcing their dividends and buyback plans. bank of america closed by 17%. caroline: we continue to wait for goldman sachs to come out and a number of the other key banks. we have been hearing from a number of other companies, jp morgan roosting its dividend to. romaine: coming up, we are going

to demystify with the ceo from dragonfly capital right after the rake. -- after the break. this is bloomberg. ♪

romaine: welcome back to the program. it coin cryptocurrencies rising despite a crackdown in the u.k. by the country's financial watchdog. i need you to demystify. joe: i still can't. i believe our guest can. ethereum was hot for a while and then cooled off. having a nice bounce, over 2100. here for more is the -- people

are trying to figure out what all of the stuff is about an ac some acronyms or tickers and whatever. how can a typical person even begin to identify with what a good project is in this space? stocks, bonds, it setter at -- how do someone even begin to think about this? tom: i think that is what is cool about defi. all of the data and activity is occurring on chain, so if i want to see if something like compound finance, i can see how many others they have with their l btb ratio and actually go and see what they are doing with the products and that's a novel breakthrough that wasn't really

possible. caroline: decentralized finance is what this is and i'm interested in why these companies, whether it is already lifted or companies looking to raise funding in the crypto space end up doing it the normal way to get money from private equity or from the sea -- from vc. why doesn't everyone want to create their own token in their own kind of way? tom: when it comes to capital information and financing, i think a lot of companies still do raise money -- some venture capitalist like my self, such as a block by, i think the interest is twofold. a lot of financing that does

happen is early in the company's lifecycle where early investors partner to help build but you don't see the later stage series b and series c investment. they start giving it away to early users and set of raising 10 different venture rounds, they start giving away uber stock to drivers to make the project better. they want to be decentralized and user controlled and it doesn't make sense to take on traditional funding and have users operating the protocol and take ownership of it. romaine: we talk a lot about the comparisons to the internet or at least with the internet used to be but the internet has become concentrated, at least the main drivers are concentrated among a few players. is there a risk given the general structure of what the blockchain is supposed to be, is

there a risk we could see that concentration there or is there some sort of buffer that would prevent that? tom: i think it's a really powerful network effect and if i am a borrower or trader, i want to be where there are these virtual cycles in the big difference with something like defi -- these things are always transparent, always on, so you don't have the existential systemic risk like you do with a large bank. all permission is to build on top of and remix. all the code is open source, so i can redeploy it. it's a lot more like open source software where it is a new, better product and anyone can comment other people start using it, unlike facebook which is completely closed source. joe: appreciate you coming to

join us. check out a more expansive conversation with tom on today's podcast that i host. you can find that on apple, spotify or wherever else. romaine: keep an eye on those banks and what money they might return to shareholders. goldman sachs trying to roost its return in this follows the result of the stress tests last week. caroline: good, old school finance there. that is all for global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. joe: bloomberg technology is up next. have a great evening. this is bloomberg. ♪

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