exposure of u.s. banks to the countries in europe that we're talking about is actually very very modest. we think the european situation is definitely solvable. their fiscal position is certainly no worse than the u.s. the problem is a political one. >>> there's a lot of concern about u.s. banks. do you think u.s. banks can weather a full-blown european crises. >> define full-blown european crises. what i can say is the u.s. banks their direct exposure is quite modest and they're better equipped to manage any type of crises than they were in 2008. they bolstered their capital significantly. they built their loan loss reserves. they have very large liquidity buffers. so i think that our banks are in very very good shape. >> >> susie: you can read a transcript of my entire interview with new york fed president bill dudley. you'll find it on our web site, nbronpbs.org. just couldn't escape the selling. >> you hit the celibaten. palms are out that means selling of course and we saw a lot of it today spurred on

that means regulators will keep a close eye on u.s. banks and their exposure to banks in europe that might be hurt by the crisis there. regulators could also roll out some of the same tools used in our financial crisis to keep cash flowing to banks and other important financial players hit by a temporary lack of funds. another concern is the exposure of u.s. money market funds that invest in short-term securities issued by european banks. but the brookings institution's barry bosworth says investors shouldn't face the same kind of risk they did after the lehman bankruptcy sparked a run on some money market funds. >> i think both the money market funds and the regulators are very aware of those sorts of risks. and i think they are very busy trying to make sure they don't have excessive exposure to europe. i cannot believe that our regulators are that bad, given such a recent experience with these kinds of problems. >> reporter: the dodd-frank financial reform law gives the u.s. treasury new tools to manage the pain if trouble in europe brings

debt than they can chew and in an era of too big to fail banks this is everyone's problem we know u.s. taxpayers are backing more than fifty trillion dollars of bank of america's derivatives for example who else has taken big bets with your money we'll talk to no need prince and the federal reserve announced it will not do more stimulus for now they cite slightly better economic growth based on last quarter's performance but when you look at the bigger picture this so-called recovery is lagging far behind our let's get to today's capital account. so just about an hour ago at three thirty european leaders were scheduled to be going into an emergency meeting with greece's prime minister ahead of the g twenty and call on sarkozy merkel the head of the i.m.f. a few others and they are supposed to push for athens to implement its bailout deal as the only solution to the crisis the problem is this monday the prime minister called to put this to a vote before the people to put that bailout to a referendum he called for this referendum he surprised everyone including his own party now because

morgan is a great example so that's why people are moving their money out of the u.s. banks into chinese banks because the chinese are going to execute fraudsters that's a good sign and the other thing we hear over and over and over again is that we bottom ninety nine percent must compete with china get with it cut your wages compete with them how do you expect us us wealth creators to create jobs for you if you want pension plans if you want health care. if you want wages living wages look at the chinese well why do we have to live like the chinese laborer when they don't have to live like the top one percent in china. there's got to be some rest of prosperity this is what obama did mention in honolulu he said that you know something in chinese banking system we like they like the execute their bad record we're going to start doing that on wall street i mean it really you would find the entire situation change quite dramatically well let's look on into the america and see what happens there are bank of america and j.p. morgan really blocking the return of m.f. global custom

u.s. is in the banking system u.s. banks have written a lot of credit default swaps against european sovereign debt so if there is contagion if this does bread if it's not contained you could see u.s. banks really suffer you could see i have been told that you could see bankruptcies in u.s. banks stemming from a euro zone crisis that they kind of unravels so that is a big concern you know critics would say that u.s. officials are doing the bidding of the banks when they say we need to get this euro zone crisis under control we need to do something now and urging european leaders to act also though of course you know the u.s. and europe have an enormously close economic partnership they're deeply involved in terms of trade. and those those issues as well it's hard as a journalist though to get all worked up all these doomsday talk as we know at least here in washington it's not until the chaos until the system really hits the brink that anything is done anyways so on one hand you can look at what's going on in the eurozo

the congressional research service estimates that u.s. bank exposure to the european debt crisis is about $640 billion. if that's accurate, scott, that's nearly 5% of total banking assets in the u.s. that's a lot. >> pelley: anthony, thank you very much. there's a sword hanging over congress tonight. that so-called supercommittee has only six days left to figure out how to cut about $1.5 trillion from the federal deficit. remember, last summer congress and the president couldn't figure it out, and now the committee made of six republicans and six democrats is showing signs of missing its deadline, too. we asked congressional correspondent nancy cordes to tell us what would happen then. nancy? >> reporter: well, scott, according to the law that created the supercommittee, across-the-board spending cuts of up to 10% would be applied to nearly all federal programs, including defense-- cuts so steep that there's already a movement afoot to scrap them if the supercommittee fails. comments from the supercommittee's top democrat today sounded like a

to something that's why people are putting their money into chinese banks taking them out of the u.s. banks there's no deterrent for fraud in american banks they're not global margan is a great example so that's why people are moving their money out of the u.s. banks into chinese banks because the chinese are willing to execute fraudsters that's a good sign. elsewhere in the world the u.s. ramps up at specific ambitions washington is set to expand its military presence in australia deploy a total of two hundred thousand troops over the next three years the parents were announced as barack obama addressed the country's politicians during his visit on thursday and around the speed it's a move to counterbalance china's growing influence in the region. dozens of antigovernment protesters have stormed kuwait's parliament hundreds demonstrated outside of the holding up proceedings for several hours they peacefully cleared the building authorities question the country's prime minister russian allegations peter claims that government officials illegally transferred money to foreign bank accounts la

after world war morgan is a great example so that's why people are moving their money out of the u.s. banks into chinese banks because the chinese are going to execute fraudsters that's a good sign. well square in the world the u.s. ramps up its specific ambitions washington is set to expand its military presence in australia by allowing it to know how thousand troops the next few years plans were announced as barack obama addressed the country's parliament during his visit on thursday when the analysts believe it's a move to counterbalance china's growing influence in the region. thousands of antigovernment protesters are staunchly rates parliament one hundred demonstrators outside after holding a proceedings for several hours and he's read the bill as a process question the country's prime minister corruption allegations they've been repeated claims that government officials in the transfer of money to foreign bank accounts last mark yates a foreign minister resigned the senate merged. insurgents in kabul have attacked a national assembly of politicians and tribal elders as the way to deb

morgan is a great example so that's why people are moving their money out of the u.s. banks into chinese banks because the chinese are going to execute fraudsters that's a good sign. russia has joined an international chorus questioning new u.s. plans to establish permanent bases in afghanistan after the christmas twenty fourteen withdraw your aim and arrangements of being finalized with afghan president hamid karzai under the scheme up to twenty thousand troops would remain to help washington prevent the taliban from retaking power and to curb pakistani influence. well clearly when you go he's not yet clear how they're coming. and they're trying to fool gene u.s. withdrawal from afghanistan missions with new american planes to establish a new belief system and this is the last hours often provided support for washington's anti terror operations in afghanistan as well as joining forces with us in anti-drug missions but a lack of transparency and communication from washington has left russia and other regional partners questioning motives for the player surge trainers and oth

there enough global margin is a great example so that's why people are moving their money out of u.s. banks into chinese banks because the chinese are going to execute fraudsters that's a good sign. well swear in the world the u.s. ramps up its specific ambitions washington is set to expand its military presence in australia by deploying a total of two thousand troops over the next few years that's right downstairs for a couple more addressed the country's parliament during his visit on thursday many analysts believe it's a move to counterbalance china's growing influence in the region. dozens of anti government protesters have stormed rates all of it hundreds of demonstrators outside the building of the seedings for several hours this week that the building. of course is a christian the country's prime minister corruption allegations. and to things that government officials can be transferred money to foreign bank accounts last month he waits for a minister resigned of the scandal emerged. insurgents in kabul have attacked a national assembly of politicians in trouble elders. to debate the

fitch pointed out that the top five u.s. banks have a total of $114 billion tied to french banks. those same french banks have large holdings of bonds from greece and italy. also worrying investor, the price of oil crossed above $100 a barrel for the first time since july. on the plus side, output in october at factories, utilities and mines rose at the fastest pace in three months. consumer prices held steady last month, actually dropping 0.1%. an index of builder sentiment rose to the highest level since may 2010. in stocks, abercrombie & fitch plunged over 13% on short earnings. dell dropped on late tuesday's report of revenue that fell short. reuters quotes a source saying citigroup may cut 3,000 jobs. in a statement the bank said it would be making, quote, targeted head count reductions. finally, a new national survey shows 25% of people questioned expect to keep working into their 80s because they won't have enough money to retire comfortably. not a picture you want to paint. >>> coming up, a possible rare league switch in baseball. the sport also names its managers of the y

swiftly and as planned he wrote an op ed to the international community at the same time we know u.s. banks have written a lot of c.d.s. against european sovereign default so what do you see the u.s. as role as here. in the most negative role the europeans and especially the germans are furious at the bank lobbyist kim basinger's coming over and telling europe the european central bank you have to have a voluntary rate because if there is a default the u.s. banks have placed big gambles on the greek chorus reduce the gamble that greece is going to be forced to repay their debts and so they've written credit default swaps against that and if you europe don't make this big agreement voluntary then. we're going to loot so let's get it clear your job in europe is to do what the us calls you to the europeans told me. so then you have mr obama and obama said just exactly what you said. we want you to make sure that there is no referendum your job is not to promote democracy increase your job is to extract as much capital as you can from greece so that our banks who plays the bear can win at the e

standard & poor's cut by one notch the rating of six of the largest u.s. banks including goldman sachs, bank of america, morgan stanley, citigroup and jpmorgan chase. jpmorgan was the only bank that maintained a positive outlook. s&p says the changes reflected new rules for the world's largest financial institutions. we'll ask christine romans what exactly this means for your money in just a few minutes. >>> still to come, a federal agency comes out swinging against at&t. investigators saying the telecom giant did nothing but lie about a proposed merger with t-mobile. we'll have details for you ahead. >>> and an update from three hedge fund managers who want the powerball lottery. they're revealing what they're going to do with all of that money. >>> and wie'll look ahead to wht to expect today, just a day after protesters stormed the british embassy in iran. it's got tender white meat chicken. the way i always made it for you. one more thing.... those pj's you like, i bought you five new pairs. love you. did you see the hockey game last night? [ male announcer

great example so that's why people are moving their money out of the u.s. banks and of chinese banks are going to chinese are willing to execute fraudsters that's a good sign. for the. science technology innovation all the list of elements from around russia we've got the future covered. the u.s. wants to expand its military presence in australia i think calling it total of two and a half thousand troops are the next biggest fans were announced as barack obama visited the country on thursday when the artists claim it's a move to counterbalance china's growing influence in the pacific so the iltis want to stop the war coalition says australia has nothing to gain from a us military presence. i think the impact of those criteria is growing. more and i mean we've already. i mean we've already got like the interest. rate increased in iraq. having the graduation. the bringing up to that. i think. typically a retuning general. population of military the military buildup is not a good thing. that's not the problem travis modern history of straight. stripes. trying to joi

that's another way it could hurt u.s. banksave super direct exposure to some of the problems with the sovereign debt. french banks seem to be the most exposed at this point. they own an awful lot of italian debt. we're watching spain right now borrowing costs in spain are going up. that's putting pressure on that government to borrow money and also on the banks, the people who hold that debt. this is a crisis. even traders are telling us that they have headline fatigue because every day they're looking for the next little bomb that's going to go off about where we are in this debt crisis. this is a dangerous situation, and fitch just the latest to weigh in and say this could be trouble for banks. bank stocks did terribly at one point yesterday. morgan stanley was down 8%. you don't see a stock move 8% in one day. some of the american banks have been cut in half this year in part because of concerns about the health of the sector in europe, carol. >> gotcha. let's talk about the new proposed federal gas mileage rules because, if

these are obviously the big u.s. banks, the big wall street banks. we're talking goldman sachs, down by nearly half. jpmorgan, third. citigroup, nearly a half and morgan stanley just a fraction. value being shredded by what's been going on in europe this year and also the ongoing weakness in the u.s. economy. these downgrades not obviously restricted to u.s. banks, the european banks also taking a hit as well. and they come just days after the u.s. federal reserve, the central bank, ordered the top 30 banks in the country to participate in stress tests just to see how they've handled another financial crisis, nina. >>> performing even worse than some of those banks you were just mentioning, andrew, is, of course, this company i'm about to show you, bank of america. this is how its shares fared on tuesday. the session ended down to the tune of more than 3%. to a fraction of about $5 apiece. before eventually settling even further lower when it comes to the after-hours trading. take a look at this performance. this is exactly what i want to show you. t

morgan is a great example so that's why people are moving their money out of u.s. banks into chinese banks because the chinese are willing to execute fraudsters that's a good sign. well look. it's technology innovation all the list of elements from around russia we've got the future covered. twenty years ago the largest country in the disintegrated. one hundred. gallon germany. where did it take. the u.s. wants to expand its military presence in australia by flying it two and a half thousand troops have an extreme yes but bans were announced as graca problem visited the country on thursday and many analysts claim that some routes are counterbalance china's growing influence in the pacific to the o.t.s. from the start of the war coalition sense a strain it has nothing to gain from a us military presence. think the criterion is growing. more and more i think. i mean we've already got. great interest in. having the graduation. bringing us. back to the. tune in general it's an escalation of military the military build up. i mean that's not the problem. always try to secure a

fitch pointed out the top five u.s. banks have a total of $114 billion tied to french banks.same french banks have large holdings of bonds from greece and italy. >>> also worrying investors, the price of oil crossed above $100 a barrel for the first time since july. on the plus side, output in october at factories, utilities and mines rose at the fastest pace in three months. consumer prices dropping .1%. an index of builder sentiment rose to the highest level since may 2010. in stocks, abercrombie and fitch plunged 13% on short earnings. >>> dell dropped on late tuesday's report of revenue that fell short. "reuters" quotes a source saying citigroup may cut 3,000 jobs. in a statement the bank said it soç head-count reductions. ant you're not going to like this, there's a new national survey out that shows 25% of people questioned expect to have to keep working into their 80s. because they won't have enough money to retire comfortably. put that beach house on hold. >>> well coming up, a possible rare league switch in baseball. the sport alsoç names its managers of the year. a

and here's where the global contagian comes in the u.s. banks, we think. underwrote the insurance policies on that. if there is a real triggering event and real default. 50 percent here and cut the greece solution is not a triggering event. but if there is a default, they have to make that money good and that's when the u.s. banks have to pay for this. it is so critical to avoid and muddle through and go to panic mode. panic mode is when there is a real default. >> panic mode is bailout, bailout. >> that is muddle. >> i agree with them. and your long-term points we are digging a deeper hole. when it comes out the bailout and band aids don't get to the fundmental issue. we have welfare economies that rob the private sector. how do you pay off this stuff? you have to grow . and one of the reasons the chinese give us money without concession they believe in our economy. our businesses are doing good. our government is crazy, but we have an economic engine. people are still entrepreneurs in this country. >> wouldn't that hard ship help us. short-term, the mone

u.s. banking assets. and american banks also have more than a trillion dollars in loans with german and french banks, which are the biggest lenders to those troubled european economies. it could shut down the financial global system so a lot is riding on this, betty. >> no doubt. ashley morrison in new york, thank you. >>> now to the bankruptcy investigation of the giant securities firm mf global. the company has admitted using clients' money for company business. the firm headed by former new jersey governor jon corzine filed for bankruptcy on monday. federal officials want to know if clients money, hundreds of millions of dollars, was misappropriated, violating criminal laws. an attorney for the firm yesterday said no money is missing from client accounts. >>> bank of america is canceling its plan to charge a $5 monthly fee for debit customers. they were deluged with complaints about charging clients for the fee. their banks, other banks including jpmorgan chase and wells fargo, canceled trial tests of

morgan is a great example so that's why people are moving their money out of u.s. banks into chinese banks because the chinese are going to execute fraudsters that's a good sign. turning now to some other stories making headlines across the globe the u.s. ramps up its pacific ambitions washington is set to expire expand its military presence in australia deploying a total of fifteen twenty five hundred troops over the next few years the plans were announced as president barack obama addressed the country's parliament during a visit on thursday many adults think it's a move to counterbalance china's growing influence in the region. dozens of anti-government protesters stormed kuwait's parliament while hundreds demonstrated outside after holding up proceedings for several hours they peacefully left the building this as authorities question the country's prime minister over allegations of corruption or been repeated claims that government officials illegally transferred money to foreign banks last month kuwait's foreign minister resigned as the scandal emerged. a suicide bo

fitch ratings this afternoon said u.s. banks have manageable exposure to europe, the analysis warns if the european debt crisis is not fixed soon, the broad outlook for american banks "will darken." fresh worries about europe's debt crisis spreading were all it took to send u.s. stocks sharply lower in the final hour of trading. the dow tumbled 190 points, the nasdaq lost 46.5 points and the s&p 500 down almost 21. trading volume picked up-- 915 million shares moving on the big board. nasdaq traded just under two billion shares. the day's other big story? the surge in oil prices to over $102 a barrel. that's oil's first push in five months above the $100 mark. behind the move? enbridge's deal to reverse a key pipeline. that action will let 350,000 barrels of crude a day flow out of land-locked cushing, oklahoma, pushing the glut of oil sitting in the midwest to other regions for refinement. john kilduff is an oil analyst and partner at again capital. he joins us live from the nasdaq. nice to see you again. so why would more oil