what did morgan stanley do? they turned themselves into a bank holding company, technical jargon.e could bail them out. they got $107 billion loan from us and $10,000,000,000 in tarp money. what has he learned? when the "new york times" presented an article by greg smith that said wall street was nothing more than a toxic brew? he said why did they even blood pressure that? the last time i checked, we were in this business to make money. you know what, john? there is a difference between making money the right way and cheating your customers. there is a difference between leveraging yourself to the hilt and getting bailed out by taxpayers and, by the way, have you returned that $40 million bonus? i don't think so. but you should. let's go and look at banker bob rommers, the ceo of m and and t in buffalo, new york. bob roamers understanding the banking the old-fashioned way. he knows it's supposed to be boring. you make loans people can repay. here is what he said recently. he said historically, however, the financial system has righted itself responsibley in the aftermath of catac

>> well, i think there were a lot of firms making money doing proprietary trading. morgan stanley had always made money serving its clients. that was our reason to be. that was the... as i said, the d.n.a. >> rose: asset management, mergers and acquisition. >> corporate finance advice, bringing companies public, raising debt for companies and advising on wealth management. we got envious. a lot of firms got envious and it's the problem with corporate strategy. you have to stick to what you're good at. just because somebody sells good at it doesn't mean you'll be good at it and we started trying to be somewhat somebody else... >> rose: well somebody else was goldman sachs. >> there are a lot of "somebodies" out there. a lot of somebodies. so that's number one. number two, the regulatory world has just changed and the punitive capital requirements for engaging in a lot of businesses and the dodd-frank legislation have made it prohibitively difficult and number three the power in the markets has just made these less attractive businesses from profitability. put it all together, why w

let's go to david with morgan stanley. how do you feel about things right now, by and large?t, we've got the personal income and personal consumption numbers on monday and it would be wonderful if these ceo comments that you just cited are born out because february was up .08%, nice and strong. we'd love to be surprised to the upside. next week you also have the ism manufacturing and nonmanufacturing and then the big numbers on friday, jobs. the consensus is 170,000 , scot. morgan stanley is looking for 140,000. a payback from the warm weather boost that we got in january and february. >> is that going to determine, the data that you mentioned last week, whether it's realized as a sell in may and go away or not? will we focus on the earnings story which has been good, 70 to 80% of companies that have reported have beaten expectations. now you've got data to match up with that? >> we have watched you and listened to you. january was up 4.2%. february was 4.1. march was up 3. it's time for a breather. all of the things thaw just cited in terms of the profits, the market has acq

do. two responses to that from my perspective perspective. one, they did. and if they didn't, in some limited cases, it's because morgan stanleymatively took it away from them. morgan stanley drafted the anti-spitzer amendment to divest me of jurisdiction to do things. if anybody lacked jurisdiction, they are at fault. does he acknowledge that? >> i don't know. he is very open about the mistakes that he has made, very contrite. but you will notice that when he does apologize, it's always we as an industry, we messed up. >> yeah. >> it's not me. it's not my firm. >> i can forgive him the use of the pronounce because mea culpa. >> that's not the thing. has he learninged the larger structural issue that what they did was fundamentally risky and wrong from a banking perspective if they did it again, shame on all of us for letting it happen. >> i suspect he has because he seems to be moving into bank alternatives one is peer to peer lending group and a pre-paid debit card. it's for people who don't trust banks. >> jessica pressler, thank you for your time. >> thanks. >> forget a pop-up blocker. how about a population blocker? i thi

do. and when it comes to the bank stocks, dick, you've been out pounding the table. morgan stanleyur top pick within the space and yet there's this looming potential threat of a downgrade of this name. what is the impact. how much notches would be too many notches? what is not factored into the stock at this point. >> on february 15th moody's came out with a comprehensive report of the industry in which it indicated where it wanted to downgrade each one of the banks to, and in the case of morgan stanley, they wanted to downgrade by three notches, and i assume that since that's what they said they were going to do, that that's probably what they will do. if they were to go more than three notches, it would certainly create a problem, and if they were to go less than three notches, i think it would be received as a benefit. however, if you take a look at the price of moody's fixed income securities, what you can see is that -- i'm sorry, morgan stanley's fixed income securities, what you can see is that they have been going up consistently. in other words, one of the ones that i foll

do fast fire now. traders are fast but not always right. listen to what b.k. said about morgan stanleyeeks ago. >> they have a wealth management division that will do well if you see that retail money come out of bank accounts which are at record highs right now. i think morgan stanley is your play. >> shares of morgan stanley are down around 11% since that call. b.k., what's the deal? >> i tell you, i still think the thesis works but my timing was off on this. timing is everything in this business. i believe if you want to play capital markets increase, morgan stanley is the way to go. i wouldn't change my position on this at all. >> let's do more on the banks. jpmorgan kicking off earnings season tomorrow reporting before the bell. our next guest says it will set a high bar for the rest of the group, the banks may not reach the high expectations. hey there, david. >> good afternoon. >> we can talk about jpmorgan but let's stay on morgan stanley theme for a second. you say it's the most challenged stock for the entire quarter for banks. why so? >> it's not really set up for them well

let's start by doing it with morgan stanley bank of america surging on blowout results. is the bottom in for the banking business? >> i don't think so. i don't think you believe it either. i could hear it in your voice. the results were fine but look at bank america today. it's not exactly exploding and candidly neither is morgan stanley. i think there is a trade here in the form of maybe being long with a very short, very tight stop but i don't think the bottom is in for the banks by any stretch. >> brian moynihan says the mortgage crisis has bottomed. >> it might be bottomed but i think what also happened here is td expectations have come down from their highs. morgan stanley down about 13%. bank of america down about 10%. it is set up well into the print. i would say that they both have issues actually. morgan stanley, the returns are depressed at about 9% or 10% and bank of america their loan growth fell. that is far inferior to say jp morgan. >> simon, i am not the mentalist baker what are you doing? >> i wish i was the mentalist. trading would be a little better. a

morgan stanley. grasso, what would you do?ica, you've got to eyeball the level the 50-day moving average. it seems to be working for a lot of different stocks barometers. take a look at that level. make sure it holds. but if you're thinking about selling it, just sell half of what you have. be safe. i'd rather play it safe. >> b.k. >> yeah. you know, bank of america has an awful lot of exposure to housing sector, which i like. but i think there's better ways to play the housing sector. >> such as? >> well, my single favorite still is usg. also the construction sector -- easy for him to say, via itb is the etf. >> you can also talk morgan stanley if you want to. >> i would rather talk b of a. i did cut my position. it was a lot tougher position when the stock was a 10 than where it's trading now. i think the worst is behind. >> you bought it at what? >> i bought it between here and 9.50. >> okay. >> so i'm making money on this part. i lost money in the other part. >> all right. time to take your positions. steel makers, steel d

call. >> time now for the final call. >> if you are going to do this trade, you want to buy a put spread. >> monday i think if morgan stanley opens up, you look to put it in may. >> when you are long on the spread, you want to manage carefully. that's when the option is expiring the most quickly. you want to take advantage of that, but keep an eye on expiration day. >> looks like our time has expired. for more, go to our website and see you back here next friday at 5:00. money in motion trading up after this break.

morgan stanley. frankly that's an old paradigm and morgan stanley is not as levered and lehman brothers were. they it doote have the same mortgage exposures that they have. it is a very crowded trade. >> we also saw the whole space is crowded. jpmorgan and goldman delivering better numbers on the trading side and the stock sold off. put the traders on and you fade into the numbers based upon what you have seen or have they traded along with the guys the last couple of days and now look at the true measure? >> yeah. the last couple of days they have not acted well, but this year they acted very well. these are among the best performing group in the stock market. they got cheap and we think people are still anchoring on the fact that morgan stanley was ten last october and now it's 17. on 28, there is still plenty of room to run. >> you can make the case and you are staying away from the stock because it's impossible to determine the value. what is unclear and the biggest wild card? >> we say it's unanalyzable. the litigation risk and the remaining for ining mortgage ri. this was the biggest player and al

do you agree? and what did you find the most compelling out of morgan stanley's report? compelling out of morgan stanley's report is this is a company that saw revenue in fixed and equity training increase on a year over year basis in the first quarter. that is quite -- basically that's a standout from the other big investment banks. a number of them have tough comparisons year over year. so that was certainly a -- that was good news for morgan stanley. as far as the other banks, i would agree with neil. i think that is why expense management is going to remain very key for these companies in the months and the year ahead. >> yeah, kate, weigh-in on morgan stanley if you would. mr. gorman made his case quite nicely to david this morning. >> well, you know, i think there's an interesting parallel, sue, between what's going on with james gorman and brian moynihan, the bank of america ceo i thought you were going to ask me about. >> well, we are. >> these guys took the helm in the last year or two and they've faced a lot of headwinds. a lot of leadership issues on the b of

are you saying that companies like goldman sachs and morgan stanley and barclays have as much to do with the price of oil going up as exxon or shell? >> oh, absolutely, yes. i tease people sometimes that-- you know, people say, "well, who's the largest oil company in america?" and they'll always say, "well, exxon mobil or chevron or b.p." but i'll say, "no, morgan stanley." [ticking] >> coming up... >> is there price manipulation going on? >> i-i can't say, and the reason i can't say is because nobody knows. our federal regulators don't have access to the data. they don't know who holds what positions. >> why don't they know? >> why don't they know? >> yeah. >> because federal law doesn't give them the jurisdiction to find out. >> that story and more when 60 minutes on cnbc returns. [ticking] if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and...

it's about morgan stanley and verizon doing better than expected. .. >> and ellen kullman, she thinks this is not just the warmer weather that's helping with agriculturier. this is real change and you're talking about new products and significant gains there. five years ago we didn't think of this when it was coleman. no different from intel, no different from what we'll see from microsoft. bank of america, that had been the achilles heel of the group. is that trading off of portuguese and italy? no. if he had 10,000 more jobs created, this markets would be flying i think we should be we'll see you in just a few minutes at the top of the hour. >>> coming up, the race for the white house is on. we're going to talk to virginia senator mark warner coming up next when "squawk" returns. [ female announcer ] everything that goes into a lennox system is engineered for comfort. like parts that create your perfect temperature and humidity or the parts that purify the air. together these parts can cut your heating and cooling bills in half. which is quite comfo

as a conversation that goes along. >> which is even more disturbing. >> of course, morgan stanley and credit suisse, do think they have any market to report? >> those underwriters, they are using their reputation, their names to back the deal. i think they have somewhat of an obligation here. are your numbers lined up? guys, this is crazy. tlears a series of them policed by the underwriters. maybe this company isn't doing things the right way. maybe there's a direct obligation for each individual point but overall and policing the quality -- >> released by the underwriters. that's a nice world we live in, huh? >> it is one of those names that people knew this when it went public that a lot of the original investors and venture capital had already exited to one degree or another. >> yes. and there's a new book coming out about the groupon ceo. there's great detail about how he built this company and how he behaved in building it. some of it makes no sense whatsoever. beyond what you would think for a normal ceo. but you have to give him his due. he's created something. that's what makes this market work

that's a case for a lot of the financials, whether it's jpmorgan, morgan stanley is our favorite, state street, all very good businesses doinge think the next 6 to 12 months is going to be better on an earnings front. >> morgan stanley made as much money from the investment banking. do you think wealth management, as we all get rich, the world gets richer, will ever be as sexy and valued for shareholders? >> well, there are many times in the cycles where wealth management is considered a good business. mutual funds sell at a premium. so we think as people are less concerned about the problems that morgan stanley has had over the last few years and the memories of the devastating returns leave us, we think they are going to get a higher valuation. it's going to have a more consistent earnings stream. >> the next 6 to 12 months, europe is still going to rear, as we say, its ugly head perhaps more so than we think. what if that becomes a key question mark not to mention the moody's down grade? >> they are going to be negative headlines and in any week or month that could cause the financials to sell off. the united states stres

. >> if you you do the trade in chipotle, buy the put spread. >> monday i think if morgan stanley opens up with citibanks earnings, you look to put flies. >> when you're long, you want to manage them carefully on expiration week because that's when the near indicated option is expiring the most quickly. so you want to take advantage of that, but keep an eye on expiration day. >> well, it looks like our time has expired. for more options action, go to our website. we'll see you back here next friday at 5:00. money in motion is up right after this break. there's nothing worse than going to the post office and waiting in line. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com, you can print real u.s. postage for all your letters and packages. it gives you the exact amount of postage you need the instant you need it. can you print only stamps? no. first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including pos

do you like? >> i actually prefer morgan stanley. i think there is an up side for morgan stanley. i think it reacts in a big way for now and next quarter. i also think they will have better commentary around investment pipelines, more particular facebook, and i think you'll also see more on the cost-cutting side which is a formality in this industry right now. >> you talk about morgan stanley, it's primarily because of the retail side. on top of that, how about jp morgan? can it get to that $45 range where jamie talked about they would pull back on their stocks if it got to 45 and above. >> with respect to morgan stanley, it's generally on a one-quarter lag, so the q1 will definitely push revenues in q2. the fact that the capital markets continue to hang in there, gold, jp morgan, are all going to continue to work as long as we see decreasing market capital funds. >> it's doug brown, and i'm just curious because the word on the street and the takeaway from money managers that i talk to is it sounds like gold man is derisking. can you talk about maybe what do they see that makes th

morgan stanley underperforms. good news, it overperforms. i don't think it makes fundamental sense but that's what it is. >> in fact, you've got a comparison of the euro stock index. >> well, we doif europe is a guide, it does not bode well for morgan stanley. look at this very strong correlation. the two are handcuffed and linked at the hip. we've seen that index give back all of the gains for the year. 12% from that peak to where we are today. flat on the year. down 6% for the month. moving lower, structure broken. >> good to see you both. thank you. david faber has a first on cnbc interview with morgan stanley, ce oechlt james gorman tomorrow at 1115 a.m. michelle? >> the nasdaq is lower by 4 and we have 45 minutes to go before the bell. u.s. equity strategist jonathan predicts the s&p will be more than 6% higher by the end of the year. find out what he thinks about the potential for that. best buy reportedly a private equity takeover target, do you ever buy stuff at best buy or use it like an amazon showroom? send us a tweet @cnbcclosingbell. >>> as we head to the break, here are some of the stand-out performers. the very top, intuitive surgical higher by more than 8%. tdd#

in my time it's been brian stanley, elizabeth and now pri ling and morgan and patricia because things don't happen by magic. we'd like to think they do but they just don't. your vision aren't what pure resource is and if it stays really as pure as possible from the original vision, i appreciate that. and again that carries for generations. it will hopefully be going long after i have like five grandkids. but one more now and i'm grateful that you all exist. so hopefully she'll experience some of this. but i want to thank you as well because leadership matters and the right leadership is very, very beneficial and it shows. thank you president yee? president yee: any last comments? >> no. president yee: thank you. thank you -- is it aisha and jasmine? >> keona. president yee: moving on. we're going to go to calendar and consent resolution of item o vote on consent calendar. ms. casco, roll call please? >> thank you, commissioner. ms. fewer? ms. maufas? >> yes. >> ms. mendoza? dr. murase? ms. norton, >> aye,. mr. yee? >> it's five ayes. >> the superintendent's proposal, none tonight. board member's proposal, first reading for in support

doing. in corporate news, morgan stanley trying to stave off a rating cut. james gorman has been in discussion with moodys. a cut could diminish the bank's ability to buy the rest of citigroup's brokerage smith bar any. and we've been waiting to find out whether that transaction will take place. in addition, jpmorgan ceo jamie dimon telling investors last year was a good one for the company's earnings. he says it could have been even better, though, had the bank not been hit with mortgage related losses. annual letter 38 pages long, he says he expects the bank's earnings to grow over time. also mentions regulations, though, as a problem. he writes in part there are so many new rules that they inevitably create more opportunities to build unnecessary bureaucracy with the company. it is incumbent upon us to make sure that we do it right for the regulators, our clients and our own efficient internal functioning. and of course that's an issue we continue to hear about. >> you read all 37 pages of that thing? >> i read them fast. he always writes a really good le

do to the fragile housing market? let's talk with it the former managing director of morgan stanley.means to people who have made their mortgage payments on time and those who have decided they're going to stay in their homes and not pay for as long as years? >> i'll take the second part first. those that have paid for years, there's no thing as a free lunch, no such thing as a free stay at your house, they'll get a letter in the mail that says it's time to move. now they don't have courts behind them anymore. there will be unification of process, where they will be removed from the house. those currently in homes, the first part of your question, think about it, they've paid every day, toiled, make their mortgage payments, expect the values of their homes to go down, according to zillow about 3.5% to 4% over the next year. >> they're being punished? >> yes, they're being punished, quite a bit. i'll take it even further for you. there's going to be so much supply out there, jamie, it's going to stagnate the market for another year or two. let me share another factor fact to take it f

>> the markets really -- i do applaud goldman and even some of the morgan stanley guys that had mentionedields have gone to zero or negative and that's one or two times since eisenhower's been president. and the point there is just the fact that markets will chase yields without question and when you start seeing treasuries have these situations where you're going to see yields at 2% or below, it's not attractive enough on think that the rally will continue or lower yields will be there forever. that being said, i think the equity markets become very bullish scenarios. i saw one quoted as one in a lifetime. but again i think there are pitfalls there because economically we are for the going to get the support over the next quarter to watch the equity markets continue to go on this bull run. we'll be stuck between at least probably for the week between the 50 and 100 day moving average and that's 1375 on the 50 all the way down to 1317 for the 100. so if that's the case, where will the markets look to? and again it has to be the commodities markets because again, you'll continue to see mor

morgan stanley. it's going to be a wild weekend. we have the imf. already have good news. lining up money, 430 billion, we're hearing. christine lagarde is doing. can this actually influence our markets if he's the and which bond spreads over 40 to 50 basis points. right now the french is trading at about 140, 150. so they are beginning to worry about -- >> so socialist, would this actually influence the early winner over the weekend, they might be run off, would this affect our market monday? >> one of the things going on that's right for the united states of america, you look at these banks, they've gone from 30 times equity, the assets, leverage factor, down to 11 or 12 times. our banks are in phenomenal shape these days relative to the rest of the world. that's a good thing. there's repair, resuscitation, rejuvenation that is sip lently, secretly going on here. so it would take a lot, bob, to unsettle for europe to unsettle our banks to become back to our own netting. >> i bve we are improving and i see no -- post earnings, the banks are doing terrible. >> they are up 20%. still not back to where they were. >> the point is, we have the run

do i want the quote. he said i heard you work at morgan stanley. i called a buddy he said you were great. talk to you. that was the quote. and, you know, the fact that he made the call is something i don't think people do today. >> a lot of us run businesses and get people seeking jobs. you both officed with him. did he get 40,000 resumes? i never saw paper on your desk. did somebody hand it to him? >> he was very selective. he had a unique radar where he would pick up -- >> were you in his office where he threw a resume in the toilet. >> he would do something, if it was a personal interaction. if you set the stage by thinking about the way the office was set up it was a series of glass boxes with richard in the epicenter. and richard was -- he had this charisma and intense personality. he was funny, engaging and looking for the next deal and the next big talent.>> his magnw people to fort worth, texas. we were all in sort of capitalist offspring. >> he had to be selective at some point. >> when he offered me a job in 1990 he said you can come here, i am not going to pay you anything. i'm

doing good since march of '09. i have a different take. i come from a retail investing background working with investors over 20 years at morgan stanley.this same phenomenon every year and it happens around tax time. people who owe taxes tend to be heavy investors. so if you owe taxes, not that you're getting a refund, but you have to write a check and a quarter ly estimate, that's all that's happening. this economy is getting better. to answer your question, we think investors should focus on fast growing companies that trade at fair values. and that's what we do simply in our fund. and we've done for 25 years. >> bob makes an interesting point. let me try this one out on you though, the economy on the one hand some people say it's getting better. that's what bob says. but could the market be saying here today and to the extent that things have been selling off a little bit in recent days that the economy may not be strong enough absent the fed's presence in the marketplace to continue the kind of growth we've seen? in other words you take the training wheels away, can the bicyclist stay on the bicycle? >> yeah. i think clearly there'

do. >> the financials are quite weak as you might expect given what is going on in europe. morgan stanleyng out of earnings season none of the stocks look particularly good with b of a flirting with the $8 level. >> these are not european banks for heaven's sake. that's down 13 cents. i should swap out of morgan stanley and get into -- does that make sense to you? >> what is coming up tonight? >> we are going to discuss wal-mart. and i do believe that sandy cutler can set the tone. he has secular growth. i'm not sure the executive should be written off. >> so we will see decent numbers. >> you bet we have. >> honeywell. >> he was remarkable on friday and bullish offcamera. >> you are reserving throughout the week. >> i got up early this morning because yb can't sleep. >> europe is not a growth market for these companies. >> they trade until the market closes. they shouldn't. there are guys. they have a formula. it's like an algorithm. europe down. they don't think about it. they are not paid to think. >> it's an amazing business. everyone should go into it. you don't have to do well and g

doing for bondholders? i would like to see them merge with a bank. because quite frankly jpmorgan and wells have a 2% unsecured funding advantage versus morgan stanley. morgan stanley -- 22% of their equity owned by mitsubishi ufj. i would like to see morgan stanley partner up with a bank and let our clients benefit through tighter bond spreads. >> all right. you heard it. mark, thanks so much. >> thank you. >> all right. up next on "street signs," why the world's automakers could see the recovery stall because of one explosion at one plant in germany. >> it's amazing. plus, coal has been beaten up by cheap natural gas. but could coal miners actually be ready to turn a corner? we'll find out next. >> you should know as a coal miner's daughter. and you should know, is the wild west out west? silicon valley ceos going rogue. is it time for investors to worry? [ mujahid ] there was a little bit of trepidation, not quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be,

doing backflips here. sure, it was below expectations, but i think there's a lot of positive things. i bought china today, caf, which is the morgan stanley china shares fund, and the reason why i did that is because if you look at the most recent data, not the backward-looking gdp data, but look at how many new loans are out there, they're soaring. look at their money supply, they're soaring. their credit is soaring. so, a lot of things are happening here. the chinese are easing monetary policy. it's working. and we may have just bottomed out in this cycle. so, to me, i want to be exposed to the chinese domestic economy, not necessarily all the commodities like it used to be. >> well, b.k. -- >> hold on, grasso, real quick. the bottoming out theory i think is being shared by several firms on wall street today. john rutledge, who's been on this program a number of times, he was on "squawk box" this morning, he agrees with that. he was talking about go go out now and buy bhp, buy freeport, caterpillar, all the names he's been talking about. stephen roach, who's been on the program as well, one of the best china watchers out there, sent som

morgan stanley reveals where he is fining value outside of the usual suspects. more fast straight ahead. [ male announcer ] this... is the at&t network. a living, breathing intelligence teaching data how to dofor business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with data to help business do more for customers. ♪ it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ shapiro ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com, we put the law on your side. >> welcome back to fast money. live at the market site in times square. market investors watching intently as speculation grow that is the central bank could cut rates. the thesis is that growth prospects are dimming. sharma's book hit the stand

morgan stanley also. fixed income will go up and down relative to the market. but with a strong mortgage banking earnings cycle coming with these refis coming, that's going to do well for capital markets and fixed income also. >> paul and chris, could you disagree on something? you have exactly the same stocks. you like them all. pnc and the other jpmorgan and wells. thanks a lot, guys. >> my pleasure. >> all righty, up next, this is some serious bedtime reading. the sector of the book market that is on fire right now. >> our own courtney reagan is live at the largest romantic book conference in the country. courtney, is love in the air? >> reporter: love is in the air, kayla. it's the 29th annual romantic times book lovers convention. the economics of erotica are redefining the e in e-reader. the story coming up on "power lunch." tdd# 1-800-345-2550 the 5-day moving average just crossed above the 20. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 scr

do, how can you avoid the penalties? we will go to a former managing director of morgan stanley, and in fact, he ran the company's 401(k)nyone has answers, rich does. thank you for joining us. >> you are very welcome. >> jamie: they say it's a big mistake to tap into your retirement savings, but a lot of people have to t. what reasons are appropriate, and will the government cut you a break? >> you can almost take a loan out for any reason you want to. but i would suggest, is it a good reason? i would take a step back and catch your breath and say, if it's for emergencies, like a foreclosure or eviction our a funeral expenses, that's a great reason to do it. if you are looking for the weekend in vegas, i would catch your breath. >> jamie: or the lottery tickets everyone's holding from friday. let me ask you how it do it appropriately. >> okay. >> jamie: how do you rebuild it back up. you watch the lower number and you want to get it back in there, eventually. >> that's right. first of all, alternates so easy to get the money out, it's almost like an a.t.m., you can look at the statement, look on the bottom and you you w

do care. >> overall business, from '08, it's come down sharply. we know that in investment banking. it's something that bears watching. let's keep an eye on it when we hear from goldman and morgan stanleyjust crummy, crummy performance over that period of time. goldman's lead is gone when it comes to those key components of investment banking that do speak to the client. >> wow. >> we have to take a break here. google gets fined for data collection. if the map folks drove by wall street, what kind of twitter messages would you hope they caught? we've got your responses coming up. >>> let's look at the early movers on wall street. seagate, and western digital. stay tuned. zap technology. arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, o

do believe these will be short-lived bounces. don't give up on the spanish banks. >> morgan stanley, positive on bud?> a not cheap stock but i like sam adams which is more expensive. this is a stick it to the man. be careful. i don't think people are that careful about it. >> if you believe high oil is going to kill the consumer. you might disagree with the call on nordstrom getting app upgrade. >> if you have enough money to shop in the shoe department, dream one. >> a whole department in the mall named after you. ? really? >> netapp? >> be careful. this downgrade may have gravitas. >> jefflys on abbott. they just killed it. >> they are splitting in two. i think both pieces are worth more than this trade. >> who do you have on your show tonight? we were just talking about it. >> i have kelsey warren, a very high-yielding master limited partnership that nobody likes. i think it is a buy. >> very successful guy, kind of a quiet billionaire. interesting guy. >> well, remember the real estate guys were the quiet billionaires. now, it is these oil guys. we had so much of it in this country. >> maybe he s

doing today. >> yeah, it is an ugly day. nearly 8%. and i've got a note here at morgan stanleyt this out as a quick note based on a note. he thinks that head winds might get worse before they get better for radio shack. he said the sprint business is tough. sprint has been tightening up its credit requirements. it means people are coming in to buy fewer new phones. that's hurting radio shack. and he said that any everett that radio shack may make to bring over the verizon customer could be hurt by what he calls a gap in demographics, if you will, between the verizon customer and the radio shack customer. radio shack is now trading at lows not seen since 1993. we're going back to the tandy corp. days. carl? >> it's tough to watch. we'll see what happens later on today. meantime, net flix swinging to a wide loss as the company's new subscriber fails to impress. so as they work hard to win back users, how will the company fair in the face of rising competition. we'll talk to a top-ranked analyst who is sticking by his sell writing in just a moment. >> i play in a band that partici

morgan stanley. >> this has become a very difficult measure in terms of allowing us to look quickly through the numbers and understand them and doomparisons and well. we didn't always deal with dva. it has to do with the cost of the company's debt, its credit spreads. if it costs less to buy it back, you have to account for that as opposed to if it costs more -- >> meaning if the bank's doing better, it knocks down earnings. >> thanks. >> it's so stupid, right? >> and they're hoping to get rid of it. they are hoping, the cfos and the like, are hoping to move bass this. all that said, how did b of a look to you? >> b of a looked to me like there's a pulse to merrill lynch and that this was a merrill lynch quarter. i've always felt that at a certain point, merrill lynch would shine. we've been waiting and waiting and we got it. trading is merrill lynch. asset gathering is merrill lynch. you needed to see countrywide stop bleeding in order to show how good merrill is. this was that quarter. >> lone growth at bac down 2.9% quarter-on-quarter, the worst among the big lions. >> they don't have revenue, that's true. they don't have the

do like tv. i have to admit i'm a binge viewer of cable shows, but i have a 40-inch and it's fine. >> morgan stanleyuple of big news tidbits. goreman is fight iing moody's against a down grade as they try to buy the rest of smith barney. and then also this idea about the jobs act, which the president is going to sign this afternoon in the rose garden. "the times" argues it opens up potentially a new front in banks dealing with smaller companies as they try to go public. >> i'm so glad you mentioned that. one of the reasons that i like the investment banks, we take a look at them statcally. their current about business is not so good and then, bingo, suddenly a new business -- a picture of eliot spitzer in the paper talking about how they built that chinese wall and now that could be coming down between investment banking and small cap stocks. this may be a business line that can move the needle. >> all in a good way is this obvio obviously there have been critics? >> oh, you're asking me about the ethics of it. >> right. never mind. >> wow. >> let's hop over to bob and david who are on the floor. gu

morgan stanley, always good to see you. >> thanks for having me. >> you said in a note at the end of march that the spectrum of choices right now, with anywhere from inaction to qe3. do universe down a bit? >> yeah. they will help. if there are embarking on qe3, they'll have to lay some groundwork in the minutes. they should have had a discussion at the last meeting, talking about the various alternatives. do they expand the balance sheet that is by securities with reserves or do they buy some things and sell some other things that is expand operation twist? >> so what do you expect that to read like today? >> so if they really are thinking about some form of qe, there should be a paragraph explaining that the staff made presentations of alternatives and there was an exchange among the participants about the pros and cons of each. >> would that -- that doesn't sound like like a wait and see mode. >> no. there's a couple things you have to recognize. one is they're pretty clearly from previous statements, they are data dependent. so the one issue is what's their trigger for action. the second issue is what do they do? what they do is it would be described in that para

morgan stanley versus 2012. where were they then when perhaps we needed them to be stricter? there's so many people to fault, of course. easy to pick on the rating agencies. i don't mean to do that. i have had a hard time with them for a long time. >> tim geithner with liesman. our banks are so strong versus others. you probably think i said ge is strong versus what moody's said. we come down. why is our market looking hideous? because of european banks and our banks are ready to clean up. i had u.s. bank corp. on last week and u.s. bancarp is taking the place of those that dropped out of u.s. business and seeing it going forward. you downgrade the american banks again, you can argue we'll be consistent even if we're stupid. we're consistently stupid. >> talk about the big call on mcdonald's. removing it from a conviction buy list. price target to 110. with the chain, goldman says it sees more attractive opportunities elsewhere and starbucks is a conviction buy. it also likes chipotle saying both will have 25% plus average growth. >> mcdonald's, they put together an actual core way that you're going to make money with good same store sales. again, i come back. these are lik