the bank. clay says, the bank? it's funny you mention that, because i was thinking that maybe we would go ahead and recharter this bank early. why not? we don't need to wait until the last moment. it's 1832, let's get going and recharter this bank. you are on board with that, right, mr. president? well, not only am i not on board, mr. clay, but i am ready to wage war against this bank of the united states. and here we have it, the bank war. one of the most dramatic events in united states history. charter will expire soon. whigs in congress was to recharter it early. they didn't accept this. jackson, to their surprise, declares his opposition to the bank. or does it come from? where does it come from? it seems to come out of nowhere. he did not run his campaign on opposition to the bank. all of a sudden, jackson unleashes a torrent of insults. first of all, jackson says the bank is unconstitutional. the bank, jackson says, is a monopoly. and unconstitutional monopoly. not only is it a monopoly, it is the monster, j

trust the bank. those investors did not know or the underlying risk in these securities they didn't know what they were holding what they were getting sub prime mortgages what they wanted a prime mortgages they were packaging all these things together and are selling them as prime securities. these packaged securities continued making millions for financial giants but some key players from lehman's global team proved to helpful. anthony fry was the head of lehman brothers in the u.k. . i think they were in a position where they really believed they were the people in charge of the whole world. they were when everyone else was losing. any fry hatch thirty five years of investment banking experience. even workplace lee with margaret thatcher. even then his knowledge and expertise would challenge to take full head stay at his u.s. operations on a completely different route the firm borrows more money than any other bank on wall street i was in a position where i was fortunate i could say we won't do tha

was a bank in the pronunciation of singapore which meant that more foreign banks such as the chances to bank for instance were greater market participation in the retail sector so the commercial banks in singapore were all facing essentially great competition from one another in competing for that customer base and you know when you. talk to american investment banks piled in to take advantage of the new opportunities merrill lynch goldman sachs morgan stanley and also. lehman brothers the oldest of the lost and st for the strong culture of its u.s. operations lehman brothers was a significant i mean horton player in the twin towers in the us in the investment banking industry at that time it was number for me money also was one of the most aggressive players in the industry people kids i mean it's students would love to go and work for the money i mean that's what the prime job for them. is a commodity joint lehman brothers in two thousand and six as a vice president in the mergers and acquisitions group in new york the farm was a behind civic success lehman had a very strong cultur

its banks used to stand for something and maybe coming from europe too you know that banks can be rather strict and they're well regulated and you don't get away with anything and here the banks got away with too much and they were pushing people into taking risks they couldn't shoulder so of course their behavior was highly immoral and that changed my view of course of the entire sector all right and probably not just yours they're from d.w. business thank you so much. well in the aftermath of the lehman brothers collapse and the subsequent global financial crisis is the then new u.s. administration implemented measures known as the dot frank wall street reform and consumer protection act it was signed into law by former u.s. president barack obama in july two thousand and ten since may two thousand and eighteen many features of those regulations are scrapped. how much adversity can a bank withstand that's the question stress tests were designed to answer they were a key feature of the dodd frank act which was signed into law in two thousand and ten each year the federal reserve assesse

and the banks have gambled away. the punky industry the banking industry has been rocked by one scandal after another and recently here. but this failure gave impetus to the emergence of new web based technologies such as the blocked chain. and gettelfinger of these occurrences that could have the middlemen and banks where there are no banking monopolies and were above all the state no longer has the sole drug of in the creation of money form. but it's about more than just catch. your continued loss shame technology or completely revolutionize large parts of the many many industries was the target of the senior. staff in the executive floors of bank skyscrapers the block chain revolution has long since begun for example in berlin crisis back where restaurant owner a young plats has been pursuing his vision of a world without banks for more than twenty years. he is fighting for an alternative monetary system his weapon is big corn. and if you want to imagine a superhero currency and say hell with the money work that s

banks.urse there are starting to , and let me add one point, we are still operating in the credit environment. if it comes into a recession or , thenent credit market the banks will suffer a lot. you take the city of london out, where does that leave the european banking environment? >> we have to do everything in my view to somewhat create a single market and a european market with the same regulatory moreonment, so we can have consolidation moves in the future. tot's the only way i see .ocus on domestic consolidation it's very challenging, given the integration in the market, unions and others are very much opposed to that. you just adding or into a competitive market and cross-border is probably a better solution. nejra: that was the former deutsche bank ceo speaking with bloomberg's guy johnson. have we learned the lessons from the financial crisis sufficiently to avoid the next one? saker: i think we've learned the lessons to avoid repeating the same crisis. and stopep back looking at t

banks over european banks? banks andrefer u.s. our single largest u.s. is that i disagree with -- we disagree with j.p. morgan's european equity call. one of the problems with the two system target has been conspicuous members of the european central bank lending money to each other. the european central bank has been lending out a trillion becauseto the system interest rates -- into the system. because interest rates are negative, they get surcharged, in an extremely taxing environment. there are opportunities in the peripheral economy. i look at spain. there is a very well-placed bank to benefit from recovering economies like brazil. when the emerging markets story turns completely, one of the best ways to play in that recovery will be such a stock from brazil. down around 30% year to date -- what would happen to a business such as danske bank if it was told it could not transact in u.s. dollars? ames: if they are unable to be , correspondent take -- bank that's a significant risk. i would anticipate the is partion of the ceo of assuring in u.s. author

have central bank of central banks. it was created in the wake of the crash in 1929 in order to facilitate kind of communication amongst the central banks and create reporting lines and a communication amongst them to talk about how different policies impacted different countries and whether what was done locally made sense globally and the opposite. and he's now kind of more call of the fed. -- critical of the fed. in brazil something interesting happened which was going back to the beginning of 2008, president lula, who's now basically indicted and in prison, but at the time he was sort of a major force in brazilian politics, and he was very concerned that the u.s. financial crisis would hit brazil, which it ultimately did. and so he had an appointee who was running the central bank of brazil, and he basically was trying to also do a little bit about what the fed was doing, and then he tried not to. he tried to raise rates in brazil such that that there wouldn't be inflation and people wouldn't be able to not afford f

of the banks. need to be a genius to know that you have three lovers. -- levers. everything is about balance of those. those were what the debates were about. francine: should the u.k. have been anything differently? adair: i think maybe we should of just nationalized hbos. to today'sen agreed before i joined. maybe we should have -- two days before i joined. maybe we should have challenged it. i think we should have gone for bigger liquidity in the banks. i ended up as a super hawk on banking capital. i think we were allowing it to run before the crisis was that ludicrously low levels of equity capital. the debates subsequently about the basil three reforms, i was always a hawk. that meant bringing it up by another quarter percent. i think the banks ought to run ratios at 4%. on the other hand, we did some good things. francine: what you think the main consequence is of the financial crisis? adair: the consequence was the recession, the global recession of 2009, and the incredibly slow recovery. t

banks.start with turkey, that expectations are so high. is the hike today the lower bound the central bank needs to deliver? >> i think it is the lower bound of what the central bank needs to deliver to really impress markets for the significant amount of time. may they get away with doing a little bit less. might comeubts easily in coming weeks. but that has been enough, especially after the president got so heavily involved with interest-rate decisions, including something he said here a while ago, that he is de facto the boss of the central bank. against that backdrop, the central bank needs to show it's kind of independence by independence its by surprising to the upside. it may get significantly easier for turkey. if they underwhelmed today, the doubts will not go away and we will probably have to talk about turkey quite a lot more in the future. nejra: if we get a rate hike today that is high enough to get a relief rally in a turkish lira, is that rate hike going to be enough for turke

investment bank in europe and banks in the u.s.ry cyclical. born all, the crisis was -- the epicenter of the crisis, it wasn't as grave as the 29 -- as the 1930's. but what you have to keep in mind is that these are big structural differences between the u.s. and europe. thehe moment in europe financing of the u.s. economy was made through banks with only 25% of the financing, and through markets it was 75%. it was exactly the reverse in europe. 25 for the markets, 75% for the banks. that, of course, is the fed's explanation. the recapitalization of banks in europe was much more costly in asms of percentage of gdp, was the case in the u.s. there are many reasons for those differences. one important reason is the existence of freddie mac and fannie mae, which were mentioned previously on your screen. that explains why a large part of the financing of the u.s. economy comes out of public said,utions that being europeans have a lot of hard work to do, and structural reforms are of first importance that have been decided, including the

of commits bank martin had this to say. like it no the fact that it's a tech firm moving up is no coincidence. he was referring to wire card. itself has started using wire card software in the cutthroat world of finance there's no room for bruised egos. now high fliers in the world of finance tend to dress very well and that's hardly surprising just have to take a look at one of their paychecks addressing the part doesn't have to cost a fortune as god help us explain. here's one i hear a lot how do i get the most out of a cheap suit very common problem. first of all never buy cheap buy the good stuff cheaply when it's on sale. but if this rather excellent piece of advice comes too late for you remember you can always reconstruct your off the peg purchase. let's get to work a cheap suit is easy to spot the plastic buttons are a telltale sign your tailor will be happy to replace them with proper buttons and a more interesting contrasting color like these you might even want to splash out on horn or mother of. and while you're

canadian banks are larger than u.s. banks.o put in perspective -- it is not the size of an institution. it is the systemic risk. because we required more capital here, the banks are better shaped. we required stress tests, i know it is painful for banks to go through, but it gives us a good idea of how banks are performing. should they be confronted with another crisis, we provide clarity in the derivatives market. we did a lot of things in that legislation, that are designed to minimize the kind of problems we have seen in the past. i do not think size should be the only criteria. it is whether or not they are opposing systemic risk, examinations to prudential risk, will all help us to minimize the problem. size is an issue but not the deciding one. vonnie: we will be speaking to icelande minister of during the financial collapse. many people in iceland went to jail. should people in the united states have gone to jail? senator dodd: absolutely. that is one of the great disappointments. we did far more than stabilize banks. i

and god will forgive the currencies that could have the middlemen and banks where there are no banking monopolies and were above all the state no longer has the sole drug of in the creation of money except for option. that it's about more than just catch. your continued loss change technology completely revolutionize large parts of the many many industries that are the looks in your. far from the executive floors of bank skyscrapers the block train revolution has long since begun for example in berlin croyde spec where restaurant owner young plats has been pursuing his vision of a world without banks for more than twenty years he is fighting for an alternative monetary system his weapon is bitcoin a magic and if you want to imagine a superhero currency and say hell with the money work that superman and batman might use you start fantasizing and you've come up with something like that coil good among those of us prescribed of course. bitcoin the money with alleged super powers is used here regularly the smartphone replaces the wallet. as we have it's from well i already have better poin

in bank stocks in italy. our colleagues spoke with the italian prime minister, and he says italy has a potential to grow >> translator: >> i had a positive meeting with blackrock. i'm interested in showing we're serious what we're doing we're making structural reforms. italy needs structural reforms we need to intervene to invest in infrastructure, material and immaterial >> let's get out to willem marx for more on rome we have moved a long way because as the market tallied up some of the pledges from the coalition, initially one of the scenarios is that you would see 7%, and we've come back down to closer to 2%. what do you think the market wants to hear from the coalition? >> the key point is about stability long-term and having clarity over what the budget plans are for the future to be clear, we'll get a target for deposit debt and spending. quite how the mix fits into that one once the budget is released in draft form. not entirely clear we heard yesterday from tria, the finance minister in rome, he talk

adam: the bank has been clear.carney was very judicious after the initial vote, saying we are not going to guarantee which way the bank will go. if it is a negative supply shock, the best thing for the bank to do is not change policy at all. you have to let see -- what people see the reality. -- let people see the reality. on the other hand, if there is panic, if people suddenly freaked out, it goes both ways. , youtina, a selloff raise rates, if it is hurting the economy, you cut raise. anna: a nice place to live that conversation. more from adam shortly. this is bloomberg. ♪ manus: good morning from dubai. this is bloomberg daybreak europe. cap: these are today's stories. manus: em stocks and currencies fall amid renewed concerns about contagion. president macri awaits the u.s. response. oil rebounds. the bti holds at $70 as investors weigh the threat of a major market storm on the gulf coast and rising opec output. budget business. italy's leaders begin discussions on their 2019 spending plans after the deputy p

i hear you guy on deutsche bank. got say done saying i'm not saying we're right but us bank balance sheets are as good as they've been. >> what's the catalyst if we are in a environment or wore the bank should have the best -- they have the best balance sheets, the best conditions in terms of the u.s. economy to operate in and they're still not rallying what is that catalyst what's missing. >> i think people are concerned that banks margins on some level, the core based model is shrinking they are disrupted on measurement levels that's an issue. if you look at profitability margins therefore that's a problem. but i don't know i look at earnings and every time the numbers out of jp morgan for the last three or four kwurs i've been reaffirmed in my view of banks. >> when you say performance. percent goldman sachs is down 12% yoortd. >> goemd has a ditch view thp talking money center banks and they're not -- thaesh not all created the same but looking at the xlf for talking about banks i don't think there is a disaster.

the bank called thing when the crisis struck. ok so this has been called the wall street devised at least it was called before the crisis. and a couple of blocks away is where thing was today it's called. now she works for a federation of icelandic businesses suddenly the ninety percent our banking system collapsed and it happened in only a couple of face we were able to build up the banking system from from the ground and today we have a very strong banking system i think nobody could have imagined how how how the recovery would be and actually looking at these numbers it's unbelievable how fast the recovery has been through i think the economy is roomy thanks to its harbor and its tourism but that doesn't necessarily mean that all of the other thrilling countries can do exactly what i say. because of the economy and the economy is never easy never is so the reason for iceland success and what makes iceland very special is one they had their own currency to this such a small country that they could bail out their own people inst

it was applied to too many banks, too many smaller banks. they have changed that so that it only applies to big banks. the truth is, even the big banks don't really want to change dodd-frank now. they have come to live with it. they have come to accept it. the banks are in a much better position. this is a theological thing with republicans. they think all regulation is that anytime you have a regulation, they call it job killing. our financial system is already too big relative to the economy, too rich, too powerful. the idea that it has to be richer and more power, i think we could do with less financial innovation these days. power, ik we could do with less financial innovation these days. host: our guest, can american capitalism survive? white greed is not good, opportunity is not equal, and fairness will not make us poor. caller: good morning. i wanted to say thank you to mr. perlstein. he is a very good conveyor of this information that a lot of people don't understand. i wanted to mention and see if there are any responses. i know he

it is all very well for the central bank to lend to banks.confidence into the banking system. ationmeant a re-capitaliz of the banking system. either private or public money was put into banks so they wouldn't have to impose a risk to the people. you talk about the straightforward nature of this process. one of the things you spoke about at the time, you talked a rd", andt "moral haza the creation through that process. do you think you wouldn't have said that in hindsight? paraphrases, -- and i am paraphrasing -- said, you just have to get on with this. you must ask yourself, how will the market respond? what will be banks do if we lend them this money? the government does anything, how will people react? you have to think about that in advance, or you will make mistakes. i think we did think through the consequences of what we would do. we followed the traditional banks wouldensuring not have to pay interest rates and then we took security against the lows we made. loans. security for the that is the right way to do it. otherwise, banks will

--e,nnie let's start with my conversation he was the cohead of investment banking at deutsche bank. >> do you recall the moment where you felt -- ? markets, perhaps panic would be a better word. i would say, for me, i will tell you what. small gone through, a >> famously. grexit absolutely. no one was happy. so, the monday after, they were nearly the same. the biggest thing that struck me was not the fact it was insolvency. there was no agreement. of complexole series questions on monday morning that no one had the answers to. >> should it have an saved? should something else have been done? would it have helped? more of an effort, these issues would be dressed. easy to sit in judgment. i have to say. they are the ones that created -- sit here so calmly. you are asking me as a , i would focus in on the money markets. the 16th or the 17th. inwe have the benefit of being >> beforey funded lehman? we had all kinds of issues. lack of stable funding, all of that, the agencies had to be dealt with. all i am saying is for half the reaction time, it would have been slightly more generous. >>

also on the show all eyes are on the turkish central bank as it tries to save the nira. and foster better big the next generation off i phones is unveiled and it's good for your health to. welcome to do business it's the first european central banks meetings thems the summer break today analysts expect the bank to stay on course to curb stimulus amid high inflation and solid growth the e.c.b. will do whatever it takes to save the euro now those were the words of easy v. had mario draghi back in two thousand and twelve when the one thousand member currency block felt the pinch from the global financial crisis triggered by the collapse of lehman brothers so he has a look now at the role of central banks in times of crises. it was a time of reckless lending in the us as long as you weren't a felon chances were you could get a mortgage details like the borrowers ability to pay the loan back didn't seem to matter it was only a question of when subprime mortgages would undermine the system the question was answered on september fifteenth two thousand and eight when investment

in 2008, he was cohead of investment banking at deutsche bank. do you recall the moment when you felt real fear? >> there had been fear all along. when you run markets, fear is a constant companion but perhaps panic might be a better word. i would say it is, for me, lehman. i had gone through a far less systematic or less systemic one. erik: into a room at the new york fed -- anshu: and we walked out of that, no one was petrified. we all felt we had a solution. the monday after didn't feel nearly the same. anshu: the biggest thing that struck me was not the fact that lehman brothers were not going into insolvency, but there was no statement, no agreement, when it came to derivative party risk, there was a whole series of very complex questions that monday morning which no one had the answer to. erik: could or should lehman have been saved? anshu: the decision to keep lehman or not limited around a whole set of factors. every attempt was made. more of an effort perhaps to control the way these issues were going to be addressed. easy to sit in judg

banks, 7.7%.ore than twice what they had on the eve of the crisis, granted, but it is still down from 8.3% in december 2015. some people would argue that by any reasonable measure, this is not enough. edward: and that's right. lots ofe's commentators and policymakers who would like that to be a lot hider. even a percent. there are those -- 8%. those arguing for higher. the calibration is a debate that has not settled yet, because on the one hand, you have the balance safety. more capital would make a bank failure. never -- a big safer. nevertheless, you have to foster an environment where they can continue to be entrepreneurial and innovative in providing banking services without running a horrible risk. it is a difficult balance to drop. investors and the banking system, there are interesting opportunities that came out of this push to have a safer banking system. we look very closely at the capital structure, so bonds with more equity and the scoop on fixed, and there are interesting opportuniti

make you bank yesterday the central bank raised its interest rates very sharply. old showing you all the talk of independence you're well well here you go have your independence and i will see the results of this i met a patient person but my patience has limits. those words initially sent the lira down slightly by their zero point four percent effecting concerns of an escalation in this spot between the turkish president and the country's central bank. but to compare the lira rose five percent against the dollar on thursday following the central bank finance meant that it was raising interest rates. and that wraps up our show thanks for the company of rhetoric of. the amount. of. such. luck. cochabamba. sure linked to news from africa the moral story links to exceptional stories and discussions among us it is easy and i would say definitely comes from the tricks join us on facebook. for guys. here's what's coming up pointlessly so much movement a couple let me get this. legislation here pluto is much like a local but all that means for the taking of pelham. one t

have to retrace the entire payment chain up so that means calling bank after bank after bank to find the answer and once they find some of the answer they have to send that information back across the entire payment chain and this is very timely and cost efficient so what the what the international what the interbank information the arcus trying to do you know the problem i have when you get too many of these are a little racial but you made through you made it through yeah so what they're trying to do right now is that they're trying to make this information into a private network among banks that only they want to have within the network so they're creating a very private ledger in order to stay competitive with the increasing competitive payment landscape ok that's very good now there's really no impact but just a little bit that you're eloquent how you want it but there's really two porsches there so one there is the efficiencies and i think you may have met back a couple years ago when we first met citroen we call her the data wrangler around here what she does at banks and they

banks help dominate global banking as the american banks dominate now?we have differences in terms of landscape. europe, u.s.. countries andl 27 and to have ad more unified framework has taken some years. at times, mirroring what the fed has done here. european banking, u.s. banking, , themarket in the u.s. funding to corporate's is only 20%. in europe, it is the other way around, the funding is coming from the bank, 80%. ,s europe works on trading more i believe it will have the other banking sector. tom: you have spent real time working on the cultural niceties of mergers in banks. is that the impediment to a better european bank, is mergers cannot happen because of culture? jean-yves: culture is a factor. it is broader than this. successful mergers are not only link to culture. their link to the rationale behind the client strategy -- they are linked to the rational behind the client strategy and their linked to reflecting on for any institution in terms of geographical distribution. francine: why do we have so many banks across the world? world is: a

beginning with big banks.hen i came to washington the largest 10 banks held over 50% of the assets held in the banking system. 10 years earlier it had been roughly 10%. today the problem is worse because obviously to get through the night we needed to encourage consolidation. too big to fail is a phenomenon that is definitely not acceptable. dodd-frank,nks to regulators have better tools to deal with the failure of any large financial institution. withstill needs to be done the shadow banking markets, the money market funds, the wholesale lending market, the so-called repo market. when i came to washington fannie and freddie guaranteed or insured roughly half of new mortgages in america. today, well over 90% are assured by the government. today it is worse. find this up all right to even think about keeping fannie or freddie in conservatorship because i think we are sowing the seeds of a future crisis. >> the housing market stirring to life. are we creating a system where citizens are dependent on the governme

the moment but kamil its banks slipped through the digitalisation trend most of their banking business is still conducted in person similar to when the bank was set up and eight hundred seventy. declined an interview on the current situation but here's a past statement from its p.r. archive because it's right on twenty seventeen we went to a bit more digital thanks to our new apps and digital processes private customers can apply for a building alone on the smartphone app and business customers can open an account online but. that's tech team meeting at wired card. the developers are discussing expansion in north america. the company was set up nineteen years ago and says it has around two hundred thirty thousand customers worldwide. the challenge which we face which is a great one is how to offer great solution that can be configurable to multiple customers and as we get in more requirements we're challenged to be even more creative with the solutions that we're coming up with that could mean having a feature that can be configured one way for this cause. mark and then the exact same

the bank for international settlements in basel is the bank for central banks it promotes international monetary co-operation and carries out research and policy analysis its general manager i've seen carstens is dead set against crypto currency . because for me the future. they will replace it quite rightly because they're more efficient faster more transparent and safer. has made millions with bitcoins and distributed ledger technology which he says has revolutionary potential we often book the number of questions starting with will cryptocurrency soon rule the world. you think you have your money in my account you are respecting. the count to preserve its value. and sixty million dollars from the disappeared class manipulation can occur wherever humans and technology are at work in the regular financial system and in crypto currencies online banking a much more vulnerable crypto wallets if that managed right. person says banks are liable for losses incurred through fraud and that in the world of crypto currency there's no safety net the most important usurps or so you were sees are t

banks, what must you think of european banks? a brisk as opposed to the global financial work? i think you would have some potentially very serious issues sellinge when banks are at half of their book value or less. telling you something about the underlying health of those institutions. that indon't recognize assessing their soundness, we make a serious mistake. be risk ofnues to --t years ago was called where banks are holders of they gett debt and called into question that reduces demand for the government debt which raises its yield which makes the bank situation must healthy which makes the government debt harder to rollover. i don't think we have taken those milks -- risks off the table. today isk the legacy in part one of more caution particularly among consumers. secondly, you have seen much better risk management in the regulated banks and the banking system is certainly more stable. i don't think fundamentally, the problems of the economy that were building in the precrisis. have been adequately addressed. the problems

of a bank. for speaking the truth global news that matters g.w. made for mines. more. these is the beauty to honesty theme in. even. china has to be. the. line to. frankfurt. international gateway to the best connection self in road and rail. located in the heart of europe you are connected to the whole world. experience outstanding shopping and dining offers and try our services. be our guest at frankfurt airport city managed by from. national patriots rejecting globalism in fighting iranian sponsored terror the world according to donald trump today for the second year in a row the us president touted his america first policy at the united nations his praise for a pay as you go live and let live world order that was expected the u.n. delegates and world leaders laugh.

in our government provide support to banks, it is not for the benefit of banks. it is for the businesses and families who depend on banks. it is for the benefit of the country. government support has to come with strong conditions to protect the taxpayer and transparency that allows the american people to see the impact of those investments. we believe in our policies -- that our policies must be designed to leverage private capital, not discourage private capital. when government investment is necessary, it should be replaced with private capital as soon as that is possible. we believe that the united states have to send a clear and consistent message that we will act to prevent a catastrophic failure of financial institutions that would damage the broader economy. guided by these principles, we will replace the current program with a new financial stability plan designed to stabilize and repair the financial system and support the flow of credit that is necessary for recovery. this new financial plan will take a comprehensive approach, the department of the tre

banks in fact, u.s. banks have created shareholder return for the last ten years since the crisis in europe the book value has been flat for ten years. you get the dividends but you don't get any book value per share growth it's 3%, 4%. that's very attractive over to 17 times leverage. so you need to bring in returns higher at this point we're still higher u.s. over europe by exporting out more of europe and however you offer some risk but turkey which in the short term can have a bit of a negative impact on european banks, but what i have to say is the book value is starting to grow in european banks every year and we will get to the double digit 10% quarter shareholder return by 2020 because european banks have cleaned up their balance sheets, regulation's out of the way and litigation is coming to an end. >> you mentioned turkey there. a lot of the more unsettling moments have involved turkey and its troubled economy i want to ask you, there are of course, you know, a number of european banks exposure

activity bond central banks -- by central banks. that may not be the case over the next six months to nine months. generally speaking, the currencies will remain under pressure. it is the big dollar. the big dollar, there is a magnet to the dollar now. the under performance of china versus the s&p. i mean, the world continues to follow a lot of u.s. stocks. nejra: we kept talking about the strong dollar all year, luca, but you can see the rallies kind of stalled since the end of june. of course it showed certain select e.m. currencies, but overall, the bloomberg dollar index not doing a whole lot since the end of june. with weighted and move from here -- which way does it move from here? luca: i believe the rally in the dollar is difficult, the u.s. was doing much better, and the fed was moving. it cannot go much higher. i see some indication that europe and japan will actually get better. the dollar is very expensive. i really feel that also the fact that some signals, neither were soft, but i think we should be a little more cauti

now you know mark carney who were veterans from those banks. so we actually have career civil servants manning the regulatory positions we're never going to have a situation where there is going to be too cozy relationship between the financial services sector and the regulatory. thank you well now to go through some of the week's papers is the u.k. prime minister trades amaze old home of his colleague norman baker who's david cameron as a minister of state building thanks for coming back on we're going to go to lehman brothers in a second but obviously with two more liberal democrat all of them conference i got to ask you as a house member to the other week will you be becoming the next leader of the democrats and sits with lloyd george and with him to had since that action when liechtenstein wouldn't so well cock up us all forward and also the prime minister your old colleague at the home office was we going to be covering it later in the show said parliamentarians should not be appearing on this channel because you risk becoming a propaganda

is there a real need for the world bank anymore? dr.don't think they need our capital, but they need our advice, and they certainly need the capital in the form we can provide it. in a middle income country, if we can provide them a 25-30 year loan at 2.5% or 3%, there are not many middle income countries that can go to the capital markets themselves and get a loan. and they will also not get one where we come in and say, we will give you this loan, whether for a particular project, or we give it right to the government budget, but then the government has to make policy changes. there are are few organizations that will come to them and say we will not charge you and try to get the after work. we are coming in and will give you the benefit of our experience and the experience of our client countries all over the world. we will give you 10 experiences in this world and how this problem that you are trying to solve was solved. and we will bring the people who know those cases, and as part of the loan, we will provide that to you for free.