many u.s. banks seemed willing to lend to anyone regardless of whether they had the means to repay those loans things came to a head in the spring of two thousand and seven when record numbers of people defaulted on those loans. at the beginning of april new century a real estate investment trust filed for bankruptcy it had been a major issue or of subprime mortgages. next to face the music was german corporate bank i k b on july twenty seventh after running into funding problems it received a bailout from the german state development bank k f w. then on august ninth the mortgage crisis hit financial markets as more people defaulted on their loans banks and investors began losing money banks lost trust in each other worried that they wouldn't get their money back this fear was reflected in a rise in interbank lending rates. on the twenty first of january two thousand and eight germany's stock exchange lost seven percent in value the biggest drop since nine eleven in the days afterwards the u.s. fed l

are these the problems that make you prefer u.s. banks over european banks? banks andrefer u.s.rgest u.s. bank position 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

u.s. banking system ten years on from the crisis well the u.s. banking system is much healthier as is the u.s. economy the next threat is going to come from a very different quarter and it's going to if it's a very different nature than what struck the world in two thousand and eight it has to do with publicly held debt both in the united states and europe and that is the next mid-term threat to the world economy and the results could be every bit as catastrophic and perhaps even more so than what happened in two thousand and eight well it's it's good that you mention that because the global date has the deed ballooned over the past decade largely of course thanks to low interest rates old measures that central banks around the world took following the last crisis u.s. debt stood at more than twenty one trillion dollars this summer which is a record when is the next bubble going to best. well it's hard to tell but let's that's hard to know exactly but let's look at some of the forces involved since two thousand and eight in absolute terms as well

an interesting report from the mckinsey global institute that looks at how u.s. banksfared over the past 10 years since the crisis. a lot better than eurozone counterparts were generally there has been a retrenchment by eurozone banks. there are a number of issues. i think equity and dexter's -- equity investors are looking for areas of attractiveness in markets despite the varied market things we've seen through the course of this year. vonnie: you mentioned banks retrenching, do you think this is temporary or permanent? would you sell them in order to buy u.s. banks instead? neil: i think it's got little to do with brexit. the mckinsey report, an interesting read. a number of factors related to eu regulations. some of the factors of nonperforming loans resulted in eurozone banks curving the landing as one of the reasons why german banks were outside eu activities back in 2007 have been reduced drastically. things can change around. there is no doubt and i think that at some stage european banks can return to international bank lending .ctivity they got a lot of groun

bank a day after it hiked interest rates so there are slips again. i'm christopher hill and good to have you with us on september fifteenth two thousand and eight u.s. investment bank lehman brothers filed for bankruptcy the event everyone from u.s. investors to the spanish property owners running for cover twenty five thousand lehman brothers bankers found themselves out of work overnight the number was a dry and but not too big to fail lehman had become so walton mortgage origination that it was basically a real estate hedge fund disguised as an investment washington wasn't willing to save the financial institution although it did save others. now in the aftermath of the lehman brothers collapse the then u.s. administration introduced stricter banking regulations known as the dot frank wall street reform and consumer protection act president donald trump has long been a critic of frank back in may you scrap some of the rules for small and medium that many on wall street want the deregulation to go even further critics say racing restrictions on bags could prompt the next financial crisis. so let's go now to the heart of darkness were it all began i

u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor angela merkel and then finance minister patched on book had this message for savers. bizarre telling savers that their deposits are safe the shows and an attempt to avoid a run on the banks of. what began as a us subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the us economy contracted by almost three percent and the german economy shrunk by five percent. well back to the present time now and the c.e.o. of amazon jeff bezos on his wife mackenzie basis have launched a two billion dollar fund for charity it will help homeless families and create a network of kindergartens in the low income communities bezos is among the world's richest people his net worth has risen by more than sixty billion dollars this year alone a founder of amazon faces criticism many feel that his company

the former ecb president took notify u.s. banksined a competitive advantage over the european counterparts. >> there is a big domination of the investment banking in new york and in the u.s. in particular. which is very paradoxical. it was born at the epicenter the crisis which was as grave as the 29, 30's and the 20th century. it was born in the u.s.. but you have to get in mind is there is a big structural difference between the u.s. and europe. in the u.s. at the moment of the crisis, the final thing of the u.s. economy was banks with only 25% of the final scene and markets with 75%. it was exactly the reverse in europe. 25 for the market, 75% of the final for the banks. that is the first explanation. it was much more costly in terms of gdp that was the case in the united states of america. there are many reasons for those differences. one important reason is the existence of freddie mac and fannie mae which we mentioned previously on your screen. that explains why a fairly large part of the financing of the economy comes out of

matt: white house the u.s. banks been so quick to recover and are now doing -- why have the u.s. recover and are now doing so well, while european banks still have difficulty posting profits and are trading at 0.3% book value? why are your pain -- european banks doing so poorly compared to u.s. banks? obert: the european economy is doing poorly relative to the united states. i am not denying there has been a recovery. but it hasin 2009, been patchy and lopsided. the lopsided nature of the recovery are the seeds of the next crisis. incomes have not been going up. productivity has been stagnating. there has been a lot of lost production. that has led to huge political upheaval in europe and the united states. you are in a fragile, insecure situation. more thanes me much the fact that you have a certain section of the economy doing well. they always do well before the end. after everyonet is really optimistic and things are going well. anna: is anyone listening to that argument? eurozone, we hear arguments that they need to consolidate because they are still dealing with a of these

if you are more kim's servant is on the health of u.s. banksopean banks, and what kind of risk with that posed to the global financial world? have some you potentially very's serious issues in europe win banks are selling half of their book value , that is telling you something about the underlying health of those institutions. don't recognize that in assessing their soundness, i think we make a serious mistake. i think there continues to be ago was due years mainly in europe, where banks or , thers of government debt banks get called into question and that reduces demand for government debt, which makes the bank situation less healthy, which in turn makes the government debt harder to roll over. i don't think it means taking this risks off the table. ♪ i think that legacy today is one of caution, particularly among consumers in a lot of areas and less so on the part of corporations. i think secondly, you have seen much better risk management in the regulated banks and that the banking system is certainly more stable. but i don't think, fundame

because european banks can't do that, and then maybe we could see the u.s. banksy up these european banks. >> european banks can do it, they are doing it. you just need some support out of brussels. you need a consolidated single market with respect to capital markets. you need an underlying environment which is supportive of continental banking, rather than country specific taking. -- banking. i suspect non-european institutions will continue to pick up market shares. competition will provide better services for clients here. guy: we are 10 years on, coming up to the 15th of september, from lehman brothers. is the system safer now? you have talked about balance sheets. i'm going to paraphrase something i read a couple days ago. how much has really changed in the last 10 years? have $3 trillion in additional bank capital. we have a significant additional amount of liquidity in short-term and medium-term. leverage levels have been slashed. we have stress tests. the system is different. given the stress tests we have wen in the u.s. and others, can withstand a signi

u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. because we're telling savers that their deposits are safe the show isn't an attempt to avoid a run on the banks. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contract by almost three percent and the german economy shrunk by five percent. and for more on that i'm joined now by my colleague last hired to who was a correspondent on wall street for the u.n. all of this happened so tell me what was it like that particular day the ominous september the fifteenth two thousand and eight how did you experience it well i think i was a shocking day really even though times had already been pretty rough markets were down there were a little shaky we knew about problems

you have geographical diversity is, european banks, u.s. banks, etc. for investors, an interesting opportunities that to look at investing across bank capital structures as a result of banks trying to be more secure with the ratios. investorstt, are better at assessing risk now than they were previously? scott: are they better? i think there has been a renewed focus since the financial crisis on credit work of individual institutions, right? so there is a lot of work that was spent on analyzing individual banks downs sheets and being very selective about the names that you buy. there are obviously a lot of products that are indexed products that give you a little bit of every single name, but what i think one of the lessons from lehman brothers is you need and deep do wide investing, which is to look across the opportunities set, and when you find something, really drill down into the actual credit quality of the investment. i think that has been more pervasive across the investment environment, but again, you know, you can still get swept up by invest

what about a comparison between european banks and the u.s. counterparts do you feel like they're undervalued at the moment? >> the valuation difference between euro area banks, it will take all of europe, sweden, u.k., you're talking about 10% we're still overweight u.s. over europe the reason why is because we see total shareholder return of over 10% every year in u.s. 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

one of the main reasons for this current crisis of cryptocurrency it comes from goldman sachs the u.s. bank actually decided to drop plans to start a trading desk on crypto currencies and vendor really got those coins going south just within twenty four hours or so within two trading sessions so to speak were down by about twelve percent and. another group of currency got hit even harder by about twenty percent just within twenty four hours so there were times when many said cryptocurrency is rather next big thing in finance are they still saying that. well the high of paris already vanished quite a bit different look back pretty much a year ago because for example stood at about four thousand dollars apiece and then they went almost up to twenty thousand by christmas and then the hype started to fade and now we are good six thousand dollars so the hype is to a certain degree over but that does not mean necessarily at the end of two cryptocurrency some of the big changes here in the united states are also working and trying out ways how to deal with crypto currency and so it's not the end b

federal regulators say citizenship is not required to get an ou get a u.s. bank account. all you need is name, date of birth, address. >>> the pastor who offd aretha franklin's funeral is apologizing to ariana grande for a haug that was extraordinary i touchy. you can see her leaning back and welcome to the xfinity store. thanks, janet. it's my happy place. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. president and former first lady. you )re watching george w. bush slip a piece of candy to michelle obama at senator john mccain )s memorial. bush and michelle obama share an you are watching george w. bush slip a piece of candy to obama.e he only slipped her one candy. michelle obama shared an unlikely friendship, and t

they have traditionally been in lossesor not suffering the u.s. bankshave in the past. >> where we sing the interest from? right now, looking purely on the message boards. there is a lot of interest. if it is anything like the big frenzy, we will find out it is a lot of young men with data on bitcoin and bitcoin related stuff. is interesting is we seem to have stepped in this news fate -- new phase. even as till roy is getting , the association is still a kingmaker for other stocks. what are the biggest traded stocks right now? aurora, the three big ones. and the etf's. ,ne thing i found interesting there has been a negative correlation. itself, investors are rotating between saying that kind of crazy growth and thinking everything will catch up and grow just as much. >> great to have you with us. thank you for that. you can catch all of our interviews on the bloomberg with the function tv . you can save some of your favorites. this is bloomberg. ♪ xfinity mobile is a new wireless network designed to save you money. even when you've got serious bing

conservative more on the health of u.s. 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

it has been tough for european banks compared to u.s. bankse have been sectors that have not done well, but what happens if there is another crisis? if emerging markets slump and saw into a contagion we 1997, do global central banks have the leeway to absorb even more? bob: i think the interesting haveion is do we widespread systemic risks in the global economy at the moment, and to what extent is contagion risk a concern to us? my argument is if you look at 2008 -- and inhe hindsight it is easy to say the build up to the crisis started in 2006 -- but if you look at the issues that drove that theis, and compare it with global economy today, there are serious pockets of problems today, whether it be the brazilian fiscal deficit, or the turkish current account deficit, or the argentine macro situation, which is very problematic, and they are getting help from the imf at the moment. economic and political problems as opposed to this global systemic problem that we have in 2008. i recognize that, it is an easy statement to say in hindsight, but if

banks have been resilient. they have only gone from 5-4 in number the same however is not true outside the u.s. there were 13 banks over $100 million in 2007. there are now eight. it has fallen to 1.3 trillion. there were eight banks over $100 billion in 2007 today only one of that size exists that's hsbc. what about the workings of the banks themselves returns fell from a precrisis average. higher capital levels weighing those down they are now back to double digits the average last quarter was 12%. it was that costs are down dramatically particularly in the last five years thanks to closing branches and using technology to drive efficiencies big u.s. banks are doing pretty well certainly relative to europe >> the j.p. number you put out there is kind of eye popping >> yes before the crisis about 180 billion now close to 390 billion. so almost doubling if you think about the big u.s. banks today bank of america are the global and most of the europeans having to focus on spe specialities so u.s. banks have come out much stronger than the others be sure to catch the documentary crisis on wall st

u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. ocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister pash work had this message for savers. telling savers that their deposits are safe. and attempt to avoid a run on the banks because. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contracted by almost three percent and the german economy shrunk by five percent. economists young peter khan joins us from frankfurt now apart from the toxic securities which everyone knows about in which a lot of people actually put their trust in the whole crisis sounds like it was caused by simply a lack of trust. well that's absolutely true and in such a crisis we always have to expect that financial institutions among each other move the trust why because it is so all park what is in their portfolios what about the trus

we had that unexpected move from bank 24%.h given that turkey is still dealing with fundamental for possible more sanctions from the u.s. that diplomatic spat is not resolved. it is going along without the international monetary fund. go far to shore up confidence. turkeyreal problem in apart from the central bank, it shows they are semiindependent erdogan's attitude. difficult for it borrowers who borrowed so from turkey and foreign countries. the real fallout is the private sector in borrowing which i've seen in 1994 and 2001. in each case, they decided they go to the international monetary fund. erdogan said he will not do it. i think the problem in turkey is term.ort it's longer term. that's true in argentina. this play out? we'll talk more about the lessons learned 10 years after lehman. in term of how this process was streeto play out, wall bank and u.s. economy and then in europe.t crisis third act was meant to stem from emerging market crises. crises will come from a messy unwinding of pines debt. playing out in that manner? >> as i said, you know because discussed it before, the let their debt to gdp go up 300

>> the u.s. banksll capitalized, well managed, they are in the most competitive market in the world. the key risk factor for an international bank in the united states is to be targeted to be targeted with your clients, to be targeted with your product offering and to look where your added value is you stayed well, we have grown organically, diversified platform, retail, wholesale. retail brings the steadiness of revenues to deposits and our activity is covering u.s. corporate clients, institutionally domestically and as well as anybody else in the product suite we have, but also supporting them outside of the united states, 77 countries, three main regions it's been good to us the transatlantic dynamic, taking european clients, or the transpacific clients deep into the u.s. market has been successful >> why invest here when we've seen so many banks in europe, we note names, deutsche bank shrinking, some bigger french banks have pulled back, why go the other way than other banks in europe? >> two main

u.s. bankthe opening bell in 90 seconds. a lot working for the bulls today, as we look at a potential record high, the dow getting even closer. data looks good, philly fed and claims, as we had, 201,000 for the week, dollar lowest against the euro since july, a lot of bullish commentary including the cat upgrade. >> the dollar is very good news. oracle reported the order day, talking about how a strong dollar has hurt them if that dollars keeps the trajectory that you mentioned, it is going to be able to say, listen, you can raise numbers. >> the other element for the upgrade is a lot of businesses are not late cycle yell in their view. >> yes that was a very bullish piece. the stock is cheap because the multiples have been compressed, because people believe that china will hurt them >>> there's the opening bell at the big board today it is nasdaq, tlc honoring advocates who work to prevent bullying b you have a says they'll hang in there. >> if that happens, the stock will be much more. it sel

the retail business in germany is not a high-margin business, unlike the u.s. banks. u are competing with those banks, it is difficult to make money on that. they are too reliant on the capital markets business. fixed income oriented. they are good in certain parts of the world, but this is a management team that has tried almost every trick in the book. the only choice is sort of continue to shrink. of peoplear a lot calling for consolidation of the banking sector, but i spoke to someone this morning with a different view, a professor in the u.k. he talked about how the banking system 10 years after lehman would be safer. he is not calling for further consolidation. is there another view against that group think that says we have consolidation and bigger banks in europe? >> no. that ifmake an argument the pricing were different, you could have a lot of small capital markets, then risktakers could take risk and it could blow up and it would not have an impact. that is a long time ago. in the banking world, scale remains the issue. a lot of these banks are just too larg

we are seeing u.s. banks on the move higher today. that is as we also see the yield on that 10-year treasury above 3%, 3.07 at last -- check. the nasdaq is working slightly. we are seeing it pick up a little bit us beat, a third of her percent to the downside. microsoft, amazon are weaker on the session today. trade remains a focus but this is may less conviction in either direction. shery: still watching the nafta talks but also the trade headlines when it comes to the u.s. and china. at is affecting what the currencies are doing. .e just heard the chinese say the chinese will not do value and weaponize its currency. though you want gaining ground against the dollar. it's been stronger this entire week. the chinese premier saying devaluation will do more harm than good to china's economy. remember, the yuan very important now because global markets are facing rising interest rates, strengthening dollar, serving as sort of an anchor for where emerging economies are going to go, especially when we will see more volatility in the curren

this bank, hamilton says, will benefit not only financial interests, but will benefit the country, the public. how will it benefit the public? because the u.s. treasury will deposit money in the bank coming in from taxes and the treasury can borrow money from the bank. it has a 20-year charter but lots of opponents. the chief opponent, thomas jefferson hates the bank. the bank, jefferson believes, is an imperils american liberty by elevating to power a wealthy financial elite. jefferson opposes it. jefferson comes to power in 1800, the first banks charter expires, but one year later, a war iraq with britain. a very expensive war -- a war erupts with britain, a very extensive war. thomas jefferson charters a second bank of the united states and this bank, much like the first, also will have a 20-year charter. this charter will run out in 1836 and presumably, congress and the president, in good faith, will renew the charter. so there you have it. after the bank is chartered, you will recall from the last lecture, the panic in 1819 explodes. this massive bubble and western land speculation caused largely by the bank and the new bank currency.

u.s. bank - the power of possible.but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back to "the halftime report. i'm jackie deangelis, this is futures now. watching crude oil falling slightly as the president tweeted about oil prices earlier. president trump saying, quote, the opec monopoly must get prices down now. this commentary comes ahead, of course, of the opec and allies meeting, including russia in algeria this weekend anthony, let's start with you. oil going lower from here? >> you know, jackie, i think it is i'll tell you, this is all about iran, this story right now let me tell you a quick story about iran they had a tanker that left port with 2 million barrels of oi

up of the lehman collapse had been so extreme that deutsche bank ended up paying seventeen billion dollars in fines and settlements in the u.s. the bank that had joined the party late had to learn the hard way that the party had been a bad one and been a bad one and is still reeling from it of course and now there are reports amongst others in in the wall street journal that china's sovereign wealth fund is interested in buying a stake in torture just very briefly what's that about. well the story is that age and a the large chinese conglomerate owns seven point six percent in the bank shares is forced in china to reduce the risk in its balance sheet and that's why there are those reports that chinese financial conglomerates state ones state over. ones have contacted and h. and i in order to be able to take over that large share back all right so another interesting chapter they're opening frankfurt think is the. the c.e.o. of amazon jeff bezos i'm just live mccance the basis of launched a two billion dollar fund for charity it will help homeless families and create a network of kindergartens in the no income communities bez

u.s. bank the power of possible. lemonade! i'll take a cup! i got this kids. one cup of lemonade.ime to pack up. let's go kids. thank you! nfl sunday ticket. get every live game, every sunday at no extra charge when you switch to directv. more for your thing. that's our thing. call 1.800.directv. >> al: opening night in philadelphia. nick foles, a little over 50. eight catches, only 34 yards, averaging four yards per reception. >> cris: they are staying with that rpo. now one of the things the falconwanted to do to it is toe take away ants.ne ckers have done a nice job there. deep down the field. one-on-one and broken up at the 2 yard line. intended for mike wallace and

u.s. banks on just valuation in terms of earning power are great. n is if something is happening -- >> then piece of the market overall. there is not precedent for equities going higher when financials slump. >> banks do not show up in the quarter or month it's health care, industrials, technology, those are the sectors performing so when you are waiting for this bounce that might never come, tim started off the segment talking about european banks that's only another headwind to avoid banks. >> we had the conversation so many times and i think that there's been not extraordinary moves to the banks but we have seen the rotation multiple times. yes they underperform but we are talking about one or two%. if i look at nine or 12 month period it's not that dramatic. i hear you guy on deutsche bank. but if we 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 i

this was to prove problematic those top american banks were by now completely entangles in the u.s. mortgage markets but fundamental cracks have begun to appear in the system not all homeowners could actually make their mortgage payments. chris roebuck is a british economist he was advised to major global banks and held senior roles at u.b.s. and h.s.b.c. it was possible for you to get a mortgage not by presenting any evidence of your earnings or talk but by mewing telling the person who was offering you the mortgage how much you were earning so there was no evidence actually. the any of the people had mortgages could actually afford them. but to investment bankers these people were making the money and banks had even extended their loans to what would term to stop prime borrowers things of borrowers who would not get credit in normal types but the banks realized that so much money can actually go out and they have credit to these bottles. on a larger problem was brewing and no one was anticipating it. in any society there are going to be some people who lose their jobs and compact b

u.s. there were 13 banks outside of the u.s. 2007 there are now eight. and the total market cap has fallen from $1.8 trillion. to $1.3 trillion but china's resilience and canada's growth hide europe's plight there were eight banks over $100 billion in 2007. today only one remains hsbc remains in that size. what about the workings of the banks themselves balance sheets are much stronger thanks to stronger oversight and regulation more on that topic tomorrow. returns plummeted post-crisis from a pre-crisis peak of around 15% r.o.e. weighing down r.o.e.s since the crisis but they're now back to double digits the average last quarter was 12%. the saving grace for that recovery in returns is that costs are down dramatically. particularly in the last five years thanks to closing of branches and using technology to drive efficiencies for all the scares ten years ago, the big u.s. banks are doing remarkably well. certainly relative to europe >> thanks, wilf. >>> joining us now with a look at how wall street missed the signs of a coming

the u.s. bank actually decided to drop plans to start the trading desk on crypto currencies, and that really got those coins going south just within 24 hours. within two trading sessions, bitcoins were down 12%. another crypto currency got hit even harder by about 20% within 24 hours. christoph: there are times when many said crypto currencies are the next big thing in finance. are they still saying that? jens: if we look back pretty much a year ago, bitcoinins stod at $4000 apiece. then they went almost $20,000 by christmas. then the hyepe started to fade and we are at a good $6,000. the hype is to a certain degree over, but that does not mean the end of crypto currencies. they are trying out ways to deal with crypto currencies. it is not the end, but the hype has finished quite a bit in the past couple months already. christoph: bitcoin and other currencies under pressure. jens korte reporting from wall street. back to brent and some very dedicated activists. brent: we will take you to western ge

relationships with u.s. banks. at the end of the day, they are finding it necessary to ultimately leader trade in u.s. dollars. but it is the maintenance of those correspondent banking size that is our best line of defense notnsure that we maintain just a degree of transparency and visibility in the transactions in africa, but also for the effect of the sanctions regime, but further to ensure that anti-money-laundering standards are being implemented. in of our big concerns come line with chinese actions, not just in africa, but around the debt, are very opaque focused infrastructure transactions that were not clear that some of the countries involved really understand the financial risks downstream of what they are committing to. so transparency in lending is another issue. chain, as withck all innovative technologies, there will be -- they will be a great force for good and a couple getting factor for the regime's we haven't race. distributed leisure technology will revenues -- distributed ledger technology will

that we'd have an investment bank just go down overnight and it basically scared everybody in the financial world to death right then so what basically saved them it was the u.s. federal reserve it was the federal reserve that stepped in. to actually keep the economy going because the situation that you outlined was a such as that none of the banks trusted each other and nobody. everybody was saying what sort of toxic assets do you have somewhere in your basement that that might actually have you go under and so i'm not going to give you any money or any more but if there's no money if there's no liquidity economies don't work so that's when the fed stepped in and eventually the european central bank stepped in to keep the financial system to keep economies essentially afloat and that's what the what the c.b.s. been doing up to this day even though they're now scaling back on these on these programs. begs the question you know a decade is a long time but do they get it's not and have we learned our lessons i mean could could something like lehman brothers could something like that happen again well financial crises happen over time they will reoccur obviously

canadian banks are larger than u.s. banks. 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. if

u.s. investment bank lehman brothers in paris protesters gathered in front of a bank to blast investment policies and tax avoidance schemes activists also protested in frankfurt financial district they say international banking practices have not been adequately reformed since the two thousand and eight financial crisis . here in germany chancellor angela merkel's conservative allies in bavaria the c.s.u. have held a one day congress in munich to discuss strategy ahead of a key bridge to make sure in the state next month polls show the party could be heading towards its result in more than sixty years as voters defect to other parties including the far right of d. the popularity of the party is due to hosts who is also germany's interior minister drops to an all time low after he clashed with america on a number of issues including migration. it's meant to be a sheriff unity christine social union had her say hoffa and the very end probably at. their intended.

the largest u.s. bank. we have to keep that in mind that that's not going to deter us.ct a lot of diversified activities. in very specific discussions with the banks to drill down into the particular account holders that are north korea and related roles and we have made some pretty good progress on most lines. >> if we are going to bring the north korea conflictea to an end peacefullyee, we need all people at the table and we can't have china and russia saying we're not goingor to play anymore and will supply north korea with these products. if are not using those tools in our arsenal, thisrs is going too down in history five years fromn now boasts a president trump did wis and also failed attempt. we dos want to do that. we want this to come to an end. but would it take to put more pressure on them are doing to put more pressure on the treasury or the executive branch. >> we are going after entities on a weekly basis. today's action a mention on the slave labor. >> could you please speak into the micropho

u.s. banking industry went through this kind of thing and it continued with wells fargo. it is not over.ees are not transparent in australia to customers, what are they supposed to do? i think maybe the reason the market said it is not very serious is because of an attitude like that. they can do what they want and move on. andrew: that's the thing, the regulators have not proven that they brought enough wherewithal to want to change. ,hey just said, well, look, yes some of these are fairly isolated and have only affected a small minority. here, we have some people who are claiming, well, we probably charged fees for deceased people, but how many people as that actually affected? i think that is partially what came into this. people are certainly kept in the dark in terms of what information they have access to and how much they are able to actually determine, well, who do i get her -- get a better deal if i shaft around. here is a lacknd of competition in the banking sector. of allare very confused the different products. the productivity report here called it similar products. kathleen