germany where the leading bank in europe's largest economy has shrunk to that of a small lender deutsche bank is worth only fifteen billion euros less than other banks in europe even smaller than credit suisse and new credit deutsche bank's market capitalization is only a quarter of santander's and that little white line down at the very very bottom there compared to the green line which is santander. you know it's much smaller than those banks smaller than harlem savings bank on one hundred forty fifth street this thing is puny this thing is to me this thing is shrinking it's incredible shrinking bank why well it's run by a profit it's charlatans like to make incredible loans out to folks that can never pay back and watch their entire bank disappear into the ether one has to ask a question of like if it's only worth fifteen billion euros why aren't you know activists hedge funds and people looking to break it up like if they're truly in the actually one and a half trillion dollar derivatives book is worth anything. wouldn't that be worth more than fifteen billion euros shouldn't it like isn'

. >>> and is deutsche bank too big to fail? ies about the biggest bank in europe that stock down almost 50% in a year chris whalen is here with what you need to know autbo one of the world's most important companies. ♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. >>> well, it is not just about the stock market today also happening today is a tribute to our 41st president. thousands are expected to pay their final respects to former president george herbert walker bush he is lying in state at the u.s. capitol. that's a live loo

. >> deutsche bank is said to be considering a major shakeup in its top ranks. es as regulators are expressing frustration with the firm's efforts to prevent financial crime. bloomberg has learned that the bank's chief regulatory officer patrick, who runs u.s. y leave the mak company, but any final decision has yet to be made. do regulars think deutsche bank is not on top of the issues? -- do regulators think deutsche bank is not on top of the issues? >> i think so, and this is serving as the second ceo that had previously been associated with the associations of the bank and still have struggled to regain the confidence of regulators, they are still not shown to be making significant progress in tackling the prevention of crime. in particular, it has been reprimanded for its failings and not preventing money laundering, for example, both by u.s. regulators and german regulators. >> prosecutors in germany have raided deutsche bank's offices in a money laundering investigation the bank -- investigation. the bank headquarters in frankfurt has been searched today. w

do regulators think deutsche bank is not on top of the issues? nk so, and this is serving as the second ceo that had previously been associated with the associations of the bank and still have struggled to regain the confidence of regulators, they are still not shown to be making significant progress in tackling the prevention of crime. in particular, it has been reprimanded for its failings and not preventing money laundering, for example, both by u.s. regulators and german regulators. >> prosecutors in germany have raided deutsche bank's offices in a money laundering investigation. the bank headquarters in frankfurt has been searched today. what do we know about this investigation the scale of it, and how serious it could be for deutsche bank? >> what we know is that police officers were deployed, about 170 law enforcement officials who rated six different locations, including a private home. one suspect in the raid felt the scale of the operation was quite big. what it means for deutsche bank is hard to say. obviously, everything that sort of s

guy: deutsche bank bank and bank, two worst performing stock necessary europe from the banking sector, re we going to see consolidation in the european banking space next year? it is certainly possible, what we reported, the german active in became more preparing groundwork for potential merger. going to it is happen, but they want to be in a can ion, if they need to, step in quickly to make sure that happens. of course, even if that were to triggered by defensive move, it would still have knock-on competitors, you could see a situation in which for defensive reasons and triggers consolidation or bigger reject the industry. guy: thank you. us on the ing european banking space, worst performing sector in europe this year. first word news with courtney donohe. in the overnment is midst of a partial shutdown. stoppage and no vote scheduled until democrats take control of the house on 3rd.ry president trump is staying in washington over the holiday weekend and cancelled his florida.rip to russian foreign minister lavrov hoping to receive clarification from the u.s. regarding upcoming with

found guilty the banks could face fines of up to ten percent of their annual worldwide revenue as cross over to our man of frankfurt stock exchange. another potential scandal there for deutsche house the bank holding up. not very well the share of tumbled when that news came course the share also affected by what the fed decided and how it explains it's a policy for the next year but the deutsche bank clearly the biggest loser in this market yesterday dropping to just seven year zero seven zero zero and a loss of at the same time seven percent when i look at the board today it's a seven year olds and five cents and that's meager plus of about a half a percent and colleague quit yesterday for seven year olds you can't even get a pizza here and frankfurt and so the deutsche bank still is in trouble because of this thing even though it says proactively it's working together with the cold the commission in this affair and does not expect to be penalized for that reason right or maybe pizza margherita just came to mind as a as the minimum option there but it's been a tough year window which is there any silver lining on the horizon. well there is one silver lining of good news fr

why deutsche bank?> because the evidence continues to mount about the fact they have any vehicle for money laundering. w have seen many casese in the u.s., now we are seeing them around the world. of course, the german government raided their offices. so without it was time to take a look at this, especially since the senate banking committee has looked into potential changes to the bank secrecy laws and anti-money laundering laws, so we should figure out what does not work and what does work. deutsche bank would be very illuminating as an example. david: we have a justice of our own, authorities that normally pursue these things, and not to lead the witness, but is there concern on your part that deutsche bank's relationships with the trump organization may pull back on the normal enforcement proceedings? >> yes, i am worried about that. i have written previously to deutsche bank on that very issue. we have not gotten a response from deutsche bank. i asked of them questions about that relationship for

discussion but deutsche bank guy is down already 507%. >> we're waiting for a headline. >> what headline the biggest bank in. >> are people people- are they merge with commerce bank cnbc.com, god op-eds it's not going down until there is a headline, until there is an event. same with ge. >> okay. but. >> ge continuing by the way. >> we need to get back to where we started this question ultimately is gets back to is the market on an even more difficult path because of what washington is doing? my answer to that is no. obviously that's -- to it that's notwithstanding a mueller investigation that frankly i'm not going to try to end cap. >> i think that there is much more to this whole story because obviously if more comes out, tim, that is absolutely going a direct effect on the market. >> i can't handicap that. >> do not want -- it's -- ienl going to say something i may regret i'm not making the watergate comparisons. but there are people making the comparison and if you are on that side of the political spectrum. >> toughdy for the market. >> the market fell 50% over two years. a

to tighten the allegations alone are enough to weaken an already embattled bank shares in deutsche acingto their lowest levels ever on friday but the bank was quick to present its view of events uganda and i love eleven we believed that we provided all relevant information to the authorities regarding the panama paper case of course will now cooperate closely with the public prosecutor's office in frankfurt it's also in our interest that the facts in question are quickly and entirely cleared up. attention will now turn to doj has boss questions even he's only been in a top job since april but he's been at the bank for decades and already faces the challenge of reversing years of losses now it'll be up to him to address accusations that hasn't only been mismanaged but involved in far shady or potentially criminal business. form a major by a is planning to cut around twelve thousand jobs over the next three years that's a tenth of its workforce according to the company the move will help it focus on its core activities but that's not the only reason for it. two months after the german comp

deutsche bank, authorities saying to push them together. what does it mean for banking in europe?ink it is a necessary deal that it is not sufficient to allow me to become bullish about european banks. if you are astem, bankser, the commercial have to support them. that is that a cocktail in my view encouraging long-term banking profitability. i see the european banks along way behind in terms of profitability, cost control. jpmorgan. what about italian banks? thisve had italy offering budget deficit target. you could call it a piece gesture. would you be a buyer of italian banks? >> i am not. i don't think we are over the worst. problemshat macron's to diffuse problems with the yellow vests is going to give him a budget deficit. if we get rattled about the italians, what is the market going to make of the french efforts? germany's growth under pressure. you want to reduce european pressure overall? >> i see excellent long-term value. if you wanted to go to a bank, i would go to santander. it would make a lot of money in the years ahead. thank you so much. cio there and has braved

bank and commerzbank. bankw us live in deutsche -- we saw a slight in deutsche bank share prices. let's return to what is happening in the united kingdom and here at westminster. theresa may facing a confidence vote from her own party. we at the moment find a result in a situation where we think she is likely to win that. we are trying to figure out what it means for brexit. to answer those questions we are joined by a bloomberg political correspondent. when i look at what happened in the house of commons earlier, she sounded well supported by her tory colleagues. is the expectation that she does win this? what will that self? >> the expectation is that she will when it even from those vote against her. i talked to one mp presented don't believe a word anyone says, it is a secret ballot. they will go in there and knife her in private. but everyone seems to think she will win it, and then the question is what does when it comfortably look like. if she were to win two thirds of 's footing00 mp against her. in a normal circumstances you would say that is awful. in these circumstances

we will hear from deutsche bank. initials of interview with the ceo of alix partners. his take on the restructuring auto sector.the and in the next hour, we will hear from under armour's ceo and coo as the company unveils a new growth plan. we are covering brexit and we .ave the irish finance minister taylor: we are coming off the highs of the day. earlier this morning we looked like we could be up over half of 1%. coming off of that and the nasdaq sort of underperforming the broader indices. the stocks earlier were the big .erformers about there is not a lot of conviction in the markets and these big intraday swings are hurting some of the confidence that investors are having in the market. friday we took a big dip and we have not been able to recover any of that given the volatility that we have been seeing. speaking of conviction, ge having their best move since april 2015, one of the biggest bears on the street. j.p. morgan upgraded it to neutral, saying that a lot of the known unknowns are starting to work themselves out and are becoming more constructive on ge. a

and this about your way should lead to this is sufficient that deutsche bank was helping clients set up so-called offshore companies in tax savings. and from their money is said to have flowed to georgia bank without the bank reporting any suspicion of money laundering us the bank. and saga started out the allegations alone are enough to weaken an already embattled bank shares in deutsche acing to their lowest levels ever on friday the bank was quick to present its view of events uganda and i love eleven we believed that we provided all relevant information to the authorities regarding the panama paper case of course will now cooperate closely with the public prosecutor's office in frankfurt it's also in our interest that the facts in question are quickly and entirely cleared up . attention will now turn to deutsche as boss question saving he's only been in the top job since april but he's been at the bank for decades and already faces the challenge of reversing years of losses now it'll be up to him to address accusations that hasn't only been mismanaged but involved in far shady or

up to speed on what happened over the weekend we got a joint statement from the prosecutor and deutsche banke very quickly and also working on getting more evidence and that the bank is fully cooperating with the authorities. that is probably a very good sign because back in 2012 the banks did not fully comply with the authorities, didn't cooperate very well and that made things even worse so as it stands now, they're backing the two employees in question saying until proven otherwise he deems them to be innocent looking at the details of what's happened inside deutsche bank, the transactions apparently were sold already by deutsche bank but nevertheless there is a huge amount of suspicion that this money laundering has taken place. what happens next is not clear yet when it comes to legal processes, but what is quite clear, that this is, again, a blow to the reputation of deutsche bank and some analysts are already saying that the prof profitability target for 2019 for a return on equity of 4% are highly in danger because in that environment the question is how can you grow revenue, how can

next, we are going to talk about the buildings behind deutsche bank. government is set to be intensifying at -- efforts to fix the troubled lender. it looks like they are considering a merger with a german owned bank. this is bloomberg. ♪ >> welcome back. we are 44 minutes into the trading day. one bank over in germany has gained 10% in the last two sessions. that is deutsche bank. the german government is said to be intensified effort to merge it with commerzbank. those moves, really interesting to watch. there are record lows over and over again. various ceos try different solutions. joining us to discuss all of this is the bloomberg german bank reporter. what is the government now planning to do? the government is really taking steps to help deutsche bank as well. they are making changes to the tax code that will make it easier for deutsche bank to merge. it is preliminary and exploratory but a sign that the german government is interested in this. good morning to you. it is exploratory. what can it really mean for the markets? the market is seeing

that is as deutsche bank headlines hit the market.ght here, those snapshots give you an idea of how much news there was to trade on in terms of macro news and idiosyncratic risk that investors are diving into and taking advantage of. that is a look at european markets are in romaine: -- vonnie: the trade in europe informing u.s. markets but news out of china it may change its made in china 2025 vision as well as other peripheral items. the s&p 500 has slowed down a little bit at 1.4%. united rentals giving a great outlook for next year. not anticipated as a best performer. trading up 11% from its ideal price. the dollar index is a little generally strong above 97 as we had a couple of days of weakness from sterling. area bouncing back will see how it trades into the asia hours. crude, we got inventories today and it is up 1.6% rallying on the fact that we are seeing another drawdown this week for crude oil inventories. the tenure yield, 2.90%. a couple of other stories out there, literally looking at those in the next few days includi

deutsche bank and danske bank arm of the biggest losers. he ranks of the world's leading merger advisors while deutsche dropped out of the top 10. after a year which saw crashing valuations and a heavy dose of pessimism,ybe even are the days in a better place for 2019? joining us now from london to discuss is jonathan. because we are focused on going with thend dance go scandal, let's start with european banks. are they better off now that new lows this year of in legal fees and turning revenues? jonathan: in terms of our starting point for 2019, we are trading less than eight times one your forward. ear forward. --ske and the entertainmen anti-money-laundering. i would much better be where we are. somewhere where catalyst are more difficult identify. matt: are they european banks in a worse position than u.s. banks? positive still more expectations for the u.s. economy next year, plus, you have a higher interest rate environment. animal spirit just seem stronger. jonathan: yes. the biggest problem is interest income. across europe, you look

deutsche bank is up. they've been in focus over the last couple of weeks with the latest money laundering scandal hitting the tape it's interesting to see if they get a bounce alongside the rest of this space. a positive start to trade. >> certainly much needed in the financial sector u.s. financials are down 5% for the week this week, they got hit. >>> our other top story, the federal reserve is considering a new wait and see approach after its december meeting the "wall street journal" claims that while officials still believe rates will rise in the short-term, they're becoming less sure of the pace or the magnitude of future hikes. cnbc spoke with several major figures yesterday about the fed's path towards normalization. >> i think getting to 2, 2.25%, i've had confidence we should be moving along i think at this stage you're going to hear me be much more cautious and counsel patience. i think there's more uncertainty. global growth is decelerating. i'm seeing some interest rate-sensitive sectors show

is deutsche bank's material, and they are much more likely to fear being held in contempt by a congressionalite house is. as many people may remember in the 1990s, many banks, american banks, refused to do business with the trump organization. trump took his business to deutsche bank. the nature of that relationship has been the subject of controversy and deutsche bank has been fined for money laundering, playly f particular russians. there is smoke there. whether there is any fire, we'll see. >> okay. i think there are two things to look for, putting aside sort of a power to force the administration to do anything, it is getting others, third parties, to cooperate with subpoenas, especially folks who have an incentive to cooperate. bar banks who don't want to take on congress, other individuals, that's where trump has the most potential damage. >> like michael cohen. michael cohen has said he will testify before congress. that will be quite a show. >> particularly if it is an open hearing. to jeff's earlier point, the red line that the president, you know, stated for the mueller investigati

deutsche bank is a different issue. >> >> yes, it is, but not really goldman, deutsche bank have a discountd in their valuation because you're not sure about what you're going to read in the newspaper tomorrow you don't have that with the mainstream lenders the domestic lenders that's why a bank corp at the high this year was 2 1/2 times book that's a rich evaluation, but you won't get surprised with them the way you may get surprised by an investment bank that has all the noise that goes with that type of a business >> do you think the market is overreacting to the 1mdb scandal for goldman sachs? >> in a certain sense yes. but i'm a little concerned because i think that both, you know, dave salomon, now the ceo, and lloyd flank finblankfein, bf them may have to exit as part of the settlement process, the reparations with the government of malaysia. they made some strong accusations against the firm as an investment banker these are not the kind of operational risk issues that the regulators in the u.s. or globally want to see. when they see this kind of breakdown in internal systems and co

where are we with deutsche bank? so close to having a six handle on deutsche bank.lender is trading down by circa 7% as we speak. we are watching this carefully. i mentioned volume. let's look at the function on the bloomberg tracking volume through the day. this is the stoxx 600, blue line is down, trading significantly above. volume high through the selloff process today. that is a look at the european markets. vonnie: announcement from the press secretary that the president has called republican leadership is a spooking markets here. 9/10, the dow jones down of 1%, lingering after the fomc statement yesterday. 2.7% on the 10 year yield. not massive. dollar index, we are back where we were. decline, continues to well below $46 and holding. global macro movers, we see the impact of lower oil price on movers including the russian ruble. down 1.5% today, trading below $70, most of the indices performing among g20 are in europe. the nikkei down to point a percent. -- 2.8%. guy: let's get a take. paul, the managing editor for fx joining us. walk us through your percept

with the commission still have a week for it but not just for the deutsche bank for shares in general because the docs had a two year low now with the bad sentiment in the stock market and the dax down for the week. two and a half percent only bounce in frankfurt thank you very much. and that's all for me folds diana far from his yeah thanks for keeping me company in the twenty eight scene and c o n twenty nine hundred albums will be interesting christopher coke will have the next business update in rob about forty five minutes but stay focus on europe is next on the gulf just off the top of world markets by. rescuing sea horses in greece. off the greek insulin of khaki to keep their lives a colony of tiny sea creatures that are threatened by ghost nets lost or discarded fishing nets. no volunteers are retrieving the nets and helping to preserve the sea horses marine habitat. next d.w. . twenty nineteen come to. the starting whistle she's about to send the premier event of asian football. have a look see identified the favorites. coaches players fans up close personal. like twenty nin

deutsche bank. well certainly the e.u. projects could ultimately be that it might not even be bragg said and all that sort of crazy stuff going on in the u.k. but and it might not even be italy or greece or spain or of france falling apart it could be germany and going to bank good morning from germany where the leading bank in europe's largest economy has shrunk to that of a small lender deutsche bank is worth only fifteen billion euro less than other banks in europe even smaller.

this is probably one reason why some of the democrats want to look into deutsche bank in particular. ould say another thing, that is elizabeth warren wants to run for president in 2020, only thing that american people know about el elizabeth warren e abo absolutely hates banks, there have been stories out this administration had a more cooperative attitude regulation wise with banking industry than obama administration, i am warren will be hot on heels of regulators to take a tougher stance, get her name out there with that. >> the case during wells fargo hearings, i remember she asked chairman sloan, do you want to step down, at that point, that is tell straight -- telestrating how tough she's to get on banking. the wells fargos of the world, other who are considered add actors they see pinching the average consumer. david: what about connection that presumed change of house financial committee with banks herself, remember heathe her hud was a shareholder of a bank helped out during financial crisis of 2008, and she made a special effort with treasury secretary back then to make sure

the whole thing is once again, weighing on the sentiment towards deutsche bank. aredobably depress the price for longer. the bank cannot focus on its turn around. only thing he can do is they will take the necessary steps to make sure it is not happening again. probably maybe he has to remove some people in management to aow the market there's change. consideringoment the week it had last week. thank you so much. with me here is brian weinstein investmenttanley management. my question for you is on the ecb front. the ecb.s at what are you thinking? >> i think he's hoping it goes away. they want these programs intercept to wind down the programs. japan, the fed doesn't want to go this alone. it will be great for the global in europe canth -- enough.ou have he has to be worried. you have problem in italy that in banks.r at the end of the day we think banks done the right thing. to growth,it comes around 50.g right do you buy btbs here? news is in the price. the trade was easy for a long got difficultit again. you're still in that difficult stage. it's very hard to h

we talked about deutsche bank deutsche bank shares down from nineteen to nine in the year so down ten bucks and even volkswagen thirty three dollars at the beginning of the year down to seventeen dollars now the footsie remain in london remain just a little bit up as despite a lot of that negative news about g.d.p. growth under the various brecht's at scenarios and in colombia matter of fact in all of south america colombia vest but and even the buenos aires exchange vaal which we don't talk about all the time all up just a little bit and in toronto the t.s.a. x. was up a little bit but down on the year and nasdaq and the n.y.s.e. indexes nasdaq still just a little bit up on the year up on the week a little bit up on the year and why. see up this week and actually down on the year that statement this week by fed chair jay powell just yesterday really move markets up a little bit we'll see what the rest of the year holds and that's our weekly global market round up time now for a quick break but hang here because when we return we'll talk while prices and the price of crude in the

particularly in citi there is some deutsche bank or beyond deutsche bank sort of credit question. but to me i think that all of the bad news is in them already. it's a terrible tape i understand that. but to me it comes down to valuation. that's what i look at first. look at pe jp morgan for example, the premiere jp morgan to me is trading cheap to the market which banks always do but also very, very cheap to itself that's really important, right they still make money. all right. the companies still make money that's why i want to own them. i think they continue to make money. the economy is not falling off a cliff. they will continue to make money. the last thing i like, dan hates them right. so dan has been right given that guy too also been right. you're obviously not positive on the banks. >> but the xlf from the election -- the xlf up 90% now up 50% when you say they priced in bad news they are still pricing in a little bit more rosiness we have got now divided government so the that's where you started off saying there might be a little bit of regulation going the opposite w

sources close to the case say they now believe deutsche bank participated in moving a total of one hundred eighty one billion euros or two hundred six billion dollars in allegedly illicit transaction the news that deutsche is already waning stock price pushing it down to record lows deutsche as chief financial officer appeared on the u.s. cable network c n b c to say quote today we are not aware of any wrongdoing on our part the c.f.o. as boilerplate denial seems. likely to be challenged by new revelations as you so called panama are spader's scandal which we told you about last time is set to linger over deutsche and others for quite some time. within the past two trading days the price of bitcoin has dropped about three hundred dollars us around six percent other key kryptos like a theory of east and stellar have dropped even more ten percent that means a capitalization of crip those was followed by roughly six billion dollars we've seen a downward trend this year but is the hurt over or is there more to come here and talk more is our friend the co-founder of counterpart x christiane a c

i'm interested in getting a look at deutsche bank reports as it relates to the trump organization. i think it would reveal a lot about whether or not -- and we don't know there -- whether or not deutsche bank was laundering money. remember, deutsche bank was lending him money in the '90s when no other bank would touch him. >> a long-standing relationship. with regard to following the money, we have trump's former lawyer placing the candidate, then candidate trump at the center of the conspiracy to influence the election by directing hush money payments. the president, as you know, has repeatedly denied that. do you support house investigations on possible impeachable offenses, or do you think more evidence is needed. >> i've always maintained impeachment is the end of the process, not the beginning, so let's take a step back and see where we're at 18 months into this. an amazing amount of work has been done. i don't know how many dozens of people have been indicted. four prison terms have been meted out. what we have before us is the fact that the president is an unindicted co-cons

and just weeks ago a raid on deutsche bank's frankfurt offices part of a german investigation into money laundering in tax havens. the specter of yet another inquiry up the pressure on deutsche as c.e.o. christian saving investors have applauded his moves to return the bank to profitability but there's a feeling saving is saddled by the mistakes of his predecessors. and there's still other concerns about the u.s. congress the house of representatives could push for georgia to disclose details on donald trump's accounts there democrats assume control in january just one more worry for an already beleaguered institution. that's. fine for. what does that mean for the. well you know the loss of reputation in the bank is translated on the financial markets loss in value bank shares so far this year have lost already around about half of their value this week we've seen another record low of banks share price the problem is really that all those allegations of the negative news sort of is piling up so that it's very difficult to distinguish which ones of the allegations are really here to stay

deutsche bank is in a vicious cycle of high expenses and falling revenue.a hong kong listed company fell for the second day, 10% over two days, when it resumed trade following a critical report from a short seller. allegations about its financial health are groundless, they say, and it is considering legal action. it is a chinese manufacturer of personal hygiene products and dropped almost 6% when trading was halted at its request on wednesday. have a look at that. as we head into the lunch break, other things we are following this thursday. going to be very busy, to say the least. rishaad: particularly in europe. david: how many in europe do we have here? forgot about this. markets doing well, much better than at the start of the session. as you can see, a 50 futures in china seeing some upside. u.s. futures also feeling a tailwind from these expectations that china's central committee -- the state council comes out with something tangible from the work planning meeting on the economy. rishaad: the ecb is the big one out of the six interest rate decisions.

the under performance has been horrendous, not a goldman sacks or a deutsch bank but headlines out ofames like those, you're going to see the bad move into the ugly category. city bank is the one i want to focus on they are focussed on valuation, but the thing acts down right horrible down about 20% from its 52-week highs. look at that chart right there 60 bucks, where it just bounced off seems like an important level. goes through that in early 2019. you're going to have a stock in the low 50s. you have a five-year chart what's important to me, look at how it's come back to the prior breakout level from 2017 this is a group that was supposed to benefit from deregulation, and they're not the doing it they're telling you something about how i think how the economy is going to be in 2019 so listen, it's a simple trade look to december expiration. that's going to catch the next fed meeting. i think you focus on citi group, a move back to 60. when the stock was trading today at 6475 you could buy the december 64, spread for a dollar that breaks even at 63 bucks $1 is your max risk between

the german government will not let deutsche bank fail. es, we will change some roles. staying with banks. it has been a brutal to much for andasset managers, thanks. the conversation a couple of weeks ago was like market selloff, flatter yield curve, and our ports that i am actually worried. this is a dangerous selloff in banks. priya: i think it is a bunch of things. growth slowdown will be extremely negative for banks. credit losses pick up. and the flat curve comes in the pressure. a lot of bank cfos brought up deposit data. at what point does money leave deposits ago to treasury bills? it's a positive real rate. if that happens banks will have to stop deposits. even and a strong economy it starts compressing. i am a little worried about with happening with the fed bank sheet. as that is happening reserves are shrinking. some banks are having to pay out increasingly more and more to get those reserves. another issue. and alsoh aspect bank-specific issues with the flat yield curve and having to pay more for reserves, it is ultimately a h