to be the world's most destructive bank and that is in part the pure destruction over the past ten or5 years deutsche bank has been at the center to manipulate interest rates or currencies and evading taxes to violate sanctions laundering money, ripping off governments and i can go on. bad bank. >> what about new management? they are cleaned house several times in the past ten years. the guy who has been at deutsche bank 30 years i have met him. he seems serious the bank is shrinking and trying to turn over a new leaf and said late last year as he announced the latest turnaround and have made a ton of mistakes were going back to our roots and be like we were in the olden days and to brush up on their history. >> one more question. >> my question is it is obvious deutsche bank played an integral role to help them get back on their feet financially as you have alluded to but don junior as we have seen on television when asked a question years ago how did your father get back on his feet financially for these banks were turning him down? he foolishly said we get our money from the russia

the bank of doing its part. we are here in westminster because we are waiting for the government to do what it plans to do around coronavirus. we will get the elements later on. we have banks on what they are doing with mortgages. businesses will be interested in what is coming from fiscal and monetary action. we will look at your stocks to watch. slide $1avirus may billion off its revenue. bloomberg radio is also available to you on your mobile in the london area. this is bloomberg. ♪ anna: welcome back to the european open. -- 12 just 10 minutes minutes past 7:00 in the u.k. 50 or so minutes into the start of the trading. the surprisere of rate cut by the bank of england. taking off interest rates in u.k. by the bank of england. no surprise that we see rate cuts coming. the timing of the surprise on the day that we were expecting to hear from the government around the fiscal policy, also get that monetary policy boost. this is what we are doing for the pound. the pound is weaker as a result of this. we will kee

the poison gas. you know this. deutsche bank was the company that conducted the area nations of the jewish owned businesses all over europe as germany conquered those countries and stopped lending at the local banks to help jews get out of the companies and took the role that the not seas had taken and then provide the nazis with hard currency. but in fairness to the bank this is what large german companies were doing to survive at the time so it is not unique that it has done something evil. it is clearly a party to genocide and i think it has been easy for the bank with the ben if one --dash many decades a way to explain that away but the reality is we don't know for a fact they knew what was happening inside auschwitz or what the gas would be used for or what they were selling and is stemple i think we can apply a reasonable standard looking back to say come on. >> one of the board members of the chemical company basically was the ceo of deutsche bank. so if he didn't know, he had to know something i don't approve of it. but

the core banking system than the recent stress tests run by the bank of england have shown the systems demonstrated that banks would be able to continue to lend to households and businesses even while absorbing the effects of substantial and a prolonged economic downturn in both the uk and the global economy as well as falls in asset prices much larger than experienced in re ce nt much larger than experienced in recent weeks. the release of the countercyclical capital buffer will support up to £190 billion of bank lending to businesses. that is equivalent to 13 times banks' net lending to businesses in 2019. so together with the new term funding scheme, this means that banks should not face obstacles to supplying credit to the uk economy. the fpc will continue to monitor closely the response of banks to these measures and the credit conditions faced by uk households and businesses more generally. turning to the prudential regulation committee, the release of the countercyclical buffer also reinforces the expectation of the fpc and the prc that all elements of banks' capital and liquid

what will the bank of england do? what is clear from all of this is that the government and the central banks are working much more closely together. the use case has been an example of that. we have seen coordinated action from the bank of england, mainly the rate moves from the bank, the latest of which came after thursday, when they cut rates to announced $200 billion in q.v.. qe. really they are ready to act if is needed. we could potentially hear more about options they are considering as well as how they are thinking, how it could impact inflation. a supportive environment for long end gilt? speaking, we have used the rising yields we saw as an opportunity to buy back gilt. the 10 year sector looks cheap. since then they have ran it back. the bank of england announcement last thursday. the backdrop is still very much bullish. you have the government ramping up and saying it will do whatever it takes to support the economy. you also have the same comments coming through on the banking and governor. broadly speaki

the bank of canada following the u.s.ays coming into trade this morning with half a percent at the coronavirus darkens the economic outlook. officials are saying they would act again to reduce rates if necessary. let's check on the major averages. we are seeing a boost in equities today do and no small part to some health care stops rallying impassively on the fact that joe biden showed strongly in super tuesday. mr. street, no fan of sanders and his health care plans, where he and what pressure that would have on private insurers. the dow art -- the dow up 800 points. s&p up almost 3% as well. some moves in the chipmaker names. about a china exposure in the coronavirus, it seems ,nvestors -- the 10 year yield 1% for the first time on the heels of the fed making rate cuts. lows. at record our central bank today moving in-stat with the u.s. federal reserve cutting by half a percentage point. our economists think there is more to come on the bank of canada as g-7 countries react to what is going on. vonnie: the canadian hou

solutions of the problem a bank. of the problem is a profitable we have said that in opera statement yesterday also so naturally you have to give time to the bank to the management to you know take whatever steps. need to take. because of the uncertain future shares of yes bank plunged more than 70 percent during trading hours wiping out around $1000000000.00 euros of market value in a single day it's the biggest fall ever of an indian blue chip stock. yes or no bank let's go to both kind of rally krishnan who joins us from delhi for the new side scroll rohan could you tell us whether or not depositors should be panicking right now. broadly speaking that both of our fine yesterday had so there's a bank of india which is the banking regulator showed everyone that everything would be taken care of nobody would lose money from it if there were counselors and today that of the bank and the finance minister of what's open about it reconstruction plan a draft that would see essentially the state back of a debt coming in res

scharf over and over again how he wants to fix the bank. mr. scharf and his plan launched a plan that looks good on paper. we hold him accountable for executing that plan. in fact, his stockholders will hold him accountable for that plan. the regulators, the justice will hold him accountable for executing that plan. in fact, the regulars of the justice department of an extremely aggressive on wells fargo. they continue to hear from them on whether or not mr. scharf plans and we expect them to stay engaged. i look forward to this hearing today, scharf and hopefully our members will know what you're doing to prepare for your massive footprint to protect their safety. how you will protect the safety and status of your institution given what's happening in the marketplace and the fears we have in the reaction and the impact that my consumers, my constituents will have with changes in credit card, mortgages and other things. with that, madam chair i'd like to introduce for documents into the record and these are to allow supervisory information and t

tom: on the banks but not talking about the swiss banks. rest rates and credit issues are problem. the energy sector may come under pressure. right now it is not a problem but the credit spread is widening, telling you there is a threat. francine: do we understand supply chains? i am not talking about china which had a heads up of the supply chain. europe and other parts of the world that could be affected? jonathan: do companies understand their supply chains? extraordinarily well. in the last two to three weeks, investors went from this is a supply-chain problem to this is a local demand problem if you see businesses shut down on a rolling basis or lack of travel. think that the issue right now is how much of a direct gdp or sales is it, and that is concentrated in a couple of industries. investor,as an equity every day for five companies are retracting guidance because they don't know what happens. how do you know where to put your money? jonathan: if you look at the economic data, you are getting readings that told you what happened in f

the bank merger review modernization act to stop the rubber stamping of bank mergers. etween 2006 and 2017, the fed reviewed 3000 bank merger applications. it approved all of them. as banks get larger and larger they become more difficult to manage as i am sure you will experience. to regulate and enforce existing rules. they risk becoming too big to fail and put our entire economy at risk. this invaders all of us but especially working class families like the ones that i represent in chicago and part of the suburbs. after the 2008 crash. dozens of my friends, neighbors and constituents, were foreclosed on. we sold, my parents too flat. the impact of the greed wiped out more than half of the wolf that black americans owned in our country. we cannot let that happen again. my bill requires consumer financial protection bureau approval of mergers. it requires regulators to evaluate systemic risk factors of a proposed merger. it requires disclosure of discussions between institutions and regulators that go on before the merger is filed. and more, we need this bill so that w

the money. is not going to. be able to. yes bank has a high level of bad loans and not enough capital to cover the losses putting the bank at risk of default that's why the central bank decided to place yes bank under a moratorium and is now working on a merger or takeover naturally a market based. solutions of the problem a bank lead investor of led resolution of the problem is already refundable we have said that in office statement yesterday also so naturally you have to give time to the bank to the management to you know take whatever steps they need to take. because of the uncertain future shares of yes bank plunged more than 70 percent during trading hours wiping out around $1000000000.00 euros of market value in a single day it's the biggest fall ever of an indian blue chip stocks. yes or no bank let's go to both had been kind of run a krishnan who joins us from delhi from the new site scroll rohan could you tell us whether or not depositors should be panicking right now. broadly speaking to both of our fine yesterday itself

bank. you've been through one of the most difficult problems that a bank's been through in the last decade. what do you have to teach? what would you say to other bank board members or other perspective bank board members that what would you do in the situation. something thrust on you nothing you designed, what lessons have you learned? mr. quigley? >> there is no question that the communications with regulators who have significant presence and timely and you have to be aggressive in your terms of follow-up. when it terms amtrak comes to noting that there needs to be changed in the culture you have to be assertive to make sure in fact that occurs. that might mean you have to make substantial changes in the leadership team, including at the top. i acknowledge that in my six years at the bank i have worked for four ceos. >> quickly to go into that, there's actually something i wanted to ask about is your relationship with regulators. in my 12 years on the bank board, other than the bank examination report is the bank would yield every 18 months, that was the only interaction i ever had with

the bank of england has announced an emergency cut in interest rates for the first time since the bankingof 2008, to help the economy cope with the effects of coronavirus. the bank has also promised billions of pounds of extra lending will be made available to firms. the bank of england has reduced rates from 0.75% to 0.25%, citing the increased risk to the economy. the announcement came just hours before the chancellor is due to deliver his first budget. rishi sunak will pledge to help the uk battle the impact of the coronavirus, saying the nhs will get "whatever resources it needs" to manage the outbreak. he is also expected to announce measures to help small businesses and the self—employed, as well as an increase in infrastructure spending. the health minister nadine dorries has become the first member of the government to test positive for the virus and is self—isolating at home. last week, she attended a downing street reception hosted by the prime minister. health officials are urgently trying to establish how far the virus may have spread within government. and with the number of

>> no it is not the language the large bank of the world. >> no are is a large bank in north america? no >> we are not. >> so not the united states i'm guessing? >> no congressman. >> of the banks of a larger handle with such magnitude. about how many? >> i'm not aware of another bank that had such issues. there are large banks that have done a good job and it is fair to say wells fargo's problems are unique and you are trying to get to the point where they are able to operate fairly smoothly and honestly despite being large? >> we've not been run the way we should be run and our culture is not what it should be but it is possible to change those things and possible to run the company well. >> appreciate that and thank you for being here and i want to make an observation. looking through the majority's report it has been helpful and i appreciate the work they put into it. i was going to point out we had the head of the occ last month and one of the themes was there was mismanagement going on and he was doing the bidding of the trump administration. a report that this committee put out

brian is the chairman, the man at bank of america. highly respected. everybody in this room is at the highest level. brian, please. >> thank you, mr. president. thank you for bringing us together. the ceos of the large banks here want you to know that we're -- because of all the work done on the capital, liquidity and as we look forward to uncertainty due to the virus and oil price changes, we're very strongly capitalized. most importantly, we're doing what we do best, which is helping our teammates importantly but also our clients and our small business customers to continue to have access to credit. all of us are providing relief to any customer that has an issue of being out of work because of the virus. and we can tell you that up until, you know, the last couple of weeks, the activity has been very strong and i think it's still strong. we're seeing people spend money. small business loans are continuing to grow. auto loans are growing. mortgage loans are strong. but we're well capitalized. we're here to help small businesses and medium-sized busine

i am less concerned about the u.s. banks. definitely looking pretty solid right now, but europe -- is that still the same case? tobias: yeah, i do believe that banks are well capitalized broadly, but there are some weak banks, you know, in many countries. the weaker banks might get hit by the slowing economy. the g7 so we have meeting by telephone, pittsburgh was supposed to be the meeting the marketss, and are going to be looking something coordinated out of the g7. what should the g7 do? tobias: well, i cannot really comment on what the g7 should be doing. vonnie: well, let us ask you then about other countries in europe, and i and thinking about the ones that maybe do not have the have to of the developed of thees -- the heft developed countries. what does europe do, now that there is going to be an obvious ripple effect and they were in turmoil anyway from things like trade negotiations and every other geopolitical debate that is out there? tobias: absolutely. many countries are hit by numerous shocks. financial condition

this mass panic and a run on the banks the government say the magic word bailout fiscal relief lots of words but it's the same thing the government pulls money out of thin air the money presses and gives it to the banks so that they can keep paying investors it's all pretend play they just simulating that everything's fine by printing ridiculous amounts of money and passing it back and forth between each other the real economy the factories in the businesses these guys are in quarantine and shut down but the entire point of this little show is temporary live this illusion has to work for a little while weeks months to allow the economy to recover to prevent the banks from going bankrupt and recalling all this debt to help these guys get back on their feet and start paying their debts back you don't need to be a new to the economist or an economist to realize how how fickle how fragile this illusion is the collapse of the markets is a clear. very profound statement the entire investment community which is not the small people who have a few shares i'm talking about the people who man

so did the cfpb ever reject the bank's submissions? >> i don't remember receiving -- >> the answer is yes. the answer is yes. they rejected -- there's never been a submission to the cfpb that was fully accepted. >> we have never received non-objection from the cfpb on the consent orders that were committed. >> non-objection? >> that was the regulatory term. >> sure. so there were deficiencies in the quality of submissions, is that correct? material deficiencies is the term. the answer is yes. >> yes. >> okay. did the occ ever reject the bank's submissions? again, the answer is yes. herein lies the problem. when the board and the board chair cannot answer this question, that under the consent orders with the federal government, that the board had a requirement to review these plans, i am asking you a very basic question. i was going to -- my hope was that i could get to my point here. and you won't even answer yes when it was clear that the board decision here, that there are material deficiencies from every one of your regulators and th

we are getting breaking news out of germany, the banks, some of the money they could tap on. taylor: this is interesting. germany is going to let banks -- weathering the virus impact in washington, d.c., where we are getting a lot of discussion. the fed was going to start to ease some of the capital buffers as well, potentially some of the u.s. banks. we know again this is not a financial crisis, this is more of an exhaustion us shock. so letting the banks perhaps ease up on some of these roles to make sure they can get loans out to people who need them, certainly perhaps a smart idea. ofncine: yeah, i think a lot policymakers are just worried over what is essentially a health crisis that will turn into a financial crisis as they are trying to give loans and credit to small businesses that need it. i am looking forward to an interview with the treasury people in charge in the u.k. about the stimulus they put out yesterday let's get to first word news in new york city with viviana hurtado. viviana: we begin with the trump administration pushing a one point $2 trillion stimulus

then put the money back into the bank this is obviously simplifying things but you get the gist of it it's a cycle it all works great while it works but then something unforeseen happens like a mortgage crisis or a pandemic virus clubs and pubs are to be closed along with theatres museums do sports and similar establishments and retailers with specific sanctions. now is the time to take extra steps we are ordering the suspension of all retail activities with the exception of groceries pharmacies and other outlets selling fancy goods that suddenly mass shut down quarantine factories businesses come to a standstill people lose jobs stop paying mortgages suddenly people aren't paying the banks back and the investors the markets your pension manager they start panicking that is their money stuck potentially lost they see the news pandemic they call the bank they say they want their money but pull my money out of the markets out of the dow jones out of b.p. out of up all the markets crash but the banks don't have it here is where the government step in before this mass panic and a run on t

>> the weakening the bank. endangering the nation because you're too big to fail, in order to enrich the management by keeping the stock price up. no discussions of that since this epidemic arose? >> the design of the stress test on capitol are to include the effects of unforeseen effects? >> once you have one unforeseen effect, that it's much more likely that you will end up with several, once he planned for one or two or three, but you have one, one in four increases. you already have one. you are saying this coronavirus, you never thought about doing anything diminish the payments to shareholders. i joined the federal reserve in 2008. i'm aware of the risk to banking. >> i know what it looks like. i know once it starts how difficult it is. >> i know how difficult capital is, and how difficult liquidity is. >> you know these things that wasn't somewhat amused by white colleague, the wells fargo would come back to the committee, i'm amused because you both have designed from the report as of last sunday. >> you

bank. you've been through one of the most difficult problems that a bank's been through in the last decade. what do you have to teach? what would you say to other bank board members or other perspective bank board members that what would you do in the situation. something thrust on you nothing you designed, what lessons have you learned? mr. quigley? >> there is no question that the communications with regulators who have significant presence and timely and you have to be aggressive in your terms of follow-up. when it terms amtrak comes to noting that there needs to be changed in the culture you have to be assertive to make sure in fact that occurs. that might mean you have to make substantial changes in the leadership team, including at the top. i acknowledge that in my six years at the bank i have worked for four ceos. >> quickly to go into that, there's actually something i wanted to ask about is your relationship with regulators. in my 12 years on the bank board, other than the bank examination report is the bank would yield every 18 months, that was the only interaction i ever had with

i would argue that the other central banks around the world should provide liquidity to the banks, but they will also get on the route, the ecb has already what you needith at the end of the day. but i think what must be emphasized, it really should be coordinated. from here, there is discussion in the market again and again of whether we are entering a currency war. this is a bad sign. he central banks have to get together and talk with one voice in these instruments that are particularly useful for their economies. guy: bridges are being burned. all the president has done in the united states is have a go at the fed. bridges have been burned between the white house and the fed as a result of trump's actions. europe can't get its act together. i'm not being funny, but we had 10 years since the financial crisis, more than 10 years, and we still find ourselves in a situation where the banking union is not done. all kinds of other aspects of the eurozone that need fixing are not sorted out. here we are with another crisis, and you have to wonder at one point -- at what point the ecb runs

in the dish a distance into effect bank and give his the primary victims were the banks not any private individuals bank and just the banks of his help and he won't flush the screws that i do have a guilty conscience just wish this was what we did was wrong can see a walk the floor i'm low quite high and then crash and it's all my fault which is a lie and mine if i can't blame anyone else will give me. but most of all of the course and i'm sorry about how this affected my family because i'd made them feel miserable subject aside. from. being. me. that is quite as simple as it seems. to understand the world better we need to take a closer look at. the experience knowledge to morrow teaches. the time to be diligent. on the road with our superheroes my mission is clear kushti good and me closely should explore germany. they dive in and check everything out there's a lot going on in their local. pub germany tried and tested again. in 60 minutes on. how does a virus spread. why do we panic and when we'll all miss them. just through the tax from cover and the weekly radio show is called spect

as treasury has done with the bank of england ‘s where the bank of england ‘s where the governmentdefaults on those loans and those banks are not going to lend to. do you think a recession across europe, in fact across the world, is inevitable? i think the risks arising very rapidly. the best case, until recently, was the impact would be felt in the first half of the year. that's demand is going to be delayed but not destroyed and it will rebound in the second half. but now, the worst—case scenario is becoming the best case which is that demand is going to be destroyed as the global corporate profit cycle colla pses global corporate profit cycle collapses which would lead to rising bankruptcies, cutbacks on investment spending, consumption and basically destruction of demand. so at your work, what you think your clients right now amidst all of this? what are we saying to clients? it is wait and see. hold your breath. hold your breath. this is the best case but be aware of the worst case scenario. if you want to invest anywhere really, you're going to be looking at china. really? ye

as a customer, i've been a customer of the bank for 40 years. i've had some of those issues in my own accounts. so i want to see the company right its ship and just do good. last thing is a softball i want to give you and that is if you are sitting up here, and you've got coronavirus, and you see small business potential victims as a recession. tourism industry, hospitality, and you couple that with this fight between russia and saudi arabia on oil, if you were sitting up here as a member of congress on the financial services committee thinking that a recession is potential, what should we be looking for in the financial sector generally to help stem off something that will get worse? >> congressman i would certainly look and ask the question what are the banks doing in order to do what they can to support all the individuals that are affected by this? we do not know how far it will go but we know it is significant. we know that there are things that we can do to help the individuals both at our own companies, the consumers who are our clients bu

the move follows similar cuts last week by other central banks including the federal reserve and bankapan. it comes as the chancellor is expected to announce further measures to support growth and jobs in the budget later, more on that in a moment, but first let's get more on the impact of this emergency cut. andrew walkerjoins us andrew walker joins us from andrew walkerjoins us from our business news room. andrew, the uk central bank has made its move, what will the impact be? the aim is to tide over households and businesses, what the bank says is likely to be a large, sharp but probably temporary shock. it's particularly concerning that this is a point that has come out repeatedly in the statement it hasissued, out repeatedly in the statement it has issued, the impact on small businesses. these are firms who may, in principle, be perfectly viable as businesses but are likely to see a sudden and sharp drop in their revenue. people are not going to cafe is, for example, or there are disruptions to deliveries of goods and so forth. but they may still have bills to pay, the rent, taxe

sharf how he intends to fix the bank. here are the facts. they released a plan and it looks good on paper. we will hold him accountable for executing that plan. in fact, stockholders will hold him accountable for that plan. and the regulators and justice department will hold him accountable for executing that plan. andact, the regulators justice department have been extremely aggressive during the trump administration on wells fargo, and we will continue to hear from them about whether or not the plans are working, and we expect them to stay engaged. i look forward to this hearing today. i think at least some of our members will want to know what you are doing to prepare for your massive footprint of employees, how you will protect their safety, how you will protect the safety and status of your institution, given what is happening in the marketplace and fears we have in reaction to the virus. and the impact my consumers and my constituents will have with changes to the credit cards and mortgages in light of the crisis. with changes in credi

force of this is a concern for the bank and in addition any of the last 3 years it has had some management issues in fights within the board and concerns from the reserve bank of india the regulator but whether the management of the appropriate a lot of that division played out over 2019 and it seems now that there's a bank of india does not trust the board to be able to raise fresh capital to keep the bank a going concern roll on the bank i'm a christian thank you very much for that. on friday opec ministers and their non opec counterparts will discuss plans to avoid an oil market crash in the face of the coronavirus. talks in vienna on thursday opec members have agreed to cut all production by 1500000 barrels in the 2nd quarter of this year the biggest cut since 2008 barrel prices dropped by a quarter since the coronavirus appeared opec wants its allies in the wider opec plus group led by russia to make up of the planned cuts. under some of the other news making headlines today argentina's central bank is cutting benchmar

he and the camp and a bank. roaches were competing with each other to get his business. to storm all the scheme would never have worked of the banks hadn't played along absolutely not guns that there's no way. that this was. sweeter deliberately kept his meetings with bank executives short he preferred to spend his time flying them around in his helicopter and treating them to sumptuous meals. through coffee. fly out to the airfield near serling and and then celebrate with a big lunch. there called the liquid lunches for me doc is nice that everyone drank a lot of alcohol and. maybe he was trying to get his guests to be a little less cautious hardly the guns. and. sometimes they'd fly to the nearby alsace region to sample the excellent local wines or he'd invite bank is and business partners to his yacht or one of his business. i created a situation where i can demonstrate my success to the outside world that was very important for me but a few months i didn't write people out to the yard to them take them to din

the central bank followed the fed in cutting by 50 basis points. s there is a premium to acting in concert on policy but admits that some central banks have more room to maneuver than others. the coronavirus appears to be straining the u.s. health system . medical workers are warning of supply shortages, and hospitals are uncertain when they will be able to test suspected cases. lawmakers are warning the government will fall far short of its goal of testing one million people by the end of the week. russia and turkey have announced another cease-fire over the deepening crisis in did, syria. presidents putin and erdogan are hoping to patch the increasingly fraying relationship between their countries. the pact fell short of what president erdogan was after. it did not establish a new zone of control to resettle millions of refugees. global news 24 hours a day on air and quicktake by bloomberg powered by more than 2700 journalists and analysts and more -- in more than 120 countries. just over a week left for mark carney at the bank of england. he is n

in a sell off like this has the has the effect of a bank run so my suspicion is that the very large banks that have access to liquidity from the fed will actually behave better than some of these junk bond e.t.f. smites might fare we'll see over the next 2 or 3 weeks of reckoning is certainly coming in credit markets with regards to energy and now you know condone oil sector actually recover from what we're seeing here on monday i mean is the shale stuff much of all i mean what is the systemic risk of risk of sub $30.00 oil for opec the u.s. and russia for that matter and how does this abrupt the rest of the saudi royal family members actually play into what's happening here with oil today. well there are several questions there let's unpack them the 1st thing about the oil the oil industry is of course it survives gretta notwithstanding the world runs on oil the truth is and we said this on your show before the cure for low prices is low prices a period of oil pricing below $40.00 a barrel reduces sustaining capital investment which over a year and a half or so reduces production it also