well, some of their biggest investors are bank, like wells fargo, bank of america, many private prisoners demand 90, or even a 100 percent occupied meaning the tax payer, which bill for every bed, even the member for profit prison, for incentivized to incarcerate more people. and for a longer period of time to fill their quotes, to make sure that happened, they spend millions pushing tough on crime. today, nearly 10 percent of americans, prisoners are held in private presence and they also spend millions influencing immigration law counsels detained immigrants are held in private prisons for indefinite periods of time. often years exposed to brutal conditions because they're not americans, the government gives them no right to even the most basic legal representation or medical care. 3 housing facilities were set on fire and apparently all started over in made frustration over the quality of medical care. perhaps needless to say, being treated like chattel and used as force labor for pennies an hour is not that popular on the inside, but that's not the worst of it. the socks, the issue, a

the companies with the most excess capital, but are expected to see berne returns, wells fargo, bank of americad pnc. you can pick and choose your names. wells fargo is my biggest, because it's a restructuring story on top of all this other stuff. >> david, psychologically, it's sort of a return to normal from the rye strikz that some of these banks faced. >> it's fascinating. we had three tests testing or risen scenarios, yet the fed was working hard to prevent that scenario from hams the fed is saying, well, that may happen, but we're never going to let that happen it's almost like the stress test doesn't matter, but i think it says there's going to be much bigger buybacks that many people think. it will go on for longer and the dividends will be significant. it doesn't mean the stocks will double or triple, but it's going to be hard to be short them or sell them into an environment where they're wildly over-capitalized, have tremendous amounts of earnings and they're going to do something with them to hopefully melt their shareholders. >> should they by favor dividends more than buybacks tha

wells fargo, bank of america still have room to run. i like wells fargo as a wild card. take advantage of that. look at consumer discretion nary sector best buy where people spend their money. think about recreational items people will buy. think about dicks sporting goods. i know these stocks have done well. this is where we spend our money this summer. the consumer is sitting on the second highest cash level they ever had, lowest load of debts. forget about what happened. it happened. focus on the opportunity at hand. it is staring us in the face. charles: one ever things i'm i i wonder what i'm missing. take a quick rebuttal, gary. go ahead. we'll let nancy back in. >> my point is jay powell was printing money before the pandemic. not only has he overshot, he overshot by a mile. i looked, i live here in lake mary, florida, everybody is working. there is traffic. the airports are two million people a day now. we're out of it and this guy is going to still print 4 billion a day, 80 billion a month. by the way not to mention his counterpart at the european central bank d

of health from the fed. wells fargo and bank of america and jpmorgan chase are boosting payouts to shareholders. the group are raising payouts 40% from previous levels and committed to buying tens of billions of own stock as you see. they are all higher pre-market citigroup was the only to not increase dividend or buyback plans. >>> facebook closing above the $1 trillion mark for the first time ever. the fifth u.s. company microsoft and amazon and alphabet among them. this is after the anti-trust complaint brought on to the fec. >>> and juul is paying $40 million to settle a lawsuit to south carolina alleging it targeted teens with marketing. the payout is the end of one of the legal and regulatory challenges facing the once hot startup. >> thank you, rahel. thank you. good to see you. >>> back to the morning money and your first guest today says stock valuations overall are not cheap, it is okay as long as growth grcontinues higher linda is the portfolio manager and head of the value income team at federated hermes linda, great to have you back on okay not cheap. does that mean overpriced or on

builtto on land and finally communities of color contaminated our air, polluting our water for generations to come. jp mortgage, chase, wells fargo and bank of america, all of you collectively financed $977 billion worth of fossil feel projects and infrastructure since the paris agreement. that includes financing marathon petroleum righter in my backyar, all of your institutions financed marathon but mr. scharf, wells fargo led the pack providing nearly seven-point to billion in financing marathon over the next or over the past five years. i want you to know marathon has fought tog dismantle fuel efficiency standards to the neil and their refineries pollute front-line communities in my district and across the country. for eight to 17 the neighborhood i represent with marathon there is the most polluted zip code in the state of michigan with the majority black community. it has literally left us with high rates of asthma, cancer, countless families have lost their loved ones too soon because they were forced to breathe the polluted air your banks financed. i want to ask you all one by one. chase bank, mr. dimon, do you live near a refinery? yes or no

yuwan coin or the euro coin, the predictions are that the banking system, jpmorgan, wells fargo, bank of americaedoms are then gone. they can track our every move, via our money, and they can pump money directly into the system. if, and we will, go to fed coin. that's what i'm afraid of. stuart: okay, robert, that's a dire warning, and we heed it and we'll be checking bitcoin to see if it gets to 27 and you buyback in again. robert kiyosaki, good stuff and thank you very much for being here. >> thank you, stewa stuart: all right by the way we've got a development here, coinbase has announced a new partnership, susan, with whom? reporter: coinbase, yeah so we're talking about apple, google, wallets for crypto purchases, the two largest operating systems out there that they make for smartphones and they are offering this new coinbase card on apple pay, google pay and it's an interesting concept, so how it works is coinbase will automatically convert all digital currencies to u.s. dollars, and then transfer those funds to user's coinbase card for everyday purchases like groceries and the like and i

morgan, bank of america and wells fargo. joe: more record highs -- seems like a quiet day but stocks are going up. >> what's interesting is financials weren't doing that well throughout the session and in the post-market, we are seeing them surge, so you see with some of those caps, maybe tomorrow, we might see today's trader verse a little bit but today was risk off and defensive end tomorrow might be a tad more cyclical, perhaps more excitement in the market. romaine: morgan stanley up in the post-market, still awaiting some of the other companies to make their announcements as well. the interesting thing was the idea big tech reasserted itself. we saw the microsoft and amazon and they really became the darlings once again after they fell out of favor about a month ago. sonali: you are seeing a reversal of a trade that has been in play for about five months. there has been a lot of that turning it on its head. you are seeing a little of that hawkish pivot turn into a risk off positioning story. when people aren't favoring

banking practices, programs and policies.” and of course as you know, testifying before the committee today, we will have the ceos of jpmorgan chase, citigroup, morgan stanley, bank of america, wells fargod goldman sachs, who testified before the senate yesterday and today's testimony concludes two historic days, which are a true testament of the accountability that comes from democratic control of the house and senate. as chairwoman of this committee, i have made it a priority to ensure that we are conducting rigorous oversight over megabanks and their activities. we last had all of the megabank ceos to testify before the committee in 2019. since then, there have been many developments involving megabanks that this committee will be examining today. i am eager to hear about the megabanks' response to the pandemic crisis, including their provision of mortgage forbearance, affordable loan modifications, support forms extending the foreclosure moratorium and paycheck protection program loans. i am concerned that the institutions led by our witnesses raked in billions in overdraft fees during the pandemic, at a time when individuals and families across the country are struggling through no

of its competitive practices. wells fargo, interesting upgrade from the folks at of america. this is primarily -- at banka. this is primarily a valuation call. a lot of people jumping back on the wells fargo train after jumping off a couple of years ago when they were dealing with all of those -- tom: and i know some of the growthier guys really reaffirming what you show their with those stocks today. "bloomberg surveillance" now less than one hour to the jobs report. we continue our coverage here. romaine bostick and taylor riggs in for jon ferro and lisa abramowicz. joining us, ellen zentner of morgan stanley. i first came to you when i noticed your wonderful work on consumption. we all see the consumer has been a goods producing consumption. when do we shift over to service sector doing better than goods? ellen: we are seeing service sector spending pickup. it is still lagging behind the sheriff spending that was taken by durable and nondurable goods -- the share of spending that was taken by durable and nondurable goods. capacity is now open in about 49 of 50 states, not fully, but a good deal of the

morgan chase and with bank of america and wells fargo that were the biggest things in 2000. >> this never had a goal to be the biggest. consistently ourye mission statement we just wanted to become the best we had a balancer on - - scorecard not only earnings but how many customers and customer satisfaction and employee engagement low levels of nonperforming assets. there is never a goal to say we would get to some gigantic size. >> and the two acquisitions and a lot of them actually came to washington. >> we have about five. but the questions i would like to ask regarding on today and the current economy, what word you tell people about how to go protect themselves the time? so it is so unpredictable right now is for many different ways. not just to make a living on a daily basis thatt life in general. from a financial standpoint what what advice would you give? >> that's a great question. this is. we come back t to .iversification because i would not want to put all of my eggs in one basket with the hot stock of the day or some kind of a trend to be very diversified everybody depending

of the other banks? wells fargo with a significant buyback program -- what else? >> wells fargo's buyback program , $18 billion, and they doubled dividends. jp morgan, bank of americah of boosted dividends, as did goldman sachs. what was interesting is citigroup indicated they were going to keep their dividend at $.51, a more subdued move from them because their capital requirements are increasing. perhaps it is not a terrible move, given we are likely to see questions from lawmakers on bank dividends and payouts. dani: one sector or region of banks perpetually lower in terms of dividends, places like europe. can we expect banks and other regions to follow suit as well? >> that is the hope. the u.s. banks were able to do this because regulators have now lifted pandemic era curbs on dividends and buybacks. we are seeing that role through other areas of the world. here in asia, that is happening as well. in europe, the banks that were banned providing any a flip -- uplift through september, but they are having talks on bringing that forward. if they do, may be a part of some $50 billion for european bank shareholders for the likes of bnp paribas. yousef: appreciate s

bank of america, citigroup, wells fargo down to the tune of 4%. you have a hawkish fed in the mix.for investors to think about. the 10-year yield, not enough to know that the fed is talking about tapering to get the yield to stay above 1.5. we are watching the u.s. dollar. we saw a strong reaction yesterday, as with a lot of the assets we were following, some of volatility in the u.s. dollar. the real question is inflation and if it is transitory. so interesting to hear jay powell say that much of what we are seeing is an anomaly. one place you can point to, he used it as an example, along with lumber, was used cars. used car inflation the highest since the 1970's. there is a great chart that we will show in the terminals. we know that is being driven by chip shortages, bottlenecks. it is a fascinating snapshot with the kind of thing the fed is grappling with right now. matt: i would also like to point out, the average age of cars on the road in the u.s. is now more than 12 years. one of the things contributing to this is that cars are just so much better than they were. not in ter

of their concern will likely be centered around some of the more consumer types, bank of america, jp morgan, wells fargoarren be really critical of banks not lending more to the consumer. the question might arise, are they paying out more dividends instead of being able to give out more loans? that loan growth picture will be even more highly scrutinized as we get into the next earnings period. anna: dani burger with the latest on the u.s. banking sector and the payouts we are seeing post-pandemic as they all flew through those stress tests. let's get a bloomberg first word news update. here's laura wright. laura: a new study has found mixing doses of covid vaccines from pfizer and astrazeneca creates a strong immune response. the university of oxford's research could enable greater flexibility in the use of scarce supplies. a mixed schedule of the pfizer shot followed by the astrazeneca vaccine and vice versa resulted in high concentrations of anti-bodies against covid-19 when given four weeks apart. 11 people are now confirmed dead in the collapse of a residential tower outside of miami. more than 150

morgan stanley, jpmorgan, bank of america, goldman sachs and wells fargo will pay investors $2 billionently loosened restrictions on shareholders imposed during the pandemic. now, have you met this humanoid robot? cnet? it is called pepper and it has been popular in its home country, japan, but also in other parts of the world. its creator has stopped producing it, so let's go to our business correspondent to find out why. i know some of my other tech colleagues have met pepper, so why is the producer no longerfunding pepper? no longer funding pepper? that no longerfunding pepper? that is the big question, isn't it? it has been really popular and if you have visited japan you probably would have seen it somewhere, either at the airport, hotel, or mobile phone shops. it will ask you questions when you enter the shop and it tells you which counter to go to. my six—year—old actually totally fell in love with it and spent nearly one hour talking to pepper. the big question was, is it actually really useful? it has been on the market since 2015 injapan, and many are leased to corporate clie

on the other hand, you have bank of america, wells fargo, who are not expecting broad returns until thel, and citi is offering more flexibility as well. there's a lot of different methods going on right now. kathleen: thank you so much. bloomberg finance reporter hannah levitt. the bitcoin rebound continues to gain traction. it may soon be back above $50,000. positive comments from a hedge fund billionaire added support today and earlier last week, su keenan joins us. -- and earlier last week. su keenan joins us. he said he wants to have a certain amount of that coin and wants to diversify -- bitcoin and wants to diversify. is the trend in place regardless? su: finally, someone else decides yuan most is -- elon musk is moving bitcoin. after a volatile weekend, bitcoin back above the 40,000 marked dang. at one point, it was about 41,000, a 9% rally since friday. very volatile weekend, but 40,000, technical analysts say, is key. the 200 day moving average and passed that is a clear shot to 50,000. look at the year-to-date chart and this is where you see the wild gyrations yet one analyst

banks outright in their shares and you have options on several others go ahead >> yeah, absolutely, tyler yeah, presently, i own shares in wells fargo. i own them in capital one. i own them in bank of america. but on top of that, i also own kohl's because of all the unusual option activity that we've been seeing. this does go back to late october, very early november and the xlf is a good example of what really stood out for us which has been 39 separate times, tyler, we've had bullish option activity in the xlf it's been absolutely gigantic paper consistently coming in there. i'll even give you a great example. today, now the financials have pulled back slightly over the month of june. and you take a look and i see 43,000 of the july 23rd expiring, 7 1/2 calls. in other words, right out of the money calls giving themselves a full month for this to pan out and they are a 30-cent option. this is the kind of thing we've seen time and time again we've seen a lot of option activity, not just in the u.s. banks but bank -- i'm looking at barclays, deutsche bank, a brazilian bank bank of america. jpmorgan those are all the different types of exposure that i've seen if anything stands out right no

fargo. mr. scharf, neither citi nor bank of america charge overdraft fees on debit card transactions, apparently deciding this practice was not in the best interests of their customers. i find it curious why has your bank made the opposite decision, seemingly thinking a sandwich or a cup of coffee at a deli should result in a $35 overdraft fee if they can't afford it. >> i'm sorry. are you finished? >> i'm waiting for your answer. >> congresswoman, we are constantly looking at ways to be more consumer friendly. we introduced an account last year, which has no overdraft fees at all. it's actually probably our most popular account since we've introduced it, and so we have options that are readily available for customers who do not want to overdraft. we also offer overdraft protection and something called overdraft recombined for those that are in an account that can overdraft, which allows us to look back 24 hours for a direct deposit coing into that account. these are things we've added where we're looking to become more consumer friendly, but it's certainly something that, you know, we will cont

of these big banks are actually allowing workers to take the day off for juneteenth. all right, lauren, which banks are we talking about here in. >> good morning. ubs, bank of america, wells fargoour manager the day you want to take within the year, and you can get it. now, the stock exchanges are open, and with that, the banks are open as well. it might be different next year because companies and organizations will have a whole year to implement it. stuart: got it. you're also looking at some of the movers. let's start with the nasdaq winners. what do you have for us? >> i was looking at these names, docusign, okta, zoom, and the leadership, just like the good old days, right in the stay at home stocks. so there are three winners for you, and docusign up in a big way on such a down day. gap is falling hard today, so are hasbro and mattel. what's interesting here, this is a new york post report, because it's so hard to ship anything anywhere these days and so many toys come from china, the post is warning of a toy shortage potentially this christmas. they don't have the containers available to get those toys here. so something parents need to watch out for. stuart: it's june t

boosting dividends by 11, bank of america of 17, goldman sachs 60% more, wells fargo doubling its dividendlook at city, big 0, not doing much. stuart: the big deal is not just dividends going up but the possibility of stock buybacks which is generally good news for your stock. >> $12 billion back in stock prices. stuart: i'm moving the show on. los angeles county health officials, quote, strongly recommends people wear masks indoors regardless of their vaccination status. officials say it is a precautionary measure because of the delta variant. cases in missouri rising, 800 covid hospitalizations reported daily for the past four days, mike parsons joins us now. what is the problem here, not vaccinating enough people? >> we have been was like most states in the country when you get to that 55% plateau it has become more difficult to get that vaccine out there. everybody has to the threat to get the opportunity to get the vaccine and the other thing is 80% of our most vulnerable population has had the vaccine, seniors and people with health risks have. stuart: i you going back to any restric

of the market, specifically with regard to the banks. check out j.p. morgan chase, bank of america, citigroup and wells fargo.itigroup is one in particular we want to focus on. right now i'm going to show you a chart on this. citigroup is working on 11 straight down days today would be 12 if it goes lower again. lower in the pre-market. during that 11-day losing stretch we are down 14% for citigroup shares also for the money centers, trading operations whether the comparability is there to replicate the trading values and then one last check here on some of the crypto and meme stocks you can see bitcoin is up just a hair, about half a percent at 37,919 ether is down. 2354 amc consistently one of the top five most searched tickers and clean energy fults, els, numbero the list up 3.8%. beck yirks andrew, there's a lot of stuff going on. no surprise on the fed interest rate. >> dom, can i just say, you da man. you're the only one who took me up on my photo bomb challenge. i department see it live i just got a copy of it that was sent to me of you photo bombing somebody yesterday you don't have it, do you? >> i d

it now to the challenges with charlie scharf and wells fargo as to what brian moynihan had to take on. the scene is really all over bank of americae hand -- brian moynihan is going to be on a bit later. tom: make it nine or 10 meetings. there was ken lewis ticking up the pieces in asia. lisa abramowicz, you look at the view forward for banking, and you are dead on. any of these banks can just put up smoke signals, do this, do that, but it is a traditional banking that right now is flat on its back. lisa: which is the reason why people are so concerned about a decline in revenues. the idea if you don't have that pillar, will the lending folios start to pick up to overcompensate? there was a story in "the journal" that thanks to companies, no more deposits, please. basically charging companies for deposits, saying we don't let your money because we've got too much cash. tom: i actually look at the overnight repo chart, the ira jersey chart, and it is back up again 162. we say good morning on radio. these stay with us in boston which 106.1 fm how are the banks doing, remain for -- of doing, romaine? romaine: yesterday we saw a prett

banks. goldman sachs to $2 a share, morgan stanley doubling it, wells fargo planning to also libel its dividend it used to be at 51 cents a share. meanwhile, bank of america hiked it by 17% to 21 cents. it you said 2 you said it. citi, though, did not commit to any increases at this stage. jeff hart, great to see you today. thanks for joining us. does morgan stanley deserve to be the clear leader of the big six banks in reaction to yesterday's news >> morgan stayly was the big winner in my mind. if you go back the last five, ten years, we've seen numerically a lot more capital return -- and they've been allowed to buy back or pay out dividends. it looks like the full implementation taking the buyback up another 20%, those are big numbers. it was good to see morgan stanley allowed to return some of what we have thought for a long time was a lot of competent capital. >> is the share price reaction, but also, if you pick apart of the oner other ones, suggest that investors do want dividends more than programs the management teams at the banks thought, relative to buybacks. >> yeah, i mean, as increased dividend is nice you tend not to cut your dividends, but

fargo. how did the other banks do? >> wells fargo was another standout and they doubled their dividend, and announced an $18 billion buyback. jp morgan boosted their dividend by 11% to one dollar per share. bank of americasachs plan to increased its dividend to two dollars per share. shery: what does this mean for banks and other regions? -- banks other regions -- banks in other regions. >> european banks are waiting to hear at the ecb will let them announced capital buyback plant. regulators around -- capital buyback plans. regulators curb banks from dividends and buybacks and the ecb is expected to review their decision. at the moment banks in europe are not allowed to do anything until about september. we are expecting to hear something earlier in the summer. here in australia, the australian banks are sitting on about $30 billion aussie in cash they are expected to be handing out over the next year. shery: our finance reporter. coming up, shakeup in the bloomberg cobit resiliency rankings. we will tell you the -- bloomberg covid-19 resiliency rankings. we will tell you the best and worst place to be and why the u.s. is at the top. this is bloomberg. ♪ shery: almost a year and a half into the pandemi

that you like, there's not -- i mean wells fargo, okay, you got that, but there's nothing else >> no. >> there's no jpmorgan or morgan stanley or bank of americagoldman sachs and i'm wondering why. >> made big money in goldman sachs. made big money in jpmorgan i have to tell you i put the money in paypal which i think is terrific giant position in wells fargo. i will say in my club call next week i really do feel like i made a mistake selling goldman goldman's franchise is stronger than i thought i think they're doing a lot of really good things stronger, meaning even during the doldrums i think they're doing quite well so i made a mistake here i should own one more. i don't know which one i'm looking at all of them jp morgan, knocked down on the amazon thing that's kind of interesting again, but i made a mistake. the earnings power here is much better i thought if brakes came down people would sell the stocks, they haven't sometimes you have to own the fact you got something wrong >> of course, we appreciate the contrition, but do you think if rates stay here now or around the level it limits the upside >> that's what i was thinking would hap

how about bank of america, are you familiar with the term? >> vaguely familiar, but the same. >> wells fargo, do you know what's environmental racism is? >> -- >> that is unfortunate. mr. goldman sachs? >> vaguely familiar, not specifically. >> i want you want to know, environmental racism showed its face in a deadly way during the pandemic in my district. where more of my black neighbors died at a higher rate from covid than any other community in michigan. even though our black population in michigan is less than 15%. the pre-existing health conditions that come from living in the backyard of corporate polluters, financed by your banks. when it comes to racial justice, i see it to diversify your executive ranks, good. but the american people really truly want to know what about the actions that are needed to be invested in communities like mine that you profited off of that left us one more pollution, decay and poverty. you all should know, be familiar with the term environmental racism. because for generations black, brown, indigenous communities have seen the fossil fuel corporations use

trust and you only own wells fargo, mea culpa, i should own more of these i guess, but tom lee is right, if we stay low, people will say you know what, why am i in bank of america, why am i in jpmorgan, i can be in wells because that is charlie sharp trying to turn out what turned out to be a bad bank. >> right but that stock has had quite a move off the lows. >> it is going to be able to buy back 12% of the shares if it has a good review. a good c-car review. and charlie is making a lot of changes there. >> but basically, the only big bank they've never got back to pre-covid prices. >> exactly right and it is historically cheap buffett did bail there are a lot of reasons why it was cheap and i think it wasn't just the scandal. it turned out to be poorly run the distinction between say a jpmorgan or bank of america, man, it is just run differently. >> yes and it can take quite a while to turn something like that around, and you're talking about execution in some ways. >> i'm talking about the expense ratio. i think people at home get confused, there are different metrics, i've been working on this, that people, and we will talk about it with chewy, the metric t