do you stay is a bank holding company? do you go back as being an investment bank? >> the investment banking industry has disappeared. there are some boutique investment banks. large scale investment banks will not exist in the future. there'll bank regulated, and they should be. there should be one governance process. can we compete? absolutely. we purchase a business called smith barney from citigroup. he will break $2 trillion of financial assets in a business. phenomenal business. low capital usage, great returns. every institution has to look at where they can get the returns. and to adjust their business model accordingly. >> you are moving away from the capital intensive, highly regulated investment banking businesses? >> i would not say we are moving away from it. the ballast which gives us stability. the other half is the engine room. have a business model which mixes the best of both worlds. time will prove if that is the case. >> new forms of lending going on.

to the bank. that's 100% risk retention. >> that's, i think, a different issue. mr. carfang, do you have a different -- >> risk retention is very important. that's how capital gets consolidated appropriately. >> mr. chairman, i was addressing you while you weren't here. >> i didn't hear you. >> what? >> then i didn't hear you. >> and that's why i will use my last half a minute to ask you a question. that is, since the republican report says we have a huge problem, the too big to fail institutions like to be bailed out, since your report indicates there are only two legislative proposals to deal with that, is there any chance that instead of just talking about how bad some prior bill is that we would actually consider the only two legislative proposals identified in your report and mark them up? >> perhaps the gentleman missed the chair's opening comments when he said we will mark up too big to fail before this congress is over. the time of the gentlemen has expired. the chair recognizes the gentle

will take property care of the bank. idea is to that the split the bank.o increase the value. why not. story it isider good that we understand the true situation of banco espirito santo. how to the authority let it get to the situation where we ended up with this relatively uncontrolled dissent from being solvent to not solvent and not liquid. the reports information base in the negative assumptions. it brought new pieces of information and they were the result of the last weeks administration. all of these new pieces of became brought to the bank in unsustainable situation. the ratios were so degradation that the bank could not access them. this was very fast. as a result of the new pieces of information that were not with the central bank for the first art of the year. >> we will leave it there. thank you very much for your thoughts. $900 million is on the line as the u.s. pays host to some top ♪ african leaders. >> welcome back. it there is strong construction data coming in on the british economy. we have central-bank meetings on thursday. we could get

xm banks? >> nobody really cares. first off, you got to remember this is an agency that most voters haven't even heard of until the applications turned it into an issue. they've been priming people to pay attention to this so the democrats can work defense their bad brand and say hey, i'm pro business and the republicans with that tea party populist core can say look, no more bailouts, no more paying money to big business. whether or not it will move the needle in an election where nobody is really driven by anything that's not clear yet. but i don't think this is something that most voters are waking up in the morning, going on yahoo and saying my gosh, i hope this is reauthorized because it's not moving people. >> who would do the work currently being done by the import expert bank if it went away? would private industry want to take on this specialty portfolio in international lending? stay with us. >> welcome back to inside story on al jazeera america. i'm ray suarez. in just a few weeks the federal charter that a

by the bank of portugal called novo bank now while bank asparagus problems those problems assets they'll remain with the bad bank and losses will be absorbed by shareholders and subordinated creditors like i've mentioned before now basically the banks current customers and senior bondholders will be protected so funding for the bailout comes from the bank of portugal's resolution fund which is a mechanism designed to help control banking sector risks a loan from the state will provide the resolution fun with additional capital which it will likely need now in a statement the bank said quote nothing changes for the customers who will be able to carry out all operations as usual and without disruption the contents of the contractual relationships with the customers remain unchanged now euro zone banks are still far far from perfect but the leaders have given themselves the tools to calm market panic by creating a permanent bailout fund known as the european stability mechanism and are putting in place the essential elements of a banking union the e.c.b. is reviewing the asset. resilience o

either the bank is going to be profitable in perpetuity and should be privatized or the bank will have losses at some point in the future and therefore you know, it's really kind of silly to say that it's going on in i am per to youty. >> i think he's talking about theory. the taxpayer has not picked up any bill of the bank and it's for 95% of the transactions that the bank does is medium business. >> let me clarify if you're talking about transactions it's heavily skewed to small business. >> like giving everyone a penny. >> but in volume it's big business. >> number one, is it good for america to create jobs and manufacturing in industries that we need so they can sale overseas. the answer has to be yes. number two, has it cost the taxpayer anything? no, it hasn't. if the xm bank go away? will the private sector step in? it will only step in for a small fraction of the purchases, that's why the government got involved in the first place. the reason why the government can make money where a commercial bank can't because the government has built in systems and structures to know what t

bank -- a bigger u.s. bank. att is what we need to look with these banks.eed to look at the balance sheet. the p to obsess about and l. they look for whether things are better or worse. they get massively surprised by big balanceeet -- sheet adjustments. n> there has got to be a argument for the need more hsbc's and fewer bes's. hsbc took a massive hit what it was able to weather them. >> that is an interesting issue. we are going to going to the resolution period. once we realize the growth period was a mistake, then we have to repair that damage. two types of banks come out of this fairly well. number one, banks that did not really lay the game. hsbc a more conservative bank. secondly, because of the big, strong capital base, it is able to realize losses earlier on and move on with its financial life. >> they did make some mistakes. there were mistakes that were made. is, inthe real point terms of magnitude. if you are a bank that really geared up and has an awful lot ,f losses on the balance sheet then you have to dig in for the long term. those banks st

multilateral banks. specifically we recommended that ex-im bank should establish a chief risk officer or create a risk management office within with independent reporting requirements to the chairman. a fine, qualified staff to that audit, conduct periodic stress testing on entire portfolio reflecting different markets and. as of can ex-im bank is taking steps for improving risk management framework. some of them describe described by chairman hochberg's statement, however we see the opportunity for improvements to exist. for example, ex-im bank establish a higher tro and restructure reporting lines to separate origination functions from risk management functions however the tro was established with additional management responsibilities, supervising legal and administrative functions of the bank, which could dilute the focus of position on credit risk issues. in addition ex-im bank utilized hub analysis of the portfolio and bottom up approach. the results of the first stress testing process were conveye

i think we should all appreciate the bank is made clear that these duties of the bank of england would be fulfilled. secondly, i also welcome the , thethat yesterday suggestion by some in the campaign that said he was against the union was not true. the bank was neutral in the matter area they will implement the proposals that are agreed. , might it be because the united kingdom westminster parties seem to have a vested interest in causing as much uncertainty as they possibly can. [applause] is the case, why have all the subjects will be say they would not renegotiate? why have they ruled out the proposal for a currency union? was that not about trying to create uncertainty? , i welcome the fact that the bank of england thernor has moved to numerous campaigns plan. [applause] >> the first miniature does minister may impugn the notminster party, but it is -- of the westminster party that the women of scotland are describing as dishonest. there also describing it as arrogant and ambitious. we knew that last week. when the first minister needs a reality check, because he welcomes a statem

it is a good bank, bad bank story. for now it seems to say they have dealt with their current problems in the singular manner. open up arall are half a percent. up a third hsbc is of one percent. treasuries are somewhere we saw open. banktioned before the volatility rose. byt is the index as measured merrill lynch. do you still believe the u.s. will go later than the u.k.? do you still believe you will have lower rates for longer? you are declining slightly in london. this is the euro-dollar this morning. 130 4.19. we're just off an eight-month low. the next short positions have risen. -- 134.19. you might not necessarily get it this thursday, but this market is moving. to give you a context on a trade washted basis this currency up seven percent. in the second quarter it is up five percent. work marioamount of draghi and his colleagues need to do to structurally change the direction of the euro. see if thoseed to it hasave opened or not. completely defiled me. spanishe looking at unemployment. 30,000. the prior month

banks because it would afraid that the banks to grab its money like it grabbed iran's money so they put them in london banks and that created the euro dollar market strengthening the dollar and in one nine hundred seventy one the u.s. dollar was forced off gold as you often discussed on this show but what happened was that there still wasn't an alternative to the dollar so central banks only had one thing to carry u.s. treasury bonds so it was central banks that funded the balance of payments deficit that really was the military deficit well for the first time now there is an alternative the u.s. is not the only person country that can create money russia china the brics found they can create electronic money in ious just like us and they're very quickly forcing other countries not to use the dollar and just to help out russia judge greece a here in new york has blocked argentina from up paying its creditors so that foreign sovereign debtors no kennedy issued dollar bonds because if they issued dollar bond somehow they have to go through us by. thanks and we'll have judge greece's rulin

citizen, bank on s.f. makes it easy for you to have an account. >> many people do not have a bank account because they might be in the check system, which means they had an account in the past but had problems managing it and it was closed. that gives them no option but to go to a cash -- check catcher for up to seven years. you want to give these people second chance. >> to find account best for you, follow these three easy steps. first, find a participating bank or credit union. call 211 or call one of our partner banks or credit unions and ask about the bank on s.f. account. both -- most bridges will have a sign in their window. second, ask about opening an account through bank on s.f.. a financial partner will guide you through this process and connect you with the account that is best for you. third, bring some form of identification. the california id, for an id, or your passport is fine. >> now you have open your account. simple? that is exactly why it was designed. you can access your account onlin

the top five banks are bank of communications, icbc, china construction bank -- the concern about theecord share sales, further erosion of their share price. that is the concern. overall, saying that, they were going to sell a combined $63 billion of common exceeding the u.s. and european banks together. income., combined that top five u.s. tanks will throw out 70 billion. the top five european banks will throw out 47 billion. , butse banks are way ahead this time it could be quite tricky because of the common stock sales. ,> we are going to take a look it has just resumed its session in the japanese capital. roche said to be in talks to thishe remaining stake of maker of arthritic drugs. that would give them a plan to seek target acquisitions here as well. this is a long-running theme with the company. we can to you the share price is 20% of or thereabouts. -- up or thereabouts. one of china's biggest property developers had its best ever first half. they sold more small than medium-sized homes, which is typically less effective by market standards. shares trading when the market ope

banking regulators. can you share with us how the department's rule, as it is would impactposed, student bank accounts and what compliance issues would be introduced? >> if the department of education goes down where i think they might be going, there will not be much concern for the regulatory structure because i think most of the banks would exit. right now, they want to apply to the rules and requirements of a disbursement cash management program that has nothing to do with title 4 disbursement. it is apples and oranges. i am afraid the direction they are going -- we negotiated in good faith with a lot of other groups to come to a consensus. i thought there would be a consensus until the very end and they did not do it. we are hoping they will have common sense. they want to apply rules and regulations to an association that has nothing to do with title for -- title 4. , aaccording to one measure report by measure one, a private research firm, substantial loan requirement differences exist between the

think about someone getting into your bank account, maybe zeroing out your bank account, scary stuff, and it makes you wonder what could be next. on that happy note, let's get right to it to ben stein, and charles fain and gerri willis and adam koshinski. and i want to remind you that it is still cavuto even though i was out last week. and okay. what do you make of this, charles payne, because we all hear the hack attacks, but this is serious of how far it attacked. >> and how sophisticated, and talking jpmorgan and because it was backed more or less by the russian government. >> and the russians are saying it isn't. >> and i trust putin. >> and we are listen etening t. if i were spearfishing i would let him go in front of me. and here is the thing, the electric grid is a big target, and the oil and gas industry is getting hit all of the time and the banks, and i think that we should take it more seriously, because it is not the target hack, but this is ultimate red flag here. >> and why is this happening? >> well, it happens everyday. the attempts are everyday and it generally comes

bank and european bank were infiltrated by the russians?0% ofs account for global spending. >> really? >> yes. we're talking about a number that is in the range of $200 billion plus. is normal operating budget about $4 billion per operating pop. indication is that the way you breach such an amount of , it has to be a government related entity. you summonrces could against each other? if you have institutions like governments, which have unlimited power, then they could do that. from an operational point of view, they are not worried about an individual criminal organization. there are only two governments that have this power. with an r and one starts with a c. no one else has the firepower. >> what might they do? >> exactly. the maximum damage they can your clothess get off. they will not be able to get anything off of you. [laughter] it might not be particularly appealing to have your data out there, there is no risk of having damage of the ultimate data. no one can steal money out of your bank accounts or make transfers you are unaware o

regional banks, but when we're talking about the largest banks, bank of america, citi, and jpmorgan, with revenue, i don't think you'll see a difference in the revenues this year versus a year ago. they are still kind of moving money around, holding less capital for bad loans, for example. this is something that they can do at will to boost their profits. they're laying people off. jpmorgan last year laid off 16,000 people in its mortgage unit. and it's going to layoff 10,000 units this year. and that's one of the reasons we're seeing so much profitability. making loans to corporations is a tiny piece of these very very large businesses, and these banks are the giants. i mean, to compare these four banks, the drop off in asset size from wells fargo, the 4th largest bank to u.s. bank corp for pnc is immense. >> and the biggest banks are bigger and they control more assets than they did before the recession. loans. they're getting more out and it seems that the lending standards have dropped a little bit. and they're giving more out in credit cards. is that anything to worry about? or

$2 billion for one bank. .t $10 billion for another bank how will this impact the banking industry going>> we will be back with jonathan ferro later on. it's turn our attention to the signs in ukraine. assia is caught for cease-fire will ukraine continues to accuse russia of stoking the conflict. hans nichols joins us with more. where do we stand today? >> diplomatically looks like the germans are trying to advance is consideringel a visit to kiev. ukrainian authorities are accusing the rebels of firing on a convoy of refugees. yesterday after those talks ended without much progress in berlin that, there was a briefing. they spoke about the need for a cease-fire. we ran that need by the ukrainian foreign minister. he wanted to see russia stop their incursions and stop the cross-border flow of money. he also did say at least for some little bit of hope. he talked about moderate progress. >> it has been reached on a number of issues. i would wish we could have reached considerable progress on critical issues like closing down the border, like control of the border. every day we have contin

so major banks are no longer banking banks like mr.wilson's bank and he has upstream services to provide to his customers. banks, a simple example, electronic benefit cards for welfare payments are very efficient and effective and safe and secure way of providing benefits, yet under the know your customer rule as is being interpreted, banks are responsible for doing the due diligence on the holders of their card which is also an impossibility and banks are exiting that business. we have retailers exiting the courtesy check cashing business because of big fierce about anti-money laundering. check cashing in the grocery store or pharmacy. these are consequences and not necessarily that they've been regulated and they've been legal and they're falling into a gray area because of the vocabulary and the rules that continue to be written. >> thank you. otheriot comes that you mentioned is that deposits were being discouraged because of higher tees and lower interest and there was a restriction of credit, all, but the most well-documented bor

from banks to central banks.ank of england are set to release rate decisions later today. jonathan ferro joins us with more. mario draghi first of all. the myriad of problems this man faces. >> i know. issues.e load of data, issues with banks, and russia. i don't even know how he goes about russia. >> do you have to? is it necessary for monetary policy to be looser in this kind of environment? suspicion has got to be yes. >> yes if you think it is going to be deflationary. the price pressures will be there. affecting thely german economy. you would have thought, we are not exporting as much. greater deflation is probably a good thing. you need prices to fall in that country. they did not need a financial crisis for that to happen. they have been in an economic situation for the last 10-15 years. germany slowing down is a concern, surely. >> germany has not had the inflationary push that some would argue europe needs. nevertheless, you start to slow germany down and it is going to have an effect on demand througho

banks.hese banks did not fail. texas has one of the healthiest economies in the country. we call it the texas miracle. these are community bankers and i have talked to some of them personally that could not maintain profitability will regul regulatory costs increasing between 50 and 200%. these are good banks that for decade versus contributed to the economic growth and vitality of their towns but whose ability to serve their communities is being undermined by excessive regulation and government micromanagement. the real costs of the increased regulatory burden are being felt by small town borrowers and businesses that no longer have access to credit. when a small town loses it's only bank it loses it's life blood. it's more difficult to improve schools, health care facilities and other infrastructure projects. i know it was not the intent of congress when it passed dodd frank to harm community banks but that is the reality. one issue that headered the ability of banks to serve their communi

bank ands next is the the banking models will be discussed. douglas will be with us. we have great conversations as we look ahead to the stress test and regulatory issues with banking. >> you are drilling into hazelnuts and cocoa. you can use a j-roll on a hazelnut because it would be a little heavy-handed. excuse to talk about chocolate. i don't know how much of a fan of hazelnut you are? close lovesvery hazelnut. >> we have seen increasing demands for chocolate and little luxuries. we have seen a 13 month high. hazelnuts areld in turkey. they have had bad weather there. there is not too much of a mention. and we will use that. >> i like something and i want to go home. it is a caribbean son. what was it? >> i do not remember. >> clearly too young. i like some things. >> you are on your own with that one. >> some company news. the biggest gain in six years in trading. that is as asia says they are considering taking a stake in the airline. air asia is in talks with financial institutions on ways to help. the ceo says the company has no interest in the carrier. bids f

break, tips for better banking. we are going to bring you our interview with the former deputy governor. ♪ welcome back to countdown. i meant is cranny. time for your 6:30 fx check. we start off with dollar sterling because it is cpi today, consumer price index in the u.k.. expecting it to dip to 1.8%. retiredy for sterling to -- to retest for a six-year high. this currency is oversold. it is down nearly 3% from its of 1.7192. .7192 -- 1.71 by the end of next month. cpi data could be friendly to the market. we expect the bit of a dip their. give mark carney the grace and favor he needs to keep rates lower for longer. let's have a look at the ozzie dollar. the aussie dollar. it is trading higher by about an -- at 0.9338.8 growth will likely have slowed. could it be that you get another cut? we will wait and see. >> these other bloomberg top headlines. gentle -- german chancellor angela merkel will visit ukraine with for talks with the key of government. the chancellor's office declined to comment on a date after an e

the good bank and the bad bank. the government will own the deposit taking operations. >> sounds like a run city. -- our own city. it is still dominated by a bad bank. the idea that this is going to cause nobody anything. explain. that is what the articles say. the taxpayers will not be affected. really? >> somebody is holding the bag. let's get to wear last front page story. general electric ceo jeffrey a immelt iseff hi warning the government about closing the ex-im bank. congressntor leaving means it is more difficult to get the charter reissued. >> the u.s. is the only major economy that trades less with africa than before 2007-2008. >> this is all happening as the u.s. tries to improve trade with africa. china, japan, europe is doing what they can. nationsou name ten looking at a blank map of africa? i could get kenya and nigeria. south africa would be easy. >> egypt, libya. >> maybe you get ivory coast. >> maybe i don't. [laughter] >> i think it shows our ignorance. >> we have all day coverage of the u.s.-afri

bank and bank of new york. >> i think the city has deposits in several banks. >> yeah, i think bank of america is the major. but i know -- i'm not sure where they are with their rfp. they do rfp and then change their relationship. >> how often do they issue an rfp? do you know? >> i don't know that for sure. i imagine every five years. >> we can include that with the oversight members along with the frequency of the rfp in a brief memo. >> i have a, again, a question of curiosity. i saw a reference to a commercial paper program. do we have one? >> the city does. the city has a major commercial paper program. we do not. we issue long term debt. >> yeah. >> we don't issue paper -- >> i just saw the reference there in the policy for commercial paper. >> i don't think the department of finance would [inaudible] get too creative -- >> the reason i know that is because the airport, especially after september 11, commercial paper program was very useful, but that was very different -- >> yeah, we will be exploring financing options in the future if we are unable to sell bonds for our major pr

we're in suntrust banks and pnc bank, region's bank. bank of the west. and banks are not doing this out of charity. they're doing it because we are raising credit scores 120 points and nothing changes your life more than god or love is raising your credit score by 120 points so we're creating sustainable customers. so the people driving the economy need to be included in the largest economy on the planet and growing our middle class is the whole ball game. >> thank you very much for joining us. >> thanks for keeping the issue alive. >> thank you. >>> up next "on the money", a look at the news for the week ahead. >>> and cash is king. if you have plenty of it where's the safest place to park it? we have the answer when we come right back. the answer to treating your dog's fleas and ticks is staring you right in the face. nexgard, from the makers of frontline® plus. it's the only soft, beef-flavored chew that kills both fleas and ticks. vets recommend it. and dogs, well, they're begging for it. nexgard is for dogs only. and hasn't been evaluated for use in

>> decision day for the central banks. will the russia crisis disrupt mario draghi's outlook and is the bank of england on the verge of a split? president bands agricultural imports from countries imposing sanctions. the biggest bank settlement in history. bank of america is said to be having a $16 million fine. sprint walks away, the company's earnings are breaking now. welcome to "countdown." breaking news crossing the bloomberg terminal from deutsche telekom. caroline hyde is here. --basically in line with basically flat on last year. it is in line with where analyst had been expected. sales were tiny bit weaker than had been expected. analysts wanted 15.2 billion euros but sales flat on the previous year. this is a company facing intense pressure in terms of prices. they have stronger competitors. it's going to up the ante in terms of pricing competition. the chief executive has vowed to revitalize the company, particularly the european operation. the biggest setback of course all over the news yesterday is the u.s. un

we're at pnc bank, bank the west, five branchs in new york city.nd banks are not doing it out of charity. they're doing it because we're raising credit scores 120 points. nothing changes your life more than god or love is moving your credit score 120 points. the people who are driving the largest economy on the planet need to be included in the largest economy on the planet. and growing our middle class is the whole ball game. >> i want to thank you for joining us today. >> thank you for keeping the issue alive. >>> thank you. >>> up next on the money, a look at the news for the week ahead. and cash is king. if you have plenty of if t, where is the safest place to park it? we have the answer when we come back. visit tripadvisor new york. with millions of reviews, tripadvisor makes any destination better. for more on our show and guests you can go to our website otm.cnbc.com. you can follow us on twitter. >>> a big week of earnings for the retail sector. we'll hear from walmart, jp penny, kohls and macys. facebook will shut down the gift service aft