to bank to bank. that's what made 2008 so difficult to solve and why the t.a.r.p. ended up being so necessary. the t.a.r.p. was the only legal authority in the entire federal government to put in capital on an unsecured basis to put in equity as that fire wall to prevent the dominos from falling. if you remember in the fall of 2008, october of 2008, we ended up investing equity in nine banks at the same time on the same day as a way of once of for all stabilize the dominos from falling by recap talizing them all at the same time. i wish -- bankruptcy might work -- again if we go back to the inoculation example, the risk of a domino knocking them over is reduced, you might be able to put the one bank through bankruptcy without fear of spillovers to other banks. >> you provided some fairly eye popping numbers about the cost of the financial crisis and probabilities over a 100-year period, there are a few questions related to that. i know you were suesing bis assumptions but could you talk more about tha

to bank. what made 2008 so difficult to solve and that's why the tarp was so necessary. tarp was the only legal authority in the entire ederal government to put in capital on an unsecured basis to put in equity as that fire wall the dominos from falling and ultimately if you remember in the fall of 2008, 2008, we ended up investing equity in nine banks dayhe same time on the same as a way of once and for all from izing those dominos falling by recapitalizing them all at the same time. bankruptcy right work. the risk of a domino knocking them over is reduced and then to put the onele bank through bankruptcy without ear of spillovers to other banks. >> so you provided some fairly ye popping numbers about the cost of the financial crisis and the probabilities over 100 year are a few here questions related to that. i know you were using lot of that or a odeling but could you talk a little bit more about the cost benefit recognizing that very in in the discount rate for example could significantly

it's not just through being banks but smaller banks as well. >> that's right. concerned about the fact that the four largest banks hold half of our deposits in the number of smaller banks have diminished radically over the last two decades. at the same time, small banks feel like they have to adopt the same processes to compete. thus troubling. makes it hard for people to sell go to the bank on the corner, i do have a button on my website that's called to leave your bank. it provides consumers with information on how they can figure out whether the financial services they're using our the best for them. and for where they can find a credit union to join. >> what else do you think the regulars need to change about their mindset? you mentioned about being partial to banks over non-bank providers, but what else? >> guest: there's things regulators could do to solve the problems that my customers told me about. when i talked about was transparency. so up into that picture of what it looks like when you walk into a check cash or. most people watching know what looks

they might be partial to banks over non-bank financial advisors but what else. i think there are things at the regulators could do to solve some of the problems. it's what my customers told me about. when i talked about was transparency. i kind of painted that picture of what it looks like most people that are watching probably know what it looks like. they may not had registered that you don't see anywhere what is for sale what are the products how much they cost. are there different kinds of options for these. you have to opt in to overdraft protection. lifting up the important decisions about what kind of account you can get whether it makes sense for you to have that protection or not those are really important and one of the things that i advocate for in my book is something like a financial fact box. the way we have nutrition facts on the side of breakfast cereal and you can stand side-by-side probably not in a bank because we do have a financial services marketplace. it would be nice. you could say a minute compare that. another thing that i think that th

so, banks, people sort of trust in banking overall is at an all-time low. african-american and latinos lost much more of the wealth they had before the crisis and they were starting from a lower base. so that crisis is devastating. trust is at an all-time low and i think the people who are able to bounce back from that have the least amount of trust. >> host: in your book, you talked about about when you worked in the alternative financial services you saw that link and you were not expecting that. >> yeah, so the reason i went to work as a teller in both places is it seemed like the only way i could answer this question of why so many were using the services. i spent four months working at a check cashier -- casher and three months as a lender. many people talked about having bank accounts but doing things at one or another. i came out from behind the counter and interviewed the customer after doing the stint and told them why i was working there. >> host: you were upfront with everybody? sd >> yeah, i was. it would not have been ethical to pretend like i

on community banks. so this is the data that's really so important from the imf. this is a probability chart looking at how likely a bailout is going to be as a function of capital reshlths. capital requirements on the x axis. bailout probability on the y axis. this is where we were in 2007. very high probability of a bailout. this is where we are now. this is where we get to in step one. and this is where we get to in step two. one of our goals was we want to cut it down to a 10% or less chance of a future bailout. and then do the analysis on what the costs are. now, there are two types of systemic risks we are targeting with our plan. number one is a systemic shock to the economy. think of this as the 2008 crisis. we have a massive housing downturn. the biggest banks have taken very correlated risks, exposure to mortgages and real estate. the shock hits the economy. by increasing the capital level of the biggest banks to 23 1/2%, this will protect against the vast majority of systemic shocks that hit t

bank of new york is more of a processing bank, rather than a traditionally leveraged banking business. is ahat we see there business that is a business that has a very strong franchise. need to improve its underlying operating margins. and as a result, what we are looking at today, in terms of evaluation of 14 and 15 times earnings, is closer to 12 and 13 times earnings, which is not reflective of the quality of that business, relative to the quality of other more traditionally leveraged institutions. vonnie: the other company i wanted to point out, because it has been in the news -- samsung. you have been bullish on samsung for a while. other charts we have in our library shows how much analysts have valued this stock at. it is roughly 17% undervalued. is that what you would see for samsung? david: i do not think that that valuation is far off. the thing i like about the phone -- i actually went to the unveiling event yesterday here in new york, and i think that that phone in particular shows the evolution of samsung's capabilities from a simple hardware manufacturer, to a manufactur

they bank it far. you're not an economist. you do understand central banks. several years ago when greece ran into economic trouble that answers for the european central bank to increase the supply -- a supply of euros. the same scenario applies. economic inactivity does not rate increased money and credit. it would boomerang back to germany and other more economically productive corrals. let's reverse the scenario now and think about silicon valley. a place known for enormous wealth and creativity. they believe up to the top that economic growth causes inflation. the very people who are charged with planning our economy they actually believe that prosperity has a downside. they are believing that must neuter economic growth. let's imagine they say we are going to say to start selling bonds. almost instantaneously. we reside in a global economy. there are investors around the world desperate for exposure to the most economically productive people on earth. if it shrinks the supply of dollars in those banks it would be made up instantaneously around the world.

this weekend five indian banks will begin the process of merging with the state bank of india.the country's largest bank but after the merger it will be one of the largest in the world. the government hopes the move will clean up the system and get banks performing again. we ta ke and get banks performing again. we take a look. hsbc, bank of china, bnp paribas, jp morgan chase they are some of the largest banks in the world and now an indian bank will bejoining their ranks. the state bank of india, india's largest public sector bank, is merging with five subsidiaries. it will create a mammoth bank with 24,000 it will create a mammoth bank with 2a,000 branches and 500 million customers. now, banks are often measured by the value of their assets. this merged bank will have assets worth $550 billion. to put that into perspective, the new merger will be five times bigger than india's next largest bank, and the problem in india is there's lots of small banks. far too small to break even let alone become profitable. and for too long many have been weighed down by non—performing asset

and the bank with half a billion customers — five banks are to merge with india's largest bank to createuper—bank. and the markets in europe have opened, it is a bit muted, we will follow the figures later in the programme. and we'll be getting the inside track on brexit with our very own economics correspondent, andrew walker. and on that note, this week we've been asking for your questions about brexit — we plan to answer them later on in the show. keep them coming in. just use the hashtag #bbcbizlive. welcome to the programme. with article 50 now triggered, negotiations on the uk's departure from the european union have begun. but this is notjust about what britain wants — the brexit deal depends significantly on what the eu is prepared to give. in the next few minutes eu council president donald tusk will present the european guidelines for the brexit negotiations. so, what kind of terms can we expect from the eu? national parliaments of the eu's 27 member states will have a say in any future eu—uk free trade deal, plus consent by the european parliament. any future free trade deal b

>> reporter: first of all, good morning, it really is the economic development bank of russia and a bank very close to the kremlin and vladimir putin first of all the bank is state owned, financed a lot of russias very big and glitzy project. the entire infrastructure around the sochi olympics. the bank also in the past couple years bailed out some -- fairly throws putin as well. this is very much aligned with the kremlin under control of the kremlin and under sanctions since 2014, it has as a lot of financial assets or had them in the east ukraine where a lot of fighting is taking place and heavily hit by the obama administration in 2014. one of the first slapped with sanctions when the ukraine crisis really started to escalate there in that part of the country. it's interesting because we got in touch with the bank last night and to add what took place in that meeting they claim that the meeting between garkov, was at the same time they met with business executives, and one was jared kushner but didn't want to elaborate any more as to what exactly was said in that meeting, dave. >> tha

banks.might be stopping that and reversing part of that. they want to manage growth to a level that is acceptable to them and allows them to also make the shift to consumer driven economy. anna: one of the risks tom pointed out there is what the fed is doing. this chart, the dollar's revival might up end the sense of calm. last year it seems the tension around capital outflows could become the dominant them oe of 2017, but it has been very quiet. >> reserves are going down and exports are weakening. they are under a lot of pressure and we think they will continue to weaken. they will try to manage the path of weakening because they cannot have a confidence crisis. the trend is clearly weaker for the yuan. yuan, buter for the they will try to manage their growth story. next on the program, driving the deal. we look under the hood of the 2.2 billion euro sale of gm's european operation to psa. it looks like they have managed to come to an understanding around a number of roadblocks. we have an

banks versus european banks.r deregulation, is that going to hurt a lot of these ratios for the banks? >> he will not get deregulation in the next three months. francine: so when? theome a new appointed to bank supervision in the first events will happen in 2018. untilll have to wait june. believe -- is it going to low up? -- blowup? >> you have to separate is an risk?bad from systemic tom: steve odland, thank you. how about tv ? what is even better as you can come over and go back to a previous chart. we are finding get very popular for global wall street to keep experts like iceman. there it is. you can ask a guest a question. worth? that from london and new york, this is bloomberg. ♪ end ofreign-exchange the the quarter. what an interesting quarter for the dollar. forsense with a bold that euro parity. there it is. it is a huge deal for cinch to go the other way. he has been dead on about strong sterling and stronger euro. he reverses that, looking for parity. this is finance 101. is totally away from your

this is the bank of japan. this is where the bank of japan got it wrong in 2000, 2001.raise rates and they had to reverse and come back down. no one insert howard davies's world has ever forgotten that. can we have a federal reserve that actually gets out front of the dialogue? or do they have to wait for the hard data as the japanese learned the hard way? >> in europe the example that we are most aware of is the 2011 when the ecb began to raise rates and had to reverse track their quickly. the history is littered with examples of central banks thinking they know how things are going to go and then turning out to be wrong. in one thing i would say this case it the fed have been biding their time. they waited quite a long time. they allow the recovery to run for quite a long time and i think that they are now beginning to be more certain. fed decision making is broader than it is in the bank of japan. there are more independent voices. in fed has been more open terms of the way in which decisions are made. more recorded dissent and people taking different points of view

this bank is the largest state-run bank in russia, sper bank, and the reason it made american news on friday is because the bank announced on friday they've hired an american lawyer to defend them in this case. they hired one of donald trump's personal lawyers. with the "new york times" published the tax returns last year, this is the lawyer who threatened to sue "the new york times." when they wrote about all the women to could you see donald trump of as well abusing them and threatened to sue the paper for that one too, this was the lawyer who he sent to threaten to sue them. buzzfeed reports the same lawyer also represented him in the atlantic city casino financing. but now this guy who has ban trump lawyer for a decade and a half, he's now just been hired by the biggest state-owned bank in russia. and until last year, sergei gorekov, the guy who went to kbg college, he was deputy chairman of that bank. he is no longer though because he is still rising in his career. he's no longer deputy chairman of anything. sergei gorekov, the guy who went to kbg clerjs he's now the head guy at

deutsche bank overhaul as the bank closing on a series of fines and losses. our next guest says settlements could reach significant new levels unless they act to address wrongdoing. founding partner at add veritas. you think fines could be higher? >> definitely. if you look at the rights issue there's between amounts paid in fines and mortgage-backed security fines, 8 billion rights issue they are having this morning. so the amount that people are paying for bad corporate governance is due to rise. i think extremely active regulators and beginning to see some very punitive legislation coming in throughout these countries. >> you call your self a whistleblower consultant in your company. what exactly does that mean's. >> the first problem term is the whole whistleblower itself. it's what regulators call raising concerns. we'd much rather prefer to prifl blowing as raising concerns, speaking up, whatever. whistleblower is a loaded term. they think of celebrity whistleblowers, if i can call them that, like julian assange, snowden. that's where companies or organ

one bank is in focus. deutsche bank is down 6% as it announces a rise. as you can see, profit-taking across the board here strong performance up over 2% for the likes of france and germany. but let's dive in in more detail to the deutsche bank story. of course, as i said, sliding on news that it will reorganize and issue new shares to reach at least $8.5 billion. geoff cutmore joining us live with all the details. good morning to you. >> good morning. there are several parts to this story. the one the markets have seized upon initially is the big headline, $8.5 billion capital raising that is written. perhaps that's why the market selloff on this story is not as extreme as some might have imagined, and that is the restructured of the investment bank and capital markets unit in one business which john cryan says will save $700 million per an um. and, of course, there's the selling off of a minority in the asset management business. so as you can see, deutsche bank is down about 6% at the moment, but it's been off less than that and the market is coming to

in europe and smaller banks -- medium and smaller banks like in the u.s.ant the markets to support clients all over europe that are supported in a strong way like in the u.s., you need banks that are able to operate cross-border regularly and there -- readily and there are too many obstacles for that. >> this would be a combination of two strong banks? if you put two dinosaurs together, you will not make a strong bank. >> that is clear. i think it would be survival of the fittest and let's not forget, we are competing with the u.s. and europe is much more , open than the u.s. to competition. this is going to be an issue that we are going to look at very closely. we have to look at it. american banks have an open field in europe. the u.s. regulators have been very tough with european banks recently. >> jpmorgan ceo jamie dimon is speaking at the bank's investor day, taking questions on everything from strategy to regulation. >> i think around bank regulation, i didn't marry into prices of key sensible's. -- principles. no one in their mind could say what we

this is not a retail bank. they call it a development bank. it's very connected politically.inister, medvedev, is on its board of directors. and as i said, it's the bank that putin goes to for financing his most important projects. the fact there are intelligence connections to the bank adds to the mystery surrounding it. so it's not just your average bank like ing or deutschebank. >> i want to get your reaction, mr. ambassador, cnn's reporting the intelligence representative nunes saw at the white house, what he saw could be from surveillance of foreign leaders early in the transition when then president-elect trump was exchanging a lot of calls with foreign leaders at trump tower. was it a mistake to be talking on unsecured lines? >> well, no. most conversations, particularly in a transition when you're largely getting to know people and convey messages of congratulations and looking forward to working with you, those don't have to be on secure lines. but you know, there's a lot of questions raised by exactly what intelligence even exists. and i'm very curious to find out.

the bank of england, bank of japan, european central bank are pursuing their own agendas and have theirey are all following different forms of qe, which the federal reserve has already left behind. i do not think that we can think that there is any kind of real coordination, but there are different stages of what we say normalization. are normalizing, but in "the wall street journal" there is a chart showing the hopes of normalization. why is this time different? states the and nine it is a real-time laboratory experiment if normalization is realistic. no one knows is even trying to normalize at this juncture. why is it different? for all the reasons that i'm sure we have a hearst many times. the aftermath of the biggest secularl crisis ever, stagnation, savings over investment, there are many reasons why the expansion since 2010 does not fit the script we have had since the end of the second world war. cross our fingers and hope that maybe the united states is actually gradually beginning to normalize slowly, but the data points are still contentious. francine: guess where steve mnuchi

mark: in the u.k., the bank of rate -- the bank of england keeps rates steady. there is a hawkish tone. for a ratebes votes hike. vonnie: president trump releases his budgets. to boosto cut the cost defense spending. ?ill it satisfy investors are concerned about having had the rate hike yesterday. we are 30 minutes into the trading day after it and that is what investors are looking that. is in the fed right now the other central banks right now, not much change in the stocks after a rally. not much change in u.s. stock today. if you look at treasuries, a reversal compared to the recent action with yields going back up after falling in the wake of the fed's decision to raise rates. the two year yield up by three basis points as a sellout presumes in the u.s. treasury market. within the u.s. stock market in terms of stocks could you beating the most because they are heavily weighted to the gains in the s&p 500, or call -- analystssing with estimates being beaten. again for the company after several years of revenue to klein, having to do with the cloud and growth

matt: and for banks?think the path of rate increases, the slow and steady path is a good one for bank stocks? charlie: i was bullish a year ago and it played out pretty well but in the last few weeks, that has reversed. bond yields are coming back down. unless rates rise faster, bank trade will struggle from here. in europe, there is more to go for. the recovery is stronger than there is in the u.s. on the basis of how these banks have already moved. matt: if you take some of the profits from your bank that a year ago, where you reinvest them? charlie: right now defensive and growth is the best area to be. the problem with growth is the prices aren't attractive and that is also the case with defensive. but that is with the market offers right now. or is little you can point to and say is dirt cheap. one of the problems today is south africa, the firing of the foreign minister and the rand has sold off. ok, so there is something happen in south africa. where there is value there is problems and that is an

community banks are the backbone of small businesses. we are going to preserve opportunity banks.probably noticed i signed executive order on regulation on february 3 and that is a big executive order. of theaken a lot regulation away. you will be able to loan and be safe and provide the jobs and create businesses. it is an honor to have you with us and perhaps we can go around the room and we will start with dorothy and who you are and who represent. >> thank you. company cape cod mutual . >> i'm leslie anderson and i'm with a bank in nebraska. >> suburb of pennsylvania. from new mexico. [indiscernible] >> thank you. from first national bank in texas. >> thank you very much. vonnie: there you have it. president trump holding a meeting with community bank ceos talking about how committed bottleave been playing a -- vital role in the economy. he said, you will be able to loan and be safe and provide those jobs. again, 11 or so members of committee banks including banks from cape cod and nebraska to and some more committee -- we willcontinue watch any headlines that come out of the

that theme ofn central banks not doing a lot, the bank of england is not. something last thursday -- john: yeah, i think it was -- mark: here is the inflation data. john: it went front of mind when it came out, but this is a valedictory move for her, because she is on her way out. the question on u.k. inflation is, can the bank of england do anything about it? it is sterling-driven. it is not just food and energy. it is ever -- other imported goods, which is a concern, but if you look at wages, they are pretty weak. so on these numbers, you have got flat, real incomes. that will not support expenditures. the bank of england will still be concerned with the brexit weakness or the impact of a weaker pound will come through in her the economy. on that basis, -- and hurt the economy. on that basis, they are unlikely to do anything for some time. the market is beginning to price in -- mark: john: 75 basis points. a little bit. ambassador will the -- vonnie: here is mark crumpton. mark crumpton: president trump has a warning for people that failed to pass the aff

matt: deutsche bank and the entire banking industry.che bank is selling shares at a 35% discount. it is also giving it outlook for 2017, saying that it expects fixed income trading revenue to be broadly up for the industry. this is an interesting headline coming across the bloomberg. let's see how the stock moves. it is up 3.5% this year, but still down more than 50% over the last five years. guy: the market is open. we now have cash opening up. we don't expect that much this morning but i'm fascinated to see how the market breaks down. just a little bit positive, just a little bit negative. we're also watching the other markets as well. the cac is dropping a little more. we will wait and see how the dax opens. we are waiting to see what kind of reaction we get. london beginning to soften up a little more. we are down 0.2%. let's get to the gilt market open. let's get to what else is going on. here is nejra cehic. nejra: we are seeing low volatility across the spectrum, fx, fixed income, equities. let's see how the gilt market is openin

that it could not function without a central bank were utah qingdao? we would be any nonstopp depression road. don't you know, ? then i point out rockefeller became the richest man in the world before the fed. but it is constantly rejected the very idea to say we don't need a central bank. the arguments are many keynesian school makes the point about the then we needed to increase creditng during recessionary periods to prop up the economy in free fall. this fails because it cannot be forgotten and as agonizing as they are or killed morale in the year term that the others -- signal on the blade because they seek because of all the misuse of labour and the bad habits and into investmentsat that was holding the economy :own in the first place. so that is the sack time when government to do less did nothing simply because if left alone they seville the boom on the way quick spin mckuen them to try to allocate credit but that companies are propped up of hicks periods but the fed has no credit to increase. and those said kennedy's in tuesday economy in kenn

for example, community banking.the things where it is odd for people to not get behind it. .ven if they may not make much sense sterling really has not moved up on this news. francine: we are trying to figure out if it is market jitters or something to be expected as there is more news coming out. we will be back with neil dutta and kim schoenholtz. coming up later today, conversation with sadiq khan, the mayor of london. york..m. in new this is bloomberg. ♪ ♪ there has not been any flex ability or sensibility towards scotland since becoming prime minister. she seems single-minded and determined to go ahead into brexit. that is not what scotland will do and that is not the inclination of the scottish people. francine: that is the former scottish first minister, criticizing theresa may. bloomberg's and edwards is in -- bloomberg's anna edwards is in less minister -- in westminster. it seems there had be expectation that perhaps she would call the referendum this week. now nicholas surgeons -- nicole sturgeon's move f

the bank chairman from deutsche bank then personally lends a bank of cypress. one of the two largest shareholders of the bank is a close personal friend and business associate of russian president vladimir putin. one of the other major investors is the king of fertilizer. i know, some of my critics call me the queen of fertilizer, but they mean it differently. for americans who are trying to make sense of our new president and the government he's putting in plates and what explains their behavior when other political norms don't seem to, because the king of fertilizer is an amazing story. he's not the richest person in russia. that would probably be vladimir putin. but he does hold the title for what is believed to be the most expensive divorce in modern history. as part of his divorce proceedings, a swiss bank award his wife $4.5 billion as her divorce settlement. wow. and a couple's divorce wuld usually be a private matter, why do we care, the reason it turns out we have to care about it is because it's becoming part of what we need to understand about your c

and other banks like barclays which had to take additional steps. where do you see the banks? >> well, i think that there are two -- two drivers that you have to consider. first one is the geographic implication. then we have a number of banks, rbs for one, primarily uk-based. that has a disadvantage in terms of diversification of assets. but also may be an advantage -- actually can be an advantage because of what happens with brexit. then you have certain -- the other banks which are hsbc and barclays, that might have an impact on their perform unanimo ance in the future i think. >>> you mentioned hsbc, let's bring in trump here. because if protection really is topping his agenda. and really his front four, when it comes to enacting some of those legislations, ripping up tpp, essentially, how much concern do you concern around the liability that you see? >> well, hsbc is a very big bank. operates in more than 50 countries. and it's primary competitive advantage in the market, it's operating and a big bank in china. so, i don't think that this is going to impact their strategy

including the royal bank of canada, the bank of tokyo and morgan stanley. if san francisco [timer dings] in support of citroen and in opposition of the dakota access pipeline the board will divest in opposition to this pipeline and will not invest with citicorp bank. thank you. >>thank you. next speaker please. >>good evening mme. chair and supervisors i come from a small south dakota community which may be some of you unheard of our that to say that san francisco did pass the board of supervisors did pass a resolution supporting the standing rock staff and they had a year bank account with the bank of america and there is a family of companies and the city invest over $800 million financing in the atl and we wanted to demonstrate that solidarity with their need to put their money where the mouth is and i know maintaining the relationship >>sir, please speak into the microphone. >>[inaudible] and 17 million people downsteam from seattle and [inaudible] and the bank violates indigenous rights and [inaudible] army corps it marks violation of indigenous proper

this alpha bank is a big known bank in russia.the server pinging the servers of the trump organization? >> reporter: christine, it is a big bank in russia. alpha bank is trying to get to the bottom of what happened. the working high poth issue is some executives or employees may have stayed at trump hotels in the past. as a result, left e-mail addresses there and then they were sent spam mail or something like commercial mail from that trump server. now they say that on possibly those servers may have triggered cyber security. and cyber security may have started a dns look up. that mention that the alpha bank server checked to see where the mail was coming from. alpha bank hired a u.s. cyber security firm to conduct that investigation. they say that investigation is now closed. they have not said that they know where these things were coming from and why these communications did happen. alpha bank put out a statement saying none of the executives had contact with president trump. they had no business dealing with trump and there w

clearly, deutsche bank is going to be a huge one.was called down 10% from friday's close after the ceo decided to ask shareholders for another $8.5 billion in the capital increase. we will speak to that chief executive officer, now one of three ceo's at deutsche bank. john cryan, at 8:15 this morning. he appointed two deputy ceo's. guy: absolutely. i think life look at very interesting as people try to work out who is pulling the strings. aberdeen and standard life are coming together. in so many ways, this is reflective of what else is happening in the market. the likes of vanguard etc, are just driving fees lower and lower and lower. in order to be competitive, these guys have got to take costs out hard. and that is what we will see. will mr. gilbert be staying with the aberdeen business? i don't know. i think some changes are going to be coming. how they work up in scotland will be interesting to watch. it is a day of deals and a day of necessity. you have what is happening at deutsche bank, what is happening at aberdeen and stand

a lot of talk about zombie banks in china, the state financing of banks. what is your bank doing?perations and growing organically? william: we effectively facilitate trade and investment flows between north american companies, european companies, and china. that part of the business is helping. the balance sheets of chinese banks is cyclical, as the economy accelerates, the bank health improves and when they go into recession, a relatively young economy. modern economy. it puts pressure on the banking system as they go into recession . it is a relatively stable system given state support. mark: i have to ask you about the u.s., be a moke capital markets division had a very successful year last year in dealmaking. can you win a bigger slice of u.s. dealmaking in 2017? yearsm: we have spent 15 strengthening the execution capability of our u.s. capital markets business and now cover more u.s. issuers think canadian issuers. workforce in size the united states as in canada and we specialize in mid-cap that, specific sectors and is why we see growth and the prospects for economic grow

banks. basically alpha bank is an extension of vladimir putin. if vladimir putin reaches out and tells the head of alpha bank, mr. friedman, that look, you've got to do x, y, or z, he's going to do it because he works inside the russian system and stands a lot to lose if he doesn't do it. that's important to remember as well, exactly what the nature of the communication is and what's actually going on, i think has yet to be determined. there's a lot more stuff that needs to be dug up first. >> when you said alpha bank is essentially vladimir putin, i looked at matthew to see, explain that, is he right about that? >> you know, i'm not totally sure that if vladimir putin -- so first of all, we have to see what the evidenceuprts in the end, and that requires an investigation. at's kind of where we are on almost all of these contacts at this point. we can't prejudge until we know exactly what the evidence is going to support. second, i would say if vladimir putin was mounting any kind of attempt

does india need a bank?hem saying some kind is safe fund manager to help with stress assets heard -- assets. vinod: the debate is whether we do need a back bank. if we have a back bank will it be in the public or private sector? more importantly we have tried createred that if we do the bank, it will be capable of resolving assets. whether the economy has the appetite to do it or whether there are people who are able to arege those assets, there people with the amount of capital willing to invest. i guess, very soon. one question when it comes to consolidation, we have 27 state controlled banks in india. six are underway for consolidation, do we need more? government has taking a very good step in consolidating bank of india. entity would be far more. we do face a question when there are large numbers from all the banks. they probably will not be able what is onrd with the balance sheets. the government is , they will take up the issue. >> the india banks board chairman from the asian investment conference.

by having all the banks, the big banks have this much capital. the whole system is more resilient in case one bank has a big idiosyncratic problem. that big domino falling does not knock over other dominoes. that is what you need the higher capital levels in those banks. had a question about another proposal out there from the house and it committee chair. that banks choose to have a higher leverage ratio. or follow. frank. -- or follow. frank. -- follow dodd-frank. neel: directionally, that makes sense to me. the comments i offer to staff into you is that the capital requirements need to be higher. should be 15% at a minimum. number two, if you give the banks of choice, they are going to choose the regulation. they are already expressing this position that they just don't want higher capital. they would rather live under the micromanagement of dodd frank. no one is going to choose door number two. they will choose to live under dodd frank. you will live with more capital or you will restructure yourself. >> maybe one more question. you have a co

the banks seems to be lining up, .cile these two things. >> retail investors are not always a good gauge of foreword looking marketing. they tend to pile in near the end of rallies. i think you are seeing a little bit of that now. i would not be surprised to see continue flows into equity and risky assets as we crest. on the bank side, they were burnt in 2008. i think they are being disciplined. they are seeing small pickups in delinquencies and write offs even ford today noted the residual values on their car loans are starting to come down, used car prices are coming down. they are being more cautious. i think that is a good sign. in past cycles, you have seen the banks go full steam ahead into a crisis and they are pulling back in a timely manner. johnathan: is this the right time for them to be pulling back? is this the right time to be looking at subprime auto loans? >> we've pretty much like credit across the board and certainly we like banks. because of the regulations, banks are forced to raise capital and then

onshore european regulated bank.nd so, you will see more and more of a need to be present in europe. >> we spoke about some panel -- how many banks will their actually be left in five or 10 years from now? >> some countries there are too many banks. . germany, italy, there are too many banks i think if we look at the u.s. as a model, probably we could look, we could see in the future which is not so far away, maybe something like 10 important banks in europe, and smaller and medium in smaller banks like in the u.s. so, you know, if we want the market which is supported and clients all over europe that are supported in a strongly like in the u.s., you need banks that are able to operate cross-border easy. and there are too many obstacles for the. francine: they should be accommodation of two strong banks? if you put two dinosaurs together, you're not going to make a strong bank. >> it will be the survival of the fittest. le'ts not forget we are competing with a u.s. and europe is much more open than the u.s. to compet

it happened at a bank, a big bank called deutsch bank. and this scheme that deutsch bank got iolved with was a fantastic, enormous washing machine for illegal russian money. deutsch bank facilitated the laundering of about $10 billion worth of dirty money out of russia. that's way bigger than your average money laundering scheme. the way they were able to do it and get away with it before they finally got caught, they used the money through the stock market. stock markets are one of the only places on earth where you can hide a few billion dollars here and there and maybe it gets lost in the sauce and nobody notices something went wrong with the way it was moving. basically, the scheme -- again, from 2011 to 2015, it involved real stock in real companies but fake deals bo. both the buyer and the seller were in on the deal. it didn't really matter what the stock was. it didn't really matter whether it was economically smart or dumb to be buying that particular stock on a particular day. what they were doing with these stock trades was gett

david: the deutsche bank stock -- jon: the deutsche bank stock, down this morning. own cryan ripping up his .urnaround plan the effort include selling part of the asset management business. francine lacqua spoke earlier about the new strategy. >> remember, i described as capital raising. yet she need to advance it. i think, one year ago it would have been much more difficult for us. there is still a lot more uncertainty. i feel more comfortable sitting in the seat i sit this year than i would have last year. we are much more positive. the environment is good. we are seeing growth again. to some extent, we have done a lot of the hard work. there is still a lot to do. the regulators are still missing. we still focusing on improving controls and efficiency. francine: when you say the markets are good, was that unicredit that distilled the appetite for the sales? >> that certainly would have been a factor. also, the shares hit a low in september. they have certain -- sort of double since then. the markets look as though there is momentum behind the banking sector. it lo

systemlook, the banking , j.p. banking system morgan. we do the stress test. j.p.has $500 billion in capital today. -- the enough capital whole banking system in america has recovered. part of that is dodd-frank. i don't know anyone who would agree with dodd-frank. of theed that some things put in there after the fact should not have been put in, but it is what it is. unfortunately because dodd-frank , it is what it is. i have to deal with it. that is the law of the lamb. land. it basically says make the system better, so the regulators have a huge amount of authority to interpret these rules. is better, dodd-frank is partially responsible, but dodd-frank was passed 100% democrat, 0% republicans. none of us can possibly say you can't make things better. rational people should sit down and say what ports work, what parts don't work, what should be changed. a lot of good work was done and a lot of flaws need to be fixed. david: you were quoted as saying you would have to move people out of london. jamie: brexit is what we expected. unknowns a vote for the that we tho

i've worked at swiss banks, german banks, chinese banks, u.s. banks, and i've been independent.ve had something to say, i have said it. there's always the 80-20 rule. when he percent of the analysts draw 80% -- 20% of the analysts draw 80% of the research. what i've done that is new in the last couple years is go to annual meetings. remember, there was a financial crisis, but also hold those who oversee management more accountable, and the investors said, well done, keep doing that. yvonne: i just want to say hi. i want to get some comments from you regarding your old boss. we talked to him last week. he had some things to say about who pays for research. he was saying decline should decide how much they want to pay. do you agree with that? mike: i think there is an ongoing need for quality research to advise institutional investors. i will go further than that. i want institutional investors to render active management fees , and they should be active not just in the buying and selling of stocks but actively engaging with corporate management. if they do that, they earn more of

there were two bank of the -- bank of england policymakers dissenting.nger data or different conditions, maybe it could lean in that direction, as well. overall, there was no change in the policy tools. a neutral stance on the economy. dissent fromf this a christian forbes, one of the members of their monetary policy committee, and hints in the minutes, this could be possible white people got this sense. boed other members of the follow christian forbes in this direction? i want to look at one thing to focus this discussion. she is looking at the expectation that inflation in the u.k. could move above target. 4. have a chart for you, 609 it shows you that cpi is close to the 2% target. we are showing that u.k. wage growth is rising. this is interesting. you have the white line, the cpi moving up. flat, theges moving average paycheck. the problem is, she figures it is moving so much in that way it will continue. want to talk about now is the fact that bloomberg intelligence is saying -- the boe is mired in exit, that is the bottom line. they are not going

banks -- with european banks recently. >> jpmorgan ceo jamie dimon is speaking at the bank's investorg questions from -- on everything from strategy to regulation. >> i think around bank regulation, i didn't marry into prices of key sensible's. no one in their mind could say what we do is completely rational and perfect. that it didn't hurt america or cut back money. we're not fanatics about it. we know there was a crisis. talk abouthe did regulation, wanting more rational regulation and wanting, perhaps a tightening of the boko , rule or some redefinition of it. he says you could expect potentially some small legislation. small regulation to redefine that. he talked also about tax reform and that it would be good for america. in his comments, he has been careful to say -- i am not concerned. anderms of regulation reform, he says he is concerned with what is good for america and he says that is why he has dissipated in various advisory capacities to the president. he also talked about if wages rise, 5 million people could come back to the job market. he talked about that regulation an

so alpha bank you got to remember in russia there is no rule of law or protection over banks. basically, alpha bank is an extension of vladimir putin. if vladimir putin reaches out and tells the head of alpha bank, mr. freedman, that you know look you have to do x, y or z, because he works inside the russian system and stands a lot to lose if he does not do it. so that is important to remember as well. exactly what the nature of the communication is and what exactly is going on has i think yet to be determined. there is a lot of stuff to go dug up first. >> when you said alpha bank is essentially vladimir putin, i looked right at matthew, explain that, is he right about that? >> i'm nottacts at this point. we can't prejudge until we know exactly what the evidence will support. second, i would say if vladimir putin was mounting any type of attempt to covertly communicate with the trump organization or campaign, the russians have plenty of assets that don't have a giant russian name on them and billions of dollars in assets -- >> so you don't think it would be easy to be found -

american banks have far more capital. the fact is i want the european banks to thrive.pean banks do not thrive, europe will not thrive. and so to me, the regulators should really look at those things and help european banks compete and thrive to grow their economies. in much more important europe and the united states, because they finance 70% or 80% of the economy. united states is 25%. the united states is 25%. the rest is done through capital market activity. >> how do you rate the european banking system at the moment? we have tried to help the italian banks. i don't know if you think it is successful or not. deutsche bank is trying to raise capital. are we over the worst? >> we were that close to fixing it. we could have got it done. i hope we get it done. the banking promises not as big as others say. it took up 40 billion in bad loans. there was so much on the balance sheets, so much already written off. so, i would like to see the banks -- first of all, in the old days, banks were going pan-european. because of the crisis and new rules, they have been going back