banks than it is of canadian banks. and one of the things i found in my face search was the canadian banks, especially the one bank of candidate but also the banknk of nova scotia, to some degree the bank of montrÉal, the canadian bank of commerce, with the biggest competitors to use institutions in the early 20th century. in cuba, throughout the region,u the royal bank of canada had more branches than the citibank. i was competed with for deposits in cuba. and as an example when the cuban revolution occurred in 1959 there was a moral kind of aas negotiated settlement with the castro government on behalf of the canadian banks and with u.s. banks. the u.s. banks had to get out. the canadian banks could work something out. and we see now in the caribbean that these banks, the canadian banks are still prevailing, especially in the former british br colonies of jamaica, trinidad, et cetera, et cetera. jam the u.s. banks to some degree on a retreat from the caribbean, the udc citibank is recently returned to haiti after many

of the banks with 14% of aggregate assets, so small risk with a large number of banks.f some relief in the administrative issues and costs of the banks, rather than changing the regulations per se. we don't need to notify the supervisor about each and every high-frequency as much as large banks do. i'm not going to ask about interest rate setting, but in general, are smaller banks under pressure in germany because you have this low even negative interest rate situation? >> actually, they are, if you look to the german banking sector, three quarters of all earnings are interest-rate sensitive coming from the interest rate margin, and only 25% come from income. if you have that sort of business model prevailing in germany, you can imagine this very low interest rate environment is causing a lot of pressure on margins. having said that, this did not start with ecb policies. the 1980's, we have compression of interest rate margins and have seen interest down, song banks had a lot of time to prepare, but it is geared towards interest rate income, so you are more heavily affe

who in the bank actually isa who does? who in the bank actually is a rare of those risks?”he bank actually is a rare of those risks? i am sure they would argue that they have risk advisers or risk managers, that kind of person, or organisation is back on tap to give them advice. many banks have had to learn their lesson is extremely hard. —— organisations on tap. what are you proposing that banks need, not forgetting that since northern rock, we have had a huge shift in financial services in this country and around the world, in terms of new financial technology apps available. it is notjust the high street any more. consumers are served by any number of financial institution. my concern is the risks underlying these transactions. who on the board of his organisations asks what the risks are these technologies. i was speaking with a global player and asked what they we re global player and asked what they were doing about blockchain. it was evidence that make evident that it was one of the key parts of their provision of services. but they knew very little about blockchain,

banking.o office? i would like to say that what has happened has been extremely distressing to us, as it has been to other stakeholders, shareholders, employees and creditors. then it was adam applegarth‘s turn. this is a humiliation. have none of the board any sense of honour? has nobody offered to resign? i feel great regret for the anxiety our retail customers have seen. within weeks both had resigned. we asked both to be interviewed in this programme but both declined. was your eye off the ball with this one? when i became chancellor in the summer of 2007, and when you become a new minister you will sit down with your officials and say, "these are the things you need to worry about." financial stability was simply not mentioned. five months after the crisis started, ministers now decide that public ownership is the best option. after the rock was nationalised, it was revealed shareholders would get nothing. many were rock employees who had held onto their share bonuses when the run began.

the banking system.ample of that is the safe deposit boxes. >> have you ever seen so many boxes? there are 8,000-plus boxes in this vault. 8,000. the chinese people, particularly the immigrants, they rent houses in a very tight quarters. there's no place for them to place their valuables except in a bank vault. >> so it starts with the safe deposit boxes, then they're willing to put their money into the bank and then let the money grow, and then later on, they will take that money and use it to buy a home. >> at the actual closing, many of the borrowers bring their whole family with them. they bring their children, their grandmother, and by the time they walk out, they're all super-happy, and you feel good to be a part of that process. >> (family chatting) >> do you have the chicken feet in there? >> yes. >> oh, okay. that's always special. >> there's chicken butt. >> that's the butt. you don't want to eat that. >> i like it. >> (laughs) >> i never thought my girls would work in chinatown, because we liv

to all these banks.ou go to your mom for help, that is what they were doing, they were going for help. the banks were in need of cash, because the people were in need of cash. so we were there for the banks and we were there for all the people. announcer: this week on american johnson, whorank works for united press international in the 1960's, and the washington post for 35 years, the oral history interview is at the university of texas at austin. here is a preview. the minister of information decided nobody was going to go. it turned out they knew that charlie was in the room and all the reporters said, this is one of the only survivors. please let him go up there with a still photographer. so we all drew straws, the photographers in the room and i drew the short one. so charlie and i flew from port cai tuma.o we get off of the airplane and there is a helicopter on the side. we run to the chopper. there was a soldier inside. i jumped into what would be the door gunner seat. and as we took off, we took

banks. the latest republican bill to repeal and replace obamacare has been dealt a fatal blow as susan collins became the third gop senator to say she would vote against the bill. it's latest trailer by republican -- it is the latest failure by republicans. a fast track mechanism that allows the gop to bypassed immigrant support expires by the end of this week. in iraq, millions of kurds have voted in a historic referendum on independence. the repercussions will be felt throughout the field. more than 30 million kurds has spread across the borders of syria, iran and turkey. brent crude climbed to a two year high. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm nejra cehic. this is bloomberg. mark: the u.s. has discussed four or five ways to deal with north korea. some ofaster said the choices were uglier than others. officials dismissed north korean foreign minister's comment. that donald trump's warnings equealed a call t

us banks had to get out. us banks could work something out.we see now in the caribbean that the canadian banks are prevailing especially in the form of british colonies of jamaica etc. the us banks to some degree a retreat from the caribbean, though, you see citibank has recently returned to haiti after many years. i think the larger legacy was less aboutac the actual presence of wall street of the us bankers in the caribbean then it was of their understanding of what this history meant to them for the present and if you look at the kind of corporate biography of citibank, you understand that they looked at the 1920s and-- 19 tens, 1920s and early 1930s as this glorious time of international expansion, when they were able to kind of create new financial institutions and financial instruments that were largely unregulated by the government, that they could collide into the world, do what they want, make money as they wanted to and after the 1930s with the making legislation they were restrained. so, what you see in the history of citibank is a

part of the bank i would like to work n i put international department so the bank of england choseme into economic intelligence when i first started working for the bank back in 1977 it was a very different institution from the one we see today central banking then was a profession shrouded in secrecy i think the spirit of that time is captured in a story which the former governor tells. when lord king first joined the bank of england, he asked paul volcker, the chairman of the federal reserve under c.a.r.t r carter and reagan, what body should represented the bank of england? mystique was the reply many has changed in the years since and for the better you, governor, have contributed to that improvement with the reforms you led. today openness and transparency are defining characteristics of a modern central bank. this conference celebrates an important milestone in the evolution of this institution. the granting of operational independence the newly elected labor government decided after the 1997 general election that they would do what's successive governors and some conservativ

banking system?as: in principle, there is no worry. we are an open economy. we will look to each investor, be it german or international and do a proper check. if we don't do it ourselves, we will use the ecb for larger banks. those same criteria apply for national or international investors. they need to be fit and proper, but the nationality of investors don't matter to us. david: finally, earlier today, john cryan, the head of deutsche bank spoke in germany and said among other things that frankfurt was a particularly attractive alternative for banks coming to the continent from london because of brexit. how do you see the competition among frankfurt and dublin and paris for some of that banking business? andreas: first of all, let me start by saying germany has always had a good relationship, to great britain, which we will maintain. i strongly believe that london will stay by far the most important financial center in this area, but still in the case of the brexit, and we are assuming brexit wil

banking system?, in principle, there is no worry about that sort of investment. we are an open economy. we will look to each investor, be they german or international, and we will do a proper check. if we don't do it ourselves, we will use the ecb for larger banks. those same criteria apply for national or international investors. they need to be fit and proper, but the nationality of investors don't matter to us. david: finally, earlier today, john cryan, the head of deutsche bank, spoke in germany and said among other things that frankfurt was a particularly attractive alternative for banks coming to the continent from london because of brexit. how do you see the competition among frankfurt and dublin and paris for some of that banking business? >> first of all, let me start by saying germany has always had a great relationship with great britain which we will maintain. they have been partners of us and i strongly believe that london will stay, by far, the most important financial center in this ar

>> the rates are not helping the bank i think bond purchasing doesn't directly affect the bank the banks that had problematical loans and assets on their books, it's been helpful when it's high that positive yields have been created by very, very low risk rates. it's otherwise difficult assets without very, very low interest rate environment the purchasing of bonds, obviously at that puts money back into the market that can be recycled into higher yielding assets so i think the policies have probably proceeded in many respects the negative rates don't hurt banks. banks such as ours, we haven't had a credit problem in fact, our credit performance at the moment looks extremely strong not getting carried away by it, but running 11 basis points long plus our entire book that's very, very low for banks but we -- i think we've been hurt more, the deutsch bank, which the negative rate. >> and when you called for this gradual normalization, i'm not trying to call it that, does that mean you're more closely aligned? >> yes i think we've been able to exchange views i think we are fairly aligned wi

of india is the central bank of india the bank of intent that they have a central bank your own bank of india supports a fee on money system that is open to all terrorist info. it's a terrorist to print and buy arms and kill each other and they call the g.d.p. growth korea paul krugman york times is g.d.p. growth not far from nine eleven o'clock paul krugman celebration nine eleven as a g.d.p. booster is like all right let's go to our viewers who are well of course indian people themselves are the biggest holders of gold so they at least were a little bit more i mean you to the ravages of the economy in the financial system of the monetary system which economists and the brilliant geniuses of harvard inflicted upon them whether or not merican their europeans are going to be as well protected when their schemes these q.e. and all this sort of nervous stuff unfold but now let's look at some of the consequences max exactly how disruptive was d. monetization well it may have a limited over five million jobs is certainly ensure that growth slowed for weeks hundreds of thousands of small b

, strong american banks, but if it comes to investment banking, it's clear that the american banks basically are leading the world, and also leading the world in terms of progress and innovation. i don't think that brexit will help european banks to catch up with that. on the contrary. it will be detrimental >> you personally, i think, went to silicon valley to chat with founders down there on the ground, as well as to enhance your business model. in a way you're also ahead of the curve, ing's role being a technology leader. what would be your advice for others >> if you look at all the challenges that banks are facing and why banks are being disrupted, we're being disrupted because of negative rates. we're being disrupted because of the enormous regulations and regulatory framework that we have to adhere to, more and more is coming. those are all challenges the challenges that disrupts banks is the digitalization. with that the expectations that clients have from a bank on how to interact with banks i regularly visit silicon valley because we want to be looking at, you know, which companies

that was the ceo of change bank.her business news, south korean retail giant lotte is calling it quits in china because of tensions between the two countries. lotte ways to sell some 01’ countries. lotte ways to sell some or all of its supermarket stores on the mainland following heavy losses. the firm has hired goldman sachs to manage the sale, still in its pulmonary stages. lotte is close 87 of its 99— mart stores in china since march. —— has closed. google is being sued by three female former employees over alleged gender dissemination. their lawsuit claims the incident giant pays women less than men. google says it is reviewing the charges but disagrees with the allegations. it has previously said that any pay differences are due to different levels of experience. sometime later today nasa will receive the final signals from the cassini spacecraft it plunges towards saturn and burns up it plunges towards saturn and burns up in its atmosphere like a meteor. cassini began its mission 20 years ago and a lot has happ

legal bank. that's a regular i get my niece can't means the only national because i think that amount of thousand media dollars should be go in anyway somewhere so what's going on with that what did you learn. and not your own business like it was i know you want to jump in go ahead but i wouldn't jump in the conversation just to let you know when that framework or how the financial system works in a new way we don't have as you have seen the united states waging alliance or local banks all of our banks except of the. with the exception of bhangra bullock i would use a state owned bank all of our banks are private banks so the operate in doing the russian a financial system and another thing you have to understand how heavily dollar rice . you why and economy not only the most of our savings in u.s. dollars but also we have you know when you go to buy microwave it's going to be a will in us dollars as well so right what bonds are really you know forced into the situation when where they cannot op

central banks react. the bank of england gives off its first in a decade.he reach reveals shows no sign of ending. austria with a yield of just 2.1%. global reflation showing signs of a comeback. >> inflation remains well below 2%. 1.6. cpi is 1.7 or that allows the fed to go slow. >> gradually pushing inflation back to normal, we don't see anything that will push inflation to levels where becomes a market issue or forces central banks to accelerate rate hike plans. >> you should probably start to tighten when you see the whites of the oz of inflation -- the eyes of inflation. this isn't anywhere near the whites of anybody's eyes. >> we want some duration on portfolio, but too much duration is risk. we don't think this trend is going to be structural. it is transitory in nature. >> the bond markets continue to be distorted. it is extraordinary to see. we just talked about u.k. inflation heading out, putting pressure on inflation rates all over the world. on markets are still not responding and appeared very stretched. jonathan: joining me around the table i

and this is going to replace the world bank i.m.f. in terms of these brics nations if being able to basically ply their dead others and the bigger the edifice the smaller thing though here we're talking about a financial news story it's a new financial system global financial system an economic system here china's able to with their huge. pile of cash they able to now basically build an empire like the way the u.s. did after world war two they were the only man left standing the only nation left standing they had some capital they had some gold they had all the gold that everybody had sent to them for protection and they were able to do the marshall plan now china's able to do the one road one belt the one belt one road system here we also have them you know the last two thousand years of history. countries that were in dominance in the world for the most of history were china and india true ok america was just a blip on the screen america was like billy mays' song vege of magic's which became donald trump which became history's thoug

oh yeah that's what your bank is a b. i asked found that there's still a trillion dollar extra debt these are four x. trades the derivatives aren't as hedging those aren't aren't counted right thing just like. the paper clip like oh fourteen trillion dollars. but the fact is that the crisis is just this they print the money ostensibly to stimulate the economy but the money never leaves the banks because the banks need to roll over their bad debt so they don't make loans to. economy that's why you have no growth in money velocity money velocity is dead why because jamie diamond killed it was a suitable penalty for that what's a suitable penalty in america well the death penalty for kids over the joint. i say. it would be a lot on t.v. . a crimson tide. up up up we had to go you know the next step don't go away much more coming away stay right there. this with the with me because i can know the most get a little bit because it was. my son the most i knew but i you. know both of us but i guess we're kind of this side of this

as independence a good thing for a central bank like the bank of england?ic inflation for the best part of 30 years and to keep the money printing authority away from the temptation, was a good thing. but moving on from the decision 20 years ago we have gone to the other extreme and that no it is the first body everybody goes to. mark carney said independence wasn't omnipotent but he and his peers have gradually assumed that idea that they will be omnipotent and they interfere in all areas of life far beyond what a central bank should do. what sort of areas do you interfere in that you think they shouldn't and what are you talking about? there is an argument there shouldn't be a central bank at all and bank should be institutions that rise and fall just as insurance companies do. banking for 300 years has been privileged and the central bank has grown up privileged and the central bank has grown up to backstop the vulnerabilities but that is all they should do, the last line of defence, the guy who clears the ball of the goal line and handles it is necessar

and that is what the banking gives us. they are some savings that we have highlighted on resolution fees and alike. there may be a capital impact which we are not speculate yet because i think it is too early but i think the key has been the one i mentioned it would want to be in the environment and .reating nordea we have one way of creating. factor.been the driving manus: that has been the driving factor. everybody is writing their notes that you have broken this newest . they are talking about your capital and the propensity for dividends. i want to push you more on that. we talked about the potential savings of one billion euros. you must have some bandwidth perception of how much capital you'll need to keep. can you guide the markets? casper: where not guiding on that. there are a number of open issues. of going intod the thinking union and being under the same supervision. will go under the same exercise. we are very clear that we aim to keep our aa rating. we aim to keep our capital and the dividend policy that we h

how easy was it from him to go to the head of one central bank to him as the head of one central banke biggest in the world? wasn't that a move he always relished and look ahead to? tom: i think he enjoyed it immensely and he went from the hugest success at the bank of israel over to a fed where he was certainly is the advisor to the chairs bernanke and yellen. what i would suggest with governor carney's comment, it is a guy we forget who he is. this was a phd advisor for a guy named bernanke and a phd advisor for a guy named draghi and a young kid out of harvard. within 20ths place century economics, julie, going back to the classic textbook. it is considered a benchmark of reading within economics. toie: is there anybody else ask this question to mike mckee earlier and he said no one obvious lack of that kind of pedigree? it moss: it is unique but does not mean there are people who cannot perform the role traditionally given to the fed vice chair. i what to get back to 2 things. the shift and certainly a shift. if you look at the people who president trump has put in the frame, rand

to an italian bank, the belief on the ground is the italian banking sector is still not the most healthiest in europe so where do we stand now how realistic is the whole merger speculation looking at the share price of 10 euro, where commerzbank is standing right now, they need to eat pay huge premium or to see the share price rally a lot. only at a price of around 18 euro the german government can exit the stake without a loss. that equals 3.5 billion euro, and that's the price tag the potential buyer would have to put on the table obviously the german government has no interest in exiting commerzbank at a loss. there's also no hurry. there's also no loss currently from the bank. so you see, i think what we're hearing here on the ground is that it could be as soon as november that we get some traction in that story but for now there is no imminent action to be expected. of course, "a," we have the election coming up then there's the lengthy period of coalition building during which the political decisionmaking in berlin will come to a standstill "b," of course there needs to be a serious o

activities but aren't called banks.downturn or if there is an external shock and people suddenly go to ground and they want their money back. the crisis changed society, economic slump, stagnant wages, mistrust of elites. but to this former regulator, the financial system looks broadly similar. the philosophical building blocks haven't really changed. we had a view that the right thing was central banks acting through monetary policy to keep inflation under control. regulators, mostly separate, acting on individual institutions. a belief that efficient markets worked and could be relied on. that the banks' risk management, based on mathematical analysis, would give the right answers. now, all of those are things which we have to think about more deeply and we haven't done the creative work yet, a decade after the acute crisis. back where it all began, the us housing market was at the epicentre of the crash. and yet there is growing clamour to roll back on post crisis regulation or what's known as dodd—frank, the 850 pag

and he's showing a lot of interest in lloyds banking group and the aftermath of the h. boss crime which was described here in this very building as the worst banking crime in british history will obviously get people from lloyds to respond to that but these are these are the banks that were bailed out by the british taxpayer and you. i believe that their actions were not the actions of a reputable institution well i don't think standing here is the appropriate time to go into the detail of all this but the fact of the matter is six people went to prison in january and lloyds have apologized they've admitted liability and they put into place a compensation scheme there are many people in that building and many of the victims who feel they are not conducting that scheme fairly compassionately and swiftly but that's really what it's about an hour not looking to create massive waves but we do have a problem in the u.k. banking industry that needs to be looked at why do you have faith in select committees given that after the billions hundreds of billions pulled in to save t

try parodontax toothpaste. ♪ >> china central banks told their other banks, the massive banking systemimmediately stop doing business with north korea. just happened. just reported. neil: just happened it's a big deal. as many would argue, you want to trust by verify that the chinese while deliver on this, but what donald trump delivered today, is something that bill clinton tried, george bush, tried, barack obama tried, to use the china wedge, to get chinese supporting north korea, providing reserves, money, capital, anything north koreans needed. a lot has curtailed over administration, the spigot was opened with chinese lending institutions and banks and concerns. sometimes they're woven together, but run by china central bank. that is not like our federal reserve, could suggest reserve requirements that banks like bank of america and citigroup on deposit. this is the china central bank telling lending institutions do not do business with north korea. if, if they follow up on that, in other words, if chinese are going to make good on that commitment, that is a very significant devel

the world bank. new to the game this is how it works now the economy is built around corporations corporations run washington washington controls the media the media over the voters elected the businessman to run this country business equals power you must it's not business as usual it's business like it's never been done before. welcome back today blairite former labor johnson alistair darling who began bailing out the city of london to prepare britain for austerity gives a speech on the anniversary of his paying off the debts of one of the u.k.'s largest mortgage lenders northern rock here he is reflecting on twenty first century advance capitalism i was on holiday with the family and i was sent to get the morning bread and milk and i happened to notice a copy of the f.t. and i saw it on the chance for a bit of a look and see what's going on abortion and i was standing there waiting for it to get up and i read this report that charm the french bank society general had warmed up suspended dealings w

central banks react. the bank of canada gives a delivers a surprise hike. bank of england gives off its first in a decade. the reach for yields shows no sign of ending. austria issues its first century bond with a yield of just 2.1%. we begin with a big issue. global reflation showing signs of a comeback. >> inflation remains well below 2%. core cpi is 1.7 or 1.6. it allows the fed to go slow and not disrupt market conditions. >> gradual push-up in inflation back to normal, but we don't see anything that will push inflation to levels where it becomes a market issue or forces central banks to accelerate any rate hike plans they may have. >> larry summers is right. you should probably start to tighten when you see the whites of the eyes of inflation. 1.4 core pce ain't anywhere near the whites of anybody's eyes. >> the biggest risk is clients getting in and buying duration right now. we want some duration on portfolio, but too much duration is risk. we don't think this trend is going to be structural. it is transitory in nature. we think investors should be r

i don't remember a time i really don't remember a time when banks except for a small community banks that are sort of nonprofit if that isn't you know. savings and loan a small small community is that her family oh no i don't know about banks that are just send it to make me look they've been going after small businesses as all your . little sort of small businesses. apparently wells fargo allegedly went after small businesses over charging them for credit card processing over billing scheme that targeted less sophisticated moment pop shops and couldn't keep up with the auto insurance i mentioned charged more than eight hundred thousand people for auto insurance they did not mean which then led to two hundred seventy four thousand customers becoming delinquent on their loans resulting in twenty five thousand vehicle repossessions this is a. that should have never happened so people lost their cars probably jobs probably a lot of other things all because they didn't want to bother to buy if there's anything the congress should be doing something about this just because the obama admin

we will find out more on that front, the first bank run in 150 years.s — as most big car—makers bet on electric to power their new cars, toyota is opting for hydrogen — who was right about the future? we'll hear from toyota's european boss. and it's rate decision day in the uk today — will we see a split in the vote to raise rates after a week of strong inflation data and falling unemployment numbers? what will it mean for rates? and from fishmonger to anti—establishment media mogul — we'll be speaking to the man behind the register website about hisjourney, and how he competes with the likes of facebook and google. and as the bank of england issues its new £10 note with jane austen on the back, we want to know, is cash still king for you? do you still use cash? let us know — just use the hashtag bbcbizlive. a p pa re ntly apparently we have to give that £10 note note back, so no coffee on sally later... exactly ten years ago today the bbc broke the news that high street lender northern rock had been forced to ask the bank of england for help. what happ

this is deutsche bank in white and the bloomberg european 500 banks index in blue. see that for a while deutsche bank had come back and was outperforming its peers in the beginning of 2017. it has come back down. even with the two-day gain we saw, it has come down. we will see if the fitch downgraded its it hard is morning at the open. -- downgrade hits it hard this morning at the open. as we have indicated, it is going to be a fairly insipid open. we had data coming out of the u.k. later. the attention to that at 9:30. -- the attention to that at 9:30. atpay attention to that 9:30. nothing really going on. below the surface, what is going on? let's find out. manus: we are for euro inflation data to come out later on. -- we are waiting for euro inflation data to come out later on. you have pce at of the united states. below the surface, it is about inflation. morning, this financials slightly better bid. the stoxx 600 over this quarter is up just under 2%. basic resources are up 9%. a trifecta across the range of europe. , a euro has been a tailwind headwind i shoul

banks. the method relies on a system between north korea and china where the chinese firms and individuals hold these bank accounts. slide two, please. the second method was identified by the justice department based on information from an unnamed north korean defector. chinese entity one on the left side. chinese entity one owes money while north korean entities two owes a similar amount to chinese entities two. the entities pay each other given the difficulties of moving money over the border. the third method was used by a russian company to receive u.s. dollars for shipment of gas oil to north korea. this is very important given the new resolution that restricts energy sales. providing a key vulnerability that washington can exploit. this is why it's crucial for the trump administration to issue fines against chinese banks that are facility north korean sanctions. matching the successful u.s. policy as the chairman said used to pressure european financial institutions that were facilitat

bank of russia excluded. bloomberg she will discuss a rate reduction at the next meeting. >> we