trying to bank f.e.c. huge derivatives portfolio there's no doubt it's going to bag with on the wrong side of every single track and that there are huge losses hidden in that portfolio and that they aren't solvent for the interim government isn't going to close them down in from first to mislead investors about that bank. so you have something of a what we might call the red queen syndrome where to paper over losses the government the german government is allowing deutsche bank to essentially create more losses and to try to paper over the previous losses we've seen this type of thing with barings bank before a collapse long term capital management before it collapsed most banks go through the same kind of pre-collapse scenario where they have gaping holes in their balance sheet they don't want to disclose they take greater risk that gap gets losses get even bigger but now with these too big to fail banks in particular in particular with deutsche bank it's a bank that's so welded into the european economy

in particular in particular with deutsche bank it's a bank that's so welded into the european economy and the german economy that like the two thousand a crisis like when eric holder gave the green light to fraud when eric holder said banks are above the law when eric holder error aided and abetted massive fraud in america the banks derivatives book has become a global liability and it's all dependent on getting extraordinarily cheap borrowings from central banks like the bank of japan richard if interest rates are to go up even ten or twenty or thirty basis points the policy scheme that is deutsche bank collapses and i correct. yes and if they can't raise interest rates globally for a whole host of reasons across the world. class to. the fact is we're. always trying to figure out how to get to g.d.p. more. class size with that. system with that. right this is just as i say that her that sounds like a very tall order a given the overlapping books i saw in two thousand and eight that when one of them becomes insolvent like a layman or a p.r. stearns the global banking system ceases to

language of a bank. speaking the truth global news that matters g.w. made for mines. says heat in ruins morrow a. symbol of a long conflict in the philippines. between the muslims and the christian population. financed fighters occupied the city center seventeen president to churches response was told. by hitler it will never again football games of. the reconquest turned into tragedy. this is not the kind of freedom that we want. how did mohan we become a gateway to islamist terror i think he sees the new marketing as the end result of an exclusive report from a destroyed city. philippines in the sun. starts it will live on t w. this is d.w. news live from berlin u.s. president donald trump all book summary of the conclusions of robert muller's investigation into russian interference in the twenty sixteen election finds no collusion by the trump campaign will get the latest from our correspondent in washington also coming up the stricken cruise.

the bank into three the banking industry has been rocked by one scandal after another and recent years. but this failure impetus to the emergence of new web based technologies such as the blocked chain. gave over these occurrences that could hurt the middlemen and banks where there are no banking monopolies and where above all the state no longer has the sole derogative in the creation of money form . that's it's about more than just catch. the option to leave a lot changed technology will completely revolutionize large parts of the many many industries that are either with us in the uk. far from the executive floors of banks skyscrapers the block train revolution has long since begun for example in the in crowd spec where a restaurant owner a young plats has been pursuing his vision of a world without banks for more than twenty years. he is fighting for an alternative monetary system his weapon is bitcoin. and if you want to imagine a superhero currency and say hell with the money work that superman and batman might use you start fantasizing and you come up with something like that co

we are a bank. our money only in high—risk destinations, as you wouldn't want your bank to do. and, two, in better off countries, we actually learn, and we are this incredible transmission line of lessons from one place to another. 0ur countries in africa, in the rest of the — in the poorer asia, they want us to know how things are done in other places. well, you've gone quite deep into your investment strategy there, and i want to come back to it. but before we do that, i must stay on politics — i mean, you're a great political operator. you've been in the world bank for a long time and you know how to play the politics of the organisation. but surely, you will acknowledge there is a fundamental problem when the incoming head of the operation — that is, your boss—to—be, because you're the interim president but david malpass very soon will be the president — he has said this in the recent past. he's described the world bank as "intrusive," he said that "multilateralism has gone substantially too far

of it going to a bank was actually. like this type of a security you'll be able to see the individual positions you can see in the caribbean a book who they have exposures to i spoke out on a party and you can see what the trades are that make up the derivatives now some would say my god has a lot of data absolutely assess all that big that i'm going to have the schools bought and the answer is yes the goldman sachs of the world can assess that the j.p. morgans of the world the way our system of mantle systems designed we you and i max don't have to assess the bank ourselves we could go to a trust the expert went to j.p. morgan or goldman and let them do the us asked them and then we can invest based on what their assessment yes it will do this all the time we use mutual funds . an example we're going to t. that should be able to assess a deutsche bank if it provided transparency but right now going to a bank does not provide transparency beth the title of my book transparency games of bankers rigor world of finance fro

bank j.p. morgan chase bank is in fifty third place down there as you can see with acid sheet of just under half a trillion dollars if germany's two biggest banks were to much they would move up to tense place internationally but the problems will hardly be going away jobs and branches will have to be cut to make it work now investors welcomed the announcement at least in morning trading shares in both george and clematis rose and i was in frankfurt and that is where our correspondent is standing by for us hopefully when i can see him conrad can you hear me. ok we don't have a correspondent just yet but we do have another story for you is there another trade war brewing us president to donald trump wants to take india out of its preferential trade program known as the generalized system of preferences or g s p g s p guarantees emerging economies special treatment such as lower u.s. imports duties washington says india has been the world's largest beneficiary of this preferential status saving b

socialized banking. i'm going to get to some questions, but i want to thank you to say you're going to follow the law. you have people from new york and california who don't appreciate the second amendment, but in places in the midwest where you do a a lot of business, we actually appreciate the second amendment and the fact that you'll lend consistent with the law. we believe in our constitutional right to bare arms. so i want to thank you for serving the customers in my community who actually appreciate the second amendment opposed to when the others come in and you'll be here in april, they'll get some questions on this side. so i guess walk through the changes that you immediate. >> first, we had to start at the top. we made changes at the board level. we separated the role of the ceo and the chair. we have made changes in our leadership taeam. if you look at the leaders that report to me, five are new to the company. they come with incredible experience in their disciplines. four are from within the

that bank. according to michael cohen, this same information has been submitted to at least one insurance company as well for the purpose of reducing his insurance premiums. lying to a financial institution for the purpose of influencing that institution's behavior can be felony financial fraud. "the washington post" today put this set of facts to a former -- a commissioner of the securities and exchange commission who is now a law professor at stanford. he told them, quote, michael cohen's testimony opens another line of inquiry into blank fraud. and, you know, the devil's in the details and context is everything. "the post" reports that in one copy of this same 2012 financial statement that they obtained independently, trump's accountants appended a long disclaimer to the financial statement, so maybe that's important. disclaimer or not, if this was potentially going to be investigated as possibly felony bank fraud, you'd need to see what the bank actually received from trump, how these materi

you know the banks. and so watch the language of the bank. speaking the truth google news that matters g.w. for minds. this is deja news africa coming up in the next fifteen minutes after a resulting victory for president obama dubois in nigeria is opponent will back up pushes on with his challenge to the results we'll look at how the allegations of fraud are hitting this weekend's important regional battle. and fighting terrorism we have the story of the military exercise working to boost the capability of the african army. then we'll let you in on the grand plan serial.

banks aren't a record -- banks profits inrd annual 2018. the largest six banks alone raked in over $120 billion. given these record profits i do not believe there is a need for fed -- for the fed to require further capital and liquidity requirements. if anything, given concerns about the economy, now is not the time to take the guardrails off of this industry. the fed should also be concerned at the growing economic inequality in this country. survey ofhe fed's consumer finances stated that the top 1% of u.s. families own 38.6% of the wealth. the minneapolis federal reserve bank reported that over the last 70 years virtually no progress has been made in reducing income and wealth inequality between black and white households. so i would urge you in the federal reserve to work to tackle the scourge of economic inequality. i know we just had a moment to talk about some of these issues, and you have some information you shared with us just recently about some of the concerns that i have raised, and you may want to talk about those a little bit

the federal reserve bank the european central bank the bank of england the bank of japan they are fifty sixty seventy percent leveraged much more leverage than long term capital management ever was much more leverage than lehman brothers or bear stearns ever was that is the most leverage hedge funds that we've ever seen in the history of hedge fund skullduggery but it doesn't matter because they can print and buy back their own debt in an infinite cycle of profitless prosperity and then one day like while the coyote a over the cliff chasing the road runner there's a moment of recognition and then zero zero zero zero zero zero zero and there you go it's all over now who's going to come to the rescue this time obviously not the central banks because they're tapped out they say they're going to do negative interest rates so we'll see that negative interest rates where they just take money directly out of people's accounts belin as it's called but you mentioned the profitless profit profit profit loss prosperity profit prosperity of course we recently discussed the flow list rally a the equ

danske bank is one of the biggest banks in the nordic region, and i've seen very small banks get shut down for the same thing. go as ano way you can investor, for example, and say if you cut off these types of banks, you are not going to be affected by this. it comes down to the character of the people managing those banks, and how fearful they were of getting in trouble, and how greedy they were to return profits to the shareholders. guy: in terms of the scale, it is interesting as well. is appropriatene for one institution versus another? is it a case-by-case story? guest: in my opinion, fines are the wrong punishment. the people who committed the crimes are the management and employees of these banks, and the fines are punishing the shareholders. it is the people who have response ability that should be prosecuted and go to jail. if people start going to jail, this whole thing will stop in two seconds. but right now what is the consequence? you run a bank for five or 10 years, collect a bunch of bonuses, get discovered, lose your job, keep your bonuses, and the shareholders get hit

done, yourve industry, your bank. that you have been a part of for 31 years, no one has paid a punishment at all. people have left. some still received a bonus. people have stayed. as you have. and got promoted. when the general public looks at this, they do not see any justice at all. nothing. say, that there has been changes. i am looking at a news report now that just came out last week. maybe the practices that were utilized on these to your have shifted debt collection procedures. debt,who are collecting going after individuals, they have incentives. for 30ve got to be there hours and collect x amount. collect x amount of money. are you aware of that? mr. sloan: congressman, i am not familiar with the news report you are referring to. -- i will refer it to you. it is dated march 9. it talks about as recently as december, there was an employee out of your iowa facilities that said that it is a joke that the climate has changed and that they have been fired as a result of this incentive package that was placed on t

so i don't think investors were happy to hear this from the european central bank no bank stocks and you know the era of reagan you know the financialization of the economy has become the dominant theme in global economics so we're post manufacturing you know we entered into just a bank ponzi scheme economy globally that requires. continuous money printing as any ponzi scheme does so this idea of negative interest rates is the admission that simply printing money is not enough to keep the ponzi scheme going to have to confiscate money they have to confiscate money from people's accounts the negative interest rate is coming to your bank account soon as being done on the wholesale level right now between countries but now it's going to come to your local bank account so instead of getting thirty basis points on your money market fund or on your savings account the bank you'll get a negative three percent so that three percent will be taken out of your account and given to someone that the central bank says a systemic only important so if you said oh my god that sounds like medieval isl

in the world bank's mission.e seems to believe towards the end that actually he could do much more good working in private equity, and the scale of finance he could leverage into infrastructure projects in the poorer parts of the world was much greater working in private equity. he said this is another path i'm going to make the lighted impact on major global issues like climate change and the infrastructure deficit. he lost faith. and this is clearly a conversation i hope you would have withjim kim in hardtalk. let me about the bank and why i think it is about the bank and why i think it is a great institution. we have been changing with the times. so we can serve the world of today and tomorrow. you look at us today, we are so tomorrow. you look at us today, we are so different from the bank we were, even the bank ijoined in 93. we are much more based in the countries, very often in very dangerous environments, like in afghanistan or iraq or mali. we are much more connected with the aspirations of people in the

not investment banking oriented bank these traditional banks will always suffer in the long run wr wrrn. >> if you are an investor in either of those two companies right now, what should you be thinking about the potential for a merger >> well, there is some potential because germany is a very competitive market for banks it's very hard to make high profit in germany, and at least two banks merge, the competitive pressure might go down to some degree it's maybe the reason why so many private equity funds are now investing in the german bank because they don't make any profit in the short run. they are waiting for change in the competitive situation, and then banks metro detroit make higher profit. it's not really good because, well, competition is a good thing, and high bank profit is a lot of efficiency, and especially for both banks. i mean, if deutsche bank is too complex already, it might be one of their problems. if they merge, they might become even more complex. it is not a real solution. >> i want to pick you up on that point about the complexity at deutsche bank. i mean, a lot

the central banks and every major bank whether it's j.p. morgan deutsche bank b m p any major bank in the world technically is insolvent why a factor of built hundreds of billions are they technically insolvent because the fact is there's nothing underlying anything it's all one great big magic act and i mean i think what it is is the magic act to come on wrong so i know you've done magic acts in times square so i want to magic acts starts to go wrong how do you distract the audience from seeing that you're a quarter just slipped on your sleeve like you have to come up with something even bigger to distract them from the failure that failure was part of your magic act in a magic act there is a failure. because there's always a way to mr recht right there miss it's infinite mr action and david copper wire failed made the statue of liberty disappear through mr action the right that mean the statue of liberty did not move but he the illusion was through mr action that it did move and there is a video right now of this young chinese girl who do

if he provided statements to a bank for purposes of defrauding the bank and persuade the bank to give him a loan with false representations about his abilities to pay it back, that's what they call bank fraud and part of what michael cohen and paul manafort are going to prison for now. last week leticia james issued subpoenas to two banks including the president's long time lend are, deutsch bank, citing testimony about trump's inflated assets. the subpoenas sought loan applications, mortgages, lines of credit and lines of transaction with the trump international hotel in d.c. and the doral in miami and the trump international hotel and power in chicago and also that weird failed effort to buy the buffalo bills with what was an inflated asset sheet. tonight the "new york times" has new reporting in this 4,000 word article they posted tonight, the new york times just posted new reporting that suggests a surprise twist in that already weird story. if president trump was inflating his assets in his financial statements to make himself appear richer than he was to persuade this bank to ma

bank saying to the commercial banks. our three trillion dollars worth of base money and permanently monetizing what they've said is we have no ability to take those ha high powered reserves that high powered money out of the system which is a fractional reserve system genndy multiply by ten times or more especially when you figure x. factor into the sweeps of the men deposits into long term deposits so what i'm saying is is that inflation could run intractable and the fed is basically a minute that we can do nothing about it we have no ability now to take those reserves out of the system and we have no ability to raise interest rates any longer because we we've given up that right to that's how they raise interest rates you know they sell assets grey money out of the money market and interest rates rise they don't have that ability they're really diminished by three trillion dollars they can't take at money at any longer and that also means that they have less ability or willingness or desire to fight the asset bubbles t

deutsche bank is the much bigger bank here.ut a way to get about 8 billion euros in order to finance these cost cuts. there would have to raise capital. they couldn't get all of that by selling assets. the cost would be one of the other big hurdles. francine: we were speaking to an analyst, dieter hein, who said this is not a merger -- matt: there is no such thing as a merger. when was the last time you heard of one? francine: but which one is healthier? matt: deutsche bank has its issues with the capital intensive bank. healthierk has a lot local business here in germany. but it is also having problems because of the low interest rate environment. both of them have a bigger exposure to low interest rates in europe. the question is would putting two weak banks together make one strong national champion? that is the income as we understand it, the finance ministry. but not the goal of the two may be at the banks, pushed into this by the german government, which owns a 60% stake in commerzbank. i am not sure if this is the kind o

bank j.p. morgan chase a coma is in fifty third place down there with an asset sheet of just under half a trillion dollars so germany's two biggest banks would emerge they would move up to tenth place internationally but the problems will hardly be going away jobs and branches will have to be cut just to make things work out. the government is pushing for a merger between deutsche bank and commits bank as it wants to create a german mega bank to compete with global investment lenders german finance minister says urged by chief christiane saving and commits bank head martin to consider joining forces. critics warn the merger could be complicated the banks say they are moving with caution frontispiece. only merge with commits bank if it makes economic sense that's important to us that requires a good plan above all the good integration plan we worked together with commits bank and when we have the results then we will decide. the outcome of these merger talks could go either way. we will need som

deutsche bank is obviously the much bigger bank.find about 8 billion euros according to analysts that we talked to to finance this acquisition. they would then have a combined 140,000 employees, although sources say that 30,000 employees would have to be fired. it was this sticking point on which deutsche and commerzbank needed government backing before they could formally move forward. we learned yesterday that the government has given the ceo of permission,k support to do those kinds of massive job cuts, and it will be politically difficult nonetheless for the german andrnment to push together financially very difficult for deutsche bank to justify this to shareholders. they still have an issue with their investment bank, it is capital-intensive and it is not making them any money and both banks are exposed to the interest-rate cycle, which is also hurting profitability. the question is whether putting these lenders together would make a national champion and that is what investors will have to decide. anna: it doesn't change the

bank for the little man, retail bank.k. we do not do high finance and we .o not chase wealth management tom: does this engage the swedish public? tasneem: very much so. part of the reason it is such a big story is because a lot of leaks have come by the main broadcasts. thise have been digesting through documentaries with mood music and the full effect. it has changed the dynamic in sweden, which is similar to the story of danske bank. untenableuntamed -- for the ceo to continue. tom: thank you so much. coming up, there is too much to talk about. we have the whole brexit uproar. who knows where we will be on 20 -- in 24 hours. on global wall street come up on the move with compressed yields and high bond prices. we will see bubbling in the foreign exchange market as well. angst. signpost of em the turkish lira moving as well. david kelly will join us and will continue the dialogue with jon ferro. we have thousands of emails and tweets. jon ferro on manchester united. this is bloomberg. ♪ comcast business built the nation'

top level you've got huge banks in china old the big american banks like j.p. morgan chase and so on it wouldn't even be the biggest bank in europe i don't think and that's if it even happens and of course we don't know what the knock on effects of this merger would be in terms of a reduction in the overall size of the institution ok this is questions out there about whether this is economically or politically motivated the german government retains the right now commercial banks shareholding strong position it has fifteen percent stake in commercial economic or political decisions well from the from the government's point of view it's motivation is political i think the german government says germany ought to have a national champion in banking ought to be able to you know play on that global level like some of the economies are germany's europe's largest economy so that would make saints and they've been driving it forward for that reason they would look very positively as you say they're able to influence what commands bankruptcy does a significant stake in

to $100 billion banks. can you tell us why so many of us still hear from banks in that window who are larger than $10 billion but smaller than $100 billion? are still hearing from their examiners they need to undergo such stress tests? >> let me say the new law is that banks between 10 and 100 do not have to -- are exempt from the stress test. that should be crystal clear. i think you're referring to the guidance. >> yes. >> which we're in the process of looking at and revising and i would think addressing that issue. >> okay. but to be perfectly clear, banks between $10 billion and $100 billion are not required to undergo dodd/frank stress tests. >> correct. >> when i was in afghanistan and iraq, young soldiers used to complain about the rules of engagement. and if you looked at the rules of engagement that the four-star commanders had issued, they were actually pretty flexible. that had been filtered down in a different way to the front lines, though. do you think it's possible that your guidance that you

deutsche bank chief christians even and comments bank head mountains have the green light from the german government to begin talks on joining forces to create a german mega bank which can compete with global investment linden's before a merger between the two banks can go ahead the state has to give up its fifteen percent stake in comet's bank but germany's economy minister stressed the government would stand back from merger talks. it's private banks they take their decisions and. yes that pairing for decisions and the timing for supplying the situation critics will on the merger could be complicated the banks themselves say they're approaching things with caution. francis fished there then ross it's important that we only merge with comets but if it makes economic sense that requires a good plan above all a good integration planets will work this out together with comments and when we have the results then we'll decide then we had shot. both banks say the merger would lead to enormous cost savings but opposition politicians and economists opposed the move german services union verity h

design for the banks to pass. you know about the regulators if they don't want to arm brought us to two thousand and me the biggest concern of the regulators here was contagion down want to be too big to fail banks bring down holder breasted too big to fail banks. and therefore it aside we're going to turn a blind eye to anything going on in banks yeah i think you make in some extreme points there let's let's unpack that a little bit so in other words there's a disincentive for regulators to recognize fraud any anybody with who's had any experience at all of finance and they read the financial times you can read it all the time about trades being done and about products being launched and about securitizations in collaterals asians that are being done by various banks and he can do the simple arithmetic by reading the financial times and you can say oh that doesn't add up there's a billion missing there's five billion missing it doesn't really require a huge amount of ackman to spot fraud but your point is that th

to regulate banks more tightly we'll talk to an advocate of just such a plan. alone welcome to day to do business i'm stephen beardsley in berlin good to have you with us chinese tech giant huawei is suing the u.s. for banning use of the company's equipment always challenging a united states law that labels the company a security risk and would limit its access to the american market for telecom equipment it comes as the trade negotiations between the two countries are at a critical point for years while way has sought to reassure the world of two things that it is not under the control of the chinese government and that it doesn't spy on consumers. a shift in tone from defense to accusation a u.s. government. branded probably its right it has hacked into our service and this story and you mails and code allegations of american government interference and theft of corporate secrets while waves message to the united states we can play the blame game too. hours before the announcement the backdrop to what's becoming an ever escalating dispute while waves chief fi

banks. two would be if they were to introduce an economic threshold for raising interest rates rather than the current guidance to strengthen their commitment, to stay accommodative for as long as they need to. the problem with all of these --isions is their big ones they are big ones and to the tenure of the next president. is there a higher girl -- a higher hurdle for mario draghi taking those steps now? guy: one of the other big stories we are focusing on is deutsche bank in commerzbank getting together, the lack of profitability in the european banking sector, the governor of the bank of france has been talking about this a little bit. needs to haveecb a more wholesale look at what is going on in the rate structure and the unintended consequences in terms of transmission? krishna: they are looking fresh and all of this stuff. i have some sympathy for the ecb view, which is there are lots of reasons why european banks are not profitable and low interest rates are not the only thing. the d

box to them banks. it also. is about. the regulars jumping on a couple months ago at a stunning final. reaction times where he admitted that he was standing. should i report this or should i not report it not did not because he would go if he reported. a greater financial crisis i know i get it i get it that the the financial press are weak and they are compromised and they're venal and they should all be fired i understand that. and in frasier over in the u.k. has done a good job he wrote the book shredded about royal bank of scotland and all of these transgressions we're talking about with deutsche bank multiply that times ten for all bank of scotland they actually isolated u.k. companies and set them up to be shot down and ripped apart and sold for parts on a flea market their own customers and they wonder why the economy is so bad when they were the biggest four banks in the u.k. is actively seeking the destruction of their other of their customers but less so we got of a couple minutes left i want

bank with commerce bank putting what the german government wants against what employees and investors want also coming up as five g. frequencies go up for auction in germany the question is. can there be ultra fast mobile networks without hardware from chinese tech giant huawei and you're of marks equal pay day but figures show equality is still a long way off we ask why. i'm chris cuomo thanks for joining us. germany's two largest lenders are officially in merger talks a tie up between dodge a bank and commerce bank would have a market cap of twenty five billion euros with nearly two trillion dollars in assets the german government is strongly in favor of the deal but many have their doubts after all due to struggling banks really make one success successful one. deutsche bank chief of christians even and comments bank head mountains have the green light from the german government to begin talks on joining forces to create a german mega bank which can compete with global investment windows before a merger between the two banks can go ahead the state has to give. up its fifteen percen