do you really need banks, physical banks these days?any people walk in and cash checks that way? brian: the numbers are surprising. we have 4300 branches today. at the highest point, 6100. today, you have to be high touch and high-tech. in those branches, about 800,000 people come in and transact. but during the course of the last quarter, second quarter, 1.4 billion consumer actions and 1.3 billion would be digital. david: people my age and my color hair, are they the ones going into the banking branches, and are the people doing online banking mostly younger, by a lot? brian: i would say a decade ago, the cohort would've been age determinant. now, not. we had a 100-year-old person sign up for mobile banking. david: do you get a discount if you're 100 years old? brian: it's free. it's hard to give it away. we do a great job with millennials. we open accounts at twice the rate, so we are gaining the share of millennials, but we also hold a lot of money and transact with people our age. david: the most common dollar currency you use, the

david: and fleet was an inquisitive bank, and did a merger with bank boston. -- acquisitive bank, andid a merger with bank boston. you stayed with the combined company. then when the ceo of bank boston took over, chad gifford, took over, he decided the combined bank wasn't big enough, so he ultimately discussed selling it to a number of other people. and ultimately it was bought by bank of america. is that right? brian: right. that goes to the scale of banking and what you can achieve. it was ultimately the first nationwide bank, and that is something that we have that no one else has right now. david: when bank of america came in, what was your job in the new bank company? brian: the wealth management businesses, so columbia asset management, private business. david: for a while, you became the general counsel of bank of america? brian: for 40 days. david: 40 days. brian: december of 2008 to january of 2009. 40 days -- david: 40 days and 40 nights, was there any flooding or anything? [laughter] brian: there was a transaction and a few other things in the second round of tarp and a fe

bank for the last 20 years, is this bank called deutsche bank.is relationship with them started after all other financial institutions swore him off because he was constantly reneging on all of his loans. deutsche bank, for its own reasons, decided in the late '90s that they'd give him $125 million loan to rehab a downtown office building. the bank would go on to loan him over $2 billion over the next two decades, including absolutely inexplicable deals like the half billion dollars plus they loaned him to build a hotel in chicago and that he decided he wouldn't pay back any of it. and then he decided he would sue the bank that had loaned him the money by claiming they caused the international financial crisis, which resulted in trump not being able to pay them back. so they should actually pay him $3 billion. what? the way that resolved is even crazier. the way that resolved is that a different part of that same bank agreed to loan him the money to pay back the loan to the other part of the bank that he had stiffed. i mean the fact that trump ev

england had the bank of england. france the bank of france. germany the bank of germany. there was no such entity in the united states. a few business people and intellectuals worried about this, but nobody paid much attention. the economy was doing well. teddy roosevelt, the president, found banking very boring, which i agree with him. no we dealt with banking is used. then comes the panic of 1907. the worst financial panic until 1929. a number of companies fail. they threatened to bring down brokerage firms, insurance companies, and the new york stock exchange. there is no federal or state entity that can deal with this kind of panic. the panic is stopped when one individual, jp morgan, who had a small investment banking firm, went around and raised money from his other friends on wall street, other banks and securities firms, and they raised money and rescued a number of failing banks and trust companies. the panic stopped. the economy came back. morgan was kind of hero. suddenly, congress realized, we can't go on like this. as one of them said, we are going to have pa

♪ david: what did you do to make bank of america the largest consumer bank in the united states?ack --ing the company david: you had to code warren buffett. >> he called us. put $5 billion overnight into the company. david: if the president called you and said the country needs you to be secretary-treasurer, you would say, costa rubenstein? [laughter] >> would you fix your type please? david: people would not recognize me if i fixed my tie. ♪ i don't consider myself a journalist. nobody else would consider me a journalist. i began to take on the life of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tech? ick? let's talk about your career at bank of america and how euros up and became the ceo because i think that is quite interesting. to go back to your background, you are from ohio? and your father was a chemist? >> yes. david: was it dupont? >> yes. david: you the sixth of eight children. >> yes. david: you have a children and you share a lot? >> yet to be very aggressive about get

do you really need banks, physical banks these days? many people walk in and cash checks that way? brian: the numbers are surprising. we have 4300 branches today. david: 4300. brian: at the highest point, we were probably 6100. today, you have to be high touch in high-tech. in those branches, about 800,000 people come in and transact. but during the course of the last quarter, second quarter, i think we had 1.4 billion consumer actions and 1.3 billion or digital. david: people my age and my color hair, are they the ones going into the banking branches, and are the people doing online banking mostly younger, by a lot? brian: i would say a decade ago, the cohort would've been age determinant. now it is not. now, we had a 100-year-old person sign up for mobile banking. david: if i am a college student watching this discussion and i'm getting ready for a bank of america interview, what should i do? i should dress appropriately, right? brian: make sure you demonstrate curiosity and make sure that you demonstrate that you really want to help

let's start with the banks. why are people souring on canadian banks?a lot of it is banks were doing quite well in the years leading up to 2019, they had a pretty strong run before that. you start getting all of these concerns surrounding the trade war. is the economy going to do well in canada? there was also concerns about loan losses for banks, net interest margins declining and hitting the balance sheet as well for the end of last year. that has sort of sour the sentiment toward banks. not likeg said, it is people are not putting the money in banks, they are thinking about the other options out there. shery: we have seen can accord annuity under weight. why are these investors preferring life insurance companies, is it the threat of recession, why are they under waiting banks? >> a lot of it comes down to the concern around the sluggish growth we are seeing in the economy right now. also a concern that bank of canada may cut interest rates. we are seeing that with bloomberg data. traders are expecting one this year. that will have an impact on banks

it is a bank called deutsche bank. and they are not a normal bank. and the definitive history of deutsche bank as a worldwide disaster-making machine is being published tomorrow. i've got it here tonight. and oh boy does that book make it look like that coming confrontation is going to be like a 5,000-car pileup. if you just step back for a second and think about where we have come over the last three years, over the course of this presidency, the issue of following the money when it comes to donald trump, follow the money if you can, it's been paramount from the very beginning. all the way back to the republican primary, there was this huge controversy, he wouldn't release his tax returns. going back to watergate, every president had done that. trump kept saying he would release his taxes and then he didn't. his republican rivals took him to the wood shed over that. the press gave him a sustained difficult time about that. he could never explain himself during the entire course of the general election about not releasing his taxes. ultimately he bec

our banks, you know, to your point, our banks have to be taking into account the risk of severe weather events and potentially i suppose of rising sea levels at the same time. >> let me give a specific one that's been bug me lately. if you look at the fossil fuel industry, the oil and gas companies, the coal companies, the debt that they hold relative to their assets, given as their assets are so heavily dominated by fossil fuel reserves, if they were to extract all of their fossil fuel reserves things are going to be way worse hand the $23 trillion i just told you have you ever considered stress testing to see whether their failure to fully monetize their reserves might effectively make them fiscally insolvent? that to me sounds like a materially adverse event but i wouldn't want to bet that the economy is going to commit suicide. but if i look at the financial statements of a lot of those companies it is not clear to me they can monetize those assets that is a meaningful effect on the risk of money that's held today. i think there was $700 billion lended to fossil fuel companies in th

, they have been seen with the banks the cap three have taken a 3% stake in a major bank. suddenly this fooinancial oppression is causing a real surge. greece is lending at 3%. 4%, money begets money, as it were in terms of book to bill, i think they are about 1.4 times they are not expensive the stocks are all rallying on the basis it is the old economy. it is that old adage it is not who you are. it is who you are not. people don't want to play the u.s. expensive tax, they are coming to buy a lot of the banks in europe. >> interesting you say that, i want to take your take on what patrick just said. equally the business model is very different you hear the likes of the big swiss banks who have completely revamped their models and moved away from risk rated assets towards the steadier income stream type of business. shouldn't there be an associated recall recalibrated business. essentially wealth management banks now. >> if you want to find this table dividend and high income scream, you'll have to look for diversified financial institutions those who have asset managers,

anna: what about german banks?utsche bank share price on a tear recently, a bond issuance part of that story. commerzbank today, a strong best-performing banking stock today. revenue rising, stronger capital buffers. rebecca: commerzbank is the surprise among results today. we were not expecting much. deutsche bank coming out with a bond issuance and getting it successfully done was important for the sector. they have been in a difficult place, but they are very cheap. now, people are looking around for opportunities that might be missed in the marketplace. the minute you get some slightly better news, there are people looking for such an opportunity. matt: it is also a case in some sense of momentum, it was against them and now it seems people might be open to investment. rebecca: that's right. i think that's what we see time and time again, when people understand the drivers are there and will make the difference, they will get on board. rth willbecca cheswo continue the conversation on bloomberg radio, 9:00 a.m.

no banks will touch you." he could accurately say, "wait just a second-- one of the world's biggest banks is very happy with me as a customer." >> reporter: and this was during the era of innumerable-- well, i guess there are numerable-- scandals, but there are a lot of them, all associated with deutsche bank, right? >> yeah. they had me money-laundering schemes that i can even count off the top of my head. they were evading taxes. they were bribing people. they were violating international sanctions. look at any major financial scandal in the past ten or 15 years, deutsche bank has been at or near the center. >> reporr: executives at utsche bank knew it was going on, right, with all these scandals? t >> yeay knew about, and in some cases, participated in, these scandad in other cases, really tried to deal with the bad behavior. and one executive, named cole fan, who is the top executives of the bank, went so far as to give a video message to all of-- all of the bank's how they communicate about the wrongdoing

that goes to the scale of banking and what you can achieve. it was the first nationwide bank. david: what was your job in the new bank company? brian: the wealth management , private business. david: for a while he became the general counsel of bank of america. brian: 40 days. david: 40 days. 40 nights. was there that flood or anything? brian: there wasn't one transaction and some other things. the u.s. that time, was in the middle of a financial crisis. .ll banks were in trouble bank of america was doing a favor for the u.s. government when it was told it should by merrill lynch, is that right? a scramble toas

buy bank of america. heard a lot about the corporate stock plan business and that this is undervalued. does that argument not stack up? mike: this goes to the idea of revenue synergy good a brokered firm can get customers in a variety of ways, through traditional offices, digital delivery, or through the workspace. to the extent morgan stanley has a broader suite of products, they should be excellent. if you're e*trade investor, you would say this is fantastic. i would love to be in e*trade customer because you will have so much more morgan stanley's research and products and ways to have that experience. having said that, if you're a morgan stanley shareholder, that comes with a lot of extra complexity and costs over time. we think the expectations, just like with the other mergers i've seen over three decades, might be too optimistic. guy: you think it was a competitive process. you think others were involved? mike: we have no idea at this point. i cannot wait to find out. they are changing control prov

but the reality is, when you go to a bank, our system of laws requires the bank to know all sorts of things, and frankly, to spy on all of their customers in order to continue to be permitted to operate. and they do that largely to keep us safe and to protect us from crimes and things like that, but there is this system of cash that is still permissible for peer-to-peer. so, as we talked about block chain, you know, i don't think, you know, everyone would agree in terms of where we're at with block chain or crypto based assets, but i think it's largely a matter of whether it's understood or rightly understood, in my opinion because there's a fear that there's all of this abuse. there's been some fraud in the crypto space and rather than-- the solution isn't just to avoid that space altogether, it's the exact opposite. it's to provide regulatory certainty and legislative clarity that does not exist currently. block chain broadly protects personally identifiable information and done correctly, it eliminates or can eliminate intermediateri intermediateries, true ledger technology. how c

banks. we regulate some and the s.e.c. and the cftc regulates some. and we collaborate on all of that. >> i would urge you to increase that collaboration. because the lines between security, banking and capital markets are blurring more than ever before and i would ask you and vice chairman quarrles to redouble your efforts for that coordination. i hear from some of the firms that are regulated that they feel like it's not coordinated. if you could redouble those efforts, i'd really, really -- i think that would pay dividends to the american investor and the american economy. a couple other quick questions here. what do you think the most significant risk to the financial system is today? >> i have to start by saying i think that the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks. high capital, high liquidity, stress tests keep them on their toes and they have real resolution plans. none of that was in place before. i think

they don't look at european banks. the banking union is making sure we have european banks.u think there is a push in germany to put the money where they said they would do it and go through with it? jean pierre: i think it is unlikely we will see a banking union as far as the european deposit concerned. francine: talk to me about regulatory hurdles. have we seen the biggest burden when it comes to cost and regulation? jean pierre: we have seen the said, they have been very clear and transparent about what they are. visibility and understanding about this regulatory insulin -- evolution, it is key and the ecb is going in the right direction. it is perfect. francine: when you speak to investors, what do they ask about the most? jean pierre: distribution, increase of pay out to 50% last year that we might consider in 2021. i think it is important for investors. of course they look at the development of finite credit. we finished our first plan and increased our written liquidity by was three times. increased -- they are looking at us being sure we can deliver our new plan in 2

banks are getting interest from the fed. european banks are paying a tax to the ecb. ones that are earning interest rather than paying a tax? tom: a good week for european banks, deutsche bank above 10 euros which is a big deal. lord turner, thank you so much for joining bloomberg today. cameron crise with us as well, much more to talk about into the weekend and on the way to nevada and south carolina and super tuesday. in washington, the news flow oft or -- off of yesterday afternoon and the attorney general. there is your calendar, the real president's day. and february 12, those are president's day's as well. this is bloomberg. ♪ >> we are already looking out a very big decline that in february, chinese oil demand is more than 20% lower than a year ago and world oil demand will be lower than anticipated. we think it will be lower than the growth than other people think. 50, and thaty at is a prized interview on oil, ihs.ergin from david westin darkens the door and has the map out from nevada and south carolina. let's talk about the show. it may be has said worse an

and non-banks equally. where someone could propose a block chain frt. what does that look like from a regulatory point of view? so it's not a debit rail. it's not a credit rail. it's a block chain available. whether there's a crypto currency involved or not. be neutral on that. >> i'm not sure how authorized i am to speak on that issue. i'm not an expert on that type of technology. but i would say that i don't think it would be a limitation of technology being able to support that rail. it would come down to whatever policy implications there are. and i think christina has alluded to some of this as well. i think there's an inconsistency in the way that block chain or distributed ledgers regulated today. it seems to be happening at the staut level. that kind of inconsistentcy might be one of the the limitations that could exist. >> for the core banking. in terms of the system, but for smaller evaluation or smaller amount payments, you already are seeing some block chain that enable the money. so i think the

part of the open banking movement and one would have a regulatory, might be in a bank or non-bank. is that the feds looking as well? >> i would not say were specifically focused. but more broadly, we think it's a good idea to look at the whole landscape of oversight over payment system. that would be a piece of that, and nadja heard governor brainard talked about that in a number of her speeches. >> thank you. last night the chinese regulators build out, $14 billion loan that they arranged, the chinese banking act set at $41 trillion, 47% of world gdp. his instability in chinese banking industry pose a financial threat to the global financial system, is a financial virus like they were to contribute in, a physical virus? >> generally they have had very high debt and that includes the banking system. the government is actually for several years now, been taking measures led by the central bank to control the growth of that and they start to that through the last couple of years even though those were challenging years economically it was something they were adjusting but it's safe t

banks. >> will the federal reserve release its own proposal on the community reinvestment act, one that takes into account the needs of low and moderate income communities? >> we haven't made a decision on that yet. i think our focus right now is on the ongoing process of the other agency's proposal and comments. i think we're going to learn a lot from those comments and i suspect there will be changes to that proposal coming out of the comments. so we have not made a decision about our own proposal. >> well, traditional monetary policy works through a single economy-wide variable, single interest rate or perhaps the money supply of growth or credit. credit policy by contrast aims at directing credit in specific forms towards specific groups of borrowers. credit policy consists of a central bank operations targeting specific segments of the private debt and security market. what is your view of shifting from traditional monetary theory to one that involves the use of more tools of borrowing

so far this year bank of korea is having a meeting next week.navirus infections happening in korea, they are going to take a hit to gdp growth. ♪ >> franklin resource agreed to buy rival mason for $4.5 billion. transaction values mason added 23%. to get the company's $1.5 trillion in assets under new management. >> franklin stock has been taking a dive, but on the other hand mason pushing for changes, part of that consolidation. this is a nice little premium in all-cash. now the question is, can they pull this off? when we see merges of this type, we often see attrition when it comes to money managers and clients because there is uncertainty when it comes to this integration deal. this will be an interesting mix of institutional and retail clients, can they do both well? ♪ >> jupiter fund management snapped up marion global investors as the industry faces pressure to consolidate. the british fund manager will pay 370 million pounds through the issue of new jupiter shares to marion shareholders. there is pressure to consolidate and this is one of

francine: but with a window not only for the bank of england but for central banks around the world whereure to raise, given what we are seeing now? mark: i don't think in general that is the case because i certainly don't subscribe, and i don't think my fellow governors subscribe to the idea of let's raise rates now so we can cut them in the future. the point is to manage policy so that you achieve the inflation target in our case. if you look at the performance of the economy -- i will give you example. if you go back to where we first put guidance in 2013, 2014, the historic reaction function, what the mpc's before would have done, is raised interest rates by 150 to 200 basis points. that is because there used to only be demand shocks, not supply shocks. we said no, we are not going to, we are going to hold, and we did not raise rates. what happened to inflation? broad-based, it was the right call to make. even though external commentators, the shadow and bc, others said we should have been raising rates all through the time. you can look at the total core inflation, at a minimum, it i

time we spoke, i was asking what would trigger m&a among two tier bank banks.ly the share price. is that still the case or is it regulation? >> the regular should is improving these days and the ecb has said they want to be more transparent about the impact of reg latoya headwinds and the reg latoya evolution. -- the regulatory evolution. transformation is the most important issue for banks today. and at a share price which is low for the european banking sector in general, it is very difficult to consider any combination which can be eps accretive. >> are european banks strong enough to withstand a possible big fight between london and the rest of europe and it comes to equivalency? >> yes they are. european banks are very good shape. they built up capital and profitability is on the rise. clearly, with brexit, some consequences. more tactical than anything else. for instance on the clearing side and the equivalence of some of the derivative contracts but these are technical issues. which will be resolved. ♪ kailey: this is bloomberg best. i'm kailey leinz. in

is a: some people say it flip-flop bank.'m not talking about mark carney, i'm talking about the kiwi. they think the coronavirus will last six weeks in terms of impact. the message from the rbnz was no rate cut this year. and as a stinging rebuke to the backdrop of central banks, monetary policy would only be a bit player. we have come off the highest. you have seen a significant rise. the biggest one-day rise since the second of december. take your mind back to last february when they said no more rate cuts. they flip-flopped. openouth korean won takes from the assessment of where we are with the coronavirus. reprieve little bit of . russia is studying the proposal of 600,000 barrels a day. can crude find a $50 floor? there was a trade in the options market for wti, brent to pass down at $10 per barrel for 2021. somebody out there having a big old punt. nejra: one more red headline. the third-quarter vision fund loss was -- but it has returned to profit in the third quarter. equity exceptionalism is how ubs has called this

this bank has been run by sort of international banking elite for many years now.resent themselves as quite international. the person who took over is the best they have, and has proven himself managing all thesions, the only one -- link between investment banking and wealth management. matt: elisa, is that the right move, to start giving shareholders more return? the stock just hasn't done very well, and they need to do something in order to boost the return to shareholders. elisa: absolutely. it started breaking out in september, coinciding with a stock shouldhe have been benefiting from restructuring. thomas end, yes, i think gottstein has proven, he's run the swiss bank successfully, has grown that unit, profits. in terms of being the right person for the job, it would appear it's a safe pair of hands. anna: getting back to the earnings story of credit suisse, part of the focus next week, even though the personality changes will dominate much of the news. you talk about their exposure to u.s. high-yield and high leverage asian corporates. where the me ask coron

banks so i wouldn't focus on banks that lend to japan because they're so debt laden but but in china some of the biggest banks like china construction bank for instance would be one that might eventually be worth getting into high dividend yield low did so if you were a little bit more fiscally responsible and they're just enormous so they may be looking at that way but right now i think it's probably not the time to even get into them and right now only 30 percent of small businesses in china are back to work but that number is improving many manufacturers are still struggling to source labor but these are getting better day by day right now it seems so it looks like things are kind of in an upswing so why is the u.s. equity market reacting more now when its supply chain actually recover. getting better than before when china was on a full blown lockdown. yet so there are some conflicting reports that really differ from what the chinese government says so that's part of the problem and then the other part of the problem which is even bigger is that now it's come from china to europe

we had the deutsche bank deal. it was 14 times oversubscribed. guy: at the bank.ank, whichutsche until recently was one of the least liked financial institutions amongst investors. i think there has been a major mindset shift, which is investors, including retail investors, private banks have said, actually negative rates are not going to be temporary. they are here to stay. i think eggs are looking to past the costs of negative rates on to their customers, whether they be corporate or individuals with large deposits. what we are seeing in terms of flows is that those investors are saying, actually, i need a cash substitute. so they are going into short duration higher or investment-grade credit. guy: that's for joining us. kevin reilly, bluebay asset management. vonnie: let us get a check on global markets now. >> are still in the right but we are well off the lows of the session. the s&p 500 and nasdaq down about .1%. it is the first decline on the week. .2%.toxx 600 down about the british the surgeon today. if we can flip up the screen, that news boosting the o

much banking.ake years to shrink the banks when you go global, african, indian, there is a lot of these companies in kenya, it has not been banks that led the charge. it has been telco in china, it is big banks. there is a lot to say for big tech and middle income countries that was a lot of unbanked the big story with has been the growth of banking we'll forecast going out to 2022, that number will fall to a billion that used to be 2.5 billion. so you've got 1.5 billion people coming in the system in just over a decade. >> i know you've done a lot of work in the cross section and the challenge to dig ties further. i noticed a relatively positivo outlook on french banks. is that a positive outlook on how you can invest on one hand and keep cost control on the other? is. >> sure. that circles back to ire other question the bank's ability to stress that. one way to stress that theme where we passed the worst. the french will benefit. in q4, that turned out to be better than expected finally, the fren

banking desert. is it about distance, or the number of customers, or any other economic statistics for this. you are absolutely right, more people in urban areas are using online banking. we will areas have two challenges. one is there possibly less inclined to do that, it's not part of the culture, also we have connectivity challenges with rural broadband. those things further hurt rule communities. how do you guys the fine banking desert, and what can be done to address this issue? >> they're actually there is no except a definition, it's one of those things where you know when you see it. it's a place where people don't have access to basic banking services. duncan is a classic example. effective to drive 40 miles to get there, at the banking desert. a lot of them are in the high desert, that's another indicator. there's a real issue in rural america principally. >> do you have any ideas within your roller our role how we can address this issue? >> we cannot be in the business of ultimately tellin

and services to some corporates and the retail banking and the corporate the domestic banking is actually performing quite well and because of quite a lot of liquidity and funding available in that part of the bank this is one of the growth areas that we've seen mortgage growth in the u.k. the part which is also housed in the u.k. and where it was mentioned before cuts are going to be higher in the ring fenced bank in the global banking and markets area in the u.k. where stops it in the u.k. but where operations also in continental europe and i think what we've seen also with other banks is that the operating environment really makes it quite difficult for banks to reach performance targets and so cutting costs cutting operating expenses which in this case should also result in the more efficient or simpler organization organizational structure should help the bank. thank you very much for your input. in a surprise announcement the world's richest man has announced he'll spend $10000000000.00 of his own money to help fight climate change in a post on instagram amazon founder jeff bezos is

banks are trading up.ank, we will provide you with all of the details on the european close. that is coming up very shortly. also seeing big moves in the currency markets as well. that's coming up. this is bloomberg. ♪ guy: 30 seconds until the end of regular trading in europe. european stocks are up not as much as yesterday but still a lot of green around the continent. as the session started more strongly than it is finishing. and thatthis story have gone sideways. what we got first thing was a spike to the upside. bit after gapping a little and then crawling sideways. we are obsession lows which were hit mid afternoon. we are up .8%. individual markets look like this. a little bit of underperformance from the ftse relative to the dax and the cac 40. the banks on the continent have been drivers. they are far and away the best performing sector. to the ftse 100 we take you to the 7500 level. we have seen weakness and the pound and the euros but the dax up 92 points, the cac 40 up 51, up .9%. let's take a

look at the bank of england what's the bank of england the bank of england hasn't bought any gold whatsoever so we're not prepared for. a loss of purchasing power if it currencies we have got nothing relative back in syria america has but america has hung on this cave's you an idea that we must never ever invoke the pet rocks again so there's going to be a huge weight transfer mation all thought process before even that it's mobilize. i used to help out with current see but i just don't see that happening in fact britain has sold half of its gold more than 300 tons under gordon brown former chancellor of the exchequer in some dodgy deal with goldman sachs as i recall to bail out somebody somewhere but yeah you guys are aware woefully underprepared for the fianna apocalypse but thank god you've got your independence now alister we're going to have to acquire this over to a 2nd scintillating episode so thanks for being on this up a. very much my pleasure that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest austan macleod of go

banks.t is what the split rate policy is from the european central bank. so maybe that will stabilize the banking system. christine lagarde has this under review right now it the ecb. if it stabilizes the banking system, then european banks come very attractive -- banks become very attractive. once that happens, we can see good price-performance and investment like the one you just described and many more. the penalty of the negative rate that went down to the retail depositor has essentially been neutralized back up to zero. we have to see because we have to watch it be implemented, but the early signs are positive. vonnie: you have some monetary policy experts on your team. saying the federal reserve will need to do in order to keep the economy stable and push inflation to where it is supposed to be while keeping things relatively cool internationally? david: we have that discussion internally all the time. the issues are these. we see the fed. it is in a pathway. we know they are likely t

mcsally: these are banking deserts. how does the fed to find banking desert? is it about geographic distance? number of customers? statisticsconomic more people in urban areas may be using electronic banking. less withoutre rural broadband -- are less likely to do that, but also we have connectivity issues without rural broadband. chair powell: it is one of those things you know it when you see it. people do not have access to basic services. duncan would be a classic example. you have to drive 40 miles, that is a banking desert. many of these are in the desert, by the way. it is a real issue in rural america. sen. mcsally: do you have any ideas? chair powell: we cannot be in the business of ultimately telling banks they cannot close branches. cra reform maybe one vehicle. support more activity of a cra nature in rural areas. it is challenging. people havewhile, been leaving rural areas and moving to the cities. these are longer-term demographic pressures. sen. mcsally: i would look forward to following up. chair powell: glad to do it. sen. mcsally: i also wan