get in bed with him and that bank you'll not be surprised to hear was deutsche bank and deutsche bankcontinued to do business with epstein up until the time of his arrest last summer and that was even after multiple employees in the compliance division and the bank raised concerns not only about the ethics and morality of dealing with someone who was a convicted sex criminal, but having known to have done a lot more bad stuff than what he'd been criminally charged with, but also that they were seeing signs of him internally of him laundering money and possibly bribery and things like that. and yet, the bank, once again, overruled those concerns and continued doing business with epstein because it seemed lucrative to do so. >> and yeah, i was wondering, first, what is sort of the net worth of deutsche bank right now and what is roughly the total amount of fines and settlements they had to pay associated with the conduct related to the financial crisis? first question i don't know off the top of my head. the metric i have in my head is that its stocked peaked in 1990-- or 2007 at the ti

it was an inquisitive bank and did a bank merger with the bank of boston. you state with the company. when the ceo of bank boston took over, he decided the combined bank was not big enough and so we ultimately discussed selling it to a number of other people. ultimately it was bought by bank of america. is that right? brian: that goes to the scale of banking and what you can achieve. it was the first nationwide bank and that is something we can achieve and something nobody else could achieve. david: and for a while you became the general counsel of the entire bank of america. from december 2008 to 2009. david: 40 days and 40 nights. was there a slaughter? brian: there was the merrill transaction and a few other things. by that time the united states was in the middle of a financial crisis. bank of america was doing a favor for the united states government when it was told it should by merrill lynch, is that right? a scramble toas try to stabilize the firms that were less stable, jp morgan, bear stearns, ourselves, merrill lynch, we cannot stabilize lehman b

for what happened in the banking industry so the banks went from being these companies to serve their customers. not only their customers but the communities in which they operated, their employees, a government and shareholders and investors and owners. with a hold wide range of constituencies to one very narrow which was shareholders. that meant to do what's best for shareholders that meant maximizing profits as quickly as possible so with former colleagues and then got to know through reading e-mails to curtail the risk-taking to remember the fundamental question is this best for clients and why are we doing it? and i keep thinking about this because the 2014 and 2015 deutsche bank word is an important financial institution at the time but i was working for an american newspaper and this is a german european bank no one really cared. and then and 2016 a certain someone started to run for president in a certain someone had a very special relationship with deutsche bank. donald trump was completely off-limits to the mainstream financial world because he had a nasty tendency to defaul

woman who is opening nail salon -- >> yeah; go ahead. >> banks getmen out better than big banks on it know who is credit worthy who isn't given sourtsdz they will get the job done. >> he wants more money for small banks. dagen: they need it community banks deserve a huge hooray for what they have done to get money, to the their small business customers during the show i got a text message from a woman who works in the retail industry we see retail sales numbers by the way, this is march new york city only closed down completely march 22nd she sent me e-mail saying no word whatsoever on a grant or loan from chase. i have been banking with them a long time, what they are doing in terms of communicating with me is unconscionable, my payroll is due the end of this month i am going to have to lay off all the people on my staff. boom. no communication from chase. none. >> jpmorgan yesterday reported james jamie dimon had things to say about money lending out some big banks jpmorgan bank of america going to give prefrm treatment to customers have been customers years and years the person sai

morgan wells fargo bank of america and citibank just those 4 banks own 81 percent of it so those are the guys getting bailed out by the fed in the mean. time u.s. housing j.p. morgan chase to raise mortgage borrowing standards its economic outlook darkens it just got harder to buy a house from tuesday this week customers applying for a new mortgage will need a credit score of at least $700.00 and we acquired to make a down payment equal to 20 percent of the home's value but this is an interesting concept one of fairness as it relates to the economy and it's not really baked into be american system is not designed to be fair because fair is what is fair for one person is unfair to another person and it's a highly subjective term what america relies on is free market capitalism and it relies on competition and that if you are successful competing then you succeed remember in america possession is 9 tenths of the law now if you don't compete successfully then you get thrown out of the game basically but that's the way it is and you guys states and. having said that when you talk about b

the same corporation will be fought on its bank loans and then the stress on the banking sector willbe imported in directly and that's the biggest the biggest said to me yes there is that corporate default on their short term loans to other corporates this is a form of shuttle banking activity that was not regulated forced 2008 and has created serious fragile vulnerabilities to the global financial system the other side that the banks face is that the spun they make and the fall in g.d.p. and the nation of economic activity lasts for a very long time non-performing loans are accumulated and the stand by income capital is. not sufficient to deal with this kind of of crisis do you think lessons have been learned since the 2008 financial crisis that we always fight the last crisis lessons had been and lessons have been learned and measures are in place to pfizer says that the similar to the 2008 says that started from the financial sector it's impossible to say whether the shock the impact of this type of crisis with nobody could predict a self crisis that would shut down the economies

will talk about deutsche bank in just a moment.e bank one of the reasons we have seen the outperformance today from the dax. we have also seen lufthansa quite strong at the top end of the dax today. it is a critical week for lufthansa. we start to get an idea of the shape and form of some of the assistance from government will take. deutsche bank and lufthansa on one end of the market. the cac 40 trading up 2.3%. london a little bit of a laggard , oil has been trading at the bottom end of the market. you see the move lower in brent and wti. in terms of the sector breakdown, you can see that clearly in terms of the movement we have seen today from the different sectors. you have oil and gas at the bottom end of the market. food and beverage down. nestle has been week. travel and leisure at the top end of the market has been doing well. lufthansa strong performer. the banks have done well. i want to caveat this with a light volume story. the update on light volume makes you a little bit nervous. individual stories were focusing on, w

trade remember when banks would bet against their own clients well for more than a decade banks stopped using their own money to bet on markets but they had lent money to hedge funds to do just that well bloomberg calculated president trumps tax cuts that saved america's top $6.00 banks $32000000000.00 at the same time these banks cut jobs they slashed borrowing and ramped up payments to their shareholders the financial crisis has cost u.s. taxpayers an estimated $23.00 trillion dollars that's about $70000.00 per america and in europe despite politicians saying taxpayers would no longer be on the hook for bailouts they're still happening in december germany's $4000000000.00 rescue of nor deutsche bank 0 centrally was approved by the european commission and that's where we're going to start this week the german government is abandoning its policy of running a balanced budget it plans to borrow a 156000000000 euros to protect business and industry from berlin out of there as dominic cain reports. it's a scene that's being repeated around the world patients struggle for life medics struggl

for bank of america the dividend is safe as it is for other banks.ous bank of america is mostly on america first, most of its revenues are in north america. something that struck me that jamie dimon said on the get thes we can help country through this. we are adults that know that if the economy gets worse it will bear additional loss. is there anyone in the banking world that cannot handle the conditions we will get? banks areix largest safe. when you move down to regional banks, anyone with a concentration in oil and gas could be at risk. what jamie is saying is that they are going to make all their lines of credit available for corporate. for consumers there is a forbearance in terms of mortgages. this is striking, jamie was asked during the financial crisis -- bear stearns, so it is a little different now and there is a question of the rebound of the 2021, wheres say in they can make back or gain a bigger share of the wallet of banking when we have a stronger economy again. one of the know things in the market yesterday was when wells fargo did

banks.et us talk about what we have seen today, what is delta come. the boj ramped up its stimulus program, lifting the cap on corporate holdings. on wednesday, the fed kicks off its monetary policy meeting. on holde seen staying after emergency cuts last month. on thursday, the ecb is not expecting to move either, but christine lagarde could step up the asset purchase program from the european central bank. chiefg us now, we have economist at ubs. we will talk about fiscal plans, but starting with the monetary side of things, how did these measures the boj has taken -- can the boj move the dial here for is the market expectation really more of a fiscal nature? >> i don't think it moves the dial. under yield curve control, they effectively have commitment to buy an unlimited amount to the yield curve target. they would have to buy substantially less because they are so much of the market. much, ity have done so is difficult through forward guidance to really get the market to move even more.

regional banks all the members of the g 20 should be prepared.they're wealthy countries members of the g 20 should be prepared to lend money to this smaller countries that we can trace in order to stabilize the financial sector and their economy the shame. the same should be the case with the i.m.f. the big fear we have is that they might be imposed on this guy and there is some senseless one dish and i even though this gun this have done nothing there on it's a global pandemic there is going to be or there is a 3rd of the global financial crisis and they receive money because. they won't care if they stay afloat to stay solvent at the end of the day what is going to be the benefit for the global financial system for them well good luck there are financial organizations and it didn't end it can do this if we face 6 months down the line or a year down there oh it wave will shove and bugger up says ok what's going to be why that would be needed by this gain so they should do the most for their countries in order to allow them to support their finan

the banks in the u.s.ditioned from a financial standpoint and should be able to continue to pay those. me somen you give insight into the share price movement? yesterday, when wells fargo and jp morgan reported in a strong market, versus today, when you have goldman, citi reporting down, do we know anything about these results? in theory, we should want the banks to loan out a lot of money to help the economy and help be a conduit for the economy. can you walk me through some shareholder analysis on that? sonali: it is a very complicated question because people did expect loan losses. they did not expect loan losses to this degree. then, after the banks reported, they still expect worse moving forward, so there is no way to really make shareholders all that happy when there is so much uncertainty that lies ahead. in the statement today, michael corbat of citigroup saying some of this was significantly impacted by changes in accounting rules, which means they are factoring that into account even though ther

and the investment bank, but the consumer bank had both the u.s. the u.k. had thechallenges because of pandemic and what we are seeing in the economy. in the markets business, we have stayed invested over the last four years across all the asset classes. i think we stayed very engaged .ith our clients the performance was very much driven by the volume of securities that we were trading with our clients. it was not based on any particular position or direction that we had going into it, so we feel very comfortable about it. as we also said in our press release, the beginning parts of much higher than what we saw in the second quarter of last year. we feel very good about the number. it is a lot of dedication of people in that business, and it to weather a significant impairment reserve that we took in the first generate a 5%ill rge. is the civ part of the story. the rest of the business, the level of provisions you are taking or that you had to take in the last quarter, what kind havesibility do you against credit losses? provision did -- our overal

inopean banks are firmly focus. loan loss provisions a big part of what we are seeing here today. , one of which is results out today. what thee a listen to banking ceos we have been talking have had to say about the economy. greatre's obviously a degree of uncertainty around that range. we saw $3 billion of expected credit losses in the first quarter, up fourfold on the charge from q4 of last year. $7 billion to $11 billion range is an estimate of what we dependent on the duration and impact of the coronavirus during the remainder of the year. we are relatively optimistic about the extent of how credit losses will impact our future. >> the situation is evolving quickly, so it is really difficult to pick outcomes. whenis particularly true assessing impacts across multiple markets. sergios'nder ermotti, and from hsbc. whatbly in the shadows of we are seeing in the united states. hafeez,iz -- bilal macro hive ceo, joining us now. the banks are the key transmission mechanism here in europe. they have a lot of visibilit

of money printing jimmy doors never mention the central bank the federal reserve bank never ever ever ever and yet the progressives if they want to be progressive and they want to progress the dialogue forward they need to talk about the central bank that is the key component of the global economy the american economy and the key crisis that we're experiencing today so not to mention it is willfully ignorant exactly we have 2 different categories happening that government and the treasury and on the federal reserve and basically neither of them have oversight and they're pouring trillions of dollars to the corporate headquarters of huge corporations not the small medium sized enterprises that are being funneled into these crazy sort of online systems that don't work but the. major corporations the multinationals those that are getting bailed out and the big banks and the ordinary worker that's by the way that you know the left wing party is supposed to speak on behalf of their stock on trying to file unemployment benefits and those unemployment benefits are built on cobol which is a.

they need some sort of confidence from the bank of japan that the bank will backstop them.bably forthcoming. japanese have seen the yen stabilizing this month especially after the wild swings we saw in the month of march. how important is it for the boj to look as it is being as aggressive as other central banks around the world? if you don't come you could see more upward pressure on your currency. nicholas: that is understandable. the only currency that has strengthened this year against the dollar, the yen. if you look at the real yield differential coming you would've thought that the yen should be stronger than it is at the moment. it has been surprisingly stable. at a very comfortable level for japanese companies. necklace, does -- fuellas, does the pandemic sentiment? does it unwind a lot of the hard-fought gains after abenomics? of whateverest more it takes from the bank of japan is going to have diminishing results? nicholas: that is an extraordinary comments. i think japan has been one of the most likely hit of any nation from this. i heard one commentators say on

banks, itmes to the is not just the chinese bank story. you look at the global benchmark for banks.uch at levels" asistressed chinese banks. chart. we have another it talks about the stress test for chinese banks. to be specific, for these names as well. the pboc last year came out with a stress test, and essentially what it found. 4.15%wth actually fell to back in an imaginative scenario, the ratio of npl's using that model shows it could go up fivefold. guess what? growth is below that level, and it is expected to be below that level. that is one to watch, and what they say about provisioning. that will tell you a lot about the bad debts expecting to come on the books. haslinda: not surprising, no buybacks, no dividends. if you could sum up what we have seen so far, what would you say? the basict comparisons on where companies have come in relative to revenue forecasts. when the sample size was much smaller last week, when you had about 10% of companies, it was about 70-30. now it is a little bit better, 60% in favor of negative. this is consistent. , some bigu an idea names, hsbc

morgan and wells fargo banks. banks make up 40% of his portfolio.llocation you have now? how do you look at your allocation over the next six months? cole: great question. j.p. morgan, as i got to see more from their earnings statement, they took about $6 billion reserves for losses. you are going to go through situations where you reserve. what you have seen in prior quarters, how many of those reserves are going to be realized in hand, or how many are going to be released? you just can't know that right now because of how things sit. it paints a big picture of the where we have come in the last 13 years. at this time in 2007, as we were coming to the midpoint of the year, banks were in the worst position they'd in in u.s. history. in comparison, we are dealing with a nightmare scenario in the u.s. economy, and these banks are able to reserve this amount of earnings in the quarter. that could go on for another quarter or two, but think of the earnings power they are able to is a near-terme calamity in the u.s. economy. alix: i was asking an analyst

bank is again highlighting the banking crisis involving financial institutions with too many bad. banks which don't face the same regulations as well known and the company. yes bank customers included some of india's biggest businesses including group a body was once one of india's richest people incremental big increase in credit was going to all of the promoters who were who were weren't before before were not able to pay back their bank loans taken much earlier like in the u.p.a. the previous regime so so so that sort of turned out all the cronies ended up getting more loans to pay back their earlier loans the government has accused us banks found and his family of laundering around $600000000.00 by receiving kickbacks for extending loans that couldn't be repaid kapoor's lawyer says he's being made a scapegoat 5th largest private analysts say the toxic loans crisis goes beyond a few bad apples it's the 3rd time in a year that india's reserve bank has intervened to rescue a lender the where are bad loans and. have plagued our economy our financial system the last 5 years but are

democratic what do you mean by the term democratic banking i've never heard of such a thing. so my research found that in the early 20th century there was this real grassroots movement to try to make banking more democratic and it was led by people who were in expect to care about banking to be informed about it to be more debate about it people like electricians still workers bricklayers farmers and what they wanted was a banking system where they know if they took their money and they put in the bank would be safe they could have that confidence they wanted a baking system where they knew that they could get money in a loan for a home or to operate a farm and also they wanted a banking system that wouldn't destabilize the economy so in the $1000.00 century and into the early 20th century there were depressions every 1020 years that the banks either caused or made worse so these were the kinds of reforms they wanted and they wanted this banking system to be more transparent and they also wanted it to be democratically accountable so a banking system that democratic is one th

the bank brings global expertise to this. the bank -- the people that i work with every day were involved with the sars epidemic and the global response, the ebola crisis and global response and also the food crisis that hit very hard in, i think, in 2009. so we are able to bring those -- that expertise to bear on this crisis. so i guess to shorten the answer, it's -- we will be doing a broad range of response by all parts of the bank as we look forward or as we try to deal with shocks that hit individual sectors, that hit the food sector, and hit the health sector. there's a giant bank effort to address these. i should include and mention the i.f.c., international finance corporation, is working actively with companies to try to keep them open and the jobs going and meega, as well, is involved. so it's a whole world bank group that's underway. thanks. >> fantastic. thank you. going to another part of the world, we've got carina from compass daily from indonesia. what policies should developing countries facing the risk of in

central bank meets today. as banks set aside billions for loan loss, we speak to the chief executives of multiple banks. a lot of the folks just focus on earnings and what we heard overnight out of the u.s.. a lot of banking as well. later on we will speak to the astrazeneca chief executive asking about vaccines or medicine that will work in treating covid-19. if you look at the markets and the pressure we see on the dollar, probably one of the biggest stories out there. 0.2%,an stocks gaining euro-dollar 1.08. let's get straight to the bloomberg first word news in new york city. italy, the with nation seeing its -- delivering an out of cycle downgrade, one level above junk. the timing of the move may catch some investors off guard. it wasn't scheduled for review until july the 10th. but the outlook made fears of a future cut to noninvestment grade. over the u.k., boris johnson's top aide crest scientists for a lockdown. he swayed the discussion towards faster action. number 10 denied the political advisor inf

bank for the future and you outlined a lot of these issues with banks and i've been studying money for decades now i want to ask you a theoretical question and get your thoughts in my view as as you describe the situation with all this money printing and debt monetization and the government in the central bank taking control of the majority of the sovereign bond market the miss the majority of the corporate bond market the majority of the mortgage backed security market and the majority of the stock market are we not setting ourselves up for what you might some might call like neo feudalism where you've got a few central authorities with 99.8 percent of all stocks and bonds in. stands and then everyone else is living like a peasant so you just have peasants and lords i mean i mean think about that for a 2nd i'm live on top of the question so the big coin having arrived next month simon dixon some call it quantitative tightening its block will be reduced to 6 the quarter bitcoin from 12 and a half bitcoin and rewards tell us what you expect from us on it so we're going to see exceed say

let's do a banking roundup. who has written some amazing pieces, from bloomberg terminal. great to have you on surveillance. thank you for joining us. when you look at different banks, it seems trading did ok. do you make a difference between the ones lending more and the ones with the most debt? >> thanks for the introduction. what you are looking at is a fourth quarter -- first quarter that will not be telling an awful lot. that lifteding's the tide for everybody. the other thing is how banks are preparing further credits that ahead, and then you get a sense for what is in store. the u.s. banks, larger banks taking very large provisions at the end of the first quarter for cuts ahead. banks, potentially not to the same degree, amid concern banks are pushing some of those provisions further out into the future. francine: what was most surprising of what we heard from ubs? you wrote a great piece about deutsche bank in credit suisse the week before -- and credit suisse the week before. appears that, it the pivota

big week oft is a central bank decisions. tomorrow, we expect a bank to double asset purchases. kicks off its fed first scheduled monetary policy meeting since january with rates expected to be on hold. thursday, the ecb is not expected to move either but could step up asset purchase program. this as we get the latest from scott at guggenheim, saying to prepare for the era of recrimination. we will discuss next. this is bloomberg. ♪ manus: this is "daybreak: europe ." to the markets. prophets may have tanked in china, but the bank of japan goes unlimited. asia stocks this morning just a little bit higher. s&p futures also in the green. you will have to see a movement in the credit and bond markets for deutsche bank to be convinced of buying stocks. a much sluggish economy. euro stocks, avoiding junk in italy, and a marginal opening up of the economy. in the u.s., you are seeing deflation risk heating up dollar-yen, singularly unimpressed with open ended bond buying in the market for the yen. let's turn our attention a little bit per. bankapanese central joining counterparts and

the bank is among u.k. businesses through the coronavirus, but our companies getting what they need? we will speak with the chairman. this is bloomberg. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. "bloombergme back to markets," this is the european market open. we saw gains dissipate on the ftse, but we are still holding on to more than 1% gains on the dax this morning. the stocks europe 600, the broader european benchmark index , and you can see it reflected in this, what we see in most other equity indexes across individual european nations. we had a big jump at the open and that has trailed off to some extent. we don't have all industry groups rising. health

banks, i think the banks have held up very well.e are far away from a financial crisis. , we have to stay disciplined going forward, both in terms of our capital and liquidity management, but also in terms of our cost management. that theconfident position we have puts us in a strong place to do that. credit suisseas ceo thomas koch johns speaking with us earlier. speaking gottstein with us earlier. viviana: nearly 4.5 million americans filed for unemployment, bring the total to 26 point 5 million jobs vanishing during u.s. social restrictions. the u.s. house is expected to pass the latest rescue package, and there is some doubt that points to u.s. unemployment rate hitting as high as 20%. in europe, eu leaders are currently having a videoconference, discussing what he rescue looks like. ecb president christine lagarde cautioning that gdp could drop as much as 15%. u.k., eu as well as the business confidence is in a freefall, including in germany, where consumer sentiment has dropped to a record low as the coronavirus leads to europ

last friday -- community banks, regional banks, large banks. i want to thank the sba and the treasury, a brand-new program that got up and running in less than a week. last friday we saw the incredible response. i spoke to the president over the weekend. i told the president it was so successful that we were concerned we would run out of money. the president made very clear that we should go back immediately and ask for more money to make sure we can support small business. every single one of these people employed by small business is one less person out of work and on unemployment insurance, and it is one more person that is part of business so that when we are ready to reopen, 50% of america's workforce is in small business. i had the opportunity this morning to speak to mitch mcconnell, chuck schumer, nancy pelosi, and kevin mccarthy. i urged them at the president's request that they get us another $250 billion approved, and we look forward to the senate passing that on thursday and the house passing that on friday. this is much needed supp

doing this bad bank.aper basically is reporting this is according to the eft, that it could take on billions of euros off lenders' balance sheets, including nonperforming loans left over from the 2008 financial crisis. i am delighted to have a conversation on the economy but also on what policymakers think -- on what policymakers can do, with lorenzo bini smaghi. thank you for joining bloomberg this morning. there is this report about creating a bad bank, which is something that other countries had done in 2008. how useful would this be right now, to shore up markets and to shore up some of the mass debt that we are accumulating? remind: well, we have to that most banks have adjusted their npl share quite the crisis.y before we have gone back to levels which were considered normal. proposal i think affects only a small portion of european banking system that has still whatr ratios compared to is to be considered normal, so only in certain banks and certain countries, so i will not systemicthis as a hi pac

>>one of the other challenges this food bank has beenfacing has been their pantry stay had about 280hat's where the bulof the food is distributed about a 100 of them had to close down. during the shelter-in-place so they've started up some pop-up pantries throughout san francisco in marin county you cago to the food bank's website to find out just where those are. >>live in san francisco. dan rman kron 4 news. thank you dan. >>california is extending pad leave nefits to food workers across the state are capitol bureau reporter ashley zavala explains who exactly can receive these benefits. >>people that grow our food the people that picour food the peop the pack our fd deliver rfood cook serve and sell food industry workers across california now have cess to 2 weeks of paid supplemental sk leave for those affected by covid- governor newsom's latest executive order extends the lead or those who were9 exposed to the virus are sick with the viruor have been ordered to isolate. >>i hope this will significantly addressed so ofthe anxiety are farm workers have anxiety are fast around the de

and deutsche bank's surprise profit. revenues beat estimates, while earnings season is now in full swing. welcome to "bloomberg daybreak: americas" on this monday, april 27. i'm alix steel. let's get right to it. we had softer futures overnight, and then the bank of japan taking off any restrictions on government bond buying. i saw one note that said the event of japan purchases note is no bigger than all of japan's gdp, so that is leading optimism in the market, although not a weaker yen. oil again taken out to the woodshed, particularly in the u.s., down by almost three dollars. it is time for all the market moving news you need to know on wall street from new york, as well as in london. we begin with a biggie week -- a busy week for central banks. bank of japan says they will take on unlimited buying of government bonds, lifting the cap also on corporate holdings. i, he joins us now. , kitchen sink, we are still throwing it. michael: central banks are all as string the question of what you do when you have throwing th

let's get into the bank numbers for more detail. standard charter has posted a 12% slide as the bank becomes the latest lender. calling global sentiment extremely depressed but the company expects growth to move out of recession before the end of the year. it is seeing encouraging signs in the key chinese market. flagging the impact of the rise and provisions on the bank >> the issues for us will be less about top line. it will be more about the credit impairments of how many businesses there are secondly, our businesses are particularly skued to northern asia some of the markets will come out of it earliest as well a slightly different profile to that than other sectors would have >> barclays up there 4.7%. strong results from the british bank missing the first quarter fra forecast telling us these were unprecedented times for markets. >> caller: this is being met by a government response of incredible proportion. what the government and the uk and the u.s. are doing in terms of monetary policy, bank of england, the fed, her majest

in it but not with the central banks and i think they're going to see a ruined from central banks on traditional vines as we inevitably experience the john norman consequences of essentially the world's largest rate it's a ponzi scheme that we've seen in all of us part are actually in banking you have a background in banking you've been a big coin in crypto banker since 2011 you wrote the book bank for the future and you outlined a lot of these issues with banks and i've been studying money for decades now i want to ask you a theoretical question and get your thoughts in my view as as you describe the situation with all this money printing and debt monetization and the government in the central bank taking control of the majority of the sovereign bond market the miss the majority of the corporate bond market the majority of the mortgage backed security market and the majority of the stock market are we not setting ourselves up for what you might some might call like neo feudalism where you've got a few central authorities with 99.8 percent of all stocks and bonds in. stands and then

banks for holding dividends, sing u.s. bank's are not doing the same. the banks are not in his view capital short and it could hurt small investors and small businesses. is that the view that is being held across the board? i think that is quite a popular view. what we're hearing is this will hurt retail investors and small investors and undermine confidence in the banking sector when banks in the u.s. by and large are very well capitalized. what is more exit -- what is more significant and already short of confidence is the major banks have suspended buybacks in the u.s. i think for now that is seen as a measure that helps assure the system and gives people confidence, and so far it doesn't seem like there is much support for banks in the u.s. to suspend evidence. taylor: our bloomberg finance reporter, lananh nguyen. and don't miss our interview with bill winters at 9:30 a.m. london, 7:30 p.m. if you are watching and sitting. meantime, let's get a quick check on the first word headlines. the u.s. seeking as many as 100,000 military body bags as the u.

bank earnings with betsy graseck, morgan stanley global head of banks and diversified finance research. welcome to "bloomberg daybreak: americas" on this thursday, april 9. markets are closed tomorrow. we all get a nice 72 hour break. for the time being, you're going to want to stay on your toes. all overeing action the place on u.s. equity markets. ?s it actually really matter shrinks, but it doesn't set the u.k. up for a good spot going forward. we are seeing the relationship between fiscal and monetary policy really evolve the u.k.. we will break that down over the next few hours. you are seeing bond markets bid across the board, as we are k-off develop. we want to kick it off with michael mckee. -- theld central bank -- mike,entral banks if i say mmt, am i wrong? anyway. yeah, [laughter] it's confusing, though, what is going on with the economic philosophy called mmt. yes, it is unlimited cash in unlimited amounts for unlimited periods of time until we get through this. you're still going to work your tail off today before we get to 4:00 p.m. let's start in london come over the ban

to provide liquidity to banks. we also relaxed state aid rules, allowing member states to provide guarantees to companies, banks feel safe to lend during this time of stress. vonnie: that was the european commission vice president. president trump speaking moments ago, participating in a meeting with recovered coronavirus patients. these are pictures from that meeting. he said the u.s. will have less than 100,000 virus deaths, and said he would make a decision on reopening quickly, this as the president and new york state governor andrew cuomo clashed over reopening. the president with recovered coronavirus patients, making several remarks on a number of topics, including joe biden. earlier, barack obama and his wife michelle endorsed joe biden for the presidency. anycan follow along headlines that are merged from this meeting on your bloomberg. off bankkicking earnings season with the lowest profit since 2013, giving investors a preview of what to expect this season as a result of the coronavirus pandemic. with us