so if you just briefly please if you could of you're hearing bank of america is very much worried about the strap a script to currencies to its business why is that. ok so here's what the bank's regulatory filings said cryptocurrency a competitive threat to bank of america business and it doesn't come as a surprise at all that the bank fears something that it may think we set up to revolutionize the banking system because the underlying idea of basically any crypto currency is to avoid the gatekeepers so big banks basically democratize the system of currency so thank you so much for your reporting from wall street. of course cryptocurrency. more than just making a quick buck digital money has the potential to revolutionize the world of finance while machine learning makes huge strides the much a young man who's developed the technology to all the machine to machine payments. easiest to catch at the airport dominic shino twenty two year old programmer with big plans. the entrepreneur is flying all over the world to promote his digital currency he's put the code for us out in the public d

i like to thank bank of america for making these conversations possible. around-the-clock and my many other colleagues were here, margaret mitchell and neil rothschild, many others who are here, grateful to you all and all of you for coming out so early this morning and i look forward to seeing you on axios.com. thank you. [applause] president trump will be at the republican legislative retreat in west virginia today. he will talk to gop lawmakers. that is live on c-span. supreme court justice sits down for a discussion. life coverage begins at 7:00 p.m. eastern on c-span two. " washington journal," like every day with news and policy that impacts you. wasserman discusses his new project on gerrymandering. then the future of the daca program and trump administration immigration policy. with our life and montgomery, inbama -- we are live montgomery, alabama. ashingtono watch seven eastern.at about life conversations books. as a special project, we're featuring best-selling feature writers. join us live sunday. the pulitzer prize winning novel. series with c

thank you so much for being with us and we appreciate bank of -- and thank you so much for being with us. we appreciate bank of america making these conversations possible and now we will see a quick video from bank of america and i will be back. ♪ >> you look at the kind of things in the world that we can use, the people we know the , contacts we've made, to hopefully make a better world with respect to some of the issues of today of climate change and we should be able to do it by being smart. >> we start to brainstorm how could we bring financial instruments to the table that would enable us to scale. ♪ >> we partner with them to create a subsidiary that can own assets in concert with them and help drive down the cost of capital so that they can sell more at a more competitive price. ♪ >> because of how low-risk these investments are, the pension funds, insurance companies, sophisticated money managers, all clients of bank of america , they are now investing directly. ♪ >> i love it when i go meet with the ceo or cfo and i find the common link in how we can connect our firm to them. the causes that we believe in. ♪

we appreciate bank of america making these conversations possible and we are now going to see a video from bank of america and we will return. things we canthe see in the world, the context we have made, to make a better world for issues of today and we should be smart. >> we sit down and brainstorm financial instruments that enable us and we have to be creative together. >> we partner to create this assets in that owns concert with them to get more of a competitive price. because of the low risk investments, the pension funds, the insurance companies, the sophisticated money managers, they are investing directly. >> i like finding a common link of how we connect a firm. >> thank you very much, bank of america, for that message. it is now our honor to have a top democrat from the intelligence committee and is in the thick of things every day. is an honor to have with us coming in on his way to the capital to brief house democrats , congressman schiff. thank you for being here. you have had your son at the capital. what was his impression inside of the chamber? >> this is the first sta

. >> you, bill, let me go back to you on bank of america, your second pick. obviously, they would benefit ra from the risin environment in terms of loans and things like that, but why else do you like it? >> well, first of all, 86 million people between about 23 and 41 and they are forming households now at very large numbers. for example, 65% of the views on zillow are millennials, so as their economic activity picks up, the amount of little transacti transaction charges they're doing at the bank goes upy significannd you've state ed in your prior segment that over the course of tt eight to ten years, bank of america found out everybody that will have money on deposit with them that doesn't care about what their return is. any money that's still sitting in savings and checking accounts now is obviously not rate sensitive people and your prior guest has a wonderful idea for those motivated to shop, but most people are lethargic and want their money at one or two places. especially the older you get. and they passes away have money in 20 different financial ins

of their money. >> he said a bank took it. >> reporter: bank of america had taken nearly $2,000 out of their account. >> we were horrified and we said this is like stealing. >> reporter: the bank used the money to pay off the couple's b of a line of credit. the couple had been paying off the loan with automatic debit each month. bank of america claims their credit plan had been expired. the bank would not refund their $2,000. >> we thanked the bank manager and went to the sausalito police. >> reporter: the place turned them away and came to "7 on your side." the bank agreed to restore the money after all. telling us we ascertained that the consumers had not renewed their payment plan. so we worked with them to set up a new payment and returned the funds. >> we ended up getting a fund thanks to "7 on your side." >> by law banks have the right to take money from customer's accounts. it is called a right of offset. however the law puts restrictions on taking certain types of funds like retirement or social security. b of a says the bank did not take her social security money. now i want to hear from yo

that ended july of last year the journal calls this the longest string of bank closures since the great depression bank of america for example has closed fifteen hundred locations since two thousand and nine mostly in rural areas while bank of america citi and other big national names have been closing branches since the two thousand and eight financial crisis regional banks are now accelerating the overall trend to prevail and survey t.m. is an online and mobile banking of also heavily contributed to the pressure to close. and we now move to discuss in detail the market meltdown more than eleven hundred point drop yesterday following friday's six hundred sixty six point fall there was a panic type selling yesterday what to make of it to help us sort it out we bring in melissa our mo of stocks swoosh and naomi osland the chief market analyst of think markets here we go melissa first what do you think is going on. well good morning i get out to be nice to see a bar. i really wouldn't panic we had a huge rally today into the close which i'm really not surprised about even though we sell on friday and we fell yester

mike: thanks the bank of america for that message. think you for making these conversations possible. thank you c-span for carrying this event today and i thank my colleagues for our and our cofounder. you for being here. i really appreciate it and look forward to seeing you on axios were we make you smarter and faster. om. on axios.c our next guest has been a congressman, house republican leader, governor of indiana, and is now vice president of the united states. he is always a hoosier. on behalf of my partners at axios we're happy to welcome vice president mike pence. [applause] mike: mr. vice president, welcome back. vice pres. pence: thank you. mike: you were just telling us that a given fix you realized wintere that it to sports, sweating and skiing. "big picture" if i i get off thece: slopes without anything more than sweat at the gold medal. mike: you used to call yourself rush limbaugh on decaf. [laughter] mike: do you ever think to yourself that this would be so awesome if you are still on radio? vice pres. pence: how do kno

i appreciate bank of america for making these conversations possible. we have a

of their money. >> he said a bank took it. >> reporter: bank of america had taken nearly $2,000 out of their accountd we said this is like stealing. >> reporter: the bank used the money to pay off the couple's b of a line of credit. the couple had been paying off the loan with automatic debit each month. bank of america claims their credit plan had been expired. the bank would not refund their $2,000. >> we thanked the bank manager and went to police. >> reporter: the place turned them away and came to "7 on your side." the bank agreed to restore the money after all. telling us we ascertained that the consumers had not renewed their payment plan. so we worked with them to set up a new payment and returned the funds. >> we ended up getting a fund thanks to "7 on your side." >> by law banks have the right to take money from customer's accounts. it is called a right of offset. however the law puts restrictions on taking certain types of funds like retirement or social security. b of a says the bank dididid take her social security money. now i want to hear from you. my "7 on your side" hotline is open

those shares have fallen more than 12% however, bank of america says now u is the time to get in. rm upgrading chevron to buy, calling for a 20% upside to here our call of the day. who want this is one >> i'll start. >> okay. >> i'll start with i think what you have to do is compare chevron to exxon and compare natural gas the crude oil. if you're a straight believer in crude oil, you probably want to go more to straight exxon because they have more exposure there. zpl you o>> i believe natural gd crude oil sort of together and also the chemical business that exxon offers they off a bigger percentage there. so i think exxon because of the diversification may be one similar businesses, but there are many differences under the sheet so to speak! crude has cle >> you know what, you're not seeing the rig count really ramp up to meet it. so it looks like this new trading rage is set, which means exxon mobil is fine. chevron texaco is fine a 6% dividend yield, but all of these are fine now and i want to say one last thing they are sectors that get left for dead like retail last year, whi

bank, bank of america or any of the other banks we used to run our payroll, our short term investment. >> i have the total fees supervisor that we're paying but i don't have a breakdown of the -- >> supervisor cohen: i'll take the total fee. >> it's 7 $80,000 to bank of america, 48,000 to u.s. bank and 36,000 to union bank, that's proportional to the amount of deposits they receive. that's a total of 864,000. >> supervisor cohen: thank you. supervisor fewer, you're next. >> supervisor fewer: thank you very much. our final presenter, michelle jacob who is working closely with supervisor cohen's office. chair cohen, anything you want to add? >> supervisor cohen: not but i have questions when you're done. >> good afternoon. thank you for having me supervisors and members of the budget and finance committee. i work at the lawyer's committee for civil rights of the san francisco bay area. lawyer's community is supportive of municipal banking. we serve such a bank as an anchor institution to promote low income, under banked and minority communities and economic development. in 2017 our orga

bank of america merrill lynch in london is owned by norway's sovereign wealth fund. stabilize the nation's that -- the first time since the end of apartheid south africa has raised a tax that is seen as hitting the poor hardest. the finance minister spoke to bloomberg after presenting his budget. >> the focus at the moment is any further from downgrade, and beginning to improve the outlook so we can regain our investment grade. yousef: global news 24 hours a day, powered by more than 2700 journalists in more than 120 countries. you can find more stories on the bloomberg. let's cross to david ingles in asia and check on the markets. david: thank you so much. also on the bloomberg, you get something that looks like this, the equity session in the asia-pacific. china just closing up shop, the stand out for you today, reopening after the long break. best day for chinese equities since august 2016. japan, the philippines, .4%. other areas across southeast asia seeing weakness. about thewn about .9%, course of the equities session, how weak currencies are trading at the mo

bank of america has no mandate other than maximizing profits. the people of san francisco are entitled to a bank with the same degree of respect that we do. thank you for your time, i will cede the rest. >> thank you, next speerk, please. -- speaker, please. >> thank you very much and i commend you. as residents of san francisco, who pay taxes and fines into the city's coffers, we want to know the city officials invest our funds wisely, with a city not only ends high-interest but also where investments contribute to quality of life for all san franciscans. a private bank can do this. other communities are realizing the best way for government funds to work efficiently and responsibly is to deposit them in a public bank. a public bank that will allow us explicit inclusion of a broad range of policy goals and purposes. purposes such as public welfare. public welfare through equitable public investments to overcome the harmful impacts of extractive economies, unlike a commercial bank it stands on the principle that public welfare is the priority rat

upon moving to san francisco, he worked for bank of america for over a decade, but he actually found his true passion in becoming the office administrator and the director of music for first united lutheran church in san francisco. it was there where he found an outlet for his musical talent in playing piano, pipe organ, and musical key boards. he planned the worship service, prepared the bulletin, as well as a 16-page weekly newsletter. you could hear him playing the organ at grace lutheran church. he considered himself a traveler and endeared himself to people of all faiths and cultures. at this time, we want to wish all of our condolences to his brother, sister-in-law, his niece, nephew, and many of his dear friends. with that, i would like for us to adjourn in honor of ryan pitts. >> thank you. supervisor yee? item, president breed. >> supervisor cohen. >> thank you. good afternoon, ladies and gentlemen. i've asked the city attorney to begin drafting legislation to require the board of supervisors and their legislative aides to attend a complete and come police it biassed -- come

purchase of land, bank of america merrill lynch, good to catch up with you. -- francisco blanch, bankood to catch up with you. david: stephen jones joins us next. as you tune in today, you can listen to our colleagues on the radio. bloomberg surveillance can be heard in new york, boston, the bay area, and d.c. live from new york, this is bloomberg. ♪ taylor: this is bloomberg daybreak. i'm taylor riggs. coming up at 11:00, newmont mining ceo. ♪ alix: james bullard speaking in d.c. having interesting headlines coming out. they see a rise in inflation expectations. that is welcome. inflation expectations in the u.s. have moved up some. they expect inflation expectations to move up under appropriate policy. this is important because it was really entrenched to the downside. the concern is if you have breakevens below 2%, how will the fed ever be able to raise rates? that shift in one of the most dovish of the community is significant. david: if those actually start trending up, that changes the posture, sets up jay powell tomorrow.market -- alix: he says to keep the policies somewhat flu

before that the bank of america deficit wasthe on track to extend past 5% of gdp.first time, and member of the dynasty that ruled north korea is officially visiting the south. kim jong-un's sister arrived today for opening ceremonies for the winter olympics. and british prime minister theresa may is. telling her team not to compromise on brexit. according to officials who work closely with her, she wants to aim high foer an ambitious free trade deal. they might not be drawing up any fallback plans, at least until talks are well advanced. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. tom: equities, bonds, currencies, commodities. we bounced up 16, nobody trusts that. spreads wider, just a bit. but yields have moved up. quality, you don't see that in dollar-yen. the vix has been the early story friday. 31.77 on theesday, vix. this is where the dollar was on the close and the 30 year yield was at 3.15 again. higher yields. francine: tom, i'm looking at a similar data check to yours. i'm focusing on th

bank of america saying they will still be in london. vote of confidence in brexit or on a diversified were they are located? these are the big debates that are happening at all of the big banks. bank of america, is leaked out that they were considering something in london. alix: didn't they already lease areas in dublin and paris? david: brian moynihan said that they would do a fair amount in dublin but they also have a big fancy place in london. >> we have heard from wells fargo, others, northern trust, looking for more space. a little bit in the right direction, from the financial services. david: unilever. a big report out, unilever thinking about console consolidating. they are considering leaving london. >> and going to rotterdam. a city that we don't hear people fleeing to. it is really a symbolic loss. a well-known property. we on wall street obsess over the banks and financial institutions, but the big employers, but they also play into the zeitgeist of how a city feels. alix: jpmorgan building a whole new headquarters here. jaso

if they sell off the financials again and give people an opportunity, we talked about bank of america, they sell that off unjustly those are opportunities, not just to trade but to invest. >> and i added to be evasive >> you talked about delta. there are plenty of examples where they're not just trading these are investments for the longer term. >> if you've got the room to buy it >> right >> what's going to determineif we go lower again or not >> jay powell. is jay powell afraid of deflation or is he afraid of inflation? >> we know he's a hawk but he works for someone who is not going to -- >> again -- >> can i put one thing out here's what's cool about rate fears, rate fears have a self-curing mechanism, because the modern fed is obsessed with the s&p 500. so if the market goes down 10%, and then does not recover, then goes down another 5%, and the titular reason in the press, and we know that fed officials also pay attention to news clippings, you could argue they shouldn't, but they do, if the titular reason for that decline is everybody is freaked out about rising rates, then gue

asking for the public's help in identifying a young man, possibly a teenager, who tried to rob a bank of america walking into the bank of america on hamilton avenue and handed the tell area note asking for cash, but fled on foot before collecting any money. >> and that's a look at newspaper headlines from around the delaware and lehigh valley. >> ingredient may have unexpected benefit. >> found way to regrow hair in mice icing same time of silicone used in fried foods, often add today french freeze. preliminary studies suggest the same method will be just as successful in humans, much more research needed so we have to let george know, and all will be well. >> coming up in the next half hour every "eyewitness news," more on the eagles victory parade and what fans can get for free if they attend. >> free is always good. plus, most powerful rocket in the world is set to blastoff into space, today, we will tell but the luxury item on board, that's raising few eyebrows. >> and this year flowers and candy aren't the most popular valentine day gift. find out what is topping the list, meisha? >> pretty

global stock funds have seen $30 billion taken out, according to bank of america. is is the s&p 500. the question we need to ask yourself is this, we have entered the correction territory. the next burn marker will be the west of his life. in his view, one is coming. we have broken a couple of important levels. the 100 day moving average is toast. do you break through the 200 a day moving average? that would represent a 12% floor down from the january the. it has not fallen this far this past since the present -- fast since the brexit vote. will the equity traders really test of the dying side? well, as jpmorgan, the bob that is at a 2.6 -- new bandwidth that has been equated. -- created. that is the state of play. a lot of people are very nervous. for europe tog take up the next dramatic move in this chess piece. sally is standing by with your first word news. ♪ >> u.s. government has entered a partial shutdown as congress meets -- missed a midnight deadline. the house and senate plan votes early friday morning washington time. there are still risks. because of the

welcome to this bloomberg television special, a conversation with bank of america merrill lynch ceo brian draws to a close, the head of the second largest bank in the united states invited me to his office for an exclusive interview. as it turned out, we spoke the very day that the house and senate voted to pass a massive tax overhaul. we went into depth on his strategy for boa as well as his view on regulation and monetary policy, and his forecast for global growth in 2018. but i began by asking what he is hearing from his clients about the economy here in the united states.

are here first up, let's see, curt on e-mail asks which is the better long term play, p&g or bank of americaok at p&g, that's a stock that has done almost nothing for the last five years >> you can't get soap at bank of america. >> then maybe we need to rethink this one, but ultimately, if i think what we have been doing at procter & gamble for the last two years for sure, a lot of talk is about spin-offs and ultimately, it's been a take, at least an activist call if you think about bank of america, not only do we know we're in somewhere in the early stages of a fed hiking cycle, so net interest margins are going higher, but if you think about the c-car results and the tax deal, these guys are in a good position to grow eps through buybacks and ultimately, it's a case where the guys are increasing their dividends when i look at the next couple years and catalyst for the stocks, i think the financials continue to ride the wave of deregulation, and eps growth in 2018 for these guys will be 2 . 220% p&g is not growing >> i steven asks what are your thoughts on nike >> i encourage you to go back

or the card issuers like jpmorgan, citigroup, bank of america, wells fargo. or the people who process the payments first data, jpmorgan owns one as well. if they were to say to merchants, look, we're not in the gun business, we don't want to be in the gun business. if you sell these types of products, we're not going to work with you. that it could be a very powerful incentive to really change the dynamic. doesn't require a law. they talk about moral responsibility all the time. this is an easy way to do it and to show it. and that's really at the heart of it the idea. i should say there's precedent for this. just in the past week and a half, jpmorgan, citigroup, bank of america said we're not going to allow our cards to be used to buy bit coin. it's a completely legal currency, anyone can use it. people have done this before. i should say by the way the first ones to do it, to get credit for it, pay pal, square, apple pay, stripe, all of these guys, years ago, said we don't do business with gun retailers. so -- >> okay, andrew -- >> -- there are folks who ha

this because central banks like to think that they have a certain amount of reserves on their balance sheet in relation to the debt that they are issuing like the central bank of america for example is levered i think sixty to one the central bank and ireland's probably leverage fifty or sixty to one so the way to get around that to leverage themselves one hundred to one or two hundred to one they give a synthetic product a aaa rating you know which will be all this is a government issued product they're going to have a aaa rating but you know i could just as easily give a aaa rating you know to this leaf and say this is a synthetic european central bank as a bond and i could say it's worth a billion dollars and it's on the balance sheet of the central bank and therefore it's as good as you know whatever they're going to say it's as good as but it's essentially just it's if it's nothing it's zero it's nonsense it's criminal well they go into how the actual synthetic derivative would function here's how the scheme would work private or public institutions such as large banks or the european stability mechanism the euro zone's bailout fund would repackage sovereign debt

thanks to bank of america for making these conversations possible. my amazing colleagues and all of my colleagues were here, thank you very much. acioxios.com.u on ♪ friday night former presidential candidate mitt romney speaks at the lincoln day dinner in utah. i live coverage starts at 9:00 eastern on c-span. our live coverage of the savannah book festival starts at saturday morning at 9:00 eastern. other scott shapiro with the internationalists with a radical plan to outlaw war and remake the world. watch live coverage of the savanna book festival saturday morning serving a 9:00 eastern on c-span's tv. ---book tv. sunday night q&a. there was a public shaming. china lost a lot of face. it is hard for westerners to get an idea of what that means to the asian culture. especially someone who is as big and crowd. -- proud. start setting themselves on this mindset, we will build up our navy and our missile defense forces. we never lose face like this again. >> sunday night at 8:00 eastern on c-span's q&a. senatordent trump and of south carolina met in th

the new partnership with bank of america that may change the future with the lending business. ♪ ♪ there two types of people in the world. those who fear the future... and those who embrace it. the future is for the unafraid. ♪ ♪ the future is for the unafraid. ♪ strummed guitar you can't experience the canadian rockies through a screen. you have to be here, with us. ♪ upbeat music travel through this natural wonder and get a glimpse of amazing, with a glass of wine in one hand, and a camera in the other, aboard rocky mountaineer. canada's rocky mountains await. call your travel agent or rocky mountaineer for special offers now. >>> welcome back, a local tech company announced plans to bring money back to the us from overseas and while many retailers are closing stores one sector is growing and hiring. pam cook is back in the studio. >> home improvement is a strong sector in retail, home depot will be hiring 80,000 workers for the spring, lowe's is planning to hire 53,000. stocks are headed higher this morning, apple was one of them that has gone up, warren buffett has increased holdings

. >> ernesto, who would you be buying right now >> bank of america we bought that as soon as the electionook place because we saw the deregulation that the incoming administration had in mind, and banks are the biggest beneficiaries of deregulation, and add to that the steepening of the yield curve as mentioned, the banks and very attractive valuations at 12.5 times for bank of america. you really are owning a stock with phenomenal macro backdrop, strong fundamentals tied to the recovery in gdp growth and acceleration in gdp growth, plus steve mentioned the yield curve, all good for bank of america and other financials, bill happy to be exposed to the financial sector at this point >> all right, thank you, both, for your insights on navigating this volatile market right now we are mindful, if you just joined us, there's been another shooting, this time in a high school in parkland, florida, north of miami there's still more questions than answers right now, and what we have been told is that the shooter is still alarge, a lot of law enforcement, a lot of medical care on site there's been

thanks to bank of america for making these conversations possible. my amazing axios colleagues and all of my colleagues here, thank you very much. we will see you on axios.com. ♪ vice president mike pence visited the texas-mexico border wall friday. this is his first visit to the area as vice president. he took a tour of the border and learned more about the technology behind the border wall. he also met with local law enforcement. here is a look at his visit yesterday. [inaudible] >> tonight on c-span, secret service director randolph pales on efforts to fight financial crimes, they fry, crypto fraud, cryptoank currency. here is a preview. >> the secret service is working actively with partners on crypto currency. they are very clever in using these crypto currencies and in these business email hacks. one company was going to make crypto currency. i believe they were going to use etherium. the ceo had their email account hacked. the hacker sent out the ipo early. moved into thes account, and he moved into another crypto currency. we got some of the m

>> it does, and let's continue to quietly the best performer of the entire group it's bank of america again they're crushing once again, and jpmorgan is probably going higher, but i'm going to stay with bank of america. >> i saw moynihan at the super bowl he's been in a good mood. >> should be. >> just got a nice raise. >> maybe it's maybelline >>> final trades. >> dallas tree. >> disney. bought it because of options at this time. >> tweet tweet, judge, up 8% or very, very heavy volume. >> stef? >> financial down, it's cheap. >> joe regens financial. >> tweet tweet >> i don't know what's in there. that does it for us. "power lunch" starts right now >> what's in there >>> free market, is manipulation of a popular index partly to blame for the recent sell-off? if so, what can you do don't worry, we have you covered. apple facing off with shareholders, tim cook grilled and the stock's relatively poor performance this year. we are live at apple'ses details are ahead.

bank of america, first thing this morning, one of their top analysts, he is having a cell signal.rconfidence. saying the market will go down 4%. back in july of last year, he says he see as crash in three or four months. it didn't happen. he see as "flash crash" first half of this year yet to materialize. i'm just saying take this with some perspective. the markets lost about a month's worth of gains. we are at levels we saw in january. stuart: i'm not faulting a guy for making a call because he might be right. >> right. stuart: i don't know that this is very early days on a monday morning. got rest of the week to go. who knows. liz: this earnings season, sales are up 7%. earnings up 13%. the numbers coming in on earnings pretty solid. stuart: the economy is very strong. ashley: yes. stuart: i have got this item of news on wells fargo. nasty sanctions coming at them from the federal reserve. it will cost them how much? ashley: a lot of cash. up to 400 million-dollar hit to their profit. the feds saying you have to hold back your growth. basically assets they have at end of the yea

this because central banks like to think that they have a certain amount of reserves on their balance sheet in relation to the debt that they are issuing like the central bank of america for example is leverage i think sixty to one the central bank and wireless probably leverage fifty or sixty to one so the way to get around that to leverage themselves one hundred to one or two hundred to one they give synthetic product a aaa rating you know which will be all this is a government issued product they're going to have a aaa rating but you know i could just as easily give a aaa rating you know to this leaf and say this is a synthetic european central bank as a bond and i could say it's worth a billion dollars and it's on the balance sheet of the central bank and therefore it's as good as you know whatever they're going to say it's as good as but it's essentially just it's if it's nothing it's zero it's nonsense it's criminal well they go into how the actual synthetic derivative would function here's how the scheme would work private or public institutions such as large banks or the european stability mechanism the euro zone's bailout fund would repackage sovereign debt f