multiples of that for bnp paribas. for hsbc, what is the fine for this?tephen: we don't know the size of the total fine yes. this is definitely a show of force from french prosecutors, saying they are not going to ignore this anymore. hsbc is one of the world's largest banks. $1 billion for them isn't a break bank. jonathan: stephen morris, thank you very much for joining us. a quick check in on stocks and the euro. stoxx 600 extending a record high. we are up by 0.44%. stocks higher, euro lower. euro weaker again, down by 0.4%. we are heading to a dollar 06. we will look ahead to "the pulse " with guy johnson. we are back in two. ♪ jonathan: welcome back. 50 minutes into the trading session. u.s. president barack obama and cuban president castro head to panama. they could meet for the first time since they announced plans to work towards restoring diplomatic relations. the supreme leader putting a roadblock in new layer negotiations. he has said that economic sanctions on his country must be lifted. those assertions contradict western framework announced

bnp paribas shares are also trading lower. richard, let's kick it off with you.ost great figures. richard: it is a loss for the royal bank of scotland. this is a quarterly loss. a year ago, they made a profit in this quarter. it is a big turnaround on that however, it is not to be unexpected. last year, they said that they would overhaul the investment banks again. they are going through big restructuring programs and those come with costs. they are also still facing fines. guy: richard, we are going to keep this short. let's go to paris. what did we learn about bnp? >> this was well above estimates. bloomberg estimates that the shares are down this morning. they are less than earlier. they were losing as much as 2% earlier. investors are looking at the capital ratio. the capital ratio remains stable at 10.3%. the leverage ratio fell. however, very good performance for bnp paribas in the investment bank division. pretax proceeds at the investment bank jumped 88% compared to a year earlier. we will have to see how concerned the bank is going against of the u.s. ec

are all banks that have been involved on a prosecutorial level, lloyd's, credit suisse, barclays, bnp paribas agreed to 8.9 billion here. are the banks still doing this? are they still funding isis? >> well unfortunately, there are several major global banks that place profit above compliance with the law, including regulations intended to prevent the financing of terrorism. and those banks as a result, have been penalized by the department of justice, in some cases hundreds of millions of dollars, in the case of bnp paribas, as you said. there's largely a culture of noncompliance with banks around the world. there's making it easy facilitating the ability of isis and other terrorist groups to move money around the world. cheryl: we're talking about billions and billions of dollars these banks have been accused of moving. i know the department of justice, the treasury, used to be the treasury department, cia included all trying to track the funding but how hard is it to track the funding from your experience at treasury? >> well, it's difficult. al-qaeda was getting their money principally fr

it is probably not the bnp paribas issue with iran -- they came to $9 billion.y will get that high. they still may have other stuff in the future. francine: how significant is this for deutsche bank? this was the one thing that was haunting the ceo. deutsche bank is one of the biggest banks in the world. can they turn a corner after this? hans: it provides certainty. that is what the notes are saying. the stock is up this morning. the stock was up on the news. you now have a dollar figure. you have a dollar figure for germany's biggest bank on what their exposure is. at the end of 2014, the provision for legal costs was 3.6 billion euros, north of $4 billion. over the last three years deutsche bank has had close to 7 billion euros in litigation and legal costs. that is a remarkable amount. now there is certainty and we will see if they can return to focusing on growth. brendan: you could be excused for getting one of the names of the regulators wrong. it is a long list. if i remember correctly deutsche bank shed its consumer banking assets as well. it is trying

you remember what bnp paribas paid. that was 9 billion euros.n the past, deutsche bank say they are provisioning. they say they think they are through. will there be much more, and how much more, and once all these probes over are they finally clear and free? guy: hans nichols, thank you very much indeed. we need to talk about hsbc in a little more detail. let me run you through what has happened. the bank must pay just over $1 billion after being charged in a criminal probe of tax evasion. hsbc has responded. the bank says it will appeal and the decision is without legal basis. we are going to take a break. after that as the u.k. election draws near, we will explain the system and why the most important thing is location, location location. "on the move -- ♪ guy: welcome back. let's talk about the u.k. general elections. actually, it is more like 650 local elections. it is because of the voting system. while the setup is fine for big parties, the smaller parties are the ones that suffer. rob explains why using a set of projections from the begi