this is what brady dougan is going to have to account for. he faces two tough interrogators , carl levin and john mccain. levin gave us a taste of what he is going to say. he put out a statement saying they owe uncle sam. they owe the people of the united states. we are talking about 22,000 accounts potentially set up by u.s. citizens. that means lost revenue of around 85% to 95%. the numbers don't make sense. did the bank know about it? was there a culture of secrecy? the justice department doesn't come across great on this. the justice department's number, $4 billion. that is how much they thought was stashed away here. says itte committee could be as high as $12 billion. >> you almost wonder whether brady dougan is going to be the main event this afternoon, whether or not the investigation will take center stage. the justice department doesn't come out of this well. what happens next for the sec? a possible program as well? >> the sec is looking into it. it appears it is based off of the information in the senate report. senate committees

brady dougan is expected to tell the committee that the bank. executive to not note -- that the committee that the bank's breakecutive did not help tax laws. the bitcoin industry doing damage control following the shutdown of a virtual currency exchange. they are assuring investors that their funds will not disappear. reports are out that hackers may have stolen more than $390 million in bitcoins. and the data breaches affecting has takenf shoppers its toll on target but fourth-quarter profits fell 46%. whoever, earnings beat estimates. -- faces more than 80 civil lawsuits on the data breach. julie hyman has more on target as well as a look ahead to jcpenney's results after the bell. she is looking at the entire troubled state of retailing today. here in the studio for the next hour, my guest house, restructuring guru who oversaw hostess brands and is now heading a wide range of companies that he will give his take on turning around retailers to overhauling taxes to hiking minimum wage. first, to you on this data breach and the impact on target.

it will be a tough day for brady dougan.en tougher than when you were growing him. >> i don't think he will be willing -- word too much -- worried too much about my growing. off,umbers you just read 1800 bankers, quiet rooms where they do business, elevators with no monikers on the. secegs the question, the may get involved in a pro. it takes on a whole new meaning at that level, doesn't it? >> the sec is obviously much more aggressive now under mary jo white. senate reports are usually bad for public relations. you get the up and drag in the mud. they actually have very little enforcement mechanisms. what is interesting about this report -- sometimes they can refer to justice. what is interesting is that there may have been tanking regularities. -- banking irregularities. they may be able to ring in the sec. >> we leave it there. let's see how this progresses. we are watching another stock this morning -- airbus, after the aircraft maker released his 2013 earnings. them.arrell has solid numbersred if you look a profit, up o

it appears that brady dougan did that.enators wanted to press him on this one key point, why wasn't anyone actually fired? >> how many culpable officers, directors and key executives have been held accountable -- i mean fired? >> we determined to shut this business down so over the course of the last years, the first two years after that, we basically reduced the size of the business by -- >> how many employees were fired? >> the psi report found that 1800 different credit suisse employees serviced 22,000 u.s.-linked accounts. according to the committee report, only 10 of the 1800 employees were disciplined and no one was fired. is that an accurate statement? >> it is largely accurate. >> why do people take money out of their countries of origin -- >> you mean in switzerland as a country? i think historically, there has been -- one of the things that is highlighted is that there is an ability to shelter assets and income from paying taxes. dougan asument from well as the other executives was, they were cooperating with the

and brady dougan of credit suisse goes before the secret -- the senate committee. good morning, everyone. this is "bloomberg surveillance." is wednesday, february 20 six. i'm tom keene. joining me, scarlet fu, adam johnson with us as well. i had a swiss bank account m a million years ago, like a little fun one. >> and then the government seized it. >> it had, like, $46 on it. >> it is the hollywood movie. >> what is the trashiest part you have seen so far? >> effect that their accounting was tucked inside "sports illustrated" magazines. >> you might not have been worried so much about what was inside. let's go right to our morning breeze. the bank of england's chief economist spencer dale says no plan to raise interest rates anytime soon. this is coming as the fourth quarter gp held constant. no change. economic data in the u.s., at mba0, we have the weekly , mortgage applications. 10:00, new home sales. he and -- earnings meanwhile, we lowes, target, ch, andmbie and fit after the bell -- >> there are earnings at jcpenney. per share, 29 cents, which appear to miss

emerging marks are pretty darn important to brady dougan. probably about 20% of their revenue from e.m. and currency. q 3, q 4 not bad. it has been a bit of a bump. he said it is something we're going to have to go through. there is an northwestability in terms of what's happening in -- a inevitability in terms of what's happening. this is something we're going to have to go through. this is something we could just nip and tuck, excuse the pun, in q 1. >> it is all about the nips and the tucks this morning. suric looks lovely. it is cold. >> a big day for automakers. volvo shares are rising. >> daimler's c.e.o. will be joining us a little bit later. ryan chilcote is here. let's start off with the trucks. >> nice part for volvo on track of r for their biggest gains since the summer before last. why? was it enya? the muscles from brussels? jean-claude tv ad, van damme doing the split between the trucks? >> i remember that 3 >> do not try that at home. >> those trucks are moving, sh aren't they? >> those trucks are going backwards at pace and h

brady dougan. mr. romeo cerutti in cerutti switzerland. mr. hans-ulrich-meister .co head of the private banking asset management of credit suisse in switzerland and mr. robert shafir of private banking asset both management of the credit suisse ag in new york. we appreciate you being here this morning and look forward testimony pursuant to rule number 60 witnesses to testify before the committee are required to be sworn in and at this time i would ask you to stand and raise your right hand. do you swear the testimony you will get before the committee will be the whole truth and nothing but the truth so help you god? we will be using a timing system for the witnesses today. be aware that approximately one minute before the red light comes on you will see the light change from green to yellow giving you an opportunity to conclude your remarks. while the written testimony is printed in the record in its entirety we ask that you limit your oral testimony to 15 minutes and if you need additional time beyond that, i'm sure we can find a way to provi

chief executive brady dougan will testify in washington. >> there was a final vote of confidence in italyns the way for the government to make way for economic reforms. he won the vote 338-220. he has cleared the senate by a slimmer margin. the in a terry monarch -- international monetary fund is likely to send a team to ukraine superagent the imf managing director says she is ready to engage. >> welcome back to countdown." hayes reported earnings about 30 minutes ago. it said conditions are improving in several key markets. we're joined by paul venables. good to see you. traditionally it has been temporary that outpaces permanent, but they are both firing on all soldiers -- cylinders. >> this is the first time we have had growth in both sectors but it is perm that is the most exciting part going forward. our profits are up 15% so we took a bit of growth and converted into profitability. we did that in u.k. and parts of europe. much longer. >> key market improvement across several key markets. which ones are doing the best? >> the u.k., without doubt. it is our largest market. we have had

suisse are set to testify to the justice department in a hearing on wednesday chief executive brady dougan will hit back saying only a small group of private bankers were involved. helping americans conceal their wealth however here's the quandary we know that there are politicians who have offshore bank accounts mitt romney comes to mind for example i think he's got a couple and why do people have offshore bank accounts well there are a variety of reasons but a lot of the time it's to avoid paying taxes however the current colossal colossal tax code here in the us permits these abusive accounting gimmicks and there are billions more lost in accounting gimmicks right here in the us gimmicks like for example the ability for people to earn wages that much lower tax rates thanks to long term capital gains i'm talking carried interest here horse what else for the job and carried interest now are officials turning a blind eye to a problem here at home or are they employ distraction tactics with this whole credit suisse business we'll let you decide. tokyo based mt gox was once the largest becau

milgaonon r the mortthe the litigation there is a tax therea tax xdispute xdire in the u.di the ceo, brady dougansrady dou where the company stands rightds r now. we have made goodha progress on that front. we have gotten a number ofen a number of issuesved.suesved. we do ne of the la ne of of issues, fha issue, b fhdosue, b b for like we obviously have tobviousl significant reserves over thervrv course of the last couple oflast cou years and we have made goowe progress in working througn them, an think our ourofile ins arofilss arofilss s obviously a lot oballeslthan a slth nu other banks. it isto i.is it is difficult to is difficulul the end, b the enk we'r' making good progmakingn wod progmakingn through. >> all right, here is something n snack on -- kellsnac- ke r profits.prpr as f the cereal business, sales declined about 3%, and at us to ou.musop , the best ng kellogg kelloggel 13... ♪ >> way >y the tiger, kel' kellunded at thed at ataste atastepany.atny. year was 6.year was arararararthe nd of enchantment haf enchtment become the island of debt. d puerto rico geto gege graded tnkgr t we wi

brady dougan testifying in front of senators and defending the bank.s at the hearing and joins us now. very serious charges, peter. can they prove it? >> that's right, david and liz. right now we're hearing from justice department officials as senate subcommittee on investigations, the permanent men subcommittee. and it reported that at one sometime, credit suisse had 22,000 accounts held by americans, most oo which were not documented with the internal revenue service. had assets of 10 to $12 billion. and in its investigation, it reported on this elevator operated by remote control. secret trips by bankers to try and talk to clients in the united states and manage their accounts and get more clients offshore shell accounts. and this one client who told the subcommittee in fact, that the clients bank statements were delivered at a luxury hotel in the u.s., hidden inside the pages of "sports illustrated." the bank says it has closed most of these undocumented accounts. it claims it has cleaned house and cleaned up its practices, but so far according to

thank you, hans nichols, in berlin on brady dougan's drilling on capitol hill.e entrepreneurs want to have . backup plan hans takes a look at switzerland's plan b. >> your smart phone knows where you sleep and shop at a swiss company wants to help you establish a zone of privacy from facebook, twitter, and other apps crawling on your device. >> you still control your identity and you can let a split no what you do but not necessarily who you are. that is the philosophy. >> they want to secure your digitalic passport, a master key, behind these glass walls in the swiss alps. security is a next of major and modern followed by turnstiles .nd tunnels even the air inside this bunker is secure. it is a giant shaft that moves out into two lateral spans. convince you that your personal id will be secured inside this swiss mountain. the bunker was designed for the swiss high command to live for months in the case of nuclear war. the army madere all of their strategists. we're now talking about the digital system. isperhaps the greatest asset swiss neutrality out of the r

. >> brady dougan is in the hot seat. ♪ >> live from bloomberg headquarters in new york, this "mark andmarket makers." inbuying more real estate puerto rico. we will tell you why this is track -- attracting a lot of attention and what it means for the economy. plane new republican tax promises to track taxes at just 25%. will a simple -- >> hollywood "house of cards." how the gains have changed. hollywood's biggest stars are out there lobbying for one-on-one. welcome back. i am stephanie ruhle. >> i am erik schatzker. it is 11:00 on wednesday. >> i want george clooney knocking on my door with the dvd and a bag of popcorn in his hands thank him let's watch this movie together. >> right now in washington, it is uncertain -- uncle sam versus switzerland. the subcommittee is holding a hearing today to give the u.s. government names of american citizens who might have used those swiss bank accounts to avoid taxes. senator john mccain caught -- called the inquiry a joke. he would love to comply with u.s. law but cannot because of swiss law. phil mattingly is on capitol hill. as is always the

important thing is what they were talking about, given what happened on capitol hill yesterday with brady douganng grilled, the swiss always want a backup plan and the backup flan in the banks go bust, you have heard more talk about is this, take that same penchant for secrecy and translate that to data and the digital age and this could be the future of switzerland, storing data out of reach of the n.s.a. there is nothing that the n.s.a. can do to force switzerland to give over data. >> i guess some of the nordics will like a slice of that pie as well. you can see the business model. it doesn't seem that difficult to pursue it. people want privacy. they want to make sure their data is secure. that is going to get bigger and bigger as more data is collected. it seems like a logical way to go. >> they are shrinking it. what you used to need an entire cavern for you can now dow in a briefcase. they bought the bunker from the swiss army in twen. they want to offer individual rooms to individual companies. a company has their own room. it is totally secure. they basically own it. guy? >> that is a g