brian moynihan got approval to increase his dividend payment. it's going up to five cents from a penny. if we were to draw a contrast, bank of america is doing something better than citigroup. >> most of their problems are mortgage related. the acquisition of countrywide is really what heard that institution. that is something moynahan inherited and did not do himself. citi was put together over 20 years. >> 100 different companies. >> credit card portfolios and mexico. it's going to take a lot longer to work out all of those problems. they don't really earn their calls for capital yet. jpmorgan and wells fargo earn well above their cost which allows them to earn out of their problems. bank of america is farther down that road but even they got aimed a little bit with capital management. citibank has a way to go. >> about bank of america -- they passed the stress test after adjusting his capital plan and brian moynihan finally delivered on his promise to raise the bank's dividend. now it's going to be five pennies a share. but they did not walk

major run if we have a turn in the economy and, the fact is, that people give a lot of kudos to brian moynihan sheet back. adam: settled with the government, cleaned out the problems. >> so the betting is that those guys get their major, get something, they can do something good with dividends and buybacks. then there is jpmorgan. you know here's the thing. they came out announced a dividend. a lot of people think they will increase it from this level. that is something that jamie dimon i would think would want to do. again, we're getting the impression from the analyst that is he is going to be given the go ahead for that. cheryl: how crucial at this point in time are the stress tests? i mean we've been going through this for what, three years now? >> i think they're crucial in this sense. all the banks want to be more aggressive in buybacks. and in terms of dividend. why is that? these are companies that can't take a lot of risk. how do you attract investors? these are ways to attract investors. they know there is not a lot they can do. they can't go out and do proprietary trading anymore. t

one more recent example is warren buffett it up the phone and called brian moynihan in 2011. >> he thoughtf the idea in a bathtub. >> radcom exactly. [laughter] -- right, exactly. [laughter] >> you can see the affection between the men. i want to read some comments that were e-mailed to me. warren buffett, to your point, noah buhayar, e-mailed me yesterday, and said i have given larry silverstein all of my various phone numbers and told him he could call me day or night because he felt the investment paid off so well. larry silverstein e-mailed me and said considering we are both in our 80's he thought it was important to express his gratitude while he could do it and i could hear it. these are long-term friends. >> right, answering i have a sense of humor about this, which is fun to read about. [laughter] >> right. let's look at warren buffett's portfolio. ,e buys and he holds forever for example, like with coca-cola. >> it was one of the things he wanted to highlight this year. the market, if you are looking at the valuation or the price quotes every day, it will throw out crazy numbers,

writes in, he says how do you compare of the president of the united states' performance with brian moynihan'sr the last five years? obviously you own a big stake in the bank of america. >> they both had very, very tough jobs and both settled down to do them. you do things one thing at a time. brian moynihan took something that was a big, big mess, which he inherited, and the size was almost overwhelming. they just methodically worked on one problem after another. but he did not have to get the united states congress to agree with him. >> we'll continue this conversation, again, warren buffett is with us for the remainder of the show. joe, right know, we send it back over to you. >>> markets continue under pressure this morning as you know, we'll have an update on the futures action. and many more questions for the legendary investor warren buffett when we return. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening

brian moynihan got the approval.s doing something better than citigroup is doing. >> b of a, their problem is mostly mortgage related. countrywide heard that institution. again, something that moynahan inherited. citi was put together over 20 years. very complex. nobody really knows how it works. assets all over the world, 100 different countries, credit card and mexico. that is going to take a lot longer to work out all of these problems, and the problem with both the ma a and city if they do not own their cost of capital yet, and without j.p. morgan and wells, they earn their cost of capital. citi and to be of a are not enough. be a vague idea and a little bit with capital management. citi has a longer way to go. >> clearly the blame is being laid at the feet of michael corbat for the time being, but i have to wonder whether all roads do lead to the copresident of the bank, the ceo of the global operations. citigroupbell covers for bloomberg. he is the former ceo of the mexican unit food just recently uncovered a s