need billions more capital bank of england says britain's bailed out banks need billions of pounds more capitals to shore up their balance sheets and support the economy senior bank of england officials have warned u.k. regulators have given royal bank of scotland and lloyds banking group until march to begin dealing with a black hole that brooks newmark a tory member of the treasury select committee suggests it could be as large just thirty billion pounds. i think it's a great contrast is that the british people are appalled that these british high street stores like tesco are selling the horse to me when they they expect to be getting some other forms of me but the local banks the lloyds the r.b.s. barclays are feeding them the equivalent in their economy with toxic derivatives and remember for every pound of quantitative easing that mervyn king the bank of england engages in there's a about a pound savings in interest on various interest related products but they lose two pounds on their savings so they're there they're guaranteed they're there they're flushing the economy down the t

need billions more capital bank of england says britain's bailed out banks need billions of pounds more capitals to shore up their balance sheets and support the economy senior bank of england officials have warned u.k. regulators have given royal bank of scotland and lloyds banking group until march to begin dealing with a black hole that brooks newmark a tory member of the treasury select committee suggested it could be as largest thirty billion pounds. i think it's a great contrast is that the british people are appalled that these british high street stores like tesco are selling the horse to me when they they expect to be getting some other forms of meat but the local banks know lloyd.

banking sector. brussels says that is unlikely. the >> it is highly questionable weather the european bailout fund can indeed be capitalized -- re-capitalize banks retroactively. >> politicians expect ireland to adopt a fair chance on issues such as tax dumping. many are critical of ireland's aggressive tax policy. >> the european central bank is keeping interest rates on hold at a record low at 0.75%. >> at its first policy meeting of the year on thursday, the ecb president acknowledged that the eurozone economy will remain weak in the coming months, but he forecast a recovery towards the end of the year. >> there were no big surprises as mario draghi announced the results of the ecb's first policy meeting of 2013. the ecb will keep interest rates at their historic low of 0.75%. at the end of last year, there was speculation it might lower rates even further, but draghi said the governing council's decision had been unanimous. despite signs that the eurozone has turned a corner, the ecb president cautioned that it is still too early to claim success. >> the economic weakness in the euro area is expected to extend into 2013. in particular,

banking sector. brussels says that is unlikely. the >> it is highly questionable weather the european bailout fund can indeed be capitalized -- re-capitalize banks retroactively. >> politicians expect ireland to adopt a fair chance on issues such as tax dumping. many are critical of ireland's aggressive tax policy. >> the european central bank is keeping interest rates on hold at a record low at 0.75%. >> at its first policy meeting of the year on thursday, the ecb president acknowledged that the eurozone economy will remain weak in the coming months, but he forecast a recovery towards the end of the year. >> there were no big surprises as mario draghi announced the results of the ecb's first policy meeting of 2013. the ecb will keep interest rates at their historic low of 0.75%. at the end of last year, there was speculation it might lower rates even further, but draghi said the governing council's decision had been unanimous. despite signs that the eurozone has turned a corner, the ecb president cautioned that it is still too early to claim success. >> the economic weakness in the euro area is expected to extend into 2013. in particular,

banking sector. brussels says that is unlikely. the >> it is highly questionable weather the european bailout fund can indeed be capitalized -- re-capitalize banks retroactively. >> politicians expect ireland to adopt a fair chance on issues such as tax dumping. many are critical of ireland's aggressive tax policy. >> the european central bank is keeping interest rates on hold at a record low at 0.75%. >> at its first policy meeting of the year on thursday, the ecb president acknowledged that the eurozone economy will remain weak in the coming months, but he forecast a recovery towards the end of the year. >> there were no big surprises as mario draghi announced the results of the ecb's first policy meeting of 2013. the ecb will keep interest rates at their historic low of 0.75%. at the end of last year, there was speculation it might lower rates even further, but draghi said the governing council's decision had been unanimous. despite signs that the eurozone has turned a corner, the ecb president cautioned that it is still too early to claim success. >> the economic weakness in the euro area is expected to extend into 2013. in particular,

a few hours later, he robbed the capital one bank across the street. last night an officer noticed a suspicious cab outside a harrah salon. >> in the corner of my eye i saw a male sort of matching the description. luckily shall the wind blew in. i had the door open. i could see red dye. i feel glad i got him off the streets. not my first one but i'm very happy. >> police say he confessed to both robberies plus another robbery of a capital one bank last week. >> police are looking for a man behind april recent string of robberies and break-ins. it happened in germantown. the suspect attacked a 46-year-old woman looking for cash. police believe he's responsible for nine other robberies in the past month. they've released this sketch of the suspect. take a look at your screen. investigators say he started going after purses and electronics but recently he approached people on the street claiming to have a weapon. if you have any information, call montgomery county police. >>> the head of the nra heads to capitol hill today to tell lawmakers why he doesn't

capitalism your thought. is exactly how it works. in banking when you trade if you take one risk and then you had it out with another bank's a few. goldman sachs you had it out with j.p. morgan. you basically can say you don't take any risk because you're flat and the more business you do because you get paid a percentage of the volume you do then that there will be all you need to do is do as much volume as you can and it becomes a volume business rather than a risk business ok let me jump in there if it's a volume business and not a risk reward business then that would we understand then why there's an emphasis on things like high frequency trading and algorithmic trading because you just pushing volume through the system to make the commissions to make those spreads but you're doing so riskless slowly and you're actually destroying liquidity and destroying the markets in a lot of ways because in a real buyer or seller shows up there's no real counter party to take that trade you end up again returning to the ash or ask like hola graham that

so i like stocks like amgen, watson pharmaceutical, texas capital bank shares, three different, one megarge, one midcap all doing very well. they underperformed the market last month. >> you also like europe. >> yes. >> you continue to like europe. >> yes. >> you've been very successful where you've placed your bets in europe. looking at hsbc in particular in the financial services arena. why that ver other stocks? >> look, europe had a very good second half of the year. that's coming off a bad 2009. >> the comparisons. >> 2010, 2011. we're only six months into this. european banks will continue to do well. yesterday restrictions to agreements. that will help those stocks. they remain pretty cheap even though they had a nic move. >> put a little risk in your portfolio. >> exactly. >> we'll have you back soon. back to you. >> power rundown. let's get right into it. first up aig paying back $182 billion bailout and launching a thank you america ad campaign. "the new york times" says the insurer may join in a lawsuit against the government claiming the deal was unfair. kayla, it's a gnarly

a few hour later, he robbed the capital one bank across the street. night an officer spotted a suspicious cab outside a hair salon and found the suspect inside getting a haircut. >> in the corner of my eye i saw a male sort of matching the description. luckily, the wind blew in. because i still had the door open. i could see a little red dye and i feel glad i got him off the streets. not my first one. but i'm very happy. >> police say the man confessed to both robberies, plus another robbery at a capital one bank last week. >>> work under way on a development that will bring a new walmart store to the district. crews break ground for the fort totten square development in northeast washington. that multimillion dollar complex at riggs road and third street will include 300 apartments and retail space anchored by a walmart. the doors open in late 2014. >>> in the day ahead, martin o'malley is giving his state of the state state address. he's to talk about a repeal of the death penalty and a third try at putting wind turbines off the coast of ocean city.

plus another robbery at a capital one bank. he's being held on $125,000 bond. >>> help from the federal government is on its way to victims of superstorm sandy. president obama signed into law a providing $50 billion for victims. he signed it after returning from nevada congress finally approved it. the president praised lawmakers for passing it but criticized them for taking so lg do it. >>> congress to overhaul the nation's immigration laws. he unveiled his own reform proposal wred in las vegas. he wants to boost border security and crackdown on employers hiring undocumented workers. he wants to create a path to citizenship for the 11 million undocumented immigrants living in this country. he is threatening to send his own legislation to capitol hill if congress doesn't act on it. >>> immigration rights activists say they're happy with the president's plan. they watched his speech yesterday at sass a demaryland in lang land. >> we're going to keep mobilizing hundreds of people, even april 10. we're hoping 500,000 people come

returning to a -- an integrated capital banking market. with much less risk than it had before the crisis. >> so this will be a year to watch closely the implementation. unfortunately, our time is going to be short, so i want to -- >> all right. so we've been listening to mario draghi being in a chat with john liske, former managing of the imf. let's recap, central banks, unlimited bond buying program, the omt will stay in place until markets push aside. but let's point out, it has yet to be fully realized. you talk about banking supervision, the largest banks will be supervised from frankfurt. the single supervisor is a combination of national supervisors working together. the ecb is going to work intensely with that and they're working towards introducing that banking supervision. we might get a bit more of that, as well, with our next guest. christian meiser is had he head of cooperate banking of bank of america. we'll be joined by the finance minister from mexico and oli reign will be joining us. plenty more to come on our coverage of

. >> montgomery county police say a few hours later, joseph also robbed the capital one bank across the street. a k-9 search came up empty. an officer reviewed the surveillance video and spotted a suspicious cab. >> i approached the taxi cab. he didn't know who he was picking up exactly. >> he looked inside and saw the suspect getting his hair cut. >> corner of my eye i saw a male sort of matching the description. luckily the wind blew in because i still had the door open and i could see a little red dye and called for backup. >> with half a hair cut police arrested him and they recovered money from the bank and a gun. he confessed to robbing the store, the bank and this bank a week ago on university boulevard near colesville road. >> i feel glad i got him off the streets. it's not my first, but i'm happy. >> he is charged with three counts of armed robbery and is in jail. when asked why, detectives say he allegedly told them that he was having money problems. live here in wheaton, news 4. >> some severe weather in parts of the south tonight. it's moving our way. in northeastern arkansa

they are one of the sources of our loan capital along with banks like wells fargo, and all of our capital providers want their money back. we make loans, i mentioned, as small as $500, up to $100,000, and we make them at an 8% fixed rate with no prepayment penalty. terms of up to seven years, depending on the amount and purpose, and we look at the client's existing income, but we will take into account the global household financial picture. we will actually looked beyond tax occurrence. that is one of the things we can do as a non-regulated lenders. we are able to look at cash- based businesses in some ways that would be difficult for a larger financial institutions. in terms of lending based on projections, we typically do not lie on -- rely on projections, but unless is a contract that has been awarded. we're really looking at what actually you already have in the household. in terms of credit, we want to see that your credit is currently in good standing, but a mix credit history is ok. that is another way we might differ from a more traditional lender. we want to see that currently,

banking the way it was in industrial germany and other countries and that banking would extend credit to enterprises for capital investment to hire labor and increase the system but that's not what's happened what's happened is something that even marx wasn't cynical enough to dream about banking has simply added debt onto the economies realestate it's indebted companies by letting outsider corporate raiders take over corporations loot the employment stock option option stock ownership programs like you saw at the chicago tribune under sam zell one half of the employee's stock ownership programs have been wiped out altogether because what you are saying is something that was not developed until the early nineteenth and that was pension fund capitalism margaret thatcher like general conditions weren't for labor capitalism and the idea was a new way of exploiting labor not by employing it and selling its products to the markup but by. taking off skimming off part of its wages which is savings saying these are your savings but you're not going to have control of them we're going to turn them over to your employers

capital. a lot of the standards forced the banks to have more capital, have more liquidity. lly is about rules. some of the most simple rules are the most important ones. banks should have more capital. okay. i have met that. the reserve should carry them through bad times and good times. i think we had a problem where they did not carry enough reserves during the last cycle. the u.s. bank was to buy fannie and freddie preferred. you have to carry less capital. it encouraged the banks to all men. of course, they got wiped out with those positions. in europe, you have the same situation. it is not just the rules. jamie has done a pretty good job. dagen: other than that one loss. if you look out probably speaking, if you look at how stocks have done in the last year, best performers are the major sectors in the s&p. cannot continue, do you think? >> i think it can continue. there is nothing more economically sensitive than the banks. the flight in the ointment here is that that feeling. if we get through that without a bond of damage. we can really benefit. dagen: it was great

by increasing the amount of capital and liquidity the banks hold. by improving supervision of those bank. by making sure that every important financial institution is supervised by somebody. there were some important ones during the crisis that had no effective supervision. you make the system stronger. if a bubble or some problem emerges, the system will be better able to meet -- be more resilient. youth and try to identify bubbles. there has been a lot of research on that. we have created a council called the financial stability oversight council. it is made up of 10 regulators and chaired by the secretary of the treasury. one of whose responsibilities is to monitor the financial system, as the fed also does, and identify problems that emerge. you are not going to identify every possible problem, but you can do your best. you can try to make sure the system is strong. when you identify problems, you can use, the first line of defense needs to be regulatory and supervisory qualities. not only the fat, but other organizations -- said -- not only the

capital. i don't know. control the banking business in the allocation. >> last question. >>. >> back to the issue of people leaving they donate to rely on the government with the baby boomers what they have not saved for retirement, it is such a stark contrast of those who carry balances on their credit card and as between different habits so that is concerning it creates the psyche not to sever the safety net because i might need it. so have you seen as strong change in that area? >> note question of change. it is way up under saved. a relatively small percentage say not just incumbent self discipline for the retirement and basically they felt their house was savings but when you actually mislead doing damage to consumers. of course, the house may be worth less than the other in don't have the self discipline. that is the economic challenge and of course, but to punish people that were saved for and the banking business particularly older ladies may be has-been's died and they worked hard to put money in the bank account ther

a gunman holding a bank teller hostage outside of the capital one in takoma park, maryland. in a matter of minutes two years of that frightening morning bank employee diana vera is still recovering from the traumatic experience. >> it totally changed my life. >> she was in her office just to the right of the front door when the suspect walked in. she immediately sensed something was wrong. >> it had snowed that week. normally our customers would take off their hats and gloves and this person didn't. that's what caught my eye. >> moments later 43-year-old carlos espinoza pulled out a gun and demanding cash. diana was the only one present who spoke spanish and who could communicate with him. >> a lot of people say it's a cliche, but your life literally does pass before your eyes. >> she says he yanked her by the hair and put a gun to her head. >> there are times i still feel, you know, that piece of metal. >> diana says she will never forget the chilling words he said. >> do as i say and you won't get killed. that really struck with me. i kept repeating to him i have a grandson

country's banks. >> reporter: the economy may be weak, but the nation's biggest banks are in their best shape in years. >> capital levels now are double, and in some cases triple what they were at the height of the financial crisis. most banks are making money again. most bad loans have been charged off. so overall, the banking sector is in pretty good shape. >> reporter: an increasing number of banks are expected to get the fed's approval to give back more money to shareholders, in the form of higher dividends and stock buybacks. citigroup is expected to get permission for its first share buyback since 2007. >> i think if they get that this time, it will be a clear sign of a positive situation. because suddenly you have what was arguably the most impaired surviving bank able to have a share repurchase and increase their dividend. >> reporter: investors have taken note. the k.b.w. bank index is up 4% this year. that's on top of a 30% gain last year. but it's not all smooth sailing for big banks this year. economic growth is far from robust. another big problem is the low interest rate environment. >> essentially

there's been violence on the streets of the chilly capital after a group of indigenous people attacked the bank's and classed with police. chilean capital. hundreds of people involved, turning violent. >> this is what can happen when tempers flare on the streets of santiago. protesters attacking spanish ank. the indigenous people are about 5% of the country's population. they have clashed sporadically with the police and authorities several years, trying to reclaim land they say was stolen from them by spanish invaders five centuries ago. police responded to the stone- throwing and molotov cocktails with tear gas. around a dozen people including some journalists were arrested in thursday's clashes. the march, which preceded the violence, was held to commemorate the deaths of young indigenous student in 2008 who was shot in the back by a police officer in the south of the country. the officer who killed the 22- year-old was sentenced to three years in jail but that has indimmed the -- has not dimmed the anger of the community. they argue that they are stigmatized as being lazy. they have campaigne

banks, they're well capitalized, well twice before the crisis. have a lot of liquidity. i make more sense to the u.s. banks. >> jason, last time round, as far as the federal reserve process was concerned, you had two banks that had their requests rejected, both citi and third bank. now it would appear in a very different cell. citi's new ceo, much more watered-down plan that would definitely get through. no great shakes there. but the third appears to be very aggressive in the type of language they're using in the run-up to this how they will boost their dividend and the degree to which they want to have buybacks. >> i think there's a difference. last year citigroup and sun trust got denied to return capital because their stress capital ratios fell below the 5% that the fed required. fifth third screened well. their issue relied somewhere else. they never fully disclosed it. but probably around policies and procedures. we think they fixed those in 2012. when all is said in 2012, they did get their doc buyback. we think they have the capacity to build on that in 2013. >> o

we know the chinese central bank has been providing capital injections to banks. last year they cut the reserve requirement three times, interest rates twice. i expect pair policy to remain easy. capital injections turned the tide. hit record levels in september/october. something that's helped the chinese economy dramatically as we see from improving macrodata points. purchasing managers numbers, industrial production, retail sales, housing numbers, you name it china has beaten inflation, they have the flexibility to do more juice to the economy if they need to the chinese party just got a new leadership in november. these guys are anxious to make a good impression by getting the economy up to speed. they did get it wrong. they were too tight. they've seen the error of their ways and they are now loose. when it comes to china, i like the i-shares, ftse china 25, ftse 25. frank x-ray indiana which owns a basket of 25 of the highest quality chinese companies out there. i know charitable trust holdings don't want to pick individual stocks too hard. the indian central

it's true the banks are looking a little tired. a lot of disappointed on capital one's earnings today, but you can see most of the banks didn't do much on either side, a positive or negative, but they have been looking signs of topping recently. how about semiconductors? if intel issued disappointing guidance a while ago, a couple quarters back, a lot of other big names would have been down today but it didn't happen. taiwan semi, texas instruments, micron didn't do well. talking about raising the debt ceiling. look what it did to the vix, to the downside and for the week, maria, the important things is all the moves into cyclical names. energy and industrial stocks all moving. back to you. >> thanks, bob. a lot more coming up on this jam-packed edition of the "closing bell." 80 companies will post earnings next week. despite the shorter week, a lot of them big-name technology companies. a panel of market pros will tell us how they expect this to drive the market and later, asleep at the wheel. the fed releasing transcripts from emergency meetings in 2007 as the c

there's no question the banking system is much stronger, earning better and is has much higher capitalbably forever almost. >> you know, well, that's quite a statement because there's a lot of people who would still say banks shouldn't necessarily be turning around and handing capital back to shareholderses. would you agree that given the improvements we've made, it's time for them to be allowed to go forward? >> i think that the banks have accumulated so much capital and that they really don't have a good use for it in light of the lack of qualified loan demand. i'm not saying lack of loan demand because there's a lot of loan demand. but the credit standards are much higher and you don't have much to do with the capital. so you have to give it back if you don't need it. i'm talking about toous banks. it's not true around the world. the u.s. banks have very high capital ratios, the large banks, much higher than they've had as far as i can remember and i go back a long ways. >> bill, we'll leave it there. bill isaac, appreciate your time this morning and hanging with us through those ea

or requiring fund to hold capital like banks.ut the industry is countering with a proposal, kind of a pause button, a circuit breaker. basically to prevent customer runs during a crisis for some fund. for example, they could suspend redemptions for up to 30 days. or, if a customer really needed the money, they could pay a 1% redemption fee, a liquidity fee over, actually, a immediately apparently. now the regulators are looking at the industry's proposal but they worry, quote, standby liquidity fees and temporary gates may increase the risk of preemtiff runs by investors who would be motivated to redeem the shares before a fee or gate is triggered. fund operators as you can imagine are rattled over all this the largest money fund operator, fidelity, says more than 40% of its customers told it they would stop investing if they had to pay a 1% redemption fee. sandra and david. sandra: wow, interesting story. david and i were reminiscing about the couple of months. david: they were scary. it was scary. i pulled money out after money

the bank continued to boost its capital buffers. both banks saw net interest margins rise largely due to paying down more expensive debt. what investors really want is return on tangible equity. they called this the key metric for citi going forward. for the year, jmp calls it 2.5%. considering that metric for jpmorgan and wells fargo is consistently above 10%, it's no surprise to see today's tradeoff. they're using any excuse to take their profits. simon? >> kayla, for the moment, thank you. meanwhile, we should mention that black rock says its fourth quarter profit boosted. the world's largest money manager earned $694 million or $3.93 a share. that easily beats what wall street was expecting. the stock is gaining, what, 20% since november currently trading at 852 week high. on a programming note, do be aware that black rock ceo larry fink will be live on "closing bell" at 3:00 eastern. now importantly several market indices are hitting new highs today. the s&p 500, as you'll be aware, at five-year highs. the dow transports are at

. >> reporter: nonprofit junior achievement built this really cool space with the help of capital one bankright behind frost middle school in fairfax. during the day students learn how to apply for a modern, fill out a car loan -- mortgage, fill out a car loan application, buy insurance, even a storefront for investments and giving to charity. >> when kids understand how to manage money and make good choices, they will be better consumers ultimately. >> reporter: just before they finish all their calculations they get one of these, an unlucky chance card, something in real life that can really wreck your budget like the added expense of your engine blowing in your car or a tree falling on your home and students are not allowed to finish the day in the red at finance park. so they have to adjust their whole balance sheet. >> it definitely gave me some insight on how adult life is going to be and how i'm going to have to manage my money well and be careful with it. >> reporter: just 14 years old and they already have real life budget experience without the real life consequences. so what do