nine barack obama did finally he was resistant to this but he did finally approve the breakup of citibank not many people know this but in fact what happened is timothy geitner slow walked it he didn't want to break up citibank he wanted to rescue his friends on wall street and in fact he defied the he was the resistance within the white house and he did not bail out he did not break up citibank instead we have what we have today but he timothy geithner ben bernanke and hank paulson wrote this op ed in the new york times and basically what they're saying that is the problem right now is when this next financial crisis hit congress has removed the power for unlimited bailouts so he says that he's saying we need that power for unlimited bailouts no matter what now matt stoller who writes often we cover him often he writes on monopolies and he has an interesting take on what this op ed that timothy geithner ben bernanke and hank paulson wrote and he says the basic law of geithner paulson bernanke is the argument that now regulators have no bailout authority leave aside the various misleading

>> citibank is the second largest bank in the country.f they went under, it would cause an absolute cataclysm in the financial sector. hank: i had been scheduled to go to the reagan library in california and make a speech. me if iors full canceled, it would be a sign of panic in the market. there i was at the reagan library and i walked around and said, this is sort of a temple to capitalism and markets. i was being really hard on myself because i knew that citigroup was not going to last much beyond the weekend unless we did something to prop them up. for reasons i have a hard time understanding now, i was blaming myself, what should we have done differently? i was on the phone with tim geithner. he said you have done everything you could possibly do. all we have to do is look forward. >> until the financial crisis is behind us we must remain vigilant, ready to respond and manage unpredictable events as they occur. and we have the capacity and commitment to do just that. hank: we clearly needed to stabilize citi, and we were able to do i

he did not bail out he did not break up citibank instead we have what we have today but he and timothy geithner ben bernanke and hank paulson wrote this op ed in the new york times and basically what they're saying that is the problem right now is when this next financial crisis hit congress has removed the power for unlimited bailouts so he says he's saying we need that power for unlimited bailouts no matter what now matt stoller who writes often and we cover him often he writes on monopolies and he has an interesting take on what this op ed that timothy geithner ben bernanke and hank paulson wrote and he says the basic lie of geithner paulson bernanke is the argument that now regulators have no bailout authority leave aside the various misleading elements here yes they do they just have to ask congress which is the most democratic branch of government they are arguing against democracy they're angry the people have some form of check on their right to do whatever they want during a crisis they are couching this in terms of the need to stem panics they are pretending an attack on demo

from, you know, boeing and nasa's jpl to intel and cisco to citibank and bank of america these large, you know, fortune 200 type employers, really what we're seeing is a shift where education, information, skilling, used to be inaccessible. information used to be hard to find and get. so that was a world where universitieses had a very important role of centralizing and making that accessible. as we got into our careers so did employers. they were responsible for skilling you up for the job you were in. now the world has shifted and now information is abundant and now people are learning increasingly on their own and that is part of the struggle that employers are having is where they went from being central in the role of sort of dictating what skills, who needed what skills when, to the world where chaos of everyone needs to be adaptable all the time and can't keep up with it and all the resources how do we do it. it's a great sort of problem for technology to help with because it can help personalize and scale. >> is it a problem? is it a problem that people are learning on their o

citibank says chinese demand destruction, it seems possible china can mostly push out u.s.oy supply in 2018 and 2019. is that true? >> that is true. brazil is having a good crop. it has already been the number one supplier to china, but this leads to a price premium, there is a big demand for brazilian soybeans from china. they are trading at a two dollar bushel premium over u.s. beans. alix: i'm glad you mentioned that, because we show the premium for brazil, and you really see the spike. is china at some point going to be price-sensitive? alan: yes, and they can also do some substitution. of course, soy meal is a big feedstock in china. there's no reason they can start -- can't start sourcing corn or wheat if they were desperate. there is a lot of diversification going on right here, but china can absorb the loss of the u.s. market. the challenge for u.s. farmers is to find alternative markets to china that will eat up their supply. alix: part of that becomes europe in some essence, that europe has a strict gmo rules and a 25% tariff on corn. how much can we infiltrate th

bush and the players on wall street like citibank argentina was loaded up with a lot of debt that they couldn't possibly pay back men them who was late in the country at that time turned out to be completely corrupted in the pocket of wall street the central banker of that time come by had all of his washington consensus led theories about how to run an economy they sold off over two hundred state assets the utilities the airports they've got no income producing assets was so are at ever in argentina is dead there's no economy there ever to support a one hundred year bond is like saying we were a zombie were dead were never coming back but is beautiful wealth because this is the original greece the original brags that the original country committing financial suicide and is back it is beautiful and it's argentina and it's corrupting the global economy again along with turkey and all these other basket cases well this is fantastic praise me right back to the early one nine hundred eighty s. and the beginning of my career this beautiful wall. yeah i mean it's funny how these things repea

the strategies shifting go away from being in every country around the world where you would see a citibank hsbc did the same. these two banks were in every where in the world and now they are in very few countries. but in the countries they stayed like mexico for city -- they are trying to be more important. morething and make -- grab more market share in those places. vonnie: any concerns the so a big loss for citi? on is always a loss, but there are new people that will take their places and usually, that is not a problem unless this is happening in the middle of the crisis. ago, when you see an opposing party in the middle of those, you get scared because you need a good guide to take care of those. this is a good time for citi. they work so hard, they need to go on. the new person was replacing him donetually -- has actually a great job of getting rid of the legacy assets. that was very important for citi, and there is a big chunk of things to get rid of, and last year, they did that. it was a great move. great reporting a senior finance reporter for bloomberg news. thanks. still ahead

the reason i ask is over 2008 you may have noticed that banks like citibank failed to recognize a lot of losses that were known by standards and this is the standard procedure of regulators. and the reason it's important that has they have been contemporaneously recognized they would have been forced to recapitalize in private markets. entire tarp situation that you did. somebody who may have served on the financial crisis. i wonder if any such person would be available. your speaking of a retrospective is that the question. >> going forward, i know you're interested in worked a lot and trying to figure out the right cap ratio and leverage ratio. with primary input into that, the numerator, what is the accounting capital on hand. when banks don't recognize losses, all the other things, they come with relevance. you have capital in there. it ceases to be anything of meeting. >> i'm sorry. i studied it before. i am not equipped to speak about that in the setting. city? what city? >> i think the question is about, how do you measure the capital? you actually had a very good approach to t

. >> citigroup unveiled restructuring of -- operations after citibank announced its cfo and other keyders would depart. >> the restructuring is not -- most banks on wall street do include mortgage or origination businesses in the investment banking unit, and that is what citi is doing. ringing origination into the rest of investment banking. meanwhile, some underlings are being promoted. the heads of the new banking unit, one of them was the head of origination, which is now becoming part of all of investment banking. and the other one was head of emerging markets in europe and africa. lot,s grown in the city a and new people, i guess, are going to push it forward. shares of cbs bouncing back after an initial decline, up 1.3%. reports that the company is in talks for the ceo to exit the company. will he take 100 million and run? in stocks. >> i think it is impossible to know what will ultimately happen, but the outcome was assured. when you go to war with your majority controlling shareholder, forget about layering on all of the risks and challenges that the #metoo allegations have ad

rents go up for everybody else and they move out and then we have more, i don't know, mcdonald's and citibank and others moving in. it will happen here. and also on its own. if people can't get healthy by walking a mile to church and dubose, they need to rethink they're healthiness. >> president hillis: thank you. next speaker, please. >> hi. i'm a resident of the area and i think that this would benefit the area a lot. i've been to many studios of corepower and i believe that they promote diversity, awareness. it brings out a higher benefit to everyone in the community. so i think it would benefit the community a lot. >> president hillis: thank you. next speaker, please. >> hi. i'm nita i'm here in support of corepower. i'm -- i own a business on mcallister and i work in san francisco and corepower is a great thing to bring to the community. no harm to the neighborhood even. thank you. >> president hillis: thank you. next speaker, please. and i will call a couple other names. jason gervais, gus hernandez, connor ryan. >> i'm the daughter of ted nasser. my father missed my plays, musicals, sp

citibank, merrill lynch, lehman brothers, morgan stanley had trouble with mortgage portfolios.derstood the extent of what we were dealing with. >> fasten your seatbelts. it is going to be a bumpy ride. mek: george bush asked whether a stimulus program made sense. the president deputized me to talk with democrats and republicans on the hill, to find common ground. we started off with principles. timely, temporary and big enough to make a difference. >> passing effective growth package quickly, we can provide a shot in the arm to keep a fundamentally strong economy healthy. >> the payout will not solve your problems but it will not hurt. >> the economy has headed south, many of us could use the extra $1200 to pay bills or by something special. >> $600 to offset the value of your home? i think that will work out great if your home is made out of plastic and located on salt avenue. hank: we were wrong. this was a major problem. we were putting a band-aid on a major problem. we didn't see the impact from what we did even though we got the money out quickly because oil prices went up

ccar results during the summer, you chose to buy back less as a percentage of your market cap than citibankbank of america. for all of you guys, every share that you bought back since then has been a good buy. in fact every repurchase you've ever made over the life of the company has been a good buy. so i'm not really agreeing with you on the buybacks there. but you know what, let's fast forward a little more. >> nice. >> i have not spoken to the president. >> you haven't >> but again, my main mistake, i shouldn't have yapped like that and some of you mentioned on tv. but i do want to focus on policy so my view is let's just focus on policy. i shouldn't have been taking shots and having jokes at anyone's expense i've said a lot of stupid things in my life >> not so fast there london where we lost some real money. they did lose a lot of money, but one of the things that i like best about jamie dimon as a ceo is when he makes a mistake or does something stupid, he calls himself out. so on that conference call someone asked are we going to see other banks take writedowns the way you did? and h

we have to worry did lehman bankers go bankrupt can citibank or any other bank?t a couple reminders to end off here as we look back in time here. if i had a dime for every one and i read a lot of mainstream media reports and consensus building we were going into a multi-year depression if not worse that the united states had lost its mojo, et cetera, i want you to look at something. this is a chart dow from that melt down period. of course, this actual chart goes back to 1924, which is good to know. but when everything hit the fan, look how much we have climbed sense fro since. dow hit 4,000 to four times that today. bottom line here is markets come back. this is also the anniversary when the markets opened after the 9/11 tragedy. markets took a huge hit that day and a lot of people were saying the hit was going to keep on coming and coming and coming. we came back. we always come back. something that doris concerns goodwin touched on when we talk about the american spirit never red or blue or green we have inherent confidence when the chips are are down we claw

citibank says -- sterling jumps on reports that the u.k.ermany dropped brexit demands to ease next year. future ties in the eu and the u.k. is willing to settle on a more vague intent. we are heading to a no deal brexit, driving sterling to its lowest month in a year. investor anxiety about potential missed debt payments in developing nations is raising the cost of default swaps to multiyear highs. brazil, argentina, turkey and south africa. sees probability climbing to 41%. turkey's default on's rose to 30%, the highest since 2008. the late 90's of asian financial crisis has emerged as a haven from the widening emerging-market selloff. thailand has developed every other emerging nation in currency. thailand has a large account surplus and foreign-exchange reserve as well as a low level of over and sees -- of overseas ownership. damagearthquake left no at the nuclear plant. the tremor cut power to the islands 3 million households. one person is reported dead and several more on accounted for. all airports and real services have been suspend

alix: i know you like citibank. how long can the retail business benefit that? to decades, this is a structural change in the industry. the reason there are it'stunities in the banks, crisis this and crisis that, everybody wants to know what the next crisis is. when it comes to the next crisis, don't look at banks for causing that. they are very strong. beautiful banks mean boring banks. you get there by driving earnings growth through better cost control. david: one bank we would've said that is not boring is goldman sachs. they are buccaneers. are they getting more boring? david solomon has appointed his president, another investment banker. solomon, banker and client oriented person, the number two person is historically a client oriented person. dimon, if to jamie you are worried about proprietary trading, the top two people at goldman sachs now have nothing to do with proprietary trading. it's about client businesses. it should it become more boring. goldman has performed well. for all the trading, they have gotten the job done. i thought you were going to

if you look at the bank, bank of america -- at citibank, bank of america, and where they were 10 yearssachs is basically where it was in 2008. if you look at the opportunity , theof where you have been real issue is at the end of the day, it is a supply and demand for money that matters. deficits,ing record the yield curve, even today, is getting down towards 20 basis points. that is historically the recessionary warning line, which people are going to ignore. they will say this time is different. i am going to say it is not, but i will give you a heads up great everyone will come out and self justified why it is different. the banks have issues, because it comes back to the credit worthiness of the borrower. scarlet: peter boorish, thank you so much. coming up, paul manafort is cooperating with mueller. we will dissect what this all means for the president. bezos opens up. where exactly the world's richest man plans to put his millions. -- his billions. and john kerry talks president trump, iran, and a new memoir. from new york, this is bloomberg. ♪ bloomberg. ♪ scarlet: i'm scarlet f

jpmorgan, citibank do not have the same degree as they used to.ertainly increased leverage. when we say corporate sector, it is financials. as we know from portugal and italy and europe, when you say financials, you're basically saying the state. that big question is what is the wherewithal of the chinese state to continue to write checks? right now, they can do that. can we go to 200%? no, because the one leverage changing is external balance in china. the current account is changing and that is reducing the space for the chinese authorities to be able to do that. you will need to see the collateral value decline for us to see a crisis out there. it will be a very different crisis from the lehman crisis. the current fx reserves and house prices will tell us about the next crisis. this is not a matter of months. today, the housing market is in equilibrium. i think this is a matter of years. i think this is about 2-3 years away. the probabilities will change if fx reserves begin to move in china. that is not happening today. francine: thank you so

. >> we have to worry lehman brand brothers go bankrupt, can a bank as big as citibank go bankrupt?l: but we came back. it is hard to believe 10 years. i thought i had a better toupee. anyway we quadrupled in the dow since that time and everything else that happened. it is a reminder, nynex -- my next guest reminds me we come back. robert wolf. anniversary of another big day. the markets reopening after 9/11. big hit that day. big comeback since that day. lesson? >> i would say, i was there that weekend and it was surreal. i think when we walked in to the fed and paulson and cox, the head of the sec and geithner at that time, head of the new york fed was very clear there would be no government money. neil: hank paulson treasury secretary at the time. >> treasury secretary. there was dozen of us from around the table. you know them all from jamie dimon to lloyd -- neil: they let lehman brothers go but didn't expect what would happen after? >> when we learned the big he will haven't in the room couldn't be talked about. aig didn't come up. fannie and freddie did not come up. they were

citibank's it was almost 12%. what was its market value, under 2%, which is insolvent. so i have already talked about these things. why didn't we do it? part of the story is we didn't understand the severity of the shock. and the reason for that is that fannie and freddie were lying about the size of the shock. i want you to remember, the i.m.f. were providing independent measurement of what they saw the size of the shock was. it went to $2 trillion over not a long period of time. that really reflected the fraud that was accounting at the g.s.e.'s because they were being used as a metric for a lot of things. i want to go on to talk about the false narrative of the crisis and why it's been created critically. and part of the reason, avoiding recognition of the problem, it allows us to keep on doing the same thing. and jeb hensarling are right that systemic risk and steve is right and the indexes that systemic risk is rising. that is predictable. the same coalition, the same political coalition that gave us the crisis gave us the regulation that was supposed to fix the cr