citigroup and u.s. units of rbs, failing because of qualitative concerns about their prophecies -- processes. interesting terminology. michael morris is here with the details. talk to was about what this means. we have gone through them before. what do they mean? >> at started in 2009, a focus was about capital levels. as capital levels have come up across the industry, what we are seeing is a focus on the qualitative issues. risk management, control, how these banks are going through their capital planning processes. you solve this year for banks turned down their capital plans because of concerns about the most prominent bank, citigroup. >> the most prominent may be the most egregious. here we are, how many years at the financial crisis, and they can't get it right. >> it is a big issue for the ceo. he was brought in to be the details guy. then this is a black guy for that -- black eye for that. citigroup has not brought up to code. >> there is still -- they are allowed to continue the buyback and the

to citigroup.tock is down more than 5.5%. i would look to be buying with the volatility and selling twice -- to help pay for the volatility. this is fair, this is a little bit elevated, a little bit bearish, i would say. so you are taking advantage of having the short term there buyout for the options trade. >> what do you think about the bank, overall? >> i think they had a great ripped last week and that is the reason that they are not down more than 5.5%. let's face it, we will have a higher interest rate environment, that is great for the banking stocks and multiple arbitrage. if they are trading lower than the spx, that is the net interest margin. i continue to like the bank but i right now. for cit >> we have an incredibly volatile group, you are looking at the triple the kicker, -- triple d kicker, to name the company and the enormous swings. how do you play that? it seems like it is very tricky. >> it is very tricky and that is why you have to look at the options market. volatility is up 53

do we assume citigroup will resubmit at this point? what is the time told -- what is the timetable to meet the metrics desired? what's they are required to submit this year. it is usually happening in the second half of the year. it depends on how comfortable they get with the process. >> that is the bad news. talk to us about the other stress test results. jpmorgan are boosting dividends. they came out with flying colors. to resubmit would rest a couple of things the fed had. they had that laster. this year they sailed through. they were approved without any conditions. morgan stanley, same thing. they announced the dividend increase and a buyback in the last hour or so. we are starting to see more banks trickle out with announcements. here's what our capital plan is. >> bank of america is going to be boosting the orderly to the den. these stress tests are going to go on and on. but every year they says they are going to raise the bar. getting into the details, having the processes in place to make this a strong system. >> we are talk

lenders including citigroup failed to pass the scrutiny. i am joined by erik schatzker for more on the results. the highlights were citigroup, unexpected. what went wrong for them? >> we can only tell you what the fed told us -- they scrutinized citigroup's balance sheet, and the methods in which they conducted their own stress tests. the fed found qualitative in the way, for example, citigroup anticipated losses and projected revenue across its business. citigroup operates in 100 companies. -- countries. it is complicated. michael corbat was brought in to straighten the ship after the vikram handed era -- vikram handed area. still had a lot of capital, but the fed is not allowing citigroup to return more of it to shareholders aboute they have concerns the way citigroup is not so much managing its business, but it's capital. >> and perhaps its risk -- what that means going forward? >> no question. subject toapital is the ability to make or lose money in those countries, and the fed says we are not satisfied that you know those operations, o

the fed saying this time citigroup models were not up to snuff.uldn't have actually put them in the preparations in place to have its business units with stand another crisis. citigroup's ceo for his part, mike corbatt, saying he is deeply disappointed in the fed's decision but that they would work with the fed to resubmit something that would pass the fed's muster. on the other banks five years after the financial crisis showing the ability to start returning capital to shareholders sometimes for the first time. bank of america reintroducing a $4 had billion buyback program. those shares were up after hours, as well. morgan stanley adding a new buyback program, doubling its dividend. shows shares were up, as well. wells fargo and jpmorgan had slight increases that also were passed by the federal reserve. and goldman sachs passes, as well. it did say that its capital plan provided some flexible. the financial sector in focus, this is a very important time of year as the market awaits what the fed will say. for now, citigroup will be in focus as sh

for citigroup.hares are down 58% in premarket after they fill the fed stress test for second time in three inrs -- shares are down 5% premarket after they failed the stress test for second time in three years. faceows how banks obstacles. bankswheeler covers the and joins us on the phone this morning from london. there are so many directions we can take this in, but the overarching picture is more than five years after the financial crisis, these stress tests are supposed to be perfunctory yet five big banks other capital plans rejected, couple of them are submitted and were proved later on. is the federal bidding the goal post? >> yes, i think they probably are. what we said all along, and we see this in europe as well, banks are being pushed to build up their capital to much higher levels of leverage to lower levels than we sell precrisis. i think once the relators got them to those levels, saying anything above what happens to be, you can be paid baxter shareholders. the view is, let's just hold

the question for citigroup is, who is going to be held accountable at citigroup? i'm not talking about someone way far down the totem pole. i'm talking about who with the public face to investors, to shareholders, is going to be held accountable for this mishap at citigroup. >> you got two. the cfo and the ceo and relatively new one at that. >> it's baseball season and three strikes you're out. i think it's john, the cfo needs to go. they -- citigroup needs to change the cfo. bottom line. john gerspach, the cfo was the chief accounting officer going into the financial crisis when citigroup had accounting mishaps. two years ago citi was turned down for the capital plan by the fed. strike two. yesterday being turned down again, strike three. it's baseball season, scott. three strikes, you're out. citi needs to replace the cfo. i spoke to many investors since last night and i have not had one person disagree with that point that the cfo needs to go. many people are neutral. of the people responded, yes, citi needs to replace the cfo. what i think needs to happen is t

out foratching citigroup and bank of america later on.is a picture of currencies and what we are looking for. these of the bloomberg top headlines. bank of america has agreed to pay $9.3 million. agency has housing sued 18 banks over the sales of mortgage products. loans are behind securities. said to have a suspended fx trader. the investigation is into the rigging of currency. there is a review of currency operations and this is after traders in the industry colluded . the international monetary fund has announced an agreement for a bailout for the ukraine. there is a two-year program between 14 and $18 billion. the agreement still needs agreement -- approval from the imf. for more on all this, let's bring in hans nichols and run us runugh the numbers fonts -- us through the numbers. it needs to be signed off. >> the lord always needs to sign off. oard always needs to sign off. that will allow for the release of money from the european union and a billion dollars in loan guarantees. you are getting into the 20 billion mark. heating agre

citigroup failed.ry bank did, asked the fed for permission to return more capital to shareholders, an increase in its dividend, currently a penny for the larger buyback. citigroup rejected the fed on a qualitative basis. qualitative basis? >> there are two bases under which the fed qualifies the bank. the quantitative basis, the numbers-based analysis of the bank's capital with zillions see, let's say, and a qualitative that takes into consideration things like internal controls and the bank's ability to identify risks. on that basis, citigroup failed. they will not be allowed to increase their dividend or buyback more stock. i am going to read you an excerpt of their comprehensive capital analysis and review report. the embargo on this was just lifted. i had a chance to see this in advance, which is why i have this prepared. practices with 6 -- with sufficient deficiencies included the ability to project revenue losses under a stressful scenario for global operations and the ability to develop scenari

it's not a citigroup question. it's the story we just did right before that, which is about ken lewis, bank of america, and whether or not you think you should have settled and paid $10 million and been barred. i'm going to take the position that he shouldn't have, because if you remember, the government, talking about behind the scenes, the government told him that he had to do it this way. as an analyst, how do you feel about this? >> that's a really good point. as an analyst and as an american, one has to question some of these judgments and some of these actions. obviously, bank of america wanted to back out of the deal. but the fed at that time refused to let bank of america back out. unfortunately, the relation of that fact also providedest to people that bank of america did have knowledge because they did request to terminate that transaction. >> did you feel lied to as an analyst? >> no. i felt that the federal government did not treat bank of america in a fair and equitable way. >> so, anthony, what do you

for citigroup, it is a much stronger message, because citigroup has been through this before and theed is extremely disappointed in the banks for not being able to, essentially, get it together. here is what they wrote. the 2014 capital plan reflected a number of deficiencies, including in some areas that had previously been identified by supervisors as requiring attention. in other words, we told you how to fix this and you did not do it. the three foreign banks that did not pass are new to the process. the process was a little easier on them than the existing banks. the feeling as they will learn how to do this, learn what the fed is looking for in terms of its requirement in the way you put these estimates together. the final bank that failed, zion spang corporation, everybody knew they were going to fail the had someuse they derivatives that had to be marked to market. once they sell those off, that will put them above stress test levels. >> last week, it was about tier one ratio. how much capital do you have? this one was about how you assess the risk to the capital. news for yo

john grossback the cfo was the chief accounting officer going into the financial crisis citigroup had accounting mishaps. two years ago citi was turned down for its capital plan by the fed. that's strike two. yesterday being turned down again is strike three. >> well, today's slide in citigroup shares was the biggest one-day loss since november of 2012. >>> walmart is suing visa for $5 billion, claiming it charges unreasonably high swipe fees on credit card purchases made by its customers. the suit was filed earlier this week. visa declined to comment, but the suit was not totally unexpected. walmart is one of 35 retailers that opted out of a class action settlement with visa and master card over these swipe fees. >>> still ahead, health care, a milestone. the white house meets its latest goal of enrolling more than 6 million americans in the exchanges. what does it say about the law's success or failure? >>> new figures out today show more than 6 million americans have enrolled in a new health care plan through federal or state online marketplaces since october 1st. it comes just day

citigroup was rejected by the fed on a qualitative basis. quantitative, numbers-based analysis of banks finances, and others qualitative , analysis which considers things like internal controls and corporate governance. it was on that basis that citigroup failed and as a result, it cannot increase it evident nor cannot buyback more stock. >> 29 of the 30 banks did not pass and the one that did was very close. there are these more subjective factors, qualitative factors of how good are the processes? the fed does not want to rely on simple modeling, it wants to rely on what are some scenario analyses and the approaches people are taking that can sometimes make the banks pulled her hair out because it's hard to see how to pass it. >> it would be possible that the ceo has indeed been pulling his hair out over the stress test. he has been trying to rehabilitate the bank by dialing back risks. here he is speaking at the world economic forum back in january. >> we have gone through a pretty significant transformation, really taking our company bac

does anybody think citigroup will go out of business? adam: we saved them the last time. >> this is a company that the shareholders are saying right now it is not a company that is going out of business. shareholders i think no more than regulators. if the regulators throw red flags up there. talk about an ugly charge but if you look at these sort of pattern of the players that have failed, will get dinged on the stress tests is usually around a scandal that often regulators in this. no offense to the fed go and the sec, but jpmorgan is a highly regulated bank, a bank that undergoes examination, has the fed living in their offices. jpmorgan feels sorry for city. if you think about it, they are dealing with the same issue, too much federal oversight. this is a barrier to business for all of them and lending, you have regulators on one side and federal reserve saying we need liquidity. >> a lot of checks and balances, which stress tests collect the banks during the financial crisis? who knows. a lot of that was off-balance sheet that regul

citigroup, j.p.ng at a follow-up in the first quarter on this frigid day from the york city. good morning, "bloomberg surveillance." ♪ 20 out of 22, dow futures up 183. me, scarlet with fu, top headlines. >> japanese salaries are up for the first time in two years. 1/10 of one percent in january. it is not much, but they will take it. pentagon's proposed budget calls for 25 billion less than what was forecast a year ago. the department had to come up with budget to put in place last year. a record-setting night for , dropping 61 points , 124 to 107. rice. the heat are hated globally, but i like the way that they play. i am a big dwyane wade fan. if you have the chance to sit courtside and watched lebron big. lay, he is so >> what is the distinctive feature? >> e is a freak. he is huge and he is fast. >> he has short guy speed even though he is huge? >> with that shot, look at that. mr. jaynes is on the other end of the court putting it in. >> the motor show held in switzerland was kicked off today wh

the big news is citigroup. they have a share buyback. >> let's widen this discussion into the fx probes. you were one of the first to come out with this. now, you are reporting that it affects them. ubshere are for traders at who have been suspended for the time being in jurisdictions around the world. it is in zÜrich, singapore, and new york. total caught up in this are at 30. at least nine or 10 of the biggest banks around the world. you're talking about oriented dollars. it would not surprise me. there is a market in the world and the behavior looks egregious. authorities are looking at this and the investigation down the road and thinking that the tail on this will be enormous. >> you have to set aside revenue to fund the wrongdoing. that seems to be where the banking industry is at at the moment. >> we talk about this every week. give us a sense of what figures we are looking at. >> it is too early to tell. certainly, the noise coming out is that this will be larger and libor was big. iey expected to be la

citigroup rate ad sell rating on blackberry. bbry. there you go, adam.m: colin talked about the a race to the bottom going for the cloud. amazon announced price cuts for cloud services including the s-3 storage service and new conclude computing program. this comes after google announced price for its cloud service. amazon cloud services received authorization to work with the department of defense to host projects like public-facing websites and open data sets. cheryl: wow. all right. stalling, stalling auto sales. jeff flock will go one-on-one with ford's executive chairman bill ford. his take on the economy. what kept shoppers away from the dealership last month. adam: athlete first a student second? the historical ruling for the sports world that says college foot ball players are eligible to join a union. tweet us what you think. ♪ [ cows mo] [ sizzling ] more rain... [ thund rumbles ] ♪ [ male announcer ] when the rld moves... futures move first. learfutures from experienced pros with dedicated chats and daily live webinars. and trade with papermon

citigroup was the most bailed out from all the banks.still has its issues with citigroup, even though the bank has done better, as all the banks have done. this is not in the desperate situation it was back in 2008. it is still is an issue for regulators in terms of what they hold on their balance sheet. so the odds are, you're not going to get a big increase out of them. where you will, where people say there will be increases, decision to commence a significant buybacks, or dividend increases isn't bank of america? this is an interesting bank. bank of america is now done much better than anybody would expect. look at where share prices are. they hit $20 a share at one point. they're a little down today. this bank has done very well over the past year. what people think this is, you know, at some point, this bank is poised for a major run if we have a turn in the economy and, the fact is, that people give a lot of kudos to brian moynihan getting balance sheet back. adam: settled with the government, cleaned out the problems. >> so the b

what about citigroup?er be in the names that stephanie was talking about because the next lag of the bank rally is dependent upon the economy getting better. that's already priced into something like a bank of america, up 40%. i'd rather buy the call names. i'd rather buy cleveland cliff, cls, something like that that's going to benefit from the cyclical upturn. >> we're getting real crazy. we getter go before some real zingers come out. thanks, everybody. be sure to stick around and catch brian kelly and the rest of the "fast money" crew at 5:00 p.m. >>> straight ahead, growing the economy and creating jobs. that's what indiana's governor mike pence is focusing on. ge aviation is building a big production facility there. up next, he'll lay out his strategy for success and where his state is on the minimum wage issue. it's currently $7.25 in his state. also, the maker of candy crush not making up the ground it lost on yesterday's debut. is the poor performance unique to this ipo or the sign of something bi

citigroup down by 5.4%, dropping the most since november 2012.apital plan was rejected by the fed, shocking senior management. $4.75, i dois still not care. >> michael corbat is doing damage control. king digital, maker of candy crush down for a second day. it has not risen since it went public. $18 $.50. now it is >> what do you do with the bankers who thought this up? like they still get paid. whose reputation took the biggest hit this week? citigroup, king digital, bankers, the affordable care act struggling to get the sign-up, turkey? lowered from 7s million. keep lowering the bar and you will meet it. >> at least i can say i got 6 million. >> citigroup and the challenges they had. citigroup stunned wall street, ett flaunt the stress test. flunked thebat stress test. robert albertson with sandler o'neill, linking banking to the economy. where will banking be in 24 months? >> it will be better and there will be more consolidation. i am not sure regulators will come off this pendulum swing . between banksng and capital -- the biggest obstacle i

citigroup might. when it comes to j.c. penney the retailer, the stock is high as you see on your screen, when it comes to j.c. penney. adam: bring you up-to-date on gm congress marginal major program to general motors, lawmakers want to know why it took the auto giant nearly a decade to recall 1.6 million vehicles because of faulty ignition switches. that flaw has been linked to 13 deaths. rich edson is on the story and joins us with more from washington. rich: congress is looking into general motors, the government is looking into general motors and general motors is looking into general motors after the news that the chairman of the house energy and c committee was launching an investigation. fred upton meeting with a number of folks to the national highway trading safety administration, staff were continuing to have briefings to figure out why complaints of 260 over the last decade did not alert warnings from federal regulators. we heard back on this, the federal agency looks into issues like this saying we did receive

the one that everybody will be talking about is citigroup. for the second time, getting a rejection from the fed. this time on the fed calls, qualitative issues. it says that the capital planning process wasn't up to snuff. it didn't do a good job of engaging its risks in its global business unit. it saw a $6.4 billion buyback. because of that rejection, now, it's going to hold the status quo, $1.2 billion in buyback this next year. that's the same it's been since former ceo, vikram pandit, had in 2011. the new ceo says he's disappointed by the fed's decision to reject the plan. but it echoes the rejection of pandit leaving the bank. there's a lot of questions from citi executives from shareholders on why it happened again. >> we're watching citi stock drop by over 6%. let's bring in bank analyst, dick bove. you said the second batch of stress tests is way more important than the ones of last week. what's your key take away from the ones today? >> i'm kind of happy by what i'm listening to. we have a sell on citigroup because we think the com

for citigroup. plans to buy back shares and boost dividends. they are going to have to readdress plans. two rounds no those tests. think of the first one as what if? what if unemployment peaked at 11%. house prices fell 25%. can these banks withstand a recession? st week the big guns all passed. the result is about taking into account their capital plans. it is very subjective. it wasn't just citi that failed. hsbc. santander. >> it is really interesting. on the quantitative measures to peer one capital, they pass. >> they passed in that sense but they failed on the processes. r.b.f.?does it mean for it is -- r.b.s.? it is planning to sell shares. >> revenue and losses under economic stress. how many problems did this bank have? this is one of them. we were meant to get rid of this bank this year. i think you have two questions this morning. does this raise the red flag for potential buyers and diminish value of any potential sale. citigroup got hit hard. for the s matter european headquarters. it could dictate the amount of money they are allo

turned down the ceo position at citigroup. former directors of the national economic council and the office of management and budget at the white house and our current u.s. trade representative also have citigroup ties. you once served as president of citigroup international and are now in line to be number two at the federal reserve. now, i know that citigroup has some very smart people, and i know that private sector experience can be very important in government service. when i set up the new consumer agency, i hired many people there the private sector. but i also think it's dangerous if our government falls you should the grip of a -- under the grip of a tight-knit group connected to one institution. former colleagues get access through calls and meetings, economic policy can be dominated by group think, other qualified and innovative people can be crowded out of top government positions. so the question i want to ask you, dr. fischer, are you concerned about the revolving door between recent democratic administrations an

this chart of citigroup shows a bank bounce back. citigroup in the darkest days was trading around $10. today. shares are near $50. the reality is no one knows how long the rally will last. but for now-- chuck coppola is standing by for a look at how the market run is turning into prime-time for ipo-s--good morning chuck! angie, companies are sprinting to the market as the good times roll...global ipo activity is up 70% so far this year...a big surge from 20-13. already, thirty-seven companies have gone public in the first quarter. and filings are rising faster than anytime in the last 14-years. more firms are swooping in as the stock market continues its hot streak. josef schuster who runs a company that tracks i-p-o performance says risk appetite is high. "that feeds into the demand for specialty ipo's in technology and consumer discretionary which are small midcap companieswith high growth potential." coupons-dot-com joined the club friday, in an astonishing market debut.the digital coupon company opened at $16 ...and jumped 87% t

citigroup admited last week, the incident happened at its mexican subsidiary "banamex". bank officials say they took immediate action and are cooperating the investigation. citi has received a subpeona from the fdic. a subpeona has also been issued to p-n-c financial services group. the wall street journal reports that the justice department is seeking information about the bank's relationship with a payment process service. regulators say customers complain that they were fraudulently charged for certain services. the company is cooperating with authorities. despite yesterday's sell off in the stock market. there is one stock that just keep plugging away. the stock is plug power. it trades under ticker p-l-u-g and it surged 24% monday. the company makes fuel-cells to power forklifts and other warehouse equipment. the stock has been on a steady rise during the past several sessions -- but is picking up investors---since winning a contract with walmart last week. analyst believe more deals may be on the way. warren buffett is opening up about controversial topics.as crisi

citigroup, reason to be concerned if you are a shareholder?ounting to management and shareholders. unfortunately, i think most of the negative action will come pretty much right away though. >> and what is it going to take? what do you think the federal reserve is concerned about? >> what they said is there's a bunch of different processes, individually none of them were big enough. they have to fix probably a few smaller items in their capital planning process. >> and what about the rest of the banks? are you content with the results you've gotten? clearly she said some of the super regionals, capital one spiking. morgan stanley also getting a positive read from the federal reserve. no major surprises? >> probably not. i think that, you know, you saw that bank of america and goldman sachs had to resubmit their amounts, shave them slightly. i think the fed was pretty tough on the largest banks. >> robert albertson, wholistic view, obviously the point of this exercise is to see if the banks are on solid enough footing can handle severe turmoil.

hank paulson believe citigroup, one of the biggest banks, one of the top two or three big banks, citigrouphank paulson was worried citigroup was going to implode, they were heading toward insolvency. that is why they got the second bailout in november 2008. i remember thinking it was a sure up. a run at the time but much more serious than that. they were toast. we should point out none of these gentlemen returned, tim geithner returned our comment, had no comment, mr. bernanke did not return calls for comments. liz: what is so interesting about them getting these depositions? i guess this all the time, why did we sure up aig? aig was the backbone of all of those trades. they were selling them 10 times over. charlie: ben bernanke give his testimony friday. i am not sure exactly when they gave their testimony, it was months earlier. the bailout of aig was equivalent to a taking, a federal government destroyed, went out and purposely destroyed shareholder value. if you look at the bailout, it was much more onerous and that is why they're asking about about these other things. what is interest

citigroup is cutting its 20-13 forecast after finding fraud in its mexico unit. the bank's mexico branch loaned $585 million to a mexican oil services company. the company, oceanografia, was later found be suspended by the government. citigroup lost about $400 million on the transactions, and the impact will lower 20-13 profit by $235 million. the bank - still stinging from the 2008 financial collapse - says the fraud was isolated to that particular client. it's not often the words: "free", "checking" and "bank" are in the same sentence. greg mcbride of bankrate.com is here to explain.good morning. why is it so rare greg? > >it has become increasingly rare over the past few years because of regulatory changes that have really changed the economics of checking accounts. so now instead of banks doling out that free checking to everybody that walks through the door, they're reserving that for customers that tend to have other accounts, products, or larger balances with the bank. > >what's the situation at credit unions? > >that's a bit of a different story. not only

citigroup's shareholder meeting in st. was struck down. we'll see what happens. a lot could happen for citigroup. >> good stuff. >>> all right. meanwhile, coming up, between box and candy crush it seems like ipos coming down to pipeline are geared toward consumer facing tech. have we reached a peak? jon fortt joining us with more. jon, we were just talking about consumer facing tech, the challenges there. what's your take on this? >> calling a top, kayla. calling a top in end user facing tech. i'm talking things that, you know, the technology that people actually look at and feel having in their hands. includes things workers in the office might use. box that really face that way whatsapp. the valuations, everybody knows they're crazy but the question is will they go higher? i look at this king ipo and its performance. look at facebook buying oculus as opposed to other things they could have bought. oculus isn't shipping a product yet and it's about the fundamental technology there more than it is about the end product tha

citigroup failed a stress test. the federal reserve says the bank's capital cushions are not strong enough to withstand a severe economic downturn. citi's ceo says the firm will work with the fed to meet expectations. citi shares fell 6% on the news. the federal reserve approved the capital plan at jp morgan chase. the bank is nowing buying back $6.5 billion shares while raising its stock dividen to .40 cents per share. goldman sachs and bank of america passed the test after reducing requests for buybacks and dividends. mt gox is working with police to search for it's missing money. the japan based bitcoin exchange is working with tokyo police to recover more than 450 million dollars wiped out from investors' accounts last month. mt. gox says in a statement: it "continues to make efforts to clarify facts as quickly as possible and to recover from damages." the company filed for bankruptcy protection february 28th. a rough winter for american's is turning into an even tougher time for farmers. snowy, frigid winter we

citigroup feeling the pain after failing the stress test on capital plans.res are sliding more than 5% in the session. analysts have downgraded the stock and are raising questions about citi leadership. in the wake of another failed capital test. they are considering resubmitting the plan. also, new fallout from general motors ceo, the latest video coming 1.6 million recalled cars are now safe to drive. if federal judge in texas will hold an emergency hearing on if gm should order the owners to stop driving the vehicles. repairs are not expected to start until next month. general motors shares up in the trading session up $0.38. an all-time high for the shares of the jewelry giant topping expectations for profit and sales and boosting the dividend by 20%. the ceo michael barnes will tell us exclusively how the soon-to-be completed take over will help it shine even more. officials from 100 different financial institutions are in washington today discussing everything from cyber security to too big to fail. peter barnes has latest, what seems to be the biggest

citigroup can't pass stress test. we're talking about minimum wage. people will not go back to work. you think employers will pay at new minimum wage and hire? they're not hiring now. where will growth come from? how will we build upon the economy. only way to be built is artificial dollars infused by the fed. only helped upper percentage of the mr. potters or banks of the world. david: mr. potters. >> average joe is in a lot of trouble. >> hank, todd is all riled up. todd says this is fed-driven rally, but hank, i happen to know for a fact that you think this is a good time to get into the market. why? >> look, i think we're in the middle innings of a secular bull market. we're nowhere near the end of it. most bull markets end or bear markets start in anticipation of a recession. the likelihood of a recession is infin testily small next 12 or 18 months this. is rally borne of fundamentals, borne offers growth confirmed with dividend growth. but it is true fed policy has been a helpful backstop but it is not a fed-induced rally. it's a fundamentally-i

citigroup and intel. two stocks that seem pretty hopeless before the feds announcement yesterday which some interpreted as indicating that the relatively imminent end of the federal reserve's bond buying program is upon us. then of course a rapid return to rate hikes, perhaps as early as a year from now. of course that is the most negative interpretation of what was really said yesterday. i don't buy it myself. we do tend to go to extremes when it comes to the fed so let's accept it fare a moment. with that interpretation citigroup and intel can only be described as two bad houses located in what have suddenly become fantastic neighborhoods. we know citigroup has had the single most negative backdrop of any of the money centered banks. while it's still stable operations in the u.s., citi's become anonymous with emerging markets. especially mexico where it's been hilt with a pretty egregious scandal. it's the major bank that i think is least likely to be blessed to return capital to its shareholders, eithe

then last year bought 100 shares of citigroup when he changed firms and went as a shareholder.ested to see what he actually holds if anything, this year. no doubt, one of the most vocal people on this bank. we'll catch up with him when covering that meeting live. >> citibank officially had no comment to mike mayo calling him tom resign or be fired. we should at least let folks know. although i'm sure they heard his cry. >> and the comment yishg? i was there yesterday. the quote was sell, sell, sell, sell, unquote. thank you, kayla tausche for details. >>> despite the citi disappointment, our next guest outperforms, a $62 price target on the stock as well. managing director and led of u.s. banking. david, welcome. gop good to have you on "street signs." >> thanks for having me. >> we heard from mayo called for today and he also like you is positive on the stock. why do you still support citi as a stock and do you think as well that gerrishbeck should are fired or resign? >> in terms of the stock, when you look at results, down 6% in the after-markets. i don't know if it's overly

his time at citigroup. he spent three years with the bank on wall street and he was questioned about that by elizabeth warren. of wallo big fan street. he defended his time at citigroup saying it made him a better central banker and regulator. >> without that experience, i not have seen the inside of the bank. i thought that experience was extremely valuable. toughestas about the moment for fischer. on the larger subject of monetary policy and the economy, fisher and the other two fed nominees up for consideration none of them signaled any significant shift in policy away from what's going on in the fed right now. the policies under janet yellin. fisher said that the fed needs to keep moving forward in dealing with the issue of unemployment, saying the economy has now returned to a state of normalcy and as a result, expansionist monetary policy is still justified. thtold senators he stresses at he understands the pain that americans are still feeling. >> slow growth is not an abstraction. it's people not fi

right now 2.7%, they changed management, working on its turnaround and citigroup out today reiterating and actually raising the retailer to a buy rating from neutral and raising the price target to $11, so they like j.c. penney and talk about the sale of its sale improving and the momentum can continue in 2014. they like the home department and the kids' department so this is why they're loving j.c. penney and in the meantime the street, imperial capital and many others are worried about j.c. penney sell don't necessarily think it is the biggest turnaround story so we will see but citigroup with a positive comment and pushed j.c. penney to the highest level we have seen in some time. liz: it is not a retail store because sears is holding down 2.5%. closing bell ringing in about 48 minutes. want to know where all but missing bit:millions went on the digital currency exchange mount gox? some hackers are now saying they know the answer and it is infuriating investors. apple set to make a big-time musical that could propel itunes to greater success and what will it mean to investors of app

but the bank stocks were down when the fed said citigroup would not be allowed to pay dividends. and candy crosscut crush on its opening day. took dips.ch stocks detect future remains bright, but prices are too far ahead of profit. itla is trading at 119 expected earnings and twitter takes the lead in nicor to glory -- in n that cegory. as our business covers of the d.c.ayor's race into news, i sat down witandidate narrow browser. the cocouncilwan considers one symbol of the progress possible in d.c., but it is progress she believes can better move forward wiwith new leadership. >> i am nning because i firmly believe we need a presstart in the mayor's office. have brought back from disaster really back then when i was growing up here, we were nearly broke, we were the homicide capital of the world, schools were spiraling out of control, a and our politics wera mess. still, you can be proud of progress, but nobody can be proud of having 70% unemployment in one section of the city. we have got to shift gears -- 17% unemployment in n one sectin of the city. we have got to shift gear

the fed rejected new dividend increases and stock buybacks for citigroup, and three foreign banks. citize

charlie: they left from citigroup, they came here, and now they are all gone.guys like that, you lost steve black a while ago. a bunch of others. frank is gone. >> those guys move up in a system. they can do their own thing. charlie: of course. what made him really good was that team. what made citigroup really bad was losing that team be at melissa: i don't want to run out of time. at the top of the show we were talking about your twitter battle regarding ebay and carl icahn. ebay has gotten back to you having watched the segment. charlie: i wish i could explain their response. it is this long thing, here's what i would say to ebay. ladies and gentlemen, on the air and explain it with me. i will give you the microphone. melissa: at the end of it they say go to hell, charlie. charlie: i wish it did. it was so in the weeds. if you want to make these points come and make them i will give you the microphone. melissa: you are getting a lot of play on twitter for this. charlie: you may not agree with carl, you may agree with the other side. tech reporting is so bad

fannie and freddie are paying back the taxpayer far better than citigroup and aig have done.on't want legislation to abolish freddie and fannie for sins of the banks and mortgage lenders and give these outfits the power to bring us to mother north disasser is. david: we don't want the taxpayer bailing out another mortgage disaster. >> no way. david: have politicians contacted you? have you had any inpout at all in these hearings? >> no. for good reason. i think this is political theater. i don't think these bills will be passed this year, next year or 2016. it is too complex, too unstable and when the housing and real estate lobbies get threw with it you can be sure woo not happen. david: that's true. lobbies always get involved. ralph nader who thinks there is cover-up at gm. we'll see if you you're right. the left right alliance to dismantle the corporate state. that is his new book, thank you very much. >> thank you, david. liz: a new investment advisory firm promising to build and manage your portfolio, for nothing. no minimum account size, no fee to sign up. we're talkin

our lead story today the good the bad and the ugly for citigroup now just. month citigroup said that they uncovered four hundred million dollars in bogus loans made to mexican oil services company. a practice that work a lot to get it right. now these loans were made via city's mexican subsidiary bottom acts and the company whose main customer was meant to mexico's state run oil company pentax was seized by the government last month after city uncovered the alleged fraud citigroup is conducting its own probe into the issue as well however the f.b.i. is investigating banamex two and now senators in mexico have said that they want the banks co-president chairman manual medina mora to testify about the four hundred million dollars worth of fraudulent loans city cited control issues unrelated to the fraud when it cut medina more as twenty thirteen pay from eleven million dollars to nine point five million and according to data compiled by bloomberg medina morris pay over the past half decade has averaged more than ten million dollars a year not to mention his fo

in terms of citigroup going from 50 back to 500, that's not part of my thesis., altogether. and it's a sluggish environment. i know stocks are at an all-time high. just in quarter, capital markets are a little weaker. loans are actually down so far year-to-date. all is not completely rosy. i'm picking and choosing more. >> when you're on aç conferenc call, you can hear management bristol when they call your name, mike mayo, you're next. i'm happy you're on. one thing to the plus side, technologically the banks are operating efficiently than they were in the past. can you return on equity? are those achievable with the negatives of increased regulation and you know mediocre economy? >> and the negatives lead to the worst revenue growth this decade than the decade since the great depression. revenues are still sluggish. necessity is a nice driver for banks becoming more efficient. and you are seeing almost every large bank has been efficiency plan. and i think for that reason, banks can achieve roas, back over 1%. roe, return on equity, it's going to be less than

citigroup has business in russia. it could hurt individual companies. melissa: chris what do you think? what is the risk from here? >> real risk our true enemies or true competitors at least in china will see u.s. inaction in iran, u.s. inaction in syria, u.s. inaction in crimea. they will conclude rationally the that u.s. is not willing or capable to defend our interests around the globe. one thing for the russians to invade or annex crimea. one thing entirely for the chinese to take the senkaku islands. they're building a navy for it. our lack of action in these three key areas make it much more likely that the chinese will turn into raw naked aggressors. melissa: less about political risk of companies around the world sitting in territories not necessarily friendly with us, how much weaker we are now. thanks very much to both of you. >> thank you. melissa: before we head to break. listen to this. an oxford university study says half of all jobs in the u.s. are at risk to automation. within the next 10 to 20 years. half. that's around 700 different oc

products chief executive michael corbett admits impact her credibility is harder to calculate so citigroup was forced to warn on their profits because of a subsidiary in. mexico city's mexican subsidiary lent five hundred eighty five million dollars to a local oil industry services company called oceanographic through its accounts receivable financing program this is where the bank lends money security against the value of enforces the clients sent out to customers and awaiting payment about the invoices were faked and as much as four hundred million dollars was stolen from citi during the course of the fraud so comparing this to what's happened in the real world recently is a transaction malleability this is what mt gox is mark blamed the bitcoin collapse on here we have a situation very similar where invoices were faked essentially defrauding citi group in mexico a four hundred million dollars yeah i think it's a good and interesting comparison with the mt gox situation because here on the block chain they have something that citi group does not have and we can look at it closely here th

among the names is citigroup and credit suisse. and the "wall street journal" is reporting the government will extend the march 31st deadline for signing up for health care coverage. the extension would be for those who try to enroll but cannot because of any technical glitches from a last-minute rush. >>> returning now to the crisis in ukraine. the chief foreign affairs correspondent margaret warner joins us from the crimean capital city where a key referendum will be held tomorrow. what's the atmosphere like on the eve of the vote that the whole world is watching? >> well, this was proclaimed a day of quiet before the vote, meaning no rallies, demonstrates, speeches. in fact, the day apparently passed without any prove ovations or confrontations here in crimea. but it's totally enforced by russian, and russian sympathetic, russian supporting crimean troops. when we came to the parliament today, to get our credentials for tomorrow, we met cossack soldiers. the russian flag is flying in the atrium of the crimean building. this is s

they'll be at citigroup on april 10th. i think you have a cautious consumer environment so this is a good example of show me story to a certain extent and that's a good example that's attractive to a long-term holder and their terms of the ability to execute throughout the year. >> thank you. >> oliver chen over at citi. >> i don't think there was anything new in the upgrade. only raising the target a little bit, we know about gross margin potential and the diamond cost situation. we also know about the new management team in u.s. and also about the growth globally. i don't think i would be rushing out to buy it at 3. i've been a bull on it and i've debated. i think it was mike murph last time. i like it long term but i don't see a near-term catalyst. >> i would much rather be in something that i do think has upside and i would look at michael kors. sales growth, expansion, north america as well as europe and china. far more upside in kors than tiffany, kind of half-hearted. $10 price target, oh, well, not that exciting. >