i'm here with federal reserve governor dan tarullo.for joining us. >> good to be with you, steve. >> unfortunately, with your brief, i'm going to displease half the audience wherever i start but i am going to start with what is the news of the morning which there is two news stories on the banking front, which is, obviously, the other half of your brief. so many billions of fines paid by banks and, obviously, i'm talking about the story by wells fargo, about wells fargo this morning, opening fake accounts, fake credit card accounts, so my question is, after all of these billions of fines have been paid, has bank behavior changed at all for the better? >> well, i don't think it's changed enough, steve, and i think we see evidence of that in our own supervisory work. obviously, i can't comment on the wells fargo case because that was a cfpb enforcement action. >> consumer financial protection bure are for the uninitiated. >> first, what i have seen is that too many banks instead of putting in place a comprehensive system for assuring tha

but also, look, i talked to dan tarullo, the fed governor, and i asked him about this notion of banks being let off the hook essentially by being able to plead no contest or not admit guilt and pay a fine. this is a matter for the justice department, but in general he said when it gets to that point, he supports the idea of holding individual managers responsible. >> to see if banks can hold up it a massive financial crisis. the stress tests were first put into place to test to see if the banks could withstand a financial crisis. what do you think the fed has in mind when they say massive financial crisis? this is going to lead to a significant amount more in capital on their balance sheets. >> right. so they're seeing if the banks can withstand it and a question of whether or not they have enough capital on hand. a slight relaxation as well, they're going to incorporate the notion that in a crisis, the banks would be slashing dividends and some other things. holding up a pink card there. is that like a stop talking thing or -- >> no, if only it was that easy. >> that's like soccer. >

. >>> by the way, tomorrow, don't miss steve liesman's exclusive with federal reserve governor, dan tarullo. that's tomorrow at 10:00 a.m. eastern time on "squawk on the street." hey, you're watching cnbc, first in business worldwide. hey, it's been crazy with school being back- so we're constantly going over our data limit. oh, well, now - all of our new plans come with no data overages. wow, no more overages? so that means... go on...say it... we'll finally be in control... and we're back... introducing new at&t plans with no data overage charges. [ala♪m beeping] ♪ ♪ the highly advanced audi a4. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. >>> at 43 minutes left in the trading session, let's show you some movers on wall street today. tractor supply, posting one of the worst declines on the s&p. several firms, includi

minneapolis president, kashkari, and kaplan and fed governor, dan tarullo, all speaking today. >> i amkari will say something else. >> he will speak to his too big to fail. >> he said it was inappropriate to talk about what they may be doing right ahead of a meeting. >> so december, what do you say about december? >> i would put it 25% odds they raise in december. >> only 25. so not at all after that first one? >> there's just a lot that could happen. >> 5%. >> less than one -- really? >> yeah, i don't think it happens. i am bored by it, frankly. >> that makes it interesting -- >> just set very high bars for what it would take to raise rates and gave themselves a lot of outs. >> get started. >> we should tell you there is more fallout for wells fargo. a notary leased saying his firms strong support for the wells fargo ceo is waiving. wells fargo is bigger than the ceo, not withstanding a good financial track record during his tenure there should be no more excuses to the lack of answers to key questions, and his note details five issues that they need to address including how long the

and then we talk to dan tarullo. be covering for you as well. >> okay. thank you, steve. >>> kroger reporting quarterly profit of 47 cents a share, 2 cents above estimates. however, revenue slightly short of forecasts. supermarket operator also cut its full year outlook by about 10 cents. joining us now mike schlotman, cfo of kroger. also part of the cnbc council. so you are in -- where's your studio, mike? >> i'm right across from the big kroger building that you know. >> yes, i do know that. what is that on? >> right on vine street. >> vine street and what's a cross street like 6th? >> court street. >> court street and vine. okay. i know exactly where you are. i love businesses like yours. because i -- it boggles the mind. you do about 1$100 billion in sales. $26.6 billion in this quarter. and 383 million in net. that is a -- i think that's a fair margin for any company. i don't think anybody that makes more than that really needs to make any more. what is the net margin in number that's like making a penny on ever