wells fargo is so big it makes an estimated one out of every six home loans in america. it made more loans than the previous quarter but less than the same tyime last year when interest rates at low levels led to a huge wave of mortgage refinancing. chief financial officer thinks americans aren't as enthusiastic about buying homes as in the past. >> what is holding people back from what we might have thought would happen in the purchase market is a combination of available supply, it's harder to find a home in certain markets, either because people are priced out or new home development isn't what it was before the crisis. that's at the margin one item that we're looking at. >> reporter: that would be a head wind to the banks going forward and wells fargo is keeping a close eye to see if it will have an impact. >> the purchase market should benefit from the fact that affordability is good. home prices are up 8% year over year but moderate compared to the peak, and rates, while they moved up a bit are still at generational lows, so if long rates move up materially over ti

. >> we will get to wells fargo in a moment.he maker of camel cigarettes, reynolds american, is in talks to buy lorillard which is valued at almost 23 early in dollars. the combined company would be a closer competitor to altria. up.hen cohen has paid his firm pettitte 900 million dollar penalty for insider trading. sacfilm that used to be a capital was given until tuesday to pay. palestinian militants are firing more rockets into israel and israel appears to be getting prepared for a ground invasion and have called 33,000 reservists. three inch and the -- three infantry brigades have been deployed. >> second-quarter profits rose at what is now the world's most valuable bank, world -- wells fargo. but we will ask michael moore. for the full story. >> credit was better than expected. a lot of people have been asking if they would still release reserves and they were able to do that. the loan growth did not keep up with the deposit growth and they have a lot of deposit wrote. it was there but it was not very robust. >> it surprise

in one nine hundred ninety one declared bankruptcy and lives on social security nonetheless wells fargo lent him fifteen thousand one hundred ninety seven dollars to buy a used mitsubishi sedan i am not sure how i got the loan mr derm age sixty said yeah yeah yeah yeah yeah it's whack a mole comes to mind you know they want from the sub prime housing crash economy as you point out lehman brothers so now they moved on to autos you know it just goes around and around and around i mean there's no attempt to stop this from going on i mean we can only guess what the next area of fraud will be but yes harlan's is at the moment the fraud is your yeah wimber barack obama when he came into office said we have to look forward we have to go forward we cannot look back the economy needs to recover we need to continue forward now the stories i'm going to tell you here are the exact same not a single thing different about the frauds committed in the subprime mortgage market here these are sub prime loans i sub prime equals anybody with a credit score less than six hundred forty in america so these ar

wells fargo is different.t shop read >> he knows how to generate revenues. >> one of the best practices at wells fargo? least eight at product relationships with each customer. >> may i suggest it is what they have not done? have they been brilliant by avoiding things other banks of done? >> they have avoided a lot of the risks. they have also been in certain sectors of the been in secular decline. bring up the chart on the wells fargo. i think this is extraordinary. it is so much different than the other banks. it completely looks different. >> it trades at a significant premium. it is probably about 2.7 times higher than a lot of the bank. >> it is not cheap. we are getting long in the tooth of this market and we want to stick with quality. >> it is quality. you will stick with it? >> we will until we get a better sense of how strong this economy is going to be. >> when the earnings come out, people want to know if they beat or missed. they want to look at the efficiency ratio. what does it tell us about the

. >> wells fargo. >> wells fargo, sorry.ublic is owned by bill gates. 100% formation in the u.s. you will see more people throwing away garbage and more demand for their services. they also have a lot of room to grow in the recyclables. it's a small percent right now. it's increasing. wells fargo, it's cheaper. waste management has a higher valuation. wells fargo is the name in the u.s. again, it trades at a premium to the banks. itative shown they deserve that premium and again we see a stronger u.s. economy, the housing sector is going to hiccup, albeit grudgingly slow as it's been, wells fargo, that will be good, i don't have all loan demand increasing will be good. >> if we are to believe lates remain low, though arc longer am of time, therefore the dollar may remain range bound or slow, we may not see this sort of benefit to these companies yet. >> you are exactly right. we have been bullish for a while now. it stopped going down, it has been trading range bound. >> so many people have been expecting a strange dollar. t

so wells fargo is not immune to that, but to some degree wells fargo is a little more of an optimization instead of a growth story right now. you'll see that. i think you'll see efficiency improve and talking about share buybacks earlier. see share buybacks at wells fargo as we as very good credit quality. you saw the jobs report last week. they and other banks will benefit. >> forgive me if you've already spoeshgen publicly. jpmorgan, outperform. view change at all regarding jamie dimon's health disclosure? >> underperformer. i hope i sent that to you correctly. underperform on jpmorgan. no change from the past, you know, year or so i've been on your show. the issue there is, what's the hang jove jer what's the regulatory hangover from all the problems jp morgue hadn't hen h. die sdwlaeft when the earnings come out. >> nice to have you. >>> world cup semifinal was anything but pretty yesterday. if you were rooting for brazil. while german fans are undoubtedly ecstatic, it may not be all that bad news for brazil if looking to profit off them. >>> could the markets in japan be in for stor

wells fargo on the bottom line is coming in line with expectations. the stock is trading in the market at $51.89. slightly headed -- higher than yesterday at close. >> we're going to get bigger bank results next week. jpmorgan is back on tuesday. victims of the be the gulf oil spill, 9/11, the financial crisis of all turn to one man to declare what is fair and who should be paid what. general motors is turning to the same person to be the administrator of the ignition the compensation claims revolution facility. this is the uncapped fund of how much they will pay victims for being injured or killed due to those recalled vehicles. i am talking about ken feinberg. great to see you here this morning. far.of the reaction so you and failed the -- unveiled the plan. >> the feedback is as you would expect. cautious optimism. he will wait and see. it sounds pretty good. until the money starts to flow to alice will claimants, injured and killed, i think everybody is waiting to see. that is appropriate. >> absolutely. during the press conference when you are un

road map begins with wells fargo. results matching estimates, citing improvements in the economy, especially housing. >> as i reported last week, loralar confirming they are in merger talks, a deal could be monday. >> in the wake of the session, icahn's reportedly promoting caution. >> nadella promises change is coming to microsoft. >> wells fargo recorded profit of 1.01, in line, and john stump says the results reflect quality driven by an improven economy especially in the housing market and cited the bank's continued risk discipline among the big met trirics and that fell again quarter on quarter as banks are squeezed by low rates, but mortgage originations up quarter on quarter, nothing like last year. >> $11 billion quarter to quarter increase in mortgage originations, 1.1 trillion dollar deposits. >> that took my breath away. 1.1 trillion. >> you see that number, and first thing you think, okay, did they put the number of 0s correctly? that's why it's not considered to be up to snuff. they have too much money. >

we'll be talking all things wells fargo right after the break.y with us. >>> welcome to "worldwide exchange." i'm julia chatterley and these your headlines from around the world. what a difference a day makes. markets back in the green in europe after yesterday's drop triggered by portugal. u.s. futures point to go a higher open. >>> bank your espirito santo experienced losses and says the family's holding don't compromise the capital positions. >>> president obama offers cease-fire help as reports are the death toll increases in gaza. >>> a large tobacco plan is potentially in place. lorillard and reynolds american are reportedly in talks of an agreement. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> if you're just tuning in, thanks for joining us here on "worldwide exchange." you're looking at the u.s. equity markets. futures we're seeing indicating higher in the session. the dow higher by around 42 points. the s&p 500 four points higher. the nasdaq indicating higher, just shy of 14 poi

john stumpf is chairman and ceo of wells fargo.go specifically. but i'm reading, you know, some of these major banks that are, you know, so far apart. i think bank america, what they offered 13 or something, and that's not enough. when is this period over where the federal government becomes part of the solution, really, rather than i don't know, trying for punitive measures to punish a industry because of i don't know, public opinion? >> well, it's hard for me to make. you know -- >> you think you're doing a great job. you love them all and regulators are your favorite people, right? >> i wouldn't say they're my favorite people. but they're surely part of our life. and it's hard for me to spectate, and i won't, really, on somebody else's activity. >> what was citigroup? seven or eight? what's going to happen with bank america? they're at 13 and they're arguing, right? >> they're arguing. >> 13 is not enough apparently. and then -- but where have we decided where does the money -- >> oh, yes i did some research. >> you did? >> basi

jpmorgan, wells fargo.>>> meantime, all of the biggest names in aerospace and defense at the air show this morning. both airbus and boeing courting our next guest for a big order. the winner, airbus. air lease the launch customer for the a330neo, 25 firm orders. phil lebeau with another first on cnbc interview with one of the deans of the industry. phil. >> reporter: a man who the airbus ceo himself, carl, said, if steve says it's good enough for selling a thousand, i'm going to do it. you're joining us, ceo of air lease corps. give us perspective as the launch customer for the new a330neo. why do you want to be in that space so bad? the largest component of the wide body market is 250 to 350 seaters that can go anywhere from 2,000 to 5,000 miles. that's about 80% of the wide body market. >> you brought up a great point, people are losing sight of the fact the aircraft age around the world is still very high. >> yes. >> planes that you're ordering now, how old are planes that they're going to replacing. >>

. >>> meanwhile, wells fargo, the nation's biggest mortgage lender. so, when its newest chief financial officer said in an interview people are just not buying homes, that got a lot of attention, and john scluzbury will be here in a "closing bell" first interview to clarify that. they had earnings out today. the stock's been down. we'll talk to john coming up. >>> speaking of homes, do you own a home? i know we do. but if you do -- >> two separate homes, by the way. >> two separate homes, that's right. are we married? yes, just not to each other. >> to other people, right. >> this is coming up later, saying you are a new part of the class of fools. todd shone berger says that owning a home is for suckers and should not be interested part of the american dream. you'll want to hear the reasons he's saying that, later. >>> and final hour of trading, let's show you how we've been trading so far. the dow was down 54 points on the open this morning. this trading pattern will look very familiar. we've seen this the last few days. sell-off on the open and the

. >> and comic books come to life at the wells fargo center and behind the scenes look at the action for marvel universe live? and rick a comfy way to win the week temperatures in the upper 70s to low 0s and smik heat and humidity and -- 80s and spiking heat and humidity over the weekend. >> live wi >> officials located a operator by a drone fly by at needing in chick washington this week. police tracked down the man at the hotel room who happens to be amazon employee he. he wanted to try out the new drone equipped with a camera. here's viewpoints of it he agreed not to fly again if public for the rest of his visit. >> parents in california called police when porcelain dolls that looked like their children were dropped off at door steps. tuns out the dolls were made to cheer not chill. the dolls were left outside 8 homes in gated community and each resembles a young girl living in the home an a police investigation said a woman who went to church with the families left it as an act of good will and she left them because her daughters didn't want to play with them any more. >> let's g

just so you know on wells fargo, this is the first quarter since 2009 wells fargo did not increase itsfrom the preceding quarter, ending a 17-quarter streak. that's not great news, right? you want to continue to see growth. back to you. cheryl: we're going to see you at the top of the hour when the bells ring down on wall street. nicole, thank you so much. well, soccer fans everywhere going to be glued to their televisions on sunday when argentina and germany slug it out in the world cup final in brazil. but investors and economists are looking at a very different contest between these soccer giants. peter barnes joins us from washington with details on this contest. peter? [laughter] >> reporter: well, hey, cheryl. germany and argentina could not be more different economically which may help explain their strategies and soccer playing style. german bonds are rated aaa, argentina went bankrupt just a little more than a decade ago and is fighting in u.s. court right now to prevent another default. its rating is ccc, a junk rating. germany is largely a manufacturing economy. its biggest

number one is a biggie, procter & gamble downgradedal wells far fargo. >> we have an ohio theme going on. >> i wonder why. i hate ohio state and virginia tech will beat them in september, but that aside, the estimates to p & g, they see the valuation range cut, so still a little up side, stock is down 0.4 of 1%. >>> finish line downgraded at sterne agee. down 4%, so sterne agee also cutting tips, say trends appear to be shifting toward lower-priced shoes. hey, you never know, maybe le bronc and nike will come out with a new shoe. >> who knows. >> this is the name we talked about yesterday, shares of brinker getting a downgrade from our friend at oner lick securities. bob was on this show yesterday, and brian, you asked him if eat

wells fargo results, is that the day at 8:00 a.m.? >> that is today. >> and from rome. >> three's company. >> i'm sorry, just me. anyway, let's continue our conversation. the worries over oorp and portugal's banks were muted -- anyway, that was a short session, don't listen to what everyone else is saying, what, did it go down 6/30 or something? should investors be concerned? i don't even know what happens in portugal. you said it's going to hit 2% at some point. >> well, it's on its way, we'll see. in a macro accepts, that the fiscal troubles are back in that part of europe? >> the bank itself and his oven buy of five or six different holding companies. but my concern here is the ecb and as portugal moves in and investigates the holding company, they're going to buy more than we even know at this time and general michigan experience on wall street has been that is what always happens. my second concern of the situation is contaj him, fear some of the difficult is. because it's al intertwined and we don't mow the answersess. >> i'm sh

those are the aspects of the key characters then we spent a great deal of time working with wells fargo and we worked with those folks with a number of individuals one was just the ceo of the grant foundation and the metropolitan we developed 11 galleries between $8 million and we've developed a naming because we needed to have an undenouncement fund not by burdening the city of $30 million and in addition, we have an ongoing operation of the museum fund of about 15 noildz million dollars so it's a $45 million fund we are very lucky to have's per diem and wells fargo and target and for naming opportunities we're headed in that direction and lastly we've developed the ferries peas for the treasures of the mime we have digitized a lot of the collection with a lot of folks that is given out to givers it's a simple price $50,000 we felt this was very important to go out and make the solicitation i'm happy to report i can resign next year and be on my way. >> does that conclude the staff presentation? okay. excellent any public comment on that item? >> there are no speaker cards. >> thank yo

they are all part of the marvel universe live at wells fargo center. it's a high caliber arena spectacular that puts the fans in the middle of electrifying battles between good and evil. >> it's a wonderful iconic villains, green goblin, red skull. the sinister 6. spiderman's iconic foes. >> marvel universe is live today and tomorrow at the wells fargo center. next chris sowers will take a final look at the exclusive accuweather seven-day forecast, stay with us, we'll be right back. >> let's get a final check of the weather. >> reporter: we have a couple of showers out there. let's go over to storm tracker 6 live double scan, we're zoomed into northern chester county. you can see showers push into glenmoore and chester springs. we do not expect this to mess up your saturday. as a matter of fact this will only linger for the next hour or two, and after 10:00 a.m. or so, looks like a combination of sun and clouds the rest of the way with a gradual increase in humidity, highs in the mid 80s. there could an i say lated thunderstorm that develops in spots.

so, therefore, what we like a the wells fargos of the world. they keep hitting singles and doubles and getting that earnings growth up there. mortgage banking isn't what it used to be. wells is on a relative basis is what you want to be in this group. those other two, even though they are good companies, i think they're fairly valued at these levels. >> paul, great to have you with us. thanks, for your time. paul miller, fdr. >>> bank of america, morgan stanley, j.p. morgan, few agrees. >> b.k. does. the best is the capital markets business of some of these banks, they have been thrown out with the bath water. if you get any type of volatility, they may pick up. it's like bogey vol at a low price, beyond that, i think they're dead. >> look at the capital markets business. if anything, going into this june quarter, the second half of june was insane in terms of equity underwriting. i think there is going to be a major surprise in terms of what these guys sell on investment banking. i also think if you look at the xlf in which it's traded over th

the action cam was at the wells fargo center. the event promotes team building and raises money for the ronald mcdonald house. >> questionable creamation, an unlikely funeral director faces charges. >>> tsa imposter got a little too touchy feeley with woman at an airport out west. >> reporter: what does it look like for the weekend? we'll have all that i w gt' andble, don,da. inional loinhoabout thnyf ng te rio inwn in itanes e is sove andsherun cuh b lotf reing sdre f 87 gr thinke f uratilhe ot and c tndwe basicallynd t just more cicre. thsaatiod totivef. h caugh of eaknoh time t down two women. he was a ticketed passenger who had been drinking at a loungerab he faces a public chreleased inheh fbi d t help innv chreleased inheh fbi d t help innv aus hickenocspherifyck t s itg. n cll 0,y s thebo t s wetternan oimal allood,re boairrts ffact they a, nterna you>> arein inerhen wwhen by w bodies are scattered over miles of rebel-held territory. u.s. officials strongly suspect the boeing 77 was downed by a si b ukrainian separatists b

has anyone here watched the tv show "fargo"? season finale of "fargo" was last night. get it, no spoilers. it was great. it's been a great year of television. i'm very excited about that because i'm hosting the emmys this year, august 25th. and -- thank you. [ cheers and applause ] and on the show, you know, you have to be so careful about, like, not spoiling anything. you know, we have guests from shows like "mad men" or "game of thrones" or any of those like spoil-y shows. i can tell people are always worried we might spoil something. but i need to tell everybody this, which is when i host the emmys, that's august 25th, everybody has to watch all the shows by then. because i might say something during the show that might be a spoiler, but this is about -- we're still going to celebrate tv. i might have to say something. you've got to watch all the shows by then. [ laughter ] and if you're not going to watch the emmys, you don't have to tell me that. that hurts my feelings. [ laughter ] just keep that to yourself. that's not -- i don't get anything from that. so augus

it kicked off on friday with wells fargo. we had citigroup yesterday. the numbers themselves beat expectations and the share is running 3%. today is jpmorgan and looking at investment banking. and gold maman sachs. talks of citigroup as well. a big day yesterday. they settled the civil suit against them paying $7 billion including $4 billion as a civil penalty. will are there going to be problems arising on the criminal level with the attorney general refusing to comment on that one just yet. >> and so we have information about volkswagen and the plant in tennessee. being back in the news. but this time, steve, it has nothing to do with the vote to unionize. explain what is going on with the plant. >> it's potentially good news. they're trying to be the number one. it's up against gm and toyota. and the happy concern is north american exposure the next new plot is in mexico. it's a great way for local leaders they're going to try to get a seven passenger suv. and an engineering center. it will mean 2,000 new jobs and a host of new investment. they put t

. >>> john manly joins us now, chief equity strategist at wells fargo. it is exciting to have historic highs and milestones, but how should americans feel about all of this? you know, dow 17,000, strong jobs number, but the economic number, the economic growth, gdp on the downside. so, you know, connect the dots for us. how healthy is the economy and the stock market? >> well, every now and then you have to ignore a few dots out of place. i think things are going from okay to good, and i think that's good for the stock market. i think that the fed is going to be slow to raise rates because they want to make sure, very sure it's okay before they do and meanwhile, earnings are accelerating. i think earnings go up before interest rates and that's good for stocks. >> stocks are supposed to zig and zag, they go up and down. they have been going up for 2.5 years. we haven't had an apresentationble decline of 10% in this market for awhile. are we setting ourselves up as we go higher for even more pain when the correction finally does come, do you think? >> some

superheros have taken over the wells fargo center.e show, now, earlier our own quincy hear dis some stunts. seeing how the green goblin is getting around on stage. quincey? >> i'm not done. we've given me the nickname black cheetah. as you guys can see. this is joe the goblin coming down now. joe. >> what's up? >> now, this is the first time march low has done this, marvel universal. you guys are good. you guys are here, wells fargo center until sunday. >> yes, that's correct. >> explain the show to us. >> oh, man, we have 25 different superheros, and villains. that will come together with this big epic battle for good and evil, amazing, i can't wait for everybody to come see it. >> so last night your first show in philly. how was the energy? >> pack house, the energy with the fans were amazing. everybody loved it. and we've got a good response from it, so i'm glad. >> now, this is philly, philly is like you guys like third sit. >> i yes. >> were you telling me, you have five shows in the next year. >> yes. >> you're doing this? >> th

wells fargo reduced great results on friday.t the citigroup numbers were solid today. what we will get over the next two weeks is the regional banks to start reporting. as you get into the middle tier, you will see essentially 9.5 and 10% loan growth. 1/3 of the banks we follow -- that is a big- number. we think 1/3 of her banks love alone growth of 10% or more annualized. >> that may be the sleeper story. we have yet to see if citigroup and wells fargo are doing something the other banks are not. we have yet to see jpmorgan or bank of america. of a sleeperthing story in the banking industry. we had a terrible first quarter number from gdp. all the signs suggest the second-quarter gdp growth was much faster and you should see loan growth coming out of that. >> and you are seeing it brought now. loanscial and industrial in the first quarter are improving. we have been seeing auto lending starting to improve. >> let me bring in the other piece of news which is citigroup settling $7 billion with the department of justice. >> that's

wells fargo would not work with us at all on our second mortgage. at age 70 i'm still working 50 to 60 hours a week as a bedside nurse to payoff a second mortgage so i can afford to retire. so, i'm really here to ask the support of this program to join with richmond. the financial institutions have circumvented the laws of free contract by fraud and bad faith. and what you have before you is a moral decision. thank you. >>> yes. (applause) >>> hello, supervisors. thank you for hearing me. i'm tony kelly. i live in potrero hill. i'm speaking the dissent of my neighbors throughout the southeast side of the city who have been threatened by foreclosures and in support of s.f. cares. for enclosures have been a dee bill dating disease in our part of town, five, six years. ~ debilitating [speaker not understood] when that happens today. it's a very slow disease. if there was an epidemic, if there was a disease targeting one portion of the city, one population of the city, we would put resource he into it. we would treat it as an emergency. we would invest

wells fargo, revenue beats.e may see revenue beats stronger second quarter. >> corporate profits at higher level we've ever seen. look at headlines don't want to be in the stock market. you're spiting yourself. they're making money. corporations are making money. government is a mess but corporations are making money. >> they're making money but he is reflecting what a lot of average americans are filing. they don't see rest of the economy making up with market. they're still unemployed and underemployed. melissa: they're making money and not raising wages. wages are stagnant and consumers are not spending money. how dong do we keep going, economy of people. go ahead. >> they don't have to pay higher wages. that is the what we talked about previous point. melissa: we keep seeing company after company -- >> that is big issue. 3:00 fourths of our economy is the consumer so if they're not spending. rent a center. that is business for lower-end people. the have-nots are not spending but -- melissa: amazon upping ant

goldman and wells fargo, all in the red. karen, what did you make of this move? >> well, actually not too muchful i do definitely want to see what the bank earnings are. that's the most important news, but i think they have done a good job of earn fitalking some of the lemonts down. i don't think anyone is optimistic on trading revenue being very good. i think for some of the big banks, j.p. morroccan, you have big penalties in there. i hope we don't see credit deterioration. it's been so great there is not much room to go. but i think the valuations reflect the bad news already. so i like being long. >> i think if you look at wells fargo, where are they going to be making their money? mostly in the mortgage area, so it seems. they have been killing it. even today after this little pullback that you are seeing, this stock is right off the highs, this morning, early, it was on the highs before the pullback. i think they will absolutely crush it. >> by the end of next week, we will have heard from 40% of the s&p financial sector and most of the important names. the

fargo. luther. tremay. -- killing kennedy. mohammed ali's greatest fight. the normal heart. sherlock his last vow. and the trip to bountiful. >> well carson let's complete the emmy nominations announcement by bringing back bruce rosenblum to announce the final two categories. >> the nominations in the comedy series category are -- the big bang theory. louis. modern family. orange is the new black. silicon valley. and veep. and the nominations in the drama series category are -- breaking bad. downton abbey. game of thrones. house of cards. mad men. and true detective. mindy, carson, thank you for joining us today, we appreciate your help. >> all right. they were so interesting when he said at the beginning, matt the definition of tv has changed, and you went mm-hmm. what's that to you. >> it sounded like a setup. sounded like it was a preface to let us know that netflix was going to do very well. in fact netflix did do very well. >> he called that correctly. >> i think so. and he's right the definition of tv

morgan's bank, wells fargo and ally.hat apart has been invested in alleged brought into the packaging and sale of residential mortgages to investors and that was the city agreement today . it settle with j.p. morgan chase for 13 billion in penalties and fines last year. combined altogether that brings the total to 20 million and of the 45 billion total for all of these settlements so far 28 million have been designated for consumers including for victims payments and to make loan modifications, for example, such as giving borrowers lower interest rates. 17billion has gone to pay fines and penalties to the feds and to the states. liz: feds into the state, but some victims do get some money, is that correct? >> yes, in the national mortgage settlement in 2012, people who lost their homes because of those robo signing scrubs and scandal did get cash settlement payments. liz: peter, thank you very much. we like to show this stuff to you because we throw the word billion around a lot and you just heard that 7 billion is not t

the brand-new ceo at wells fargo, and he has his hands full.mits people are not buying homes at the pace they're used to the the commercial loans came out strong this last quarter. think about it, if you're going to be buying or selling a home, especially if you owned your home a long time and you have a very low mortgage rate, would you want to sell right now? maybe people are judd hunkering down because of that. >> wages have not gone up. >> we're going to talk to him about all of that and when perhaps revenue will get better, because the street punished the stock. not by much today. >> come join us at the top of the hour. >> see you then. >>> for decades psychologists and economists have struggle to understand bubbles. joining us, reed montague, who co-authored a study with cal tech, looking into the brain waves of invests and experiment as economics. reed, a real pleasure. thanks for coming on the show. i read the summation with great interest. it was very complex, tell us what the results are that you found? >> we did something inch. >> i

wells fargo's 1.6 times book. again, u.s. about business lending, not so much about the consumer side. in fact, most of these banks not just in mortgage, but in general are running away from consumers. they're much more focused on business lending. this is partly because of the settlement. it's all legal noise. regulators making them write big checks. they just don't want to be in that business. lori: we had the flare-up with that big portuguese lender -- >> yes. lori: big banks in the smaller european countries are still vulnerable. >> well, they are. the european banks are systemically undercapitalized. we had a d rating on that institution, we're going to be putting out a note on them on monday. you can expect more trouble this europe simply because they kicked the can down the road. they haven't dealt with the issues this part because they don't have the money. most of the big banks in france are decapitalized, same thing in germany. but they're all national champions. lori: let's talk about the regional banks that you're

wells fargo opened earnings this morning.up will report second-quarter profits on monday, which could be when we also receive news on the banks expected $7 million settlement to solve mortgage-backed bonds. a the bank will probably report a decline in that it come -- in net income and fixed income trading. all of that is likely to take a backseat with the help of ceo jamie dimon at the top of investors mind. he disclosed his battle with throat cancer last week. morgan stanley on thursday. others to watch next week, google, yahoo!, intel, ibm, yum! brands, and general electric. hear senate testimony on the house economy. the services committee will get their turn with yellen on thursday. we have yet another general motors hearing on thursday. o'neal,tifying, rodney the ceo of the company that made the faulty ignition squishes -- ignition switches. on the economic front the federal reserve will sum up u.s. a reportconditions in known as the beige book. a u.s. report sales likely accelerated in the month of june. that as a look

he is paul christopher, chief international strategist at wells fargo. paul, welcome back to "nightly business report." you heard michelle's report. what hot spot worryious the most? >> well, ukraine worries me the most right now, mainly because i think it's underappreciated. it's sort of drifted into the back pages of the paper as people focus on iraq. i think iraq is more of a long-term story. >> what happen there's? obviously the new president of ukraine has sided now with the european union, much to the chagrin of vladimir putin and the russians. do they come to loggerheads over that, or what happens do, you think? >> that's right. and not only in ukraine, but moldova also. you have interest in the eu-27 group. i think putin continues to apply pressure in the best way he knows how, which is sort of subterfuges that involve having irregulars make trouble in the eastern regions of ukraine until he can get poroshenko, the president of the ukraine to declare the eastern regions not just -- not really independent, but autonomous. that's his main goal. >>