one thing you've got to look at when you talk about goldman sachs. each year see profits, they are growing organically, doing a nice job, trailing 11 times trailing earnings. it's got analyst estimates of 8% earnings growth. i think that's not very difficult for them to beat. 8% growth here especially like mikd talked about, if we get interest rates higher, further out on the curve, ten-year or higher, that can be a boost for them, easy to beat those. stock market poised to make a jump if that happens. >> equity trading, interest income of a few years ago you're talking about an increase of $6 billion a year in that income. there's a lot of potential if volatility and rising rates kick in. volatility is also one of the things you want to take advantage of, a stock over $175 in october, february, up to $200. it moves around a little bit. you can still go out and buy july 195 calls for just $7, a relatively small art 3..5% of stock price for something that moved significantly more than that in much shorter periods of time. >> what does this mean for th

the market cap of goldman is roughly $90 billion.he bottom five stocks are 900 billion, yet, goldman has more influence leak cisco and coke combined. if judgment is right, this helps the dow. >> so it's bullish the markets? >> i don't know if it's bullish for the markets, it's bullish the dow and for goldman sachs. >> bear in mind, it's tough to chase on the bull side right now because valuations have gotten stretched. not in every sector. financials are one of the areas. fear not, hitting the lowest levels of the year, stocks are calm, other assets are selling. taking a look at what? >> if you look at volatility across the board. look at all of the asset classes. to me when you look at that, it's quite a conundrum on what stock versus done, versus a commodity space and treasury. oil volatility up 170% plus. bond volatility up 20%, gold volatility up 2%. and yet stock volatility is down 3%. it gets pummeled. stock volatility is down. what does that mean? what it's telling me is money is being funneled into the equity market. that's w

goldman treated as the right way. it worked out all right for them. mulligan, but again they got the one about passing or that is what you're looking for. you don't hold any more capital than you have to. >> we do have breaking news on wells fargo. >> it has included a proposed dividend boost from $.35 a share -- from $.35 to $.37. that is a two cent dividend increase. also, wells fargo getting no objection to the 2015 plan overall. i don't see anything on a share buyback announcement from wells fargo yet. we are just looking at a proposed dividend increase. >> a little more detail. we did learn in this conference call with fed officials that where the fed and the street banks have had to reason that the capital plans differed was on -- there were assumptions about the credit markets specifically spreads on corporate bonds and the assumptions that they were making about corporate bankruptcies in the months ahead. from what i could tell, it's quiet all right that these firms might have different assumptions about those eventualities than the fed. the f

mark: why is goldman sachs a negative force? sen.z: they seek out and get special favors from government. they are entitled to practice their business, but without subsidies. john: are you proud of what she did for goldman? sen. cruz: i did mention that. i have to say, a lot of times the caricatures of republicans they do not fit with the facts that i have an amazingly brilliant professional woman who was my best friend in the world and my partner in everything we do. john: a bunch of people compared you to the current president of the united states. what is your reaction to being called the republican obama? sen. cruz: if people are not throwing rocks at you, you are not doing anything. i have tried to lead on the great issues of the day. before i was in the senate, i was not a community organizer. i was the solicitor general of texas and represented texas, winning some of the biggest conservative fights in the country before the supreme court. john: after the break, the second part of our texas two-step. rick perry will be here in

what you essentially have inside goldman sachs is a civil war. are still annoyed at the democratic party. they believe the democratic party, the party of elizabeth warren, the party of barack obama are going to continue to bash the banks, even if hillary is in there or not. and you have roy a loyal supporter of hillary and believe she will return to the clinton glory days of the 1990s in terms of deregulation of wall street and being a friend of wall street. as you know, hillary clinton earned hundreds of thousands of dollars in speaking fees at goldman sachs over the last couple years. >> and her husband bill actually was the one who effectuated or saw -- or the leaving of -- >> right. yes. and it's an interesting thing going on here. i have to give a tip -- to ben white of politico. he talked about how they had these two fundraisers. that got -- lloyd hit the ceiling. he doesn't care if you want to vote for jeb bush. i think what he's worried about is to give a public display of support for jeb bush. >> it's pick who you want, just don't make i

goldman sachs had been expecting 220,000. economist jan hatzius. 295 a surprise to you. your read? >> a strong headline number. i mean the payroll numbers over the last few months have been re very strong. i think that overall the report was good though not quite as good as the headlines would suggest. the unemployment rate did also come in a little lower. but that was driven primarily by labor force participation and also jobs gain wasn't quite as strong and wage numbers were on the softer side. when you take it altogether i would say it's a good report but not necessarily anything that is wildly away from expectations. >> the sectors that enjoyed a lot of growth seemed to be across the board, manufacturing and business services toward the top, retail adding 3 32,000 jobs where we expects the port slowdown would impact. >> we didn't see major special effects either from the port slowdown or from the weather, the construction number was pretty good, a little lower than in the last couple of months. leisure and hospitality was

goldman, the way it's being for trade, goldman's the one that's maybe the loser.hink that's not going to happen. >> in terms of the capital return? >> right. capital return. i think that this is going to be less onerous than people realize. gary is a good guy. >> vocal on market structure and other issues the fed, the dollar. >> you got to get him going. you got to get him so he's like out of his comfort zone, outside the lines. >> the best thing for the banks, of course, would what what we started to see after the jobs report is higher rates and continued talk of that given that interest margin does figure prominently in their profitability. >> 17% of the s&p means rates higher. remember when the interview, jamie dimon, jamie wants -- >> isn't there a ceiling of sorts given the fact that international flows are going to rush in the minute we get to 250 or above there? >> yeah, i think so. i mean you're sitting here thinking, are we going to go to 3%, you know on a ten-year when -- italy's a big country. remember you used to tell me the size of the bond market ita

through the cracks at goldman?that what happened? >> she said she doesn't really know what goldman knew but she did give them false papers. >> is she concerned about being prosecuted for perjury? >> not terribly. in order for her to have the citizenship that she currently has now, she had to fill out a form and there is a box where it says have you ever lied to the u.s. government. and she said yes. and with that they still granted her citizenship. so it looks and feels like it is over. >> it's a fascinating story. thank you very much. >>> robert durst is an excentric billionaire and would be a murderer. he was in a documentary called the jinks. did it go too far? erika pitsy has more. >> los angeles prosecutors have charged durst with murder of his long-term girlfriend. the fbi says when he was arrested durst may have been trying to flee to cuba though his attorney denies that. millionaire real estate heir robert durst is now in custody facing murder charges of his close friend who was shot in the head 15 years ag

and coo of goldman sachs.reat to see you you. thanks for having us. >> thank you for being here at our leveraged finance tmt conference. we've got 500 great clients presenting today and i know you've interviewed a few so far and thank you for being here. >> what does it say that you put a whole conference together on leveraged finance in tmt. >> yep. >> what does that say about the time we're in right now. >> it says how important the tmt franchise is to goldman sachs and the economy. technology continues to drove our economy. there's's quite a bit of debt out there. a lot of companies presenting today are established companies, companies that have been in the technology space for 10, 15, 20 years, have enormous amount of debt and continue to borrow in the market to expand their businesses, expanding their business means creating new product and growing jobs and growing the u.s. economy. >> we're in a period speaking of debt where the picture is very strange to a lot of people. jeff gunlack saying $2 trillion

the goldman saks, they're picking on this company today.you look at the trends, you look at the holiday sales sales, i actually think -- they revised their numbers back in january. they're actually something far better than what goldman saks is saying right now. i tend to go with the others. i think dana is right. >> i don't think that it's recovered enough to reward the 27% increase in price. another one, coach, that stock has been moving -- they're far ahead of themselves. >> they think it's bottom suicide and it's on the mend, rebound. snoo new product line is coming out. i'm just not there with coach. i think it's old style. >> how much will that bottle of cabernet savignon set you back. scare crow wine. it's up next after the break. first, in case you missed any part of today's show, here's what we call the big payoff. >> yeah. >> it's not going to hurt you. you can park your money there. i think the up side perhaps next week or two, there's -- >> we'll know five days from now whether or not the ceo of citigroup still has a swrob. if c

he said goldman can be a force for both good and bad in society. cruz: my criticism with washington is they favor wall street big business and that is why i have been an outspoken opponent of crony capitalism. i think the business, a fair building a better mousetrap, great. but it should not be government wavering. betty: he says they should not get government subsidies. where many big things are not done, the fairway in washington. coming to the capital to receive a congressional gold medal. the highest reward congress gives to civilians. he teared up during the ceremony and soda john boehner. you can see it is quite an emotional ceremony. those are the top headlines this morning. coming up facebook has doubled since the trading debut. mark zuckerberg still has more to prove. we're live in san francisco for an update on his latest pitch to developers. ♪ betty: scarlet fu looking at the early action, including the crash deal. >> that is right. combining it with clients. certainly leading to a big swing in kraft shares, a big jump. it could also lea

another couple of banks people might be watching this year might be goldman and citigroup will stop goldman came in very close on one of their ratios, the risk based capital ratio. when you look at their scenarios and results, they were much more optimistic than the fed so they would have a chance to resubmit. there's also a chance their capital plan includes different types of issuance that under the stress test and capital planning process may allow for a buyback. >> oldman also use the mulligan last year. that would be two years in a row if they had to use it again. mark: you wrote that goldman's extra cushion of capital is not enough to match the dividends and share repurchases. did the toughness of the first rounds of tests catch people by surprise? >> i think the way it was measured seem to catch them by surprise based on the way they estimated they did in their own version of the stress test. each bank runs their own version and goldman certainly had a big gap. it makes you think they are either going to have to lower their request or change the structure of it and possibly issuing s

goldman sachs taking a baby step with the goldman sachs bdc business development corporation.rms. goldman's bdc expected to price between 20 and 21 a share, 6 million shares in 900,000 share overallotment trade under gsbd. now goldman sachs declined to comment but a lawyer says other banks are keeping an eye on the ipo to see if it's a way to provide funding without making outright loan that carry hefty requirements. it doesn't require a bank set aside additional capital. goldman, according to a filing will hold 20% stake in the firm investing alongside its clients benefitting from capital appreciation in the high dividends bdc is expected to pay out, as required to distribute 90% of its income. for goldman a small investment so any risk is reputational than financial. if it underperforms, according to the analyst. goldman asset management arm does face a tough market right no bdcs with competition from lenders and asset quality of bdcs at low level. so wall street will be watching. >> thank you so much. >>> over to the cme. collect in with rick santelli and get the santelli e

at goldman sachs here is the thing. came out in political argument where lloyd blankfein read, a bunch of his colleagues, lloyd blankfein is ceo. melissa: of goldman sachs. there he is. facial hair going. >> are having fund-raisers next week for jeb and hit the ceiling somehow it leaked out because he is a huge hillary supporter. melissa: i feel like those guys spread money around on both sides. >> not the last couple of years. if you noticed what happened at goldman under blankfein, heavily to obama in 2008. heavily to mitt romney in 2012 because of what happened with financial regulation and right now i will tell you this. lloyd blankfein loves hillary clinton. remember, gave her a lot of money. gave speeches to fold man where she made a lot of money with lloyd. he loves her. he is not happy these guys that are basically publicizing that they're holding fund-raisers for jeb. melissa: i don't think democrats on the left love the idea goldman sachs is supporting hillary clinton. >> that is not my business. melissa: i th

goldman sachs and morgan stanley cleared -- deutsche bank failed. people protested outside of the home of one of the students. wall street's bonus to $28 million. -- billion dollars. the industry added 2300 jobs in new york. the first expansion since 2000. i bet a lot of it was in the back office. compliance. a big lawsuit for facebook. a federal judge said thousands may sue the company because it will not pay refunds. facebook plans to defend itself vigorously. rents soaring for the smallest apartments in manhattan. the median rent climbed by 10% last year. a record high. one reason for the increase many would-be buyers cannot afford bigger homes. tom: this is incredibly fluid right now. there is a dynamic here across manhattan and london as well. with the currency movements, you wonder where we will be fourth of july. olivia: you would be shocked how far it won't get you. tom: merrill lynch has to live this every day. a studio is outrageous. you were way ahead on this story. olivia: i'm shocked by what's going on in iraq. there are rockets and mor

morgan and goldman sachs and morgan stanley did.se stress tests with the notion that if the fed says no to anything, that is bad. that makes sense. you don't want to be told no by the fed. what these banks did was make aggressive proposals or aggressive requests to raise dividends or buy back stock and were told by the fed that is too aggressive please resubmit. what you can do -- that is called the mulligan. they got the initial stress test results. the fed came back to them and said your dividend and buyback requests are too aggressive. come back with some to nelson. the key is the fed gives them guidance a when you make resubmission, you have a much better chance of getting as you want because the fed has given you guidance. that is what the shareholders want. what we talked about with citigroup having to clean its beak and bank of america being in the worst position of the wall street backs because they only got a conditional approval. the best performers here in a relative sense might be jp morgan goldman sachs, and morgan stan

goldman sachs is predicting gains of 220,000. that's belocon census. they also outlined why this jobs report could be great and some reason why it may not. on the plus side we have positive service sector surveys. average falling jobless claims anden increase in job ads. >> however on the down side weaker manufacturing employment surveys and increase in households saying jobs are plentiful versus hard to get and the harsh weather in february. that got us thinking. do you think this could be the jobs number that disappoints. does that set too high of an expectation for the month of february? join in on the conversation here on worldwide exchange. get in touch with us e-mail at worldwide@cnbc.com. our handles are on the bottom of the screen. >> 222,000. >> that's what you expect? >> i think anything above 200,000 and the markets will respond positively. >> i agree. it's keeping the momentum of consecutive months above 200. because all the other data has been positive. as long as nothing is terrible we continue to see yields rise. >> it's also about wage

goldman invested in the bdc and will maintain about a 20% stake.hey function like mutual funds, banks don't need to set aside capital to cover these holdings. the upside for goldman and its clients, the high yields generated by the bdc which will distributor about 20% of its income. as the manager of the bdc, goldman will also be collecting fees. for goldman, it's a small investment so the main risk is going to be reputational, not financial. she says the bdc may underperform as the group is generating lower yields than they had been recently on what she considers to be poor underlying assets. wall street will be watching. tyler, back to you. >> mary thanks very much. you may want to stick with us. now to a disturbing trend that is emerging in the national football league, players retiring early and many of them blaming injuries and the risk of concussions. here's a look at some of the players who recently announced their retirements. not all because of concussions, but all are under the age of 30 with the exception of patrick willis, and he is jus

what does goldman sachs think on whether they should stay or not. is there an economic argument that you can make around? guest: there is a great incentive for the u.k. to stay in the european union. we have seen a continuous deepening of the relationships between the u.k. and the continent. obviously the continent is doing its own thing. succumbing together with the banking union and going forward and the capital markets union. the idea here is the prominent financial center has much to contribute to the projects to shape them in a way that is consistent with the ideals of how the capital markets should be wrong. >> good to get your thoughts this morning. with that in mind, later today ed miliband will set up his party's pledges the business and we will bring you a first interview with the labor leader soon after he speaks. now here is a picture of the markets. green across the european indices this morning. and what the chinese might do to boost their economy once again. on the move is back in two minutes. anna: in france, the former president nic

what do you make of the goldman bet against the yuan?ey will probably be right short term. the focus is reform. reform is a five year to 10 year thing. it does what goldman talks about. it has a dampening effect on the economy 7% is a mythical number. private and public companies are growing less than that but they are still growing faster than the u.s. and europe and japan. the value of the stock market went up more than 50% it is still at a discount to the rest of the world in china. so i think overall you have good valuations. management of the business, if you will, the country as a business. they are probably doing the right thing. betty: when you say 7% is a mythical number, what do you mean? michael: companies are going 5% to 7%. the 7% has a lot of state owned enterprise growth. the government is in it. the people's bank of china yesterday said it once again they are going to be supportive of the market. the chinese market was up 2.1% yesterday again. betty: it hit an eight year high yesterday. michael: i am very happy. a slow-gr

shares of most of the big wall street banks rising today after passing goldman, j.p.stanley all seeing gains rise after being submitted revised proposals that got the fed's okay. all three will now raise their dividends and repurchase stock. bank of america passed conditionally though and will have to resubmit its plan. also authorizing a $4 billion stock buyback. citigroup won approval to raise its dividend and buy back $7.8 billion in stocks. deutsche bank did not pass. what does it take to make the grade? is passing actually a good thing? as i mentioned bill rhodes joining me onset author of "banker of the world" and former citigroup senior vice chairman. matt miller joins us as well. do you want to pass a fed stress test right now? do you want to pass with flying colors? >> i think in the case of citi it's about time and they've done it and i give a lot of credit to mike corbett and his team in being able to do it. >> had he not done it he probably would have been out right? >> i never doubted he'd do it, matt. >> i mean, i think alix's question is a good one but

goldman: those are good questions. what i'm trying to do is utilize the past to do with the present. there is no doubt that what we have built with treating veterans as not change. there have been things that change the peloponnesian war to afghanistan. both of my political research and research i've been doing in almost two decades, one of the most unacknowledged aspects of doing with veterans was to the country with which they fought and the country to which they return. the fact that it was the american civil war in relation to the objectives of the war the fact that you had a despised minority who, for the second time in american history had proved themselves to be good soldiers as they had in the american war, and one thing we found over the years is that military service particularly tends to be not only radicalizing, but there are things they will not tolerate when they got home and we have seen that with or after war particularly in response to african-american sailors. particularly with that after desegregatin

a division of goldman sachs is making money.hing in the michael moore story today is they are making about 2% on loans to very wealthy clients. that is fantastic. i want to be a what the client just to get a 2% loan. i can get a 2% on my mortgage. betty: which is like cash essentially. bob: it is. betty: number 2 -- american airlines added to the s&p 500 index. the change is effective after the close of trade on friday. what is helping airlines these days? oil. we fell to the $43 a barrel level now. look at this. incredible. we have resumed -- bob: according to a report, we will get uranian oil -- iranian oil. olivia: it does feel like a golden moment for the airlines. you have cheap fuel and the job numbers are going up. this is where they need to be to find profitability. betty: book your vacation now. bob: the bad news, it has to pay extra for legroom. betty: we all do. join the club. bob: thanks for laughing at that. ♪ betty: bob and olivia join me this morning. we get to number one. all eyes are on janet yellen this week. u

goldman is saying invest education should use any pullbacks as an opportunity to buy. companies focus on returning cash to shareholders such as apple, pfizer, time warner and fedex and specially financials, technology, consumer discretionaries. they're the biggest buyers of stocks so they'll feel the most impact. >> time warner, a trailing 12-month basis this is almost a 10% yield between your div and buyback yield. it's a company that to me has a lot of drivers also. the hbo spinout. the bundle spinout begins in a couple weeks. this to me is a name and a place where i think what goldman sachs is also saying is this may lead to buying opportunities. time warner, you don't have to buy it tomorrow. stock preenltly hit an all-time high. i think a lot of these names will give you an opportunity and you should make your polilist a check it twice. >> goldman says in half of the last eight quarters the s&p 500 traded lower during the four weeks prior to earnings season. a period? which we are. so the theory i guess is buybacks help prop the stock up or move the stock higher.

goldman sachs is support is a financial liability and the second-biggest losing currency. only the ruble lost more. caroline: thank you. let's kick on breaking news. a little luxury for you this morning. just missing analyst estimates. for the failure, 2014 -- for the full year, 2014 was just ever so slightly shy. operating income came in at 1.2 9 billion euros, slightly down from the estimate but they are proposing an exceptional dividend of five euros per share. they also have a regular dividend of 2.95 euros per share. shareholders probably going to be happy by that rather hefty special dividend. across the board, you are looking at a regional breakdown across regions. u.s. strong, japan strong europe up 7%. this is a company able to weather the storm better than its peers because of its exclusivity, it's limited appeal, it's limited supply. it has written out the storm of slowing growth better than expected. we are watching for dropping prices. china is a problem. watch sales are down 11%. textiles and silk are good but watches seem to be a problem. 2014 sales will be

when you get a conditional approval both goldman and jp morgan had them in the past. if the fed is going to let you start buying back stock they're sure you'll get there. i do think it will be a nonissue. so the amount of buy back, the $4 billion is less than a lot of the street was hoping for but the fear was that they wouldn't pass on a qualitative basis. to me passing conditionally is actually a big win there because last year they had to turn off the buy back because they were calculating their capital wrong. they still haven't come out for the adjusted approach. so i think just getting approval and a descent number is actually a lot better than it could have been. the street is probably expecting too much so the stock is going to be down on this. realistically it's a good outcome. >> drop this into a frame work of drivers for these guys. the regulatory frame work is are we out of the woods here and there's still settlement to be done and where are you taking the biggest drivers in this sector because there seem to be many right now and people are confused how to

>> i think goldman makes a good point. i think that's where we're settling in.ehaves in integral parts. it makes very quick moves very quickly. once that e quill libbium is bet, it tends to settle in a range. i don't see oil above 65 for the next three to four years just based on where we're at now. i think we've now settled into that range where you buy below 50, sell above it. >> what are the metrics you're looking at to trade oil? >> i'm not going to make a three-year call like brian did. i think we're still in the bottoming pattern. the euro got hammered last week and the crude didn't budget. $2 higher from here and that's where i may buy it. >> gentlemen, we'll talk more on the show tomorrow. 1:00 p.m. futures now have. see you then. >> we certainly will. europe's closing now. the bond buying has gunnbegun. give us the scoop. >> we have reports coming in from around europe that the bond buying has begun. the ecb won't confirm that of course until next monday. you're just relying on people seeing or witnessing the trades going through. the stock market is ma

goldman sachs barely passed the first test.for a stronger results from the second one. citigroup flunked out right last year. the ceo needs the bank to pass or his job could be in jeopardy. there is more fallout from that fraternity controversy at the university of oklahoma. the school has expelled two students seen in the video leading fraternity brothers singing a racist chant. one of the former frat members has apologized in an e-mail saying the incident was probably fueled by alcohol. are you kidding me, dude? the parents of another said their son made a horrible mistake he will have to live with forever. erik: it has been a while since you heard about the last big corporate hack and that is no accident. for to many companies failed to report cyberattacks. they might be too embarrassed afraid of litigation, or afraid of what might happen to stocks or they just don't trust the government. with us is the special agent in charge of cyber at the fbi's new york office. welcome. i can't sam surprised to hear that companies failed

goldman -- brendan: how do you make that happen?k any competitor is unique to itself. brendan: how do you get each company to think differently about capitalism? that is a huge lift. charles: you don't go after the whole elephant. you go after one bite at a time. it starts without you behaving your own work, and if you focus on doing a really good job -- tom: at the heart of this, olivia sterns, is the idea that corporate leadership represents a lack of exuberance. olivia: i would say it does not matter how adult any leader is in the room, but he's still a slave to the quarterly metric. robert: reading charlie chapter in this book -- reading charlie ellis's chapter in this book, it seems like some the happened to goldman and all these firms, and that is, an emphasis on profit. before, it was we work for a great company. and then it became "i am making ," and these lives changed. are we getting back tackle -- getting back? charles: i think we are getting back. you are right, 90% of these companies, based on relationships. you really

goldman: those are good questions. what i'm trying to do is utilize the past to do with the present. there is no doubt that what we have built with treating veterans as not change. there have been things that change the peloponnesian war to afghanistan. both of my political research and research i've been doing in almost two decades, one of the most unacknowledged aspects of doing with veterans was to the country with which they fought and the country to which they return. the fact that it was the american civil war in relation to the objectives of the war the fact that you had a despised minority who, for the second time in american history had proved themselves to be good soldiers as they had in the american war, and one thing we found over the years is that military service particularly tends to be not only radicalizing, but there are things they will not tolerate when they got home and we have seen that with or after war particularly in response to african-american sailors. particularly with that after desegregatin

i'm still in the goldman camp in the earnings.hink their division knocked the cover off the ball. i'd rather be goldman right now than the other two i mentioned. >> everyone talks about the banks. the last time i was on we had this discussion. everyone is around flat except bank of america is down 10%. but if you look at the wealth management stocks, you said i sound like a spokesperson the other day for e trade. if you look at e*trade and charles schwab. >> do you think the markets are going to pull back? before you said euro stocks as well as s&p, they will pull back. >> right. >> will the retail investor still be trading? >> yeah. i think that's what actually gets guys engaged more. the better question is i think all stocks, if you think the market is coming in, 70% of the overall market is coming in. the trades in the overall market. it is the overall market. i still think when rates rise, those are the two names you want th to be in. >>> big bets on electric new science that could reinvent the future of medicine. we have the

heidi cruz is on unpaid leave from goldman sachs. mark halperin asked cruz if he thought goldman was a positive or negative force on society. cruz said some of both and partially blamed washington. ted cruz: my criticism with washington is they engage in crony capitalism, they give favors. i have been an opponent of crony capitalism. taking on leaders in both parties. big business if they are building a better mousetrap, great. it should not be government favoring. matt: now that his wife has taken leave, the cruz family will lose its company-provided health insurance. he told cnn he expects to get coverage through obamacare. olivia: more on the megamerger. can shea joins us from new jersey. also with us, julie hyman looking at some of the details. 3g, the brazilian buyout kings, have a reputation for slashing costs. are they going to cut fat. matt: we are going to have fun with puns. olivia: is it an american empire? or about slashing costs. julie: warren buffett likes to eat processed foods. it appears to be, lipservice to the idea

they did a better job than goldman sachs.he skin of their teeth. >> there is a little bit of wiggle room with the banks. this is what we want, right? we want a tougher fed, we want harsher multiple level stress tests. do you guys agree? is this a good thing? as a country, this is what we want. give me the other side of it. matt: what if you had less regulation and then when banks fail, you let them fail? that is kind of a novel idea, a free market, crazy thing. julie: then what would happen to the overall economy. matt: a former j.p. morgan chase executive is invading the world of virtual currency. he is the ceo of digital asset holdings that plans to use bitcoin for recording or settling asset trades. it could include anything. she says that trading takes place at work speed, settlement doesn't and bitcoin takes place pretty darn fast. alex: why do we need banks at all? we could use bitcoin as our currency. this is more about the idea of settling trades and helping banks. if you use bitcoin or other digital currencies, there

sachs in the united states. -- simulating the model of goldman sachs in the united states. sarah: we will stay in frankfurt for a closer look at those numbers. as javier mentioned, germany's stacks lost -- germany's dax lost on the day. the tao is in positive territory. -- the dow is in positive territory. ben: sports news. and mclaren says -- mclaren says he will race if he passes a final fitness test. sarah: he has been cleared to travel to asia after passing a memory and reflex test. if he passes, alonzo will race. he suffered a crash in barcelona and missed the march 15 australian season opener. moving on to the bundesliga -- a shock result on sunday. the runner week -- the runaway league leaders bayern munich went down 2-0 to gladbach. ben: that will hurt. much of the blame for the slipup has been put on the normally rocksolid keeper, manuel neuer. reporter: from world champ to world chump. this was an afternoon manuel neuer would rather forget. hermann picked out raffael who slotted it through neuer's hands. the home side looked lethargic and out of ideas. gladbach we

goldman sachs clearly the one that scraped by.they will not be able to pay out the same kind of dividend and give the same kind of share buybacks. bob: are we worried about citigroup because they passed the stress test? i been worried about citigroup for years. betty: why? : because a notch or citigroup will survive another downturn. and the stress tests for some -- bob: because i'm not sure citigroup will survive another downturn. olivia: is it the size, the leverage ratios? bob: the size of it, the mismanagement that goes on, and the quasilegal going into the legal aspects of what they've been doing, and what they've kept doing since the crisis. they haven't stopped. betty: mohamed el-erian just talked about how he is skeptical somewhat of mario draghi's plan. that is number two. the ecb bank president mario draghi and his qe program beginning on monday. he's very optimistic that this is going to work. more so than anybody else. olivia: good for him. does this fix any of the core structural problems in europe? no, but it buys hi

because it wasn't just goldman sachs. we know that citigroup was involved in this.an. we know that most of the marquis companies of wall street knew in the later stages, at least, of this bubble, that things had turned seriously south and they stepped over the line. that's what the sec has said. jose: and that led to the great instability and the financial crisis that exists today. jeffrey: we need the justice department to come in and take a real look at who broke the law, who didn't break the law, where there's responsibility, where were the boards of these companies? where is some accountability to get this right? glass-steagall, the banks, you couldn't have an investment bank and the regular checks and savings banks operating in the same business. jeffrey: serious and necessary regulation, including re-enacting the glass-steagall act, which forced the separation of the commercial banking from the casino. lillian: you wonder... how long will we accept this wildness, this--this... what do you call, living it up, at the expense of the 99%. narrator: over the last 3

i like this goldman note today. no offense, adam.y say why investors should own firms with high domestic revenues. they take sector by sector and name names about the ones that you should be investing in right now and maybe that's the way to play it. do you agree with buying stocks of those companies with the highest amount of revenues coming domestically? >> yes. goldman's point is that at an individual stock level, there's a huge impact on the dollar. but on an index level, they opponent to nine different regimes, as far as dollar strength, dollar weakness. there's zero story that you can weave based on that history and say the dollar is either good or it's bad. it can be either one and it depends on a lot of other factors. >> but scott -- >> go ahead, adam, please. >> we try to publish stuff before it happens. we published it october 6th, way before the stuff happens. where we go through not only the impact that the dollar has on the market overall, but above and beyond that, on how it impacts sector industries and the biggest 50

goldman sachs earnings have not been great.have raised their legal estimates, cost for their legal estimates costs to $3 billion. so, you know, the question is, will goldman sachs be able to do more stock buybacks and dividend increases? they had really poor showing on federal reserve phase one of the stress test results. this is the equivalent of march madness for the banks. the federal reserve phone call was very crowded. a lot of people weighing in to ask questions. federal reserve had this to say. banks can continue to lend in the event of a severe economic shock. they said the test results are positive for banking sector. david: good. >> it is good for the economic strength of the united states as well. back to you guys. liz: liz, thank you very much. list mcdonald. david: great. liz: carmelo anthony, yes, the nba star hopes to score big with a new investment with a 3d company that wants to help you put your best foot forward. we have the ceo of the company straight ahead. david: we have the very latest on the massive flig

goldman showed up 17 years ago. we talked, went to lunch shared ideas, iced versions -- aspirations. i introduced steve to a collection called left-handed penmanship. the person in charge of maintaining the collections had come to me earlier prepared to dispose of that particular collection, said they had so few users on record. it was really a contest, set up for civil war veterans that had suffered the loss, theoretically of the right arm, many lost the left arm or leg. the object was to train them, or help them trade themselves, or stimulate them to train themselves to the use of opposite limb. a $500 top prize -- it was so successful, it was repeated several times. anyway, the collection is a treasure in that it had the personality -- the life experiences in writing of numerous veterans who had survived the war. and had experienced the trauma of losing a limb, usually a right arm, sometimes a leg. steve started working with our collection, and the end result is a great expansion of his knowledge of civil war ser

she feels she paid for her choice. >> while you were working at goldman, your father died in mexico. what did you do? >> that was the worst day of my life. not being able to go back and be with my dad and my family. >> reporter: she couldn't attend the funeral. if she did, she risked not being able to get back in the united states. every day on the job her anxiety deproou worse. >> each -- grew worse. >> each step was nerve-wracking. things could have gone wrong, i could have been deported and ended up in gaol. >> the biggest thing that having papers gave me was freedom. i wasn't free before. >> reporter: with that freedom came change. she left her job on wall street and raises money for nonprofit define american dedicated to campaign for students in the same situation she was in. >> reporter: what about people that say what you did was patently un-american, that you didn't do it by your own bootstraps, because you didn't do it the fair way? >> i would ask them a question - what is fair? is it fair or an 18-year-old girl who worked her entire life to get good grades and be able to ge

morgan chase and goldman sachs, morgan stanley, it's all about management of risk. and if y t risk properly it can be a very profitable business. that's what citi has done. now granted, they have learned some very hard lessons during the financial crisis that brought them to their knees and as a result of that that unit is managed much more conservatively than it was back then. >> what other banks do you like in this sector? you know a number of them did very well. 28 out of 31 passed. would you buy any of the others? >> yes. we see there are a number of banks that would be returning enormous amounts of capital over the next few years. pnc financial is one of these banks well managed out of pittsburgh pennsylvania positioned in the southeast now to grow even faster and they also had a big win today. key corp. out of cleveland ohio another well managed bank. they've done a great job in managing their capital and these are regional banks that people can buy as well as j.p. morgan. we think j.p. morgan is another investment people can own. >> yes or no will rising inte

goldman's the lead manager in the 14.5 million shares and goldman is also sharing shares. it's a very goldman day. >> yes. >> isn't that terrific? >> speaking of being in your car, we should mention garrman. >> you know you love your garman, but now you hook up your iphone it tells you pretty much what garman is going to tell you. >> this cardiology conference. met >> he knows better than anyone. they have a device that makes you not have to crack open the chest cavity. it's going to keep winning. edwards has been the real winner. their scientific editor. ew you're not going to go wrong. i think eventually e.w. gets acquired. it is such an amazing company. i really love these guys. they've been on they are terrific. they're the technological leader. the doctors love them. and they're great guys. >> yeah all the action around heart valves this week. >> and then cardiology is going to save lives. it's really terrific. as you get older, more and more people are having heart surgery and they can't tolerate the chest crack. >> all right. we'll get a lot more after the break. an

goldman sachs standing pretty tall, so is jpmorgan.p is moving higher because it finally broke the two-time losing streak of not passing these stress tests. this gives michael corbett a new lease on life as the ceo. they will be able at least, maybe five-fold or six fold up that dividend. david: it actually said, if they fail another stress test, he would probably have to leave. so he doesn't have to leave now. michael corbett looks like he will be in the driver's seat for a while. peter barnes, thank you very much. so who is going to raise dividends and issue buybacks? two top wall street banking analysts tell us what is next for bank of america and citi and more now that the results are in. we're tracking after market reaction to all the stocks. liz: the showdown before the smackdown. mayweather and pacquiao go chest to chest ahead of their multimillion dollar title fight. a top boxing promoter tells us how much this battle means for the business of boxing. we'll take you live as soon as the news conference starts. don't go anywhere.

julianna goldman cbs news washington. >>> well the u.s. is expanding its efforts to train iraqi forces battling isis. hundreds of advisers are working at a military base just north of baghdad. a u.s.-led air campaign has been targeting isis positions in iraq and syria since august of last year. iraqi armed forces and shiite militias have been trying to retake the northern city of tikrit saddam hussein's hometown. >>> 125 u.s. military were rescued over the weekend. shiite rebels who back the ousted president seized yemen's third largest city sunday. thousands demonstrated in the streets. they're battling insurgents known as houthis who have taken over a large part of the cost have ousted the government and formally taken power. the u.n. urged both sides to withdraw. >>> afghan's new president afghan will meet with the president in the united states. >>> and the bodies of seven children killed in a new york fire are headed to israel for burial. thousands of people in brooklyn's ultra orthodox jewish community gathered sunday for the funeral