goldman sachs is no exception.venue and a beat on etf's to lower estimates and a miss on trading revenue. i will dig into the statement and take a look at some of the market reaction. return on average equity, 6.4% which is pretty dismal. bill cohen is with us. and laura keller joins us as well. sachs had already had its estimate cut substantially. this is a miss off of estimate that were down dramatically. they did apparently beat on the etf line after bringing it down like 50%. it was a tough quarter. quarter as the eighth largest drop in the dow in history, -- it took a lot of people by surprise. you would think wall street traders might pick up on this somehow or beeper aired. that's what you are seeing in numbers across the board especially on trading. morgan stanley and goldman sachs don't have other sources of revenue to help them out in situations like this. goldman sachs always had a reputation for being smarter than everyone else and being better traders. i am curious to see whether in the trading busines

in one period during august 2006, goldman found what it called "an unurgely high percentage of loans with credit and compliance defects." when one transaction manager was asked by goldman officials, "how do we know that we caught everything?" he answered, "we don't." on what you mean by "everything." " when an outside analyst wrote a positive review of countrywide, the head of due diligence at goldman wrote in an e-mail, "if they only knew." this was a civil case, so no one is going to jail, and that's likely to add to the anger according to robert weissman of group. >> millions of people were thrown out of jobs. millions of people lost their communities were destroyed all because of wrongdoing, yet they escape any criminal accountability it seems. >> reporter: while a $5 billion civil penalty is a lot of money, scott, approximately half of it appears to be tax deductible, which means goldman sachs will be getting a tax break that could shave close to $1 billion off the money it has just agreed to pay. >> pelley: dean reynolds reporting tonight. dean, thank you. coming up next, the s

look at goldman. we were right about goldman or were we right about goldman?aid don't sell goldman. gary, are you going to sell gary? you an idiot? you go to college to get stupid? >> johnson & johnson up 2.5%. when we were standing at the tell straighter it was up a half a percent. >> don't bet against west point. don't bet against tony because he is on your show at 12:00. >> perfect segue. what's on your show at 6:00 eastern? "mad money." >> i've got some explosive stuff on the entertainment and cable play including what we talked today and off the tape situation. i'm going to be watching you because i want to see this match between katie and tony. and maybe katie's just an empty chair in the end. watch deere, deere is up even though -- >> if katie doesn't show up, we'll do the thing on pti where you print the face out and hold it up and make the argument. >> i love that. i love that. >> okay. we'll do that. >> what a great idea. we'll see those guys at the correspondent dinner. i love them. i know they're on another network, but i love them. >> have a great

goldman sachs is investigating itself.alaysian attorney general just said he cleared the prime minister of any wrongdoing but the swiss thanks for billion dollars is missing and he was investigators subpoenaed 10 leistner. , he important to point out was amazing at connections. he really will himself into the fabric of money and power in malaysia and those connections were an amazing thing and he got paid a lot of money. those connections were also what help to bring him down. >> how odd of keeping is this what the goldman sachs style? not a lot of flash and publicity. i remember speaking with john whitehead, a former cohead. he wrote this list that started as a memo, a formal -- an informal list of commandments. was important people like important people. are you one? [laughter] -- one thing you liked about the story is when goldman exports that recipe into emerging markets, those connections have become pretty complicated pretty quickly. the prime minister of malaysia was also the head of one mdb and was a friend of 10 l

this goldman sachs $5 billion at bat total. but it's also less than a third for context of the record $16.6 billion bank of america. a justice department attorney working on the case said the settlement, aubrey chuluota bay. they said the resolution holds goldman sachs accountable for serious misconduct and falsely assuring investors securities were backed by sound mortgages. when it knew they were full of mortgages that were likely to fail. that's from the justice department a little while ago. the new york attorney general is scheduled to speak about an hour and a half from now. back to you. neil: thank you very much. you always wonder with 110 billion today, where does that money go? not to worry think it might. the goal of this is to make whole -- may partially whole lot of investors who supposedly got out. mortgages they could ill afford. at least some partial closure. doesn't work out that way. gary wonders why. >> look, by the way, the real story for me on goldman is they actually invented products, sold them and shorted

but at least goldman's stock price took a hit when the news was announced, right?the close of the session, bernie, goldman sachs' stock was actually up more than 1%. >> seth: uh! so let me get this straight. goldman gets fined, a few weeks worth of revenue, that total turns out to be lower because of tax deductions. and at the end of the day, their stock price goes up. at this point, i wouldn't be surprised if these were the cops the feds sent to arrest them. [ light laughter ] so the banks haven't really been punished for their role in the crisis. and on top of that, their allies in congress are still trying to roll back new rules passed after the crash. like in a senate hearing earlier this month, when republicans called a witness who critics say failed to regulate toxic mortgages as an official at the federal reserve to testify about why the new financial rules should be rolled back. and when he tried to claim there were no warning signs before the 2008 crisis, massachusetts senator, elizabeth warren let him have it. >> given your track record at the fed, why sh

goldman is the last of the big banks to settle with the government.dean reynolds has more on this. news of the $5 billion settlement thrust goldman sachs into the glare of the public spotlight and cross hairs of the presidential campaign. >> they're a fraudulent organization. >> the wall street firms engaged in greed, massive greed. >> reporter: in february, morgan stanley settled for $3.2 billion. wells fargo agreed to pay $1.2 billion. j.p. morgan chase, $13 billion three years ago. and bank of america coughed up a whopping $16.6 billion in 2014. goldman admitted that in bundling mortgages from subprime loan specialists like countrywide financial and selling them to investors as bonds it largely failed to address financial problems it knew about. in one period during august 2006, goldman found what it called an unusually high percentage of loans with credit and compliance defects. when one transaction manager was asked by goldman officials how do we know that we caught everything? he answered, we don't. another responded, depend on what you mean by

w goldman. >> reporter: voters have spoken.litics it its party leaders who decide the delegates that pick the nominee. every state is different which makes the process especially confusing. essentially when you boil it down. getting delegates requires full court press, ground game, political courting and when it comes to the fight donald trump found himself with one hand tied behind his back. >> donald trump right here! >> in colorado this weekend. >> ditch the zero. come in with a hero. >> gabrielle schwartz was hoping he would be picked as a national delegate for trump. ted cruz has been playing the trlegate game for months. ump hasn't and put schwartz on the defensive. >> he gave up on the state didn't he? >> i am not working for the campaign. >> reporter: cruz swept colorado taking 3 >> i want to thank everyone who is here running. >> scenes will play out over the next two months. campaigns scramble to send their loyalisted to cleveland this summer. >> let me tell you who the party bosses are. >> charlie black is a republic

so the fine probably won't hurt goldman, but at least someone's going to jail, right? >> goldman made false and its mortgage backed securities. false and misleading? that's fraud. who commits fraud? crooks. is anyone at goldman sachs going to jail for this? no! >> seth: why does this keep happening? do you know how easy it is to arrest someone in this country? you can get arrested for anything. like, for example, this. >> in north carolina man has been arrested. police say he failed to return a vhs tape 14 years ago. [ laughter ] >> seth: oh, sure. sure, they closed the vhs cold case, but the furby strangler remains on the loose. [ laughter ] so a guy in north carolina was arrested for not returning a vhs tape. but that actually isn't the dumbest part of the story. the dumbest part is the movie he was arrested for not returning. >> a man pulled over in a routine traffic stop, found himself behind bars over a long overdue copy of the tom green comedy, "freddy got fingered." [ laughter ] >> seth: "freddy got fingered?" quick tip for that dude, if your cell mate asks what

goldman sachs should be a much different company but it is not. in other words, the whole process of saying hey, you can lose all the money you want in the stock because basically, other people have lost money in similar stocks. but other people have not lost money in financial companies. this is considered to be one of the top six, if you will, companies in the industry along with jpmorgan, where you didn't lose money. you made mon. >> dick, i have to run. lastly, you say that they should have made a transformational change. those are your words. what should that change be today? >> well, i think it's pretty clear that if the company wants to continue to double down on trading, that may not be the right place to put -- remember, they raised $38.5 billion and doubled down on businesses that were declining in size. i think that the area where you are going to find upside is in two places. number one, you are going to find it in investment banking which i think has a very bright and very strong future. number two, in traditional banking. remember, t

that's not what goldman sachs is.tially, like guy said, a premier hedge fund that happens to be traded out in the world, in my opinion. you can't compare them. they're not like jamie dimon and -- >> they're not a hedge fund anymore. >> that's the core of it. >> that was their bread and butter. >> that's part of the lag. >> when the crisis was there, they had to technically become a bank. that is obviously really hamstrung them. i think it is the premier franchise. it's a lumpy kind of business. it's not working right now. but i think over time it will. >> real quickly, the advisory business that morgan stanley is involved in, it's been a score. but i've got it tell you something, there's department of justice stuff coming down that will put the cramps on that entire industry. so again, don't be so fast to judge goldman sachs. it may appear -- >> well, they're wrong. >> he's wrong to criticize goldman sachs' lack of -- in the last decade. compared to morgan stanley, it's not even close. >> down 90%. >> you wonder why -

traders weigh in, and the names of eight cheap stocks of goldman. we'll tell you what the stocks are and if the traders are buying into this later this hour. first, we start off with twitter falling today despite reports that the company has secured a deal with the nfl to stream thursday night games. cnbc's joorts season in l.a. with the story. julia? >> well, melissa, traders and the nfl say this partnership should a win-win. the nfl's evp of media tells me the nfl did not go with the highest bidder but chose twitter because they believed twitter would help drive reach and engagement and consumption of the game outside of television. twitter will simultaneously live stream ten thursday night football games as they also air on cbs and nbc, and people won't have to log into twitter in order to watch. twitter cfo anthony nodo who used to be the cfo of the nfl tells me this twitter's focus on live events and is hoping this partnership will help twitter grow its logged-in user base which is currently stalling around 300 million users and it will grow th

but to the goldman sachs point, goldman sachs, what a premier franchise that is. this quarter is bad. it's one quarter, they're spring loaded, they can cut costs which we saw them do. you get a few good deals and things could turn around. i think that's very attractive here. >> we'll get into intel and their earnings and the stock fall throughout the remainder of the hour. it's another stock that people are going to focus on in the trade tomorrow morning. and decide what they want to do. >> i think that's great. netflix -- i think the stock market has done what it's supposed to do, very, very expensive companies are selling off that have competitive threats. we talk about this market like, hey, do you think it can go up? it's up 13%. i don't think of this as a market that's up 13%. i think of it as a market that's flat on the year. and we're back to some level of sanity. >> only because the move from february 11th -- >> i can do the math. >> you can look at every sector in the market since that period, whether it's materials, you know, so many of the others, almos

goldman sachs moments ago releasing its annual letter. blankfein seeing commodity stabilization ahead and lots of consolidation. boundd trading will be when economic growth returns. we bring in erik schatzker. give us the worldview according to lloyd. erik: the cycle we are in will last for longer because so many or near thes are at zero bound of interest rates come a change from last year. last year, lloyd blankfein and gary cohen, the president and ceo saw an opportunity for some consolidation in growth. and a better outcome than where we are now. however, this caveat, a direct quote, we do not see how a world of zero or negative interest rates could possibly be the new normal. lower rate of -- economic growth is substantial particularly now that it is the world's second-largest economy and we see room for fiscal policy expansion in some countries and options for monetary policy if meaningful growth proves elusive. an undercurrent of optimism. in, ofme we are unconventional monetary policy and crazy dislocations across the world will at

for its part, goldman sachs agreed to a settlement. it was financial manipulation hollywood couldn't resist turning into a movie. >> the whole houses market is propped up on bad loans. they will fail. >> reporter: goldman sachs was accused with tampering with the kinds of loans it was bundling and selling to investors upgrading risky loans as acceptable when an independent agency flagged them. the u.s. attorney in sacramento gave an example. >> goldman directed the vendor to change 7,467 of those loans, 29 of them, or over a quarter of the loans that were initially graded unacceptable were changed by goldman to an acceptable grade. >> reporter: it wasn't just goldman. earlier jpmorgan chase and others reached settlements for activity that began in late 2005 and stretched into early 2007. the sequoia union high school district was a victim after investing money with lehman brothers. it lost $6.7 million but recovered $31.million later. it invested funds for a bond issue for school construction. goldman sachs agreed to a $5 billion settl

goldman sachs' quarterly results. blue chip names that move the markets today. >>> diamonds are forever. sothebys ready to auction off a ring chershirley temple war. ♪ on the good ship lollipop, it's a sweet trip to a candy shop ♪ >> live from new york city, this is "squawk box." ♪ >>> welcome back to "squawk box" here on cnbc. first in business worldwide. i i'm rebecca quick with joe kernen and andrew ross sorkin. the futures this morning have been higher once again after the dow closed above 18,000 for the first time since last july. both the dow and s&p are within 2% of all-time highs. right now it looks like the dow is indicated up 62 points. s&p up eight points. nasdaq looking higher by about 16. oil prices managed to close down by about 1% yesterday. and they are picking up that and more this morning. wti gaining 1.4% back at $34.30. the ten-year note. treasury market this morning looks like the ten-year yielding 1.787%. >>> today's big stories at this hour. united health group beating estimates by 9 cents repor

goldman says that asian exports are yet to recover.nd expectations of further stimulus from the bank of japan. they say that these are good levels to short asian currencies, especially the won, the bart, the taiwan dollar, and the ringgit. they say there are direct effects -- you can see the yuan strengthening toward the dollar, but weakening versus a basket of currencies. goldman says that china would want to retain those trade-weighted losses, if or when the greenback bounds. yuan arethe won and more bearish then they are predicting -- than they are predicting. what goldman says is that to position yourself for this projected reversal in asian exchange rates, you have to short the korean won. anna: let's pick up this topic with kit. how do you look at the asian fx? do you agree that it is time to sell or does that as a grouping not make sense because there are many stories? kit:," -- as a general story, it is part of the story. my biggest problem, if i ever have a problem with goldman, is that q1 was great, but january was dreadful.

details on goldman sachs there.mf has raised doubts about move's guyshe johnson joins us now with the start of the hour. good morning. guy: look at this chart. tell me if you should be excited about. i do not know. you are starting to see concern creeping back into the market again about what is happening with greece. this is the greek 10-year. as the to 9.3, as high last few weeks, but nevertheless, keep an eye on the spring meeting. later on, jack lew will meet with the germans, so we have an interesting correlation there. we have the imf fighting. we have madame christine lagarde talking the big we need to rip up the entire package be put together and renegotiate the whole thing. that would honestly because a lot of concerns. we have an editorial piece this morning from alexis tsipras in the financial times, people may question that. but it is now down to the imf. i highlight that because it is one of the stories you look at the timeframe through june and july, the brexit, was happening in big greek payments due

tom: a little bird whispered in my ear -- maybe it was jeff currie at goldman sachs, saying goldman sachsthe european business. i am kidding. jeff is not commenting on this. richard, the press release also talks about the americas. city?ura exiting new york richard: that is not clear at this stage. nomura has said they will close some u.s. businesses. it will also use that journalistic terms for cutting in the americas. we have yet to see how that is going to play out. richard partington, thank you so much. coming up later today, the secretary of commerce. we will talk to her on the american economy on the spirit of business. also, penny pritzker on white sox and the cubs. "bloomberg surveillance." ♪ tom: across the bloomberg, further job cuts. i guess not a big deal that it is 70 people, but that is what we are seeing, not the drama of 5000 or 10,000 liked her to bank -- like deutsche bank. it is a big deal in london right now, isn't it? is, tom. it there is noise that other banks will relocate some of their top -- they are planning to cut staff in london. they are trying to trim costs t

given that goldman had fewer employees on hand. the expenses are reigned in at a level i would have thought possible, there are a ton of associates that are cleaning a lot of plates in memphis. premarket training, this stock just dropped. hideous action, everyone trashing the darn thing. when the opening bell rings, the stock starts its descent. down about 50 cents. and then in the time it takes to sing proud mary, the stocks unchanged. finishing at 162.65, with a 3.60 cent gain or 2.28%. you want it nice and easy. a stock that rallies after that future quarter. the worst is over, get on board, we're ready to roll up river, we've seen the trough. >> read the notes, study the history of the company's earnings. this quarter represents the trough in earnings. it's almost inconceivable that a group of smart people won't do better next time out. especially when goldman told us in the conference call, march was better than february, and february was better than january. it's early in the quarter, i would say it feels like many of the fac

. >> goldman sachs getting hit with a $5 billion fine.ric sneiderman will join us after the bell and those goldman shares rallying on the hopes that the last few of these remaining settlements we are seeing in the past just as we're coming up on earnings season. >> where does all that money go? >> that's the question we'll be asking, $210 billion, i think something like that at this point. >> so far, exactly. >> from these fines and settlements, let's get right to the unexpected meeting between president obama and janet yellen with her thoughts, from the "washington post," ylan, good to see you. what are they discussing? >> reporter: the white house has said that the conversation will focus on the trajectory of the u.s. economy as well as the global economy. they also said that regulatory reform would likely come up. also president obama made a focus of his administration to expand economic opportunity for the middle class. these are very broad topics they have laid out. they are not providing a whole lot of detail around what's being sai

we had the goldman sachs results today. is that's what's carrying goldman sachs?back to financials and spaced that there is a risk on sentiment and financials have lagged. you you do to catch up? look for things that have not moved in those are the financials. we are at page 112, how long is this book? -- more are of matter matter of if we want to finish it. the first quarter was tough in this quarter is better but it looks like investors are putting fresh capital to work. etf flows have turned positive in these groups. carol: many are moving toward emerging markets. >> that's good because of the weaker dollar but over the last five days, efa the, the developed economy equities have moved like the small-cap area so people are trying to play catch-up going into the back half of the second quarter which is another couple of weeks away. cory: are there signs that something might be reaching the end of the book? will be reaching a certain witht thatcarol: we talk just about the duration and length of this bull market. we feel it's getting long in the two. does that ma

goldman is a trading operation.ng service hurting them more than some of the other universal banks. they say they are committed to cost-cutting. they said yesterday during the call the fixed income unit volunteered to cut more than the annual 5% call that they see in the employee numbers, so, it is, i guess, hard to tell when you look at all the different focuses the banks have. mark: jenny, -- betty: jenny, thank you so much. jenny surane. before we get a check on how european stocks ended, one stock we are watching is coca-cola. we are drinking less and less soda. the stock is down almost 5%. expectations, but the revenue was pretty soft. people are not jerking soft drinks. mark: let's look at what happened at the end of the trading day. stocks rose for the eighth day in nine. you know i like my winning runs. ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obliga

she has ties to goldman sachs, her ties to big business, so for me, this makes me so angry. need to dress up in costume and protest. >> you have been focusing more on her been on donald trump, who one might think would be more the target for a progressive protester like you, why is that> ? >> i do protest against donald trump, but i feel like the public does not understand who hillary clinton is. so i think that i am doing a public service, because people do not know her ties to big business and how entrenched she is. reporter: bernie sanders has done a lot better than people expected, but it does look like hillary clinton is probably going to get the nomination, if that does happen, can you vote for her? >> i cannot. i really read from her military stands to fracking, to ties to wall street, there is so much that i know that i do not want her. i am one of the 30% of sanders candidates that will refuse to vote for her. reporter: that is a cause of ncern for the clinton camp, that people like this might not come out and vote for her in november and that could make the general

goldman sachs is sent to join j.p.and wells fargo in slashing costs. ♪ francine: goldman sachs said to be embarking on its deepest cost-cutting push in years. the ceo's cuts are to employ layoffs as the bank tries to whether a slump. that is according to people with knowledge of the effort. michael moore joins us now with the rest of the details. thank you so much for coming on. what sort of measures are we talking about? >> this is kind of across-the-board, not just laying off people, cutting deeper than they normally cut this time of year, but expenses, travel, anywhere they can find cost-cutting, they are doing it. they are expected to have a drop in first-quarter revenue. francine: is this surprising? this is what all of their rivals are doing. >> in that way, it is not surprising. a said, not only are we cutting costs, we've got moorman to cut. banks are trying to wait for revenue to turn around. until then, they've got to control what they can control. had j.p. morgan kicking off earnings season from banks. on th

. >>> goldman sachs became the last of the big investment banks to pay a penalty for its role in the financial crisis. >> equaling $5 billion. at 6:30, find out why some say it's not enough. >>> the agreement reached between bart and its workers more than a year before the deadline. >>> i'm spencer christian. nice to see late afternoon sunshine today. clouds will come surging back and possibly some rain. accuweather forecast in a moment. >> did you ever think would you get there? >> i never worry about it. >> plus, the local softball coach with 999 wins is about to go for number 1,000. >>> a woman died after being hit by two cars this morning. she was walking on the ramp between northbound highway 85 and 17 in los gatos before dawn. the first car tried, but failed to avoid hitting her. the second car drove right over her. the victim is a 3-year-old woman. her name has not been released. >>> contra costa gas station owner finds that -- >> handicap accessible businesses and buildings. >> new at 6:00, anchor eric thomas joins us live with a story from berkeley. eric? >> reporter: the ga

goldman was down earlier but then turned around.bm falling after its newer businesses like the cloud is this not making up for lagging legacy business. i also want to talk about more broadly what has been going on with the major averages because we have been looking at new highs for the year for the s&p, the dow, and the nasdaq. if you look at broader measures of stocks, you will see the have actually made record highs. the white line is the s&p 500. the blue is the total s&p 500 total return index, which includes the return with dividends. the purple line is the equal weight index, assuming all stocks in the s&p 500 would be equal weighted, that is the game that you would see. there has been a lot of complaints with the buybacks going away as they tend to do during earnings season. you would see a big buyer come out of the market. short covering seems to have replaced it could this is the goldman sachs index of the most shorted stocks. ofis up 34% from the lows the year. it is been a really interesting phenomenon. betty: let us tal

. >>> goldman sachs became the last of the big investment banks to pay a penalty for its role in the financial crisis. >> equaling $5 billion. at 6:30, find out why some say it's not enough. >>> the agreement reached between bart and its workers more than a year before the deadline. >>> i'm spencer christian. nice to see late afternoon sunshine today. clouds will come surging back and possibly some rain. accuweather forecast in a moment. >> did you ever think would you get there? >> i never worry about it. >> plus, the local softball coach with 999 wins is about to go for number 1,000. >>> a woman died after being hit by two cars this morning. she was walking on the ramp between northbound highway 85 and 17 in los gatos before dawn. the first car tried, but failed to avoid hitting her. the second car drove right over her. the victim is a 3-year-old woman. her name has not been released. >>> contra costa gas station owner finds that -- >> handicap accessible businesses and buildings. >> new at 6:00, anchor eric thomas joins us live with a story from berkeley. eric? >> reporter: the ga

donald trump would love to be partners with goldman sachs.eneralr election voters want most people to work at goldman sachs.hs i don't think that's going to hurt her. i'm sort of truck by the way sanders has not widened his critique. a pivotal moment in the campaign is when he didn't go after the e-mails. at that moment, he shut off an avenue. secondly, he could really go on a class critique of her, living in a fancy house, eating in fancy restaurants, she's of the 1%, and that could be a very big social but not only discreet issues like the goldman sachs' speech, on her whole life. he hasn't been as aggressive as he might be. >> woodruff: that would be taking it to a personal level, wouldn't it? >> i will say bernie sanders has been urged to go after the e-mails, and he made the decision not to. that wasn't what his candidacy and his campaign was about, is what he said. and to his credit, what everyone says, he has dominated the conversation. the movement by candidates in this race has been toward bernie sanders' positions, not towardd anybo

goldman sachs is taking t cost-cutting push in years.expect them to be the lowest of any quarter in a decade. joining us now is michael moore, bloomberg's finance reporter out of london. how are investors reacting to what is going on at goldman? michael: this is certainly in reaction to the environment and what investors want typically when you have a tough environment. they want you to control what you can, and that is more on the cost side than the revenue side right now. this should be well received. jon: that is a big question, isn't it? the kind of expensive cuts we are talking about are expensive, people going down and having extravagant meals, people going from one office to another in europe. they are the types of things that they want to cut back on. is there enough space there? michael: it is not as big of a piece as taking a big chunk out of the competition or the headcount, but it is more immediate. as you mentioned, when you do a big layoff, you have severance costs and it can take almost a year until you start seeing some o

and, goldman cuts. set toestment bank is join j.p.s fargo in a cost-cutting push as slums in trading and deal making their toll. spain's industry minister becomes the latest casualty of the scandal for now.

francine: why were goldman sachs so late to the game?w they have been cutting costs around the edges, but this is the first time we are seeing them try to be more intent on cutting costs down to a big siz e. >> think i will disagree with you. i think they have been very active. 25% of their staff are based in what they call high-value locations, which to me is little value locations, because it is low-wage. salt lake city, bangalore. they haven't pushing a lot of frontline traders out and replacing them with engineers, preparing for the electronic fication of the equity markets. i think they have been very active in putting that what they call operation leverage, but they are pushing it even harder, because when the markets turn -- francine: will they do a lot more, or is this just a process of the trend continuing? >> i think it will be a continuing trend. they reached out to a number of partners, but that's normal. they like to sharpen the management pyramid so they have young people coming through and they keep refreshing the business

betty: feeling the pain at goldman sachs. planning the deepest price-cutting in years.bama entering the brexit debate when he visits the u.k. next week. how much influence was he really have? let's head over to the market desk where ramy inocencio has the latest. ramy: i am calling the session a very noncommittal session. about marketsng were flipping into the red and green and back again. right now, not even solidly in the red because this will likely change. the firebird it down a tent -- we fibered it down a 10th of a percent. u.s. factory output falling the most since last year in february. consumer sentiment falling to its weakest in seven months. rise thefactory output most since 2015. is happening on the imac function. earlier today, in the past hour, i was telling you that three sectors were in the green. three sectors are in the red. utilities are up the most. energy continuing to be down 1.2%. financials down a 10th of a percent. let's take a look at what stocks are doing the biggest players in the financial sector. citigroup offered it earnings report up by 1

she gave one at goldman sachs. there were several people in the audience.hey all sign disclosure? >> first, let's talk about bernie sanders amazed she gets a quarter of a million dollars per speech. bernie, this is the market at work, shall we start there? no wonder he doesn't understand it. i give speeches too. i don't give a quarter of a million. harris: you should. >> all right. [laughter]. on hillary's problem, this is self-created nightmare for her. as i understand it she got her contracts to say each of these speeches would have a transcript. usually you ask for a transcript to protect yourself. so that you've got evidence of what you actually said that others can't abuse later. so, she's got the transcripts. i think she is being very foolish in not releasing them. if she said anything that would cause her trouble, be better to get it out and deal with it, to have people think, as bernie's audience thinks she was conspiring with goldman sachs to harm poor people all over the united states. which i'm sure she was not. harris: let's talk about what it i

goldman finished the purchase of ge capital bank.siness and offering mom and pop a chance to have a goldman. >> a whopping 1% return. when you put it up what you are getting. >>> "early start" continues now. >> a last-ditch effort to stop donald trump. john kasich and ted cruz team up. is there are plan too little too late? this as voters head to the polls in five state elections. >>> bernie sanders and hillary clinton. the democratic battle. what is the key for hillary clinton today and how well does bernie sanders have to do to keep going? good morning. welcome to "early start." i'm john berman. >> i'm christine romans. it is tuesday, april 26th. nice to see you this morning. it is voting day. ted cruz and john kasich aimed at donald trump may fall apart. in hours, voters head to the polls in the five eastern states in the acela primary. indiana is the next huge battle ground one week from now. cruz is boasting about kasich pulling out of indiana as part of a deal where cruz is supposed to give kasich a clear path in new mexico and

this goldman notice is interesting, not just because my travel trust is long into it. more upbeat on apple than others. don't trade apple, own it. 44% of respondents intend to buy an iphone 7 this fall. yesterday we found out how the iphone 5 is doing better. this note is the beginning of what i think is a recognition that we have to look through this quarter. lowell mcadam from verizon said this would happen. there is pent-up demand. look at multiple. talking about 11 times earnings. i don't know. i remain convinced this is one of the bargains in the market. but too many people talk ahead of the quarter. >> well, what carl mentioned in terms of those pc sales, i wond wonder hp inc. down 17.3% in the first quarter. dell, private company, up and actually has retaken some market share. >> michael's been kind of -- >> not sure what that is about. >> he's been kind of -- >> they're still in the process of completing the emc deal which will make him a public company again in a way. they'll have public filings because of that tracker. >> seagate was up yesterday because of t

is anyone at goldman sachs going to jail for this? no.y general lynch is giving the crooks a complete pass. no prison. yeah. i know, the doj is ragging that they gave goldman sachs a civil fine of $5 billion. civil? not criminal. that's a big difference. and the fine is a joke. guess who pays the fine? the crook? no, of course not. not a dime. it's the innocent shareholder who gets stuck paying the $5 billion civil fine. maybe you. and do you know what else is reallydxdçu rotten? the attorney general's phony dog and pony show memo last september. that memo specifically stated that doj would work to prosecute individual employees, not just their companies. that didn't happen here. yep. jury is now back in on that memo. it's a lie. and that's

isis this addition of smsmall accounts g good enough to keep goldman sas s levant? are you saying golan shs isn't relevant? >> is this like 1979. cd's? liz: i gssss. >> bank deposits they came ouwith thihis -- they have a bank, a l o of e wall street firmsms have nknk. goldman only dealt wh h the super rich, now tryi t to take baby s steps to be a player for main street. liz: like citi? >>ikike cigrgroup. we did an clusiv interview with dicick bovey, called it a decade of marketing for ststock pricing. puup a chart. liz:hehey just did. >> my producer called up dicick again totoday and said be spspecific. tetelllls what you didn't tell cnbc or bloomberg. liz:igight, he w o on cnbc yeststerday. >> but tell us whahat you wouldn't tell themem. and d what he said was thi and doubled down on crititicism in the interview with us s and sai goldman neneeds to be sold or merge withth a big bank. z:z: wha >> that't's what he is saying now. liz: they're notigig enough. >> veteran analyst. onofof the senior guys covering wa s street is saying this if isis company is going to sur