bankers trust to get into the investment banking business in this country. in our bank after bankers trust hundreds came because we were suddenly part of america america's. best investment banking in with. investment banking and the united states has changed from being about underwriting and giving advice to being about from a tree trading on him issue and speculating school shift to and that has meant taking on an increasing amount of risk if if it's made i'm game for an emmy or he's a. proprietary trading means trading on one's own account and it fueled a gambling instinct banks lend to each other money on particularly favorable terms it became possible to trade in stocks currencies gold and derivatives to an extent that had never been seen before or for the profits of the banks and the bankers who took home huge commissions bought proprietary trading can go wrong to. all that mattered back then was taking part in the game the bills came in years later they cost billions in cash and the equivalent in trust. and should jane was one of the first to get involv

bankers trust to get into the investment banking business in this country. in our bank after bankers trust hundreds came because we were suddenly part of america america's. best investment banking in. investment banking in the united states has changed from being about underwriting and giving advice to being about from a tree trading one him issue and speculating school shift to another has meant taking on an increasing amount of risk shift but i'm game for him i'm a he's a. proprietary trading means trading on one's own account and it fueled a gambling instinct banks lend to each other money on particularly favorable terms it became possible to trade in stocks currencies gold and derivatives to an extent that had never been seen before or for the profits of the banks and the bankers who took home huge commissions bought proprietary trading can go wrong to. all that mattered back then was taking part in the game the bills came in years later they cost billions in cash and the equivalent in trust. and should jane was one of the first to get involved and was ri

we have wealth management and investment banks, right side investment bank, strong side. one can never, should never be too happy. as far as we are concerned, we think in a year and a half of work we have good progress. >> talk about cost cuts. you are targeting 17 billion, what comes after that? >> we did 1.9 billion of that savings in 2016. 2.9 billion, we believe that is very competitive in the industry compared to our peers. my belief, any organization should improve productivity. a big restructuring was to reach a plateau from which we could evolve, that is apace the world economy is evolving. if you're not doing that you are falling behind. fundamentally when you have to do a big cost reduction program it is because you have not kept pace. 2% and him.osts by -- per annum. >> i think the volatility is a sensitive issue for us around -- we are one of the leaders in the fx market. the market is clearly affecting business. in general, i would say when we talk about volatility, it is like cholesterol. there is good volatility and bad volatility. what we are missing is a

bankers trust to get into the investment banking business in this country. ank after bankers trust hundreds came because we were suddenly part of america america's. best investment banking in. investment banking in the united states says change from being about underwriting and giving advice to being about frya treat trading him issuance but the shift. has meant taking on an increasing amount of risk. if it's made. him a mere haziq. proprietary trading means trading on one's own account and it fueled a gambling instinct banks lend to each other money on particularly favorable terms it became possible to trade in stocks currencies gold and derivatives to an extent that had never been seen before or for the profits of the banks and the bankers who took home huge commissions bought proprietary trading can go wrong too. all that mattered back then was taking part in the game the bills came in years later they cost billions in cash and the equivalent in trust. and should jane was one of the first to get involved it was right at the heart of it he was rewarded by b

david: barclays is warning its investment banking staff half of them they get their bonuses cut this if some top performers may get raises. that is coming from people briefed on remarks from the new head of banking investment. they are looking at a cut in the overall size of the pool. >> yes that is right. , it is not hugely surprising. we have seen consistently bad performance from european investment banks in trading this year. their revenue at barclays is down 7%. so that is not really a surprise. the new investment banking head is trying to introduce is a bit more differentiation, to use his word, in what they are paying their employees. they will take the top 25% and give them a lot more. they have cautioned that the bottom half or bottom quarter should expect their compensation to shrink over time as they try to inject more competitiveness in their investment banking division. mark: months ago, he was asking credit suisse shareholders to pitch in billions of francs for to strengthen the bank's capital buffers. now he is talking about returning cash. he spoke to bloomberg on tues

we have seen consistently bad performance from the european investment banks. revenue at barclays is down 7%. so that is not really a surprise. the new investment banking head is trying to injuries -- trying to introduce is a bit more of a differentiation to use his word and what they are paying their employees. they will take the top 25% and give them a lot more. they have cautioned that the bottom half or bottom quarter should expect their compensation to shrink over time as they try to inject more competitiveness in their investment banking division. >> months ago, he was asking credit suisse shareholders to pitch in billions of francs district in the thanks capital buffers. -- bank's capital buffers. now he is talking about returning cash. he spoke to bloomberg on tuesday about what shareholders have endured. >> they have been through a lot. i'm painfully aware, but i have to dilute my shareholders significantly. there is no way to solve this without massive dilution of shareholders. >> he has given today and hailed the end of a restructuring program which

we have city wooing investment banks with promise of easy a ccess investment banks with promise of easyafter brexit. mark carney taking a different approach to what the eu has taken. a big battle about how much interaction there will be between our financial services industry and europe's and europe seems to put up the barriers, or threaten to saying if you do not fall into line your banking industry will not get anywhere near. mark carney is saying whatever happens after brexit, you are welcome will stop and it is throwing the ball back to them. it is clever power play. there aren't lots of businesses financed out of europe and he is saying, you have to sort this out. a lot of countries will wa nt this out. a lot of countries will want the eu to come to a deal but countries like japan and south korea wa nt countries like japan and south korea want a trade deal and it feels at the moment the uk has momentum in this. the eu has other issues like catalonia so it is good to push it back onto their plates. we would hope it is reciprocated, if not they will be consequences, what do we read i

and co-ceo john reed and sandy weill, i was gonna be the president and run the global corporate investment bankand other jobs. it-- because of turmoil among management, deals are very tough. we had tri-heads of the global corporate bank, co-heads of asset management, co-heads of consumer, and all the staff units, risk, finance and technology, are gonna report to me. instead, all the staff units reported to joint leaders sandy and john. when they did that, i said to him: "you guys are crazy. this will destroy the company. the second you do this, people are gonna be building trenches and stockpiling ammunition. and by the time you two guys figure it out, a lot of good people will have left the company." not realizing i'd be the first casualty, by the way. but they were so-- and they kept on saying, "it works for me." i kept saying, "it doesn't matter if it works for you. it matters if it works for the clients and the employees." "it works for me." and, you know, so when you hear a ceo say, "it works for me," you know, you should question their intelligence a little bit. it's not the way you shoul

investment bank and those might be birmingham.b in britain's second city and as someone who is hopelessly part of the london bubble, when i go to places like birmingham six for party conferences, it always strikes me that they have these really big financial centres in our major cities, it is notjust in london. we have centres cities, it is notjust in london. we have ce ntres a cross cities, it is notjust in london. we have centres across the country and i like the idea of decentralisation and less focus on london. but i worry that this idea that the governor should be based in birmingham, that is just fluff. it doesn't matter. he will spend his time in london all the time anyway. in terms of building new infrastructure, it is interesting and exciting, it will not win many votes a nd and exciting, it will not win many votes and i am sure people in the bank of england will be horrified at this headline, should they wish to stay in london. but there are lots of advantages to staying outside of the capital, i am told! reliably told b

and investment banking is the core to generating other profits for these companies. if you're in investment banking and it's active, you're going to make loans, and if your -- your traders will benefit by doing more activity. you'll see more customer activity in big the new activity and you'll get more margin debt. >> it's the environment? >> it's part of it the m & a market i think will be extraordinarily strong so the point is you get all those benefits, but i like to get to your regulatory point. think about this every regulatory agency has scene a change in its leadership in the last 12 months. the fsoc, the fdic, the occ, the frb, you know, commodity futures trading is changing the members but not the chairman, the fhfa, anything that has anything to do with regulating banks has changed and not just the leader. you've got 8 people on the fsoc out of a ten-person brecht thoors are going to change you've got five on the seven at the federal reserve who are going to change, and if you don't think that's going to mean a very dig change in the way stress tests are ru

i had worked for three years in investment banking with the specific goal of training myself. even if i did not like to be in investment banking, i wanted to learn as much as possible in the shortest timeframe possible. at the time, lehman brothers was amazing. i do not regret it at all. i would do it again because there is a moment where entrepreneurs, they need to take risks. it is part of our everyday life. there is a moment where, if you go too much, you lose your appetite for risk. so i realize when i was 29 years old, and basically put together my passion for fashion, my appetite for innovation because i always tried to come up with new ideas and looking at things in a different way, which is my 50% tech, also being one of the first to use the internet, that was from my passion of the internet, and i put them together with the competitive advantage of being an italian, being based in italy, that culture, being able to talk with the different brands and to bring them aboard. francine: did you see it at the time and say, look, i would like to build this company because e-t

it is the middle ground where you have had investment banks, smaller investment banks, trying to competeh their larger competitors, and that is always the tough ground whenever you see change in legislation. nejra: it is definitely a big change, and what i loved about euro port is you have a word cloud of commentary from people overall,buy side, and it was quite negative. >> thoroughly negative. [laughter] nejra: but the conclusion of the report is that in the long term it will be quite positive. how do you square that circle? >> i think you are talking several questions. one is preparedness to a massive piece of legislation, and i think there's still an awful lot to get done, finer details to get finalized. i think the immediate problem is quite a negative one, because whenever you ask people to change their business practices on a potentially huge scale, there is nothing positive. but as you get into the execution and implementation, that is where you start to see the benefits, and the benefits really could be two years away, maybe three years away, when you start to see slightly more

i think that's totally fair to say that about goldman, but not only for goldman but all the investment banks, a couple things could go fwhel 2018 first off i'll make this call because it's easy toe make volatility should pick up. >> very bold of you. >> i'm out there on that one. >> stocks will be higher or lower next year. >> volatility will pick up it's not just that, you know, mixed income was misfired. not that many trading opportunities in general, particularly on the equities side the other thing is it does feel that there's a small wave building of m & a activity which is a prestige operation. you're certainly seeing it in healthcare i do think you'll see more of that in broadcast entertainment as well. what do you think about that, wilfred? >> on m & a, quality a & a this year and clearly we're waiting for the big deals and if that continues, goldman sachs still unquestionably number one in investment banking even though they have slipped down the rank tables of some of the otherias like trading and the other kicker for the banking names is in the deregulation names. they are all goi

i had worked for three years in investment banking with the specific goal of training myself.ven if i did not like to be in investment banking, i wanted to learn as much as possible in the shortest timeframe possible. at the time, lehman brothers was amazing. i do not regret it at all. i would do it again because there is a moment where entrepreneurs, they need to take risks. it is part of our everyday life. there is a moment where, if you go too much, you lose your appetite for risk. so i realize when i was 29 years old, and basically put together my passion for fashion, my appetite for innovation because i always tried to come up with new ideas and looking at things in a different way, which is my 50% tech, also being one of the first to use the internet, that was from my passion of the internet, and i put them together with the competitive advantage of being an italian, being based in italy, that culture, being able to talk with the different brands and to bring them aboard. francine: did you see it at the time and say, look, i would like to build this company because e-tai

this has been a historic sunday at this hour the lehman brothers investment bank in the years heading toward bankruptcy in two thousand and eight the poorest homeowner their properties the real estate market collapsed and along with it the banks who become embroiled in these subprime loans. on september fifteenth two thousand and eight the death of lehman brothers the fourth largest u.s. investment bank marked the beginning of a huge financial and economic crisis that would spread worldwide. the likes of it had not been seen since the great depression us a wave of corporate bankruptcy is followed with can rocketed as did household only in the u.k. . five years the guy me and my husband split up children so i think at the time then i had a lot of making up to do to them and at the time i thought that the way i needed to make up to them was financially so i would just try many out them and christmases i would go ridiculous and ridiculous amounts of money not thousands of pounds on stuff they didn't need and were glad they'd probably pay with once they go in the water. so i strike twice

day the bubble burst this has been an historic sunday street at this hour the lehman brothers investment bank appears headed toward bankruptcy in two thousand and eight the poorest homeowners unable to meet their mortgage repayments began to massively sell off their properties the real estate market collapsed and along with the banks who become embroiled in these subprime loans. on september fifteenth two thousand and eight the death of lehman brothers the fourth largest u.s. investment bank marked the beginning of a huge financial and economic crisis that would spread worldwide. the likes of it have not been seen since the great depression of the thirty's a wave of corporate bankruptcy is followed with considerable loss of jobs. people blame the bankers like here in iceland for eighty percent of the banking system collapsed and even more so in greece where the state teetered on the brink of bankruptcy. with the crisis public debt skyrocketed as did household overindebtedness a veritable scourge that would affect one person in twenty in europe especially in the u.k. . five years ago i mean my

investment bank not the beginning of a huge financial and economic crisis that would spread worldwide. the likes of it had not been seen since the great depression of the thirty's a wave of corporate bankruptcy was followed with considerable loss of jobs. to people blame the bankers like here in iceland eighty percent of the banking system collapsed and even more so in greece where the state teetered on the brink of bankruptcy. with the crisis of public debt skyrocketed as did household overindebtedness a veritable scourge that would affect one person in twenty in europe especially in the u.k. . five years ago me and my husband split up. i actually kicks my husband out and miss out a big impact on my children so i think i found out the time there and i had a lot of making up to do to them and at the time i thought that the way i needed to make up to them was financially so i would just throw money at them and christmases i would go ridiculous spend ridiculous amounts of money like thousands of pounds on stuff they didn't need and work like they'd probably play with once then go in the

if we're to believe the bank its investment banking sector has been over a whole lot that's the anyway don't you bank can remain a major player in the financial industry and play with the big boys. but which of the two crown prince is marcus shank and christians a ving stands the better chance of becoming john prine successor one day is also clear self-confident head of investment banking. we booted the bowls back out of the penalty box and emerged from last year with a no skull drop and that wasn't an easy year but at some point we've got to win the game we have to get into the opposing sides home often score a goal. a no score draw but the competition is forged ahead even the small comments bank is more profitable now don chipp bank was the only one to make a loss again in twenty sixteen. we wanted to know how at risk deutsche bank really is and how dangerous in mid may the shareholders held that a g.m. . car phone or the chief legal officer is visibly more relaxed than half a year ago. and the shareholders are also in a better mood than they were just a few months back anything was

this has been an historic sunday at this hour the lehman brothers investment bank and here is heading toward bankruptcy in two thousand and eight the poorest homeowners are properties the real estate market collapsed and along with the banks who become embroiled in these subprime loans. on september fifteenth two thousand and eight the death of lehman brothers the fourth largest u.s. investment bank marked the beginning of a huge financial and economic crisis that would spread worldwide. the likes of adult.

we have seen consistently bad performance from the european investment banks. barclays is down 7%. not really a surprise. the new investment head is trying to introduce a bit more differentiation to use his word and what they are paying employees. they will take the top 25% and give them a lot more. they cost in the bottom half or bottom quarter should expect their compensation to shrink over time as they try to inject more competitive business and their investment banking division. askinghs ago, they were credit suisse shareholders depiction billions of francs. now we talking about returning cash. he spoke to bloomberg on tuesday about what shareholders have endured. >> they have been through a lot. i'm painfully aware but i have to dilute my shoulders significant weight. this is no way to solve without massive dilution of shareholders. >> he has hailed the end of a restructuring program which he started just a couple of years ago. he pointed to better shareholder returns in one or two years. all divisions are coming in on target. the stock is up more than 4% today. i'm sure invest

we have seen consistently bad performance from the european investment banks. venue at barclays is down 7%. so that is not really a surprise. the new investment head, what he is trying to introduce is a bit more of a differentiation to use his word and what they are paying employees. they will take the top 25% and give them a lot more. they caution that the bottom or half bottom quarter should expect their compensation to shrink over time as they try to competitiveness in their investment banking division. >> months ago, they were asking credit suisse shareholders to pitch in billions of francs. now he is talking about returning cash. he spoke to bloomberg on tuesday about what shareholders have endured. >> they have been through a lot. i'm painfully aware, but i have to dilute my shareholders significantly. there is no way to solve this without massive dilution of shareholders. >> they have come out today, he has hailed the end of a restructuring program which he started just a couple of years ago. he has pointed to better shareholder return in the one or two y

investment bank marked the beginning of a huge financial and economic crisis that would spread worldwide. the likes of it have not been seen since the great depression of the thirty's a wave of corporate bankruptcy is followed with considerable loss of jobs. back people blamed the bankers like here in iceland where eighty percent of the banks.

investment bank not the beginning of a huge financial and economic crisis that would spread worldwide. the likes of it had not been seen since the great depression of the thirty's a wave of corporate bankruptcy is followed with considerable loss of jobs. to people blame the bankers like here in iceland where eighty percent of the banking system collapsed and even more so in greece where the state teetered on the brink of bankruptcy. with the crisis of public debt skyrocketed as did household overindebtedness a veritable scourge that would affect one person in twenty in europe especially in the u.k. . five years the guy me and my husband split up and i actually kicked my husband out and missed out a big impact on my children so i think at the time that and i had a lot of making up to to them and at the time i thought that the way i needed to make up.

he was brought on in 2009 to that investment banking.en pretty successful by all accounts. talk about what he is dealing with in terms of drama? in 2009 when guggenheim still had a strong broker operation. he brought on rainmakers and they have worked on 472 billion worth of deals. done is pretty different than what you see out of investment banks. he built sales and trading operation and that is high-octane and entered markets where the banks are. huge clo's for example and an under -- underwriter on tom -- complex debt. >> talk about that drama because it does not involve his position directly. >> it is not. he has been wearing his executive chairman hat rather than his rainmaker had in this particular situation. upumber of them have put him -- it on watch with issues we have talked about regarding the ceos potential transactions with an associate. and also the cio and certain transactions that involve him. that leaves alan schwartz who has been dealing with clients been stepping and affiliated void in leadership and taking control. >>

outlook inabout the general for investment banks in 2018? what are we looking at?overall outlook, gdp growth is still good. that is the bottom line driver for investment banks. for trading, you need volatility. we have not had that this year. weakve seen equities very after a very strong year last year. the credit business is doing a little bit better, but what we won't need next year is volatility to pick up trading. good,g has been very because they benefit from lower volatility. with had strong asset price movement and that has been good for banks. vonnie: i just had the index on my bloomberg. you can see just how much volatility has gone down in treasury trading over the year. i want to ask you about the european banks. u.s. banks thinking you have a comment european banks may see some donuts? are calling this a final restructuring year. they have been trying to recover and get traction following legal times they had around this last year. i would say one of the positive at third if we look quarter fixed income headcount was flat year over year. that is the fir

turning to the outlook for investment banks in 2018, many of the top players on wall street have seeng returns this year, but will it continue? our next guest says he expects bank profitability to rise in the u.s. with the fed expected to hike interest rates. david fanger, senior vice president at moody's, joins us now. david, tell us what they invited will be like for banks? is it just the fed rate hike? fanger: the rate hike is the most important part of it, critically for banks that are core funded with large deposit -- deposit bases. higher interest rates will increase returns other assets, but we don't expect they will fully need to repay all of that to depositors. exactly, but if they get more pressure to increase payouts, how big of a risk could this be? expect artainly, we deposit payouts will increase, but not for the full extent of the rate hikes. up until now we have seen a modest increase in deposit rates. we are extending higher increases going for. still, on a net basis, we think the banks are going to be able to boost their net interest income from higher interest rates

banks passed its stress test but the rest have a problem the i.m.f. says three quarters of them are under-capitalized to want to stand or another china has relied on debt fuelled investment and exports to drive its economic growth but the i.m.f. says that model is no longer feasible. now according to the world bank over one hundred million people all over the world live from the proceeds of amateur mining activities compared to only seven million people who depend on industrial mining mining companies mostly perceive amateur mine as a threat and are clamping down on their activities in south africa desperate and hardworking locals are fighting to earn a living legally we have this exclusive report in this waste land on the outskirts of kimberley close to ten thousand informal miners are eking out a living by sifting through the waste of the area's diamond mines locally they are known as some azzam as meaning keep on trying the local zulu language kimberley is situated in south africa's northern cape province and was once the world's diamond capital but the boom is long over many of the mines and supporting businesses closed or downscaled and working as a zama zama is the

with an investment bank was available flows -- bank which is all about flows and not about kerry.king at what it could be, yes, we could have better volatility. we're not counting on it. what we would be nervous about is big disruption, because that is not good volatility. francine: do you feel the ceos to, begin -- ceos you speak are they positive. andrea: ceos are positive. our clients in the corporate world are more positive. you have seen growth accelerating this year. let's see if the momentum keeps up next year. it is more difficult but i do think the general economic environment is quite constructive. francine: what does compensation look like? a set for the whole industry, this is a tricky year. in terms of compensation, i don't know what it means for our competitors. we have taken a balance between performance and what we pay our people. if our risk-adjusted returns or economic profit is up, therefore our shareholder benefit than our employee benefit as well. if not, we are on the same level as our shareholders. this year is a year where investment bank has done slightly

uk labour party leaderjeremy corbyn has hit back at investment bank morgan stanley, telling the companyt. he called bankers "speculators and gamblers" who crashed the economy in 2008. in a report earlier this week, morgan stanley warned that the risks of an incoming labour government could be "as significant as brexit". amazon has launched a version of its successful voice based digital assistant alexa, aimed at business. office workers will be able to use the firm's echo smart speakers to set up meetings with colleagues, book conference rooms and other basic tasks. some have raised concerns over privacy in meetings where sensitive information is being discussed. and now, what's trending in the business news this morning? from the wall streetjournal, the senate banking committee is scheduled to vote tuesday on jerome powell's nomination by president trump to be the next head of the us federal reserve and from bloomberg, women are starting more new businesses, but struggling for financing. a report by the federal reserve which says female run firms are are likely to get business loans or

laura: what they have decided to do is really introduce a pilot program into the investment bank bankertraderstment is allowed to take is provided they have been there 10 years, and they are authentic between a four-week and six weeks sabbatical for the number of years they have been there. cory: they have not been known in my story and for benevolence to its employees or creativity for the products they offer and the way they take care people. laura: exactlylaura:. whatre commenting on anybody who works at bank of america knows. they are viewed as one of the more stodgy banks. the ceo views the firm as changing, becoming more technological. he likes to describe the company as a technology company, but some of the perks that come along with being a technology firm or some of the advancements on the trading floor are at large within the bank's branches, that is not really there. cory: i wonder where this goes. what are the perks? what are the things new yorkers look at silicon valley companies? is it the fooseball machine, the ping-pong tables, the time off? laura: yes. you hear a lot of the y

i had worked for three years in investment banking with the specific goal of training myself.ven if i did not like to be in investment banking, i wanted to learn as much as possible in the shortest timeframe possible. at the time, lehman brothers was amazing. i do not regret it at all. i would do it again because there is a moment where entrepreneurs, they need to take risks. it is part of our everyday life. there is a moment where, if you go too much, you lose your appetite for risk. so i realize when i was 29 years old, and basically put together my passion for fashion, my appetite for innovation because i always tried to come up with new ideas and looking at things in a different way, which is my 50% tech, also being one of the first to use the internet, that was from my passion of the internet, and i put them together with the competitive advantage of being an italian, being based in italy, that culture, being able to talk with the different brands and to bring them aboard. francine: did you see it at the time and say, look, i would like to build this company because e-tai

you're a huge investment bank.inking about it. >> i am thinking about it because i get asked about it. ,here i am is, it is not for me but there's a lot of things that weren't for me in the past that worked out very well. was 20told me that it years forward and it worked out, i could tell you why it worked out. but based on everything i know, i am not guessing that it will work out. but i can say -- i am not going to stand there and be strident and say it is a fraud and it can't work, because it might. >> confuse bitcoin with big chain -- blockchain. there is a technology or you can have different accesses today to destitute data -- different access to data. the bloomberg system is a blockchain. just instead of having the users control it, we control it. but it has all the attributes of that. bitcoin is something very different. bitcoin -- and a whole bunch of cryptocurrencies that have been started every day -- that is something very different. whether or not the governments of the world will lose control of monet

central banks normalized monetary policy. that's according -- u.s. investmentrade bond premiums will widen next year. european counterparts will follow suit as they price in the economic slowdown. the corporate bond premium is the white line. high-yield, the blue line. purple line, european high-grade corporate bond premiums. let's finish up with bitcoin. it's the ascendancy continues. almost a $16,000. if trading technicals follow patterns, the cryptocurrency worth one pound in 2011 could tumble to less than half the latest level. this is according to bloomberg intelligence commodities strategist. in 2013, the only time when reaching parity for the dollar it had a steeper rise, bitcoin twice traded more than 90% above its 60 day average. two peaks later that year. $1137, followed by corrections of more than 70%. julie: what is 70% here in there? we are seeing big brokerages in the u.s. raise concerns about how quickly the bitcoin futures are coming to market, talking about they did not get the appropriate regulatory scrutiny. etf's expected to come next. a rea

rockefeller capital management, are you trying to build an asset manager family office, investment bank bit of all three? gregory: what? gregory:the name of the company today is rockefeller and co-. we will be rebranding at rockefeller capital management to make it clear that we are in the business of advising other people on their money and we are trying to put together the three businesses that we think are synergistic. wealth management, asset management, and strategic advisory. those would be the businesses we are in. the only firms that really have all three of those businesses in the same organization of the big public firms. very few bring them all to the table in the synergistic way that we think we can. erik: you conveniently -- conveniently let me to my next question. if there is not affirm that you would compare rockefeller to, what is it? gregory: that's one of the great things about her we are, i'm not sure that there is a firm with this mix. gregory: morgan state -- erik: morgan stanley has it, but clearly you won't be that big. gregory: no, but we are trying to calm if i

expect investment banking to decline this quarter. a banks record year in trading and investment banking. the sixth biggest lender's have $11 billion of variable compensation. that is your business update. scarlet: artificial intelligence is transforming the investing landscape. tens of thousands of jobs are now at risk. this is the latest subject in a bloomberg series called the future of investing. a senior editor for the investment team, who has taken charge of this project. upendingt ai is conventional wisdom in the warnedng world including buffett species, big acquisitions destroy value. data scientists and ai go through data going back to 1960, looking at big acquisitions. his old principle doesn't hold up. major acquisitions don't destroy value over time. that is one example of how goagers are deploying ai to through the mountains of data that are now available and come up with trading ideas that are not available to the human mind. we can't do with the machines are now. that is the edge the machines have. there are two many way

one bank is going above and beyond by taking their savings and investing in their employees . ar from the top executives at this bank just ahead. plus, the subprime auto loan crisis. fueling the trends, but could it be -- down the road to ruin? let's get a check on the markets with abigail doolittle. yesterday's wishy-washy trading that and it in small losses, we have solid gains for the major averages. the dow on pace for a record close. a bullish tailwind from the passage of the tax form bill in congress. -- over at mainstay capital was bullish before, and he's even more so now. he says it will give a bullish tailwind to stocks, and he is positive on earnings growth. the top sector of energy -- these are the worst and best. the best up top, chevron, the worst, pg&e. upvron helping the s&p 500 three or 4%. there could be a good deal of upside for chevron. as we were discussing moments ago, the idea that energy, one of the only two down centers this year, could move ahead in 2018. pg in the down 14% off of the --, after the company wildfires in california. let's take a look at

regulations are big swing factors, as well particularly for the investment banks. the volcker rule, any relaxuation on that is very encouraging ooms for the investment banks >> we started this conversation this morning about technology in particular sometimes it is worth just stepping back to marvel at the size of these -- of the market caps and the accretion that has taken place. with apple at almost $900 million in market value, amazon at $570 plus billion in market value, facebook at $520. >> alphabet is 750ish. >> 730, 740 billion. i mean -- >> it is amazing >> it's amazing. those numbers are staggering >> the size and the dominance. and you do wonder if, you know, if there's an implicit vulnerability there. because what the market is saying is, these companies long-term can't lose like, it just is going to be automatic growth from here and if the market is anything close to right, you would imagine there's going to be pushback on that interesting, yesterday, there was a lot of chatter around this buzzfeed report about digital ad fraud and just the volume of mo

. >> reporter: big money sources, investment banks, and other traditional lenders are staying on the sidelines. frank davis ceo of oakland- based views that are 600 high net investors.>> until there is a change in federal law, we are going to be in a situation where big banks are going to least likely stay out of the u.s. market. >> reporter: they are raising funds to invest in all aspects of cannabis.>> people are investing in a wide range of things. most people feel they want to invest in a dispensary or cultivation. when they get to the table there, they often find that they are more suited for an ancillary business.>> reporter: worldwide alcohol and spiritual giant constellation brands invested $190 million into the canadian cannabis industry, the largest investment ever in this business. >> that is the investment heard around the world. that has woken people up to the possibility in the sector, that bigger companies are going to start getting involved. >> reporter: for normal in mortals, investing in penny stocks is a possibility. a high -- it is highly risky. pooling resources