bank names he likes now they've been approved by the fed to pay out more dif depds to shareholders w kbw. good to have you with us. >> news for the big banks, the ones thachb sort of restricted from paying bu or dividends to shareholders. if i don't own these banks already, is it too late for me to bet from this? >> we don't think so. especially the biggest banks. what you're seeing here is both the results show they're very stron capital. credit is good. they're going to be paying a lot back in repurchases and dividends to shareholders and we ave a situation where t regulatory standpoint, too. valuations are reasonable, so we e biggest o think the biggest opy for investors today. >> who do you think is the best positioned in s pre and in terms of its future growth plan? >> well, growth really isn't necessarily what you're looking for in the big banlanks today, think bank of america is top of our list. very good results today. they're making good progress in terms of managing the costs and d twane. so that's our top pick f. you look at jpmorgan, another one, very good shape. abov expecta

thomas show is the ceo of kbw. watching this news conference.erence is making some comments even as we speak. saying that at the end of the day, dodd/frank didn't help main street. what should viewers know about where policy going right now? >> my take on it is that policy has really not changed since the crisis. remember, dodd/frank was enacted seven years ago and even barney frank has been calling for some amendments to be made to dodd/frank. my own opinion, dodd/frank could be modified, it could be good for investors and it would not jeopardize the safety of the issue. >> do you think the sector should be trading on that sort of thing or more about correlation to yields? >> i think the drive ore was all about the -- driver was all about the trump proposals. the bank stocks started to go up. from election day until march 1st they went up 26%. since march 1st, they're down over 10%, yet the market is up. i think a lot of it was a resetting of the expectations with what's possible from some of these proposals that have come out of the trump admi

scarlet: i want to read something that kbw's analysts have read about the merger, organic growth willr-term earnings would be noisy. but if you targeted to-3% of growth. a study characterization that's fair question mark >> in the short-term, the noisy bit about earnings is there. you are taking a u.k. company not under u.s. cap -- into u.s. cap numbers, you have the fact five monthsy have of the year of the henderson numbers, than the janus numbers joining as part of that. thek the undertaking of change in accounting standards for half the business, and the fact that businesses have come together halfway through the year creates some of that noise. in terms of anemic growth, that's a characters -- in the short-term there's disruption as we bring the firms together. we expect that to pass, particularly now that teens are coming together as one team. we've done a lot of work around product training. the growth is something we genuinely put this business together -- because of the strength of brings and distribution. that will lead to long-term value for shareholders, strong growth pote

i think as you heard from your kbw guest it will take a while.er -- like planes over jfk to get to this. i think it's time to take a fresh look at dodd/frank. seem glad to see the house act and kind of get the debate started because for seven years we have piled on a lot of rules and regulations. and it needs to be re-examined. >> what sort of priorities within the framework of a choice act or a dereg of dodd/frank are most important to you and banks like yours? >> i think what's happened is the pendulum has swung very far toward restrictioning -- restricting what banks can do and how dodd/frank has been looked at restricts what the banks can or should do. i think there's good things in dodd/frank. then there are some things in the choice act that aren't so good. buried in there is an exemption for pay day lenders. i don't know why we want to suddenly deregulate the pay day lenders. i think the structure is unlike anything else in the government. taking a look at the structure, seven years, a huge bill, hundreds of regulations. it's time to reall

. >> whole come back this caught our eye, kbw out with a note previewing, reviewing i should say theition of the s&p 500. financials are once again the second biggest sector in the index. they overtook health care, which had overtaken them may 30th. financials are 14.2% of the s&p 500. health care is 14% they have been buying back financials haven't done that well, this year. granted they did a little in the last month or. so what was their behavior today? >> they lung in there okay i think what you would really look at and at least notice is that they hung in there today despite the fact that we were all talking about a flattening yield curve. they weren't getting help from interest rates insurance up half a percent and basically a flat day for the market non-bank financials are doing well, acid managers, investment banks. it seems as if, i don't know if the stocks are telling you rates won't go that much lower or perhaps the upbeat outlook for dividend increases and all the rest of it. >> i think the calculation up this week. >> without a doubt if people's heads. >> it's been under

that is what led to a 2% i and datinghe -- myself -- the kbw bank index.hopes you can get regulatory reform on top of higher rates and better lending trends. >> if you listen closely to tony, who is using what i was told in school, it would be, but is not necessarily the case. what are the chances of that happening and why is this a problem for the senate? why do they not like this? you have to buy in from both -- >> you need to have buy-in from both republicans and democrats. obviously, democrats were the ones that put this in place under the prior administration. i think there will be pieces that can get through, for example, right now if you are over $50 billion in assets, you are considered a systemically important financial and touche and force it -- financial institution for sydney. they raise that to 250 billion or higher. there are those kinds of changes that could come even if we do not get a full-blown financial choice act passed in the senate. there are changes coming that will be beneficial to the banks, that is driving the stocks up in the nea