. -- kenneth feinberg feinberg on how to compensate victims of flynn's water crisis. ♪ ♪ betty: goodernoon and welcome back to bloomberg markets. let's check in on where the markets are trading right now. first, a look at the s&p. andou know, it financials materials have been big gainers. are here towards the closing bell. also take a look at the dow, where jpmorgan, and other financials are powering the index higher. over 300 points. is gainingaq, it 1.6%. lots of focus on the tech shares. now, we look at the biggest business stories in the news. it is way too early to be discussing negative interest rates, according to new york senate president who says bringing down borrowing costs below zero is a conversation that his extraordinarily premature. concerns of a global economic outlook have hammered in the recent weeks. john paulson is diving back into troubled debt. the hedge fund manager is seeking to raise 1.5 billion dollars for a private equity fund that will invest in companies going to through bankruptcy and restructuring. less liquids on forms. a toll at black rock. fund drop

still ahead, i sat down with kenneth feinberg, the former so-called pay csar.lked everything from volkswagen to wall street compensation. those highlights just ahead. ♪ betty: banker pay and bonuses back to the forefront. i sat down with kenneth ,einberg, the former pay czar bank bailouts. structure payn and bonuses. >> there is a growing animosity, political pressure that if we don't narrow the gap between the very well-off and those less well off, there will be some sort of tax on pay, there will be some sort of administrative regulation by the fcc or the federal reserve or the fdic sheila bair did a wonderful job warning about pay. i think we will see more and more of that. that is the pressure. betty: should the bonus structure be taken away, for instance? >> look, i think the bonus structure, if it is one to remain, ought to be based on long-term company improvement, shareholder value, not personal, individual bonuses. when i was at treasury, as you know, what we did is we said, if you're going to pay a high-end corporate official, that high-end pay off to

scarlet: betty liu sat down with ken feinberg. kennethwing pressure that if we do not know the gap between the well-off and the less well-off, there will be attacks on pay, some sort of regulation, or on the fdic, sheila bair did a wonderful job. i think we will see more and more of that. that is the pressure. betty: should the bonus structure be taken away, for instance? ken: i think if the bonus structure remains, it should be based on shareholder value, not personal, individual bonuses. when i was at treasury, as you we thought if you were going to pay a high-end corporate individual that should the tied to the overall financial performance of the company she or he is administering and not personal benchmarks or objectives. and it ought to be paid out over 2, 3, 4, even five years -- long-term. not short-term. and i think if you are going to have bonuses that is the way it ought to work. --ty: do you think though and i have always been curious to the euro opinion -- but do you think the pay structures of wall street firms and also in e

also, kenneth feinberg telling you about his role overseeing claims from the volkswagen emissions scandal on wall street. let's head straight to the markets desk were julie hyman has the latest on some breaking news on consumer sentiment.