. -- lloyd blankfein and jack lew. both guys joining me right here -- here is a look at our top stories this money. transition in the arab world's largest economy. king abdullah died last night. he was believed to be 90 years old. he had been on the throne since 2005 and was a successful ruler before that. his successor is his half-brother. he takes over at a time when oil prices are falling and the threat of islamic militants is rising. saudi arabia has joined the us-led military coalition against islamic state in syria. the present of oil rose as much as 3% on that news. prices fell back after the new king said he would maintain his predecessors policies. financial markets are advancing -- adjusting to the ecb's announcement. one who is definitely -- the head of japan's central bank. he spoke to bloomberg in davos. >> growth could be accelerated. both would be beneficial to the world's economy including the japanese economy. we welcome this action. >> japan may need to look at new options for stimulus. earlier this w

>> steve, thank you very much. >>> back to the guest today, lloyd blankfein. that reenforces the idea that the economy is doing gang busters. unemployment rate declined sharply r and you pointed out it's a great progressive tax cut culting oil prices down this says yes, the fed should be moving faster. >> well i think the fed is moving by in terms of adjusting people's expectations, but you like to have -- look you want inflation and more you like inflationary expectations. you want people to think the price is going up tomorrow so act today instead of it's cheaper tomorrow so wait. >> uh-huh. >> i want to ask you a banking question which is that goldman came out with a report suggesting that jp morgan would be worth more broken up than together. you didn't write it, but do you agree with it? >> by the way, e read that when you do because we separate research. i would say without jpmorgan specific, i say the structure of the capital rules assign a higher capital to your entire enterprise balance sheet. the bigger you are and the more complex you are. for jpmorg

what would you make lloyd blankfein?t of all, i would chop one of the hot dogs -- do i get more than one hot dog? i would chop one of them up and dredge it with flour and salt and pepper and some cayenne and make it nice and crispy and hot. i would take the other one, i would butterfly it open until it was flat, dredge in flour and bread crumbs. i would make a hotdog schnitzel and serve it with a crispy hotdog salsa. >> nice. >> yes, please. >> i'm up for that. bobby? >> he is the ceo of mcdonald's, you said? >> he's your competition. >> yes. i'm not going to try to serve him a hamburger. i think mcdonald's could use a little more vegetables in its life. so, i will use the sweet-and-sour sauce and i will do a roasted cauliflower, agua dulce, sort of sweet and sour with some red chilies and put it in an earthenware dish, and put it in an oven and roast it. there you go. >> sounds good. tom? >> a midwest guy, he probably likes beef. so, let's braise some short ribs in cherry coke, but let's cut that sweetness with a lot of

their special guests include steve ackman and lloyd blankfein.ew york you're saying in london. a much better city. >> i'm here for now, yes. london is a beautiful city. i've been enjoying it. your recommendations have been helping. >> very good. very good, indeed. that is all the time we've got for "worldwide exchange." "squawk box" is coming up next from new york city. thanks very much for watching. >> take care. have a good day. >>> "squawk box" starts its 20th year from a brand new home in the city where business never sleeps. >> bill ackman joining us here in new york. lloyd blankfein and mohamed el-erian. >> it's the same "squawk box" additives. >> exciting. >> gaining off the chart as second now on the biggest state on the work. >> announcer: folks, you're watching "squawk box" live on cnbc from new york city live with joe kernen becky quick and andrew ross sorkin. ♪ now you're in new york ♪ >> good morning, everybody. welcome to new york. we are live from midtown manhattan. we're directly across the street from radio city music hall. you c

lloyd blankfein weighing in. >> that interest rates can't go up highly over a short period of time. and as far as the disorderly nature, you know, at some point it doesn't become the fed's decision, it becomes the market's decision. once the fed starts to move, they may want to go in a measured, slow pace. but if i'm sitting there in the market and i know they're going at a measured, slow but inevitable pace, i'm going get there in five second. the market may get there way ahead of the fed. >> let's get insight from one of the leaders in the ef t-bond strategy. matt, great to have you with us. what are you seeing in terms of flows in or out of bond funds that might indicate how people are positioning ahead of what lloyd blankfein says? maybe a big move ahead of an actual change in rates? >> i think what you're seeing is investors really start to discern between short-term rates, which are much more impacted by the fed and longer term rates like 10-year and 30-year rates which are much more about the global economic picture, deflation, oil, what is happening in europe. if you look at

lloyd blank fine and jack lew. -- lloyd blankfein and jack lew.ght here -- here is a look at our top stories this money. transition in the arab world's largest economy. king abdullah died last night. he was believed to be 90 years old. he had been on the throne since 2005 and was a successful ruler before that. his successor is his half-brother. he takes over at a time when oil prices are falling and the threat of islamic militants is rising. saudi arabia has joined the us-led military coalition against islamic state in syria. the present of oil rose as much as 3% on that news.

. >> we spoke with lloyd blankfein recently, he spoke with us a week, week and a half ago. he said, look, you have to look at it as a risk manager and for the fed if they -- he's fine with them keeping rates lower for longer because it's about making sure you don't get yourself in a bad position. would you agree with that. ? >> selfishly as our company we'd make more money if they raise rates but for the good of the american economy which long term is better for our company, let's think about it. they ought to raise rates and they will when the economy is going strong enough to absorb it to slow it down. if you go back to chairmaner be tank inky, the unknown of having inflation and other issues, figure ago way out of that is tricky. i think as lloyd would say we're to the risk of let's worry about the upside instead of getting overheated because it's such a big economy. with the rest of the world not growing as fast the world has become dependent on the u.s. and that creates a risk factor to make a mistake. i'd assume they look like there's a risk manager. that's whey that

we just had lloyd blankfein on.auses someone not to get a mortgage or causes someone not to be able to act like he normally would, it hurts the economy. >> so we have in some cases said that what we intended is not necessarily happening in the markets the way it was intended. so we have said we think that lenders have put a tighter box on mortgage credit that was intended. so we're trying to work our way through that through some changes and guidance and rules. to make sure that there's not that overshooting. so people have access to the credit that they can afford. but what we can't do is roll back revisions of dodd-frank and be in a place where we start to open up the expo showers that left us in such a fragile and dangerous place. >> and you don't think that you've let any of those core feature gos even in the past month or two when -- you've seen the articles. there are people who said you allowed pieces of it to be gutted. >> i think if you look at our record we've been consistent in provisions that would weake

lloyd blankfein saying he is bullish on the markets, not worried about the macro and bigger issues inrticular, notten kleined to believe interest rates are going up anytime soon. >> i would take a lot of risk on the inflation side. i would take that risk to avoid a low, but very adverse, consequence of it back sliding. if it back slid, what would we do? what would the remedy be? stimulus package, legislation passed, fiscal? the only game in town has been the monetary. we fired a lot of those bullets. i would keep firing. >> one of the other things we talked to lloyd about is a goldman sachs report suggesting that jpmorgan should break up the valuation would be higher and he said that he imagines over the next couple of years some of the bigger banks may have to rethink their model. that was an interesting comment to hear from lloyd blankfein, not necessarily suggesting that goldman sachs would be re-imagining its model anytime soon, though. when it comes to bill ackman we talked about herbalife. it was this valiant fight that we talked about, and allegations of insider trading. here w

goldman ceo lloyd length fine is more optimistic about the -- lloyd blankfein is more optimistic about the economy this year than last year. >> it is hard to deal with the background noise. the background noise affects almost everything we do. i cannot think about technology without thinking about the number of heads i have to hire to lb systems. it is a fact of life. no choice, no problem. >> he also finds that liquidity will follow demand as the market scales. microsoft has fired another shot in the cloud war. they will work with revolution analytics for their clowns -- cloud offering. the terms of the deal were not disclosed. e-commerce has claimed another victim. skied mall has bitten the dust. skymall and its parent company filed for bankruptcy in phoenix. sky mall cited the competitive retail environment and the increase of mobile devices on planes. now erin levy rings the opening bell. this is the day as the company he founded in his usc dorm goes public. box raised 175 million dollars, above the evaluation it received in july. shares remain high in the first day of trading. des

we have lloyd blankfein, jack lew 8:15 eastern time and david cheesewright at 8:40 eastern time. it will be a continuation of the conversations here in davos but here from worldwide exchange from myself and seema it's been a pretty chilly few days to be honest but an incredible amount of information. oil, central banks, liquidity, you name it we've talked about it here. >> wonderful stuff. stay warm. don't party too hard tonight and we'll see you on monday. be sure to recharging europe panel. that's where the finance minister of germany, spain, and the u.k. as well as the italian central bank governor. it will be interesting to see what they have to say about the fate of the economy and ecb. next up is squawk box. thank you for tuning in to worldwide exchange. >>> good morning from the world economic forum in davos switzerland. the king tom is the world's top exporter of oil and one of the biggest producers. there's a lot of talk about stability in the region and the future of the commodity that's now down more than 50% since midsummer. it's friday january 23rd 2015. squawk box b

the lineup includes blackrock's larry fink lloyd blankfein, randall stevenson.tna and a lot more. "squawk box" live from the world economic forum in davos, switzerland. starting tuesday at 6:00 a.m. eastern. profit from it. barbara just bought a bike. she wrote a tweet about it. you can't learn much from that. but take data from millions of tweets combine that with your company's supply chain and sales data. apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. because barbara and the world just told you how to build a better bike. there's a new way to work and it's made with ibm. >>> welcome back to "squawk box" this morning. british police announcing they have arrested a man in connection with the cyber attacks that happened on playstation and xbox systems. they suffered outages over the christmas holiday. a group called lizard squad claimed responsibility for that. also the u.s. postal service is now proposing slight increases for mailing letters and postcards. but first class fo

last night, secret dinner, mark hoffman, head of cnbc held at swank sy restaurant with lloyd blankfeinjack ma, and jamie dimon. those three people were there at this swanky thing where the head of cnbc gives this, gives this sort of you know this sort of, you know, let's face it, he is mixing business and pleasure. and he invites some talent in there and the conflicts of interest, are you he no are amazing on something like this. let me tell you, look at this way, melissa. cnbc is no longer nielsen rated. when they sell advertising. they sell it at some other metric. you know why we, we reach a high net worth audience including everybody on wall street. think about what is going on in that room. the head of cnbc wooing jamie and blankfein who are big advertisers with their reporters in the room. if you do a story that is negative on blankfein, and jamie, guess what? you're taking money out of your boss's pocket. that is what that was all about. and i'll tell you, i think, listen it is great to get access but no offense, they had this big meeting. what did they break on goldman and jpmo

lloyd blankfein can call it did you see underwriting numbers?id you see -- >> by the way, investment banking and equity and sales and trading an important component of morgan stanley's earnings as well it's no just wealth management. >> a lot of the companies gave applause i lot of revenue. a huge amount of revenue gaven up since 2012 by goldman. you don't feel good about goldman. but that is kind of -- short term fixes income is better next quarter what do we do? we want to get away from the swing, why i bring up suntrust and wells. >> right. >> why suntrust and wells three weeks from now will be up. when you read the quarter, suntrust has one charge, anoubsed theanoubs ed announced in in january. go through bank of america, everybody is thrilled it has slightly more than 3 million in charges goldman had a big charge. >> the upgrade today on bank of america? >> the stock fell from 17 to 15. you know if they can do the 1.60, argue maybe the bank deserves to be at 16.5. i would -- i would prefer buying stocks that go up meaningfully okay, go up m

lloyd blankfein at 8:00 a.m. very special day for squawk box. can't say thank you enough. you have made my life special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything for all your help. through all life's milestones our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. your old 401k is rolled over into a td ameritrade ira. yes! so no set up fees! wooh! yeah! so i get help from rollover consultants? wooh! yes! no rollover hassle. great. woah oh, we're spiking things, robbie. for all the confidence you need. that's better! td ameritrade. you got this. >>> another rough day for the s&p 500 running a five-day losing streak down about 3% for the first three days of the new year. you can see down by a little over a percent. down by 10%. avon trip advi

. >> i would call up lloyd blankfein and james gorman ad morgan stanley and jamie dimon, speaking of which. melissa: speaking of which. >> why don't you guys get with the program. melissa: fox business exclusive maria bartiromo sitting down with jamie dimon describing the to throat cancer has taken on him. >> it was tough thing. i had exceptional doctors. i did exactly what they told me to do. but on december 4th after all radiation chemo, i got clean bill of health no evidence of cancer in my body it is a very good sign. obviously i'm monitored the next three years so it is not definitive so as good as it can be. melissa: got quite a tan going as well. >> i will say this the cancer he had is much more invasive than people -- jamie came out sad i will beat this we didn't harp on the story but throat cancer, i know people had it very difficult thing to go through. melissa: yeah. >> i think he made the right choice disclosing it. i think it was a disclosable event. you're a ceo -- i remember when i covered bear stearns during the financial crisis. jimmy cayne almost died of financial c

particularly jamie dimon, the ceo of jpmorgan, lloyd blankfein, from what i understand they're friendsoth be at davos in a couple of weeks with us, so maybe we'll track them down and ask about this. behind the scenes, you know, jamie dimon really likes his model, the universal bank model. he helped create it at citigroup and men then moved to jpmorgan. for all its problems, they make a lot of money. and i'm going back to j more morgan, okay, goldman got a lot of mileage saying you guys should break u >> if you're looking for a business model problem, don't look at us, goldman sachs, look internally. you have a business model problem. you have, you have private -- you have trading which is nonexistence, so you can't really proprietary trade, you can trade on behalf of customers. you also have investment banking which goes up and down. it's not stable revenues. you're going to need to get stable revenues from an asset manager to add the goldman sachs asset management and/or a brokerage firm. and so point -- look internally. that's what you guys have to do over the next year. liz: and wor

lloyd blankfein was there.esterday really hammered home he understands not only his business but the landscape. and goldman sachs has done everything right. although i think morgan stanley has made tremendous strides. i think it's the best name in the space. we're trading at levels, we're holding these 190 levels, back above the levels we last saw in 2011. i think we're going to push up to the highs we saw in late 2007 that 240 level. yes, it's expensive, yes, they deserve it. >> what do you think, dan? >> no, i agree with guy. best of breed throughout the financial crisis. put on the show like guy just mentioned, 200 is the massive, massive level, there's no overhead resistance above that. >>> still ahead carl icahn, no stranger to this show. >> if you've got a ball player out there playing on your team and he's not that good no matter, you can pay the guy $20 million it's the same thing. >> somebody needs to do the job, though. -- >> how do i incentivize you? >> because i love what i do. i'm not getting rich,

. >> lloyd blankfein, he's like madonna, lloyd, you say, lloyd said there's two reasons to sell china. there's 1.3 billion people. and in the united states we have 4.5 billion people. in other words the whole world is our marketplace and hopefully the dollar doesn't get -- they all want levis and they all want -- >> isn't it six or seven billion? >> probably. people have been mating. but then there's probably a few that aren't going to buy any of our stuff. they're trying to find clean water. the world is amazing. anyway, thank you, patrick. thank you, john. so wells fargo? >> yes, sir. >> that doesn't mean we're going to call you all the time but -- thank you. >> when we come back, we have a report that says most of the money that bill gross mass raised from janus is going to be very surprised, because all that money he's been raising comes from one firm. and you won't believe who works there. we're going to have ta story when we return in just a moment. hiring new employees can be tough. but it doesn't have to be. because now you can post to over 50 of the top job boards with just o

their special guests include billionaire bill ackman and lloyd blankfein. >>> still to come here on "dwide exchange," the suv is back as lower gas prices drive the four by fours. we ask the ceo of rolls-royce is the luxury icon is getting in on the same game. >>> welcome back. more than 300 points. crude keeps falling, wti now below $50 a barrel with brent slipping nearly 3%. >>> deal or no deal? aol's verizon won't comment on speculation of a tie-up in the works. >>> >>>. >>> bmw retakes the u.s. luxury auto sales crown from mercy days benz. up 10% from 2013 versus 330,000 from mercy days. that outpaced the overall u.s. auto market which saw growth of nearly 6%. minor moves right now, we're looking at bmw up just about 0.2%. on a programming note daimler's ceo -- >> deiterscheitz. >> and mark fields will both be on cnbc from the consumer electronics show. >> this is team work. >> we had carolin on she would have it. >> i know. >>> mean wile rolls-royce posted a 12% rise in 2014 hitsing a record for a fifth straight year. let's get more on that story. nancy has joined us on set. nancy

going to grab jamie and say, jamie, i know you've addressed the issue of whether goldman raised, lloyd blankfein'suys are too big and you should jump up -- the sum of the parts is better than the whole. but i want to ask jamie what he thinks does goldman need to grow? goldman seems like the firm that needs to grow to buy something to stay alive and to compete. it's had lousy earnings. it needs a stable base of revenues. does goldman need to buy a wealth manager or an asset manager so it can compete against not just jpmorgan but deutsche bank and these large international players? melissa: okay. all right, charlie, i love it. go offend people, get thrown out of something just really get in trouble, and we'll see you in a little bit. we're going to have more from charlie tomorrow and the rest of the week. i can hardly wait. >>> all right a flash freeze paralyzing the nation's roads. icy conditions are leading to hundreds of crashes across the country. plus the countdown is on. we've got a sneak preview of the most anticipated super bowl as -- including emmitt smith proving why he won dancing with th

secretary for mark hoffman, bragging that they had a private dinner with jamie dimon of jpmorgan, lloyd blankfein of goldman sachs and mark hoffman, who runs both editorial and advertising with talent. now guess what that means? that means that mark hoffman is basically relaying if you're in these dinners you know they're love-fests to his talent, his reporters, be nice to these two guys because guess what? we rely on them for advertising and rely on them to watch us we're not longer on nielsen ratings. selling our advertising how many wall street boxes watch us. they stepped way over the line. andrew i'm saying back off a little bit. melissa: right from charlie gasparino. thanks guys. speaking of banks, breaking news. major banks preparing for the dangerous blizzard making its way up the east coast. jpmorgan chase bank of america wells fargo, all closing early today in new york city area due to weather. we'll keep our eyes on it of course. lockdown at the white house spurring major concerns. details on the drone that touched down at 1600 pennsylvania avenue. plus the east coast now feeling effec

be back with the wealthy and the powerful including interviews with jack lloyd -- jack lew and lloyd blankfeinrrow. ♪ >> life from the world economic oregon in davos -- world economic forum in davos this is a special edition of "market makers." >> the central bank launches an unprecedented bond buying program to fight off deflation and boost the economy. >> one thing going on. how about this? a breakthrough in the war on poverty. the world's richest man says there will be historic improvement for the poor in the next 15 years. i sat down with bill gates. >> the dell founder

among our first guests tomorrow bill ackman, and lloyd blankfein.mmissioner david stern is going to join us and barbara corcoran. it all starts tomorrow at 6:00 a.m. eastern. you don't want to miss us from our new digs. we're back in a moment. the volkswagen golf was just named motor trend's 2015 car of the year. so was the 100% electric e-golf, and the 45 highway mpg tdi clean diesel. and last but not least the high performance gti. looks like we're gonna need a bigger podium. the volkswagen golf family. motor trend's 2015 "cars" of the year. >>> let's get back to our guest host today eric cantor. we spoke with you at the top of the hour about what is and isn't liking when it comes to washington and congress. but with your new job at moelis & company, i'm sure you have to look at where there are opportunity zblps what we've seen is obviously coming off of a banner year on the m&a side you know well past 2007 pre-crisis levels. and i think there's probably going to be continued momentum although there are some signs out there. obviously internationa

lloyd blankfein reportedly made $24 million last year.tinuing the theme, tim cook saw his total pay package more than double to $9.2 million last year. apple has grown since it unveiled its larger iphones and slimmer i've has last year -- ipads last year. the company's market cap was sent towards $700 billion, a milestone that no u.s. company has reached. bayern munich generated more than a fifth of germany's revenue in germany's football the last year. the german champions pulled in 529 million euros in sales compared with the 2.5 billion euros made by all teams. >> speculation the european central bank president revealed his plan to reignite the economy yesterday. under his 1.1 trillion euro qe program, the ecb will buy 60 billion euros of assets, including sovereign debt every month until september 2016. the announcement pushed european stocks higher with all major indices closing up over 1%. it also sent the euro to an 11-year low against the dollar. all eyes are now turning to sunday's elections in greece. their government must decid

. >> you don't have a chapter from lloyd blankfein. why not? >> i did not ask him >>. of the most articulate and thoughtful people in our industry. the book is long enough. there are 20 contributors. i would, yes. >> if the problem is you had that finance causing the problem and we need good finance to help move things forward, can you change culture with legislation? if not, how do you change? >> you absolutely cannot change culture. it is a critical ingredient in having the financial system serve real people in rome markets in ways that actually -- in real markets in ways that actually make the world of better place. it is not the only ingredient. you do need different types of regulation than we had going into the financial crisis. that part of the problem. you need things like innovation to come back. >> what about the stick? what about justices approach to punishing banks? should it be during a court cases or hiding these and settlements and taking cash? >> don't you think we've had five years of public caning a financial institutions? we're talking hundreds of bi

. >> people think it's in the gold room at overlook hotel and lloyd is -- not lloyd blankfein but lloydrance's bartender is in charge. >> elaborate reference. >> somewhere between the overlook hotel and shining and the shining star hotel. it's just not that bad. okay. i know people want to say it's bad. i'm not going there. it wasn't as great as it was yesterday. it's not as bad as it is today. >> to my eyes what i find most amazing is that yield on the ten-year at this point. >> of course. >> starting another year where many people -- by the way, i understand we're only 15 days into the year or less what is it the 14th orr 15th today -- many people anticipate the year of rising rates. that come midyear the federal reserve of the u.s. is going to start to raise interest rates. lloyd bank fine on air last week talking about risk of immediate move up in interest rates and how that could hurt peepople. here we are at 1/8. >> le guard same out the other day and said we'll gain .8% worldwide gdp from the lower price of oil. tlt is in blow off phase i'm don't like blow-offs. it's a blow-off.

. >> goldman sachs's lloyd blankfein. >> nonexecutive chairman steve miller. >> ceos from etna, dow chemical monsters of money! charles: charlie gasparino is in davos and we are trying to connect him. >> this story, i am glad john stuart finally agrees with us here that it is ridiculous the amount of money they're spending. al gore as charlie reported from davos actually took a commercial flight. the rest of the not so much. before finally got it. charlie is with us and joining us from davos. what do you make of it all? >> we do not make the john stuart klipper real. no fox business in that. i have been saying that, one big circle, you know what. the interesting thing about this the panels are in danger, there is a panel about meditation that went on yesterday or the day before. it is all but touchy-feely topics about making the world a better place and i think to be honest with you basically to protect the fat cats and allow them to do their sleazy business on the side which goes on at all the parties, all these other gatherings and restaurants. what goes on isn't the story of davos. what g

speaking to cnbc yesterday, goldman sachs ceo lloyd blankfein offered some advice for the fomc members. >> what i would do the if i were them is i would take a lot of risk on the inflation side. i would take that risk to avoid a low adverse consequence of this back sliding. if it back slid what would we do? what would the remedies be? are we going to have a stimulus package? fiscal? the only game in town has been the monetary and we fired a lot of those bullets. so i would keep firing because sustaining it is a lot more sure than losing it and trying to recapture the forward momentum. >> and the attention now turns to the bank of england ahead of its rate decision later today. economists expect to join the fed ahead of a right hike later this year. joining us now is jacob nell chief uk economist at morgan stanley and helia ebrahimi is on set with us. thank you very much for joining us and a good morning to you. >> good morning. >> in your notes, you're saying the first monetary rate shiek would be this year and you're pushing that back. what are the main reasons for that? >> the main r

you have lloyd blankfein on did you ask him, should we break up goldman sachs?pared to say about goldman sachs. but he did say there were many in the industry that rethink their model in recent years. >> yeah it's good for him to get up and say i think my big competitor should be broken up but i shouldn't be broken up. right? i think it's a very self-serving report. i think it was probably one of the worst things that goldman sachs has written in a long time. because if they don't believe big banks should be broken up, and they don't, they only believe that their competitors should be broken up. i don't think that that's a pretty good research. anyway, the bottom line is what you really have to ask yourself is why do you have so many big banks that do relatively well. and you lose one bank every day, and that's been true since 1987? that's over 10,000 banks that are gone. what is the economics which drive all of these other smaller banks out of the business. and keep these big banks in business? and the answer is very simple. the big banks have economies of scal

changing think you, lloyd blankfein.g my friday easier. >> $4.38, better than consensus for $4.36. disappointment from nearly all the big banks, a different story from jp morgan. the concern was we were going to see a slowdown in trading and maybe even more costs. looks like goldman sachs has bucked the trend. i would bet a lot of the strength is coming out of their ipo in their advisory business. >> a nice beat. brad hintz with nyu and formally sanford bernstein, the fixed income currency commodity, we forget how big goldman is, $15.2 billion is a nice number. what does it signal? does that mean they are more focused and more risk oriented than other banks? >> in terms of fixed income, they have a large commodities business. we'll hear the commentary on that. did they do well in terms of that? the mixes of the business and relative to banks, goldman is going to be smaller in foreign exchange. banks are going to be larger. >> you are sitting at nyu next to roy smith. a story history at goldman sachs. would professor smit