up next, we'll have more of our special intervow with bank of america ceo brian moynihan.afford to miss and you can see it only right here on "squawk." >>> coming up, silicon valley is giving private jet sharing a makeover. meet the ceo of black jet and find out how they can get you on your own jet in seconds. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. [ male announcer ] break from the holiday stress. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. to provide a better benefits package... oahhh! [ male annou

you heard that before but not if brian moynihan has his way.harlie gasparino on the c e o who is saving bonuses. charlie: it is unusual to cut broker compensation. there's a lot of competition from brokers. recently inside merrill lynch's brokerage department run by john field disease to be the biggest brokerage department in the world. morgan stanley has surpassed it given the smith barney acquisition but merrill lynch is still considered the premier brokerage department on wall street. recently in an effort to save money, looking to cut costs, did something unusual, put out a new grid, proposed a new grid that would drastically reduce broker compensation. everybody -- the rumor on wall street for years was brian moynihan hated brokers, the ceo brought the merrill lynch unit, at his predecessor, in charge of the brokerage unit and lots of talk. so he could be essentially -- wanted to keep the broker compensation high so he could put brokers on some sort of salary, something they would hate. it looks like it is not even that. he is not going to

one of these women was my grandmother, merced moynihan. in la dominica, one of the best cafes in the world, located on oreilly street, where my grandparents met. ticket to ride, i talk about my family history but after they marry -- i am reading a little from the book -- my grandparents were at the center of many fascinating things. i found myself at el centro, the literary and musical gatherings. their house on calle mercades became a cultural cross roads with the traffic of foreigners created a new inspired geography. they travel everywhere. my grandmother, merced, nina played the piano and read poems, while edward read the poems besides playing the fiddle and violin, behaved like an avant garde composer, moving around furniture. according to the journalist were a dynamic duo that rescued the famous hotel sevilla from dereliction in 1919. they also constructed the biltmore neighborhood where many irish american families have homes. when i said irish americans, i go back to the americas, irish-spanish americans and french-irish, et cetera

haven't written it yet. >> new moynihan beach column? you can't tell us either. joy tomorrow if you president what to watch nbc live, i will be talking to the rabi. >> he is so pressi. >> making fun of the guests. andy upcoming gigs? >> stand up new york on saturday at the 9:00 and 11:00 shows. >> i will be having lunch with rabi around 3:00 tomorrow. he said i

moynihan sat down with our own becky quick this morning.out vac's dividend plan. >> let's talk about the broader conte context. we've been about simplifying our company. so at the high point about $2.6 trillion. at the low point in terms of equity ratios we had about $65 billion of tangible equity, now $140 billion. we've recapitalized the company. the ratios are among the leading in the industry on a worldwide basis. we're proud of what we've done. >> financials certainly in focus with the looming fiscal cliff. what will its impact be on the sector. the lead banking analyst for rbc capital markets and he joins us here this morning. welcome back. >> thank you, carl. >> first off, if we go over, all stocks are going to fall, right? >> that's correct. i would agree with you on that. >> on a relative basis, these guys might be a defensive sector? >> that's correct. it would be unique in all the years of me doing this, this is the first time we would look at the banks as a defensive sector if we go into a recession because traditionally, as you

>> i own citi, i disagree with both moynihan has done the right things there. i think the stock goes a lot higher, and it's much easier to understand that citi at this point. 6 on% of book value, that sock should trade about 80% of book. st. is also compelling as we. >>> let's kick it around the desk a bit. if you had to choose today between st. and bank of america, which one? >> bank of america right away. i like what moynihan said about simplifying the mortgages, making that process simpler. that's where we see the most badge for our buck. if you look at the december calls and look at the ten strike, you talk about the ten levels, talking about the ten level, 250,000 plus options on open interest. people have been betting for this move. they're getting rewarded today. i think it doesn't stop at ten, if it can close above 1020, i think 11 is in the cards. >> i'm with mayo. i think it's a far better own. >>> all right, coming up, investors turning up the heat. cnbc's indicate kelly gives us the details on the embattled hedge fund next. goldman sachs lowers its

wants to do what has long wanted to depose brian moynihan the c.e.o. of bank of america which now owns countrywide. for the simple reason that they want to get his opinion on whether or not bank of america should be liable for the mistakes that countrywide made so they they fought the effort to get. morning and to pose for a long long time and then they finally did get to depose him in the spring of last year and it just only only just became public deposition and in this deposition morning hand literally says that he does not recall the acquisition of countrywide . you know it's only the biggest and most important acquisition in the history of the company but as c.e.o. it just somehow kind of slipped his mind you know looking at this crisis now over four or five years into it and it's almost like they have to compare it or make the comparison to vietnam you know this is america's new vietnam you know that war america was unable to get out of it and they blew an entire generation thousands died and trillions spent and now you've got a new vietnam it's

brian moynihan spoke exclusively with diana olick. she joins us from washington with more on that big interview. high, diana. >> hey, sue. that's right. the c of bank of america says he does not believe everyone should own a home, that's what he told a panel at the brookings institute today. as the economy and housing recovery face the possibility of going over the fiscal cliff, brian moynihan told me going back to the summer of last year that businesses like his were already affected by the fiscal cliff and they have acted less aggressively as such. as for consumers, however, he does not believe that the mortgage interest deduction will fall victim to the cliff, at least not yet. >> i don't know if it's on the table or not. i think from person -- from general consumers you'd rather have that come up as a discussion of what to do long term to change the way, broaden the base, change deductions, things like that. >> and he told me that he just doesn't think lawmakers want to change the mortgage interest deduction now given how tenuous

he has a son with his ex, bridgette moynihan.ild for this couple now -- they have a 2-year-old son benjamin and now a little girl, vivian. not sure if it was a water birth. remember she famously said little pain. she had the baby at home. all was well, and then she was a size zero the next day. >> whatever the kid is, it is going to be so ugly, with those two parents. are you kidding me? >> and short. >> yeah, really. congratulations. that is very cool. >>> also, "the david letterman show" petraeus sex scandal, that was dominating the news the last couple of months. and, of course, now there's going to be a tell-all book written by jill kelley. you probably know the face by now. she is the wealthy tampa socialite who is the one who blew the whistle, you can say, going to the fbi about threatening e-mails that led to revelation of the affair between petraeus and broadwell. they're saying look -- she is angry, lampooned by the press, lampooned by "saturday night live." she wants to get her story out there to sit the record straight

with brian moynihan in washington.ing out a frimwork where mortgage deduction is not hurt, or not taken away, not limited by any means by capitol hill. >> there's a lot of worries about the interest margin for all the banks. the banks did well. it's an inexpensive stock. >> and monster run the past year 689 monster run. >> huge run. countrywide did not. ever since buffett -- buffett is a brilliant investor. warren buffett got that preferred. called the bottom on the bank of america. >> dow sitting on a four-point gain. apple not that far away from the november lows of 505. last check at 514. here's what's next on "squawk on the street." >> coming up, before you start taking off your friday trades, listen to what cramer says. don't worry, it will only take a minute. 6 stocks in 60 minutes, "squawk on the street" will be right back. with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at sco

michael moynihan and his christmas wish is to be wrapped around fish. our new york times correspondent. >> according to arts and leisure there are only four more shopping days until, that's right, the premiere of "less miserables" and i will be there. i will be there ♪ ♪ and this i swear to you tonight ♪ ♪ there is no place for you to hide ♪ ♪ your child will live within my care ♪ ♪ wherever you may hideaway ♪ and i will raise it to the light ♪ ♪ i swear to you ♪ i swear to you ♪ i will be there ♪ but i want to see "the hobbit." >> porch you ruin everything. greg? >> thanks for that. >>> you guys are on top of your game tonight downstairs in that control room. it is friday night drinking. everybody is wasted. it is santa's sleigh, no place for a lay. news busters call itself a christmas image viewers could not have done without, or could have done without. and the detroit news says it goes somewhere it hospital. it shouldn't. and my cousin clarence said it was sticky. anyway, they are talking about the samsung ad. >> santa, we made a video for your trip

jim buckley is referring to you as professor moynihan. pat said, the mudslinging has begun. [laughter] what you are in for tonight, however, it is a lecture on political philosophy. take notes, there will be a test. in 1953, the year in which the words "under god" were added to the pledge of allegiance, it he proclaimed the fourth of july and national day of prayer. on that day, eisenhower fished in the morning, golfed in the afternoon, and played bridge in the evening. there were prayers -- perhaps when the chief executive faced a daunting putt. this was not his first foray into the darkened ground of the relationship between religion and american politics. three days before christmas in 1952, president elect ike made a speech in which he said "our form of government has no sense unless it is founded in the deeply felt religious faith and i do not care what it is." he received a much ridicule from his cultured despise years. his professed indifference to the major of the religious faith. it is the first part of the statement that deserves continuing attention. certainly man

[laughter] the great story there, the last one to do this, and he did it successfully with pat moynihan in new york. he ran against william buckley's brother jim. at the first debate, buckley turned to him and starts bashing comes right out of the court with moynihan. he looks up and says, oh, the mudslinging begins. [laughter] >> thank you. tell us and generalize for us, historians have not typically have access to anything resembling this kind of material with the exception of nixon and whatever. how were we to regard the source of information? what is it? you have to check it? is a good way to his? >> i think it is good to go. what is wonderful about these tapes is the immediacy of them. also, we do have other presidential tapes to listen to. one of the things that i actually love about these tapes of the conversations between president kennedy and his brother. when you listen to the nixon tapes, they have a certain quality. then you listen to the two kennedy brothers talking about how mean this guy is. it sounds so quaint as opposed to some of what we heard on the nixon tapes. i'm s

. >> that was bank of america ceo brian moynihan speaking exclusively with our becky quick on the impact of the fiscal cliff, repercussion does go well into 2014 inside now from one of the best known negotiation experts around, harvard business school professor deepak ma hallow and author of "i moved your cheese" and genius, pleasure to have you here. >> pleasure to be here. >> i you noticed from the notes, you said we begin a negotiation and taking this out of the political context and talk about large-scale negotiations, per say you have to think two steps ahead. why? wh what does that give you? >> if you don't play out the negotiations and see what's going to happen week or month later in the event there is no deal, you're not going to pick the right strategy up front r the current negotiations, for example, both sides thinking about what changes after december 3 11st. if you can look ahead and see things are worse for you in january than now, may want to try earlier to get a deal before it is too late. >> one thing we have noticed a lot of this seems to be playing out in the presiden

. >> daniel patrick moynihan, great american center, public servant, had a simple suggestion. tax the magazines, the bullets. i do not care how many guns they have. if they cannot fire them, they will not kill people. >> state department takes a big hit on benghaz >> the state of art and had not given benghazi the security both physical and personnel resources it needed. >> former ambassador thomas pickering, former chair of the accountability review board investigated the attack. the report is the result of three resignation so far. i guarantee that is not the end of this debate. >> i feel a little bit as if, you know when somebody is going down the street and they cut someone off. the other guy is curious and the ab dver says, you arright. at i what happened this week. the state department said you are right. it took the wind out of the sales of the republican conspiracy theorists, i think, someonwhat. a hearing on capitol hill was only one hour long? this one was pretty reasonable. >> still someone in your sales, charles? >> the secretary of state said that the buck stops w

nora moynihan from port discovery joins us for this mornings hometoww hotspot..nvolved with the new years celebration? 3discovery? noontime new year- superhero ppectacular!!is taking place at port discovery rom 9:30 31st. to learn more log on to mooning. 3 &p 33 3 3 3 & coming up... he'sshad roles in its... like "tropic thunder".n thunder".brandon-t-jackson joins us ive for funny friday. mixing your own drinks... on &pnew year's.the mmst-have items... to create the perfect bar at home. you're watching fox 45 morning newss. all local.. all morning. 3((break 2)) [ male announcer ] this commercial is not about getting fios, it's about getting fios. that moment after you finally got it that you actually get it. when you see the difference 100% fiber optics makes, and you say "woah we are not on cable anymore." when online videos aren't herky jerky, you get it. or when a movie downloads in two minutes, you get it. last chance to get fios for just $79.99 a month for two years with a two-year agreement. plus $300 back. go to got2getfios.com today for america's fastest,

s like brian moynihan could collect the year end bonus of over nine million dollars a week lou with that they have enough money to pay for a reasonable war gauge at today's values so this is something that all of can stand behind we believe that when folks have you know a home that they should be able to stay in that home and it's not like they're not willing to pay this is the weirdest movement i've ever worked in this way and the foreclosure movement because we are begging people to take money and they won't take it of course occupy hardly invented foreclosure defenses people like grace and high foreclosure organizations have been toiling away at this for years but when occupy wall street went to east new york in december to march occupy are more and more people around the country started to realize that there was another way to back off. was. i get it back. when i think you got that right i think you know and sometimes demanding change in a large scale starts because even smaller groups dr margaret flowers is among the nation's leading advocates for true health care reform health care

that's moynihan.brian is going to speak and after that will he take some questions and after that we will have panel discussions featuring several pabble housing experts. so with that please welcome me in welcoming brian moynihan. \[applause] >> thank you karen. as karen said, she is a member of our national community advisory counsel which several of the members of the panel are, too and we appreciate the insight they give us. i'm grateful to be here with the brookings team to put together in important form. when you think about things, there's a saying that says confidence never comes from knowing all the answers but being open to all the questions. to think not mostly about the answers but on the questions. we are tackled to think about the questions and the impacts of the recession and future population growth and future prospects in homeownership and lending standards and how to make sure future homeowner ship is sustainable and strong affordable rental program and the questions about the proper

daniel patrick moynihan, great american center and public servant had a simple suggestion. tax the magazines, tax the bullets, attacks the ammunitions. i do not care how many guns they have. if they cannot fire them, they will not kill people. >> state department takes a big hit on benghazi. >> the state department had not given benghazi the security, both physical and personal resources it needed. >> former ambassador thomas pickering, the chairman of the accountability review board that investigated the attack, the board report has resulted in three resignations so far, but i guarantee that is not the end of this debate. >> it is not, but i feel like -- when somebody is going down the street and they cut someone off. the other guy is furious and the errant drivers says you are right here that is what happened this week. the state department said you were right. it sort of took the wind out of the sales of the republican conspiracy theorists', i think, somewhat. a hearing was only an hour-and- a-half long? the last one was four hours and everyone was screaming. this one wa

turns out what should be the future, i want to echo what brian moynihan said, the pace of the united states. the united states. i think that's fundamental to the degree to which we recover in housing markets across the country. i have been to a variety of different markets for events 20 sort of look at this. sacramento, phoenix, columbus and the nature of the recovery differs greatly but the pattern that emerges is one in which the broader based economies recover better than those which are narrow and the reports cannot be overstated. the second which doesn't get talked about as much which i think is very important to the future is immigration which is central and one of the underserved policy topics in the united states. the native-born population of the u.s. doesn't have replacement fertility rates so all future population growths comes from what we choose and this is the issue over the longer term, so those things strike me as central as to how it will work out. seems to me we have a couple things. first is to recognize it is time to look forward. this crisis began years ago now,

jim buckley is referring to you as professor moynihan. what you are in for tonight is an episode of my lapse back into professordom. take notes, there will be a test. in 1953, the year in which the words "under god" were added to the pledge of allegiance, dwight eisenhower proclaimed the fourth of july a national day of prayer. on that day, eisenhower fished in the morning, golfed in the afternoon, and played ridge in the evening. -- bridge in the evening. perhaps there were prayers in the us activities. -- these activities. this was not his first foray into the ground between religion and american politics. three days before christmas in 1952, president-elect ike made a speech in which he said, quo"our form of government haso sense unless it is founded in the deeply fought religious space, and i do not care what it is your cu." he received much ridicule for the last part of his statement. for expressing indifference to the religion. it is the first part of the statement that deserves continuing attention. certainly, many americans, perha

the one that he did successfully was pat moynihan running against william f. buckley he turns to him and says professor. moynahan looks up with the smile and says the mud slinging begins. [laughter] here it is an honor. [laughter] generalize for us historians typically did not have access to anything resembling this material with the exception how do you regard that source of information? >> is good to go. what is wonderful about the tapes is the immediacy. we do have other tapes to listen to but one thing that i love in is the conversations between president kennedy and his brother. the nixon tapes of a certain quality and then the brothers talk about how mean he is. i am sure other words were used but it brings you back to reduce crime moment in time. >> is a possible to get fresh insights about a president has actually works? and to have access to his give-and-take, how does that add to the record? >> what is more powerful from my point* of view is the way brings kennedy to life he was masterful with television. we have a lot of media one of the things that

that's moynihan. so brian is going to speak and after that will he take some questions and after that we will have panel discussions featuring several pabble housing experts. so with that please welcome me in welcoming brian moynihan. [applause] >> thank you karen. as karen said, she is a member of our national community advisory counsel which several of the members of the panel are, too and we appreciate the insight they give us. i'm grateful to be here with the brookings team to put together in important form. when you think about things, there's a saying that says confidence never comes from knowing all the answers but being open to all the questions. to think not mostly about the answers but on the questions. we are tackled to think about the questions and the impacts of the recession and future population growth and future prospects in homeownership and lending standards and how to make sure future homeowner ship is sustainable and strong affordable rental program and the questions about the prop

that sounds like the late senator moynihan, that the idea of supply side was basically to get rid of so much revenue the it's about torture. many critics say "zero dark thirty" suggests without torture we wouldn't have gotten the guy. but not everyone agrees. that's what the movie's about. it's going to be hot. >>> and the gop's favorite supreme court justice scalia just came out with a sugar plum. here he is. quote, if we cannot have moral feelings against homosexuality, can we have it against murder? can we have it against other things? >> do they really need this? >>> finally, let me finish with the problem with justice scalia. i think you just heard it. this is "hardball," the place for politics. [ man ] ring ring... progresso this reduced sodium soup says it may help lower cholesterol, how does it work? you just have to eat it as part of your heart healthy diet. step 1. eat the soup. all those veggies and beans, that's what may help lower your cholesterol and -- well that's easy [ male announcer ] progresso. you gotta taste this soup. >>> everyone loves a winner. president obama

jim buckley is referring to you as professor moynihan. pat said, the mudslinging has begun.hat you are in for tonight, however, it is a lecture on political philosophy. take notes, there will be a test. in 1953, the year in which the words "under god" were added to the pledge of allegiance, it he proclaimed the fourth of july and national day of prayer. on that day, eisenhower fished in the morning, golfed in the afternoon, and played bridge in the evening. there were prayers -- perhaps when the chief executive faced a daunting putt. this was not his first foray into the darkened ground of the relationship between religion and american politics. three days before christmas in 1952, president elect ike made a speech in which he said "our form of government has no sense unless it is founded in the deeply felt religious faith and i do not care what it is." he received a much ridicule from his cultured despise years. his professed indifference to the major of the religious faith. it is the first part of the statement that deserves continuing attention. certainly many americans,

. >> eliot: i know you as not only a historian but someone who revered senator moynihan. he came up with the idea of bullet control. he said there are too many guns out there in circulation but the number of bullets is limited. maybe somehow we can make access to bullets more limited. is that an idea? i know it is sort of on the edge but it is something we should be talking about. >> very much so because what really obviously is essential to this kind of massacre is a large number of bullets and but for the heroism of the s.w.a.t. team that went into the building not knowing what they were going to find, a lot more people would have been slaughtered last friday. of course, the killer turned his gun on himself when he knew that he was going to be apprehended. and that was the end of the massacre. but the number of bullets he had could have killed many more people and at the very least perhaps sending some signal that there's a need for oversight when somebody buys a large amount of ammunition without any license or oversight i think is an important area to discuss. >> elio

a stock moynihan was on "squawk box" this morning. stocks up 80%. do you buy here?'s got to close above $10.11. that level has been kryptonite for the name. if it doesn't close above there aggressively, you're probably looking at sub 9%. if we're trading, you know, subpennies. so it's got to trade above that. you've got to hold on to that level. but obviously there's a lot of scares going on with the cliff. i love this new spot with the debate. you take john's side. they're both right but if we go over the cliff, the biggest things you're going to see are the housing names be dragged right back down. >> yeah. grasso. good to see you. >> boa is one we agree on. we're both adding to it. it's a great stock. >> all right. let's do a market flash now for a check on what's moving now. what are you watching? >>> apple hit a two-week low this morning. late morning, and then we saw huge 2.36 million share trades come in. that's about a $1.35 billion trade. a lot say that's associated with option activity. the other thing is technicians are watching it. talking about the movi

and he got whooped by pat moynihan. this reminds me a little bit of that.hink the black box information thing is something whose time has come. you can't get rid of it. it's too valuable in court, tom. >> but see you have to balance things. court will take care of itself. the laws will take care of themselves. personal liberty, where you go, what you do, what you're doing while you do it there has value. >> liberty has value. okay. thanks to tom curran who got it right. >>> finally tonight, a salute to a dwindling band, most of them crowding 90 or already there. survivors of pearl harbor on this pearl harbor day. the devastating attack 71 years ago today. the survivorers went on to fight across the pacific throughout the war, came home to build the peace. those that are able still show up at pearl. keeping america great for all these years. i thank them. i salute them. i salute all them and their families for god's service to america. have a great weekend, everybody. i'm larry kudlow. we'll see you on monday. but when i was in an accident... i was worried t

that sounds like the late senator moynihan that the idea of supply side was basically to get rid of so much revenue the government had such big deficits that even liberals couldn't call for new programs. dana, your thoughts on that? >> that would be well and good except they're also getting all the taxes to go up at the same time so they're not achieving anything by that. the republicans realize they lose politically if we go over the fiscal cliff, but this isn't just a political thing. the country loses economically if we go over it and then everybody is going to suffer -- >> let's go back to normal world. assume everybody is rational for five seconds. >> i can't do that. >> dana, you first. you're here in washington and then ron. what's the game play out the next few days. i think the republicans have reached the end of the line. they're hoping obama will show his cards and come out with cuts for entitlements and then they will show something on tax cuts. >> he has no incentive to do anything at least publicly. >> will they show their cards on tax cuts first ? >> they have to. >> who

and particularly an old patrick moynihan idea, the number of bullet its. it is hard to control 300 million guns. the bullets are a little easier. >> woodruff: that makes it unlikely, isn't it, that something would happen? >> i think we won't know until, you know, until somebody take its that leadership. i mean there have been, you know, a few lonely voices in congress. and chuck schumer, senator from new york has raised it. but it's going to require obviously a larger coalition than that. >> woodruff: a couple of other things that have happened this week. i want to ask the two of you about. david this rlly pshed out the ne the story that everybody was talking about last night, that susan rice withdrawing her name to be secretary of state. what finally moved her to take her name out do you think and what does it is a? >> well, i don't really believe it was without white house acknowledgment. if she had a sense the white house was going to fight for her. she would be happy to fight. she had a piece laying out the case for her. i think it is a pretty decent c

intelligent protege of two liberal democrats, representative pete stark and senator daniel patrick moynihan, both of whom believed in public service as a calling. that she was seriously devoted to crafting a health care reform proposal that would pass. i don't doubt that. but it's not the point. she's emblematic of the revolving door culture that inevitably means, when push comes to shove, that corporate interests will have the upper hand in the close calls that determine public policy. it's how insiders fix the rules of the market, no matter which party is in power. the last time we looked, 34 former staff members of senator baucus, whose finance committee has life and death power over industry's wish list, were registered lobbyists -- more than a third of them working on health care issues in the private sector. and the revolving door spins even faster after a big election like the one we had last month, as scores of officials, elected representatives and their staffs vacate their offices after the ballots are counted. many of them head for k street and the highest bidder. that, too, brin