mr. toby is here. he is an incredible contributor to this project. i want to acknowledge him and his family foundation and the incredible support of lisa and doug goldmanho continue to support mr. and mrs. goldman who continue to support incredible projects all over the city.

mr. toby is here. he is an incredible contributor to this project. i want to acknowledge him and his family foundation and the incredible support of lisa and doug goldmanontinue to support mr. and mrs. goldman who continue to support incredible projects all over the city. thank you to the corrett foundation. those were major contributions, and there are so many other people, whether you gave $5 or $5 million, every dollar that you gave made this project possible and you all should be proud for your contributions. i want be to thank each and every one of the tennis folks in the room. there are so many tennis people who make sure we protect the tennis courts in our city. that is so important. like i said, even though i tried and i wasn't that great, the fact is i had a place to try. that is what counts because you never know when you are going to basically create the neck serena williams or anyone else. we have to make sure those opportunities exist. thank you all for being here today. we are breaking ground today. i hope to see you back in 2020 when we open this brand-new incredible facility. [applause.] >> our next speaker ties to the theme that we hav

mr. goldman brings up a very good example here. the office of civic engagement, every single personal -- this is ongoing work. i believe the board has actually adopted language access, ordinances if something ising on going. this is a commitment that the city and county has made to our immigrant community. yet, we see every single employee being exempt. why dozen this happen? some of these employees have worked over three years in this department. i thought there wassa there wasy 18 and category 16 is seasonal work. some these poxe positions are professional positions. can you speak about this? >> thank you for the question. i do agree with you. the situation out of o.c.i. is not a good one in terms of the use of exempt categories. we have completed an evaluation of the division over the last few months and consultation with d.h.r. and have identified a number of positions within the agency that we believe should be converted to p.c.s. over the next year. i think the story with o.c.i. is one that's complex than the current state of

mr najib's y. also implicated is goldman sachs which used to issue bonds to 1mdb. take months, if not years, but this is the first time for anyone to face trial over the scandal. thank you, rico hizon. our team will be busy covering that story. other business news, theresa may is to ask the eu to give her more time to reach an agreement in parliament. she has also said she will try again to reach a compromise with the leader of the opposition labour partyjeremy corbyn which has incensed many senior figures partyjeremy corbyn which has incensed many seniorfigures in her own party. and donald trump's threatened to close the us border with mexico has boosted the cost of a breakfast favourite. the price of avocados have surged. that is as prices from the heartland of mexico's avocado production jumped 34%. i think that is the first time i have talked about avocado, the commodity. let's show you what is going on with prices as we are on the subject. as you can see, markets are going up by quite some. the price of oil is at a four—month high. we can't show you the number

mr. goldman. >> part of how we set list prices we have to look at the dynamics of the supply chain including rebates. we have limited ourselves to list price increases no greater than expenditures. >> mr. marty abbott you have a different perspective. >> rebates or discounts. as we have disclosed, more than 90% of those discounts go back to our client. >> i understand. but why do you think the list prices are so high? >> i can't answer that. that's the manufacturers. >> i concur. i have no idea why it list prices are high. it's not a result of rebate. >> dr.? >> we see the list prices rising double digits and nine rebated drugs and generics were monopolies lost or where manufacturers buy up and create monopoly. so, we cannot see a correlation just when rebates raise list prices. >> okay, so of course my time is almost up. i think this is a good example of the problem that the members of congress are dealing with. in trying to figure out how to solve this problem. it seems to me what is happening is that every component of the drug system is contributing to an upward pressure on the list pric

mr. solomon, why did goldman sachs initially choose to open a crypto trading desk? >> the first article wasn't correct. like others, we're watching and exploring and doing work in trying to understand crypto currency market as it develops certa other than that, we never had plans to open any crypto currency trading desk. we might at some point in time, but no question when you're dealing with crypto currency, it's a new earea and a lot of issues and unclear and it's not clear whether or not in the long run as a currency, you know, those technologies will work and be viable. >> clearly and certainly some of those tokens that are issued are awaiting definition as to what will be a security, what is not a security, what is the appropriate trading platform a number of issues that our bill goes into it and frankly a number of things that will be need to be addressed afterward you called crypto currencies, quote, not a real thing. but this year your firm unveiled jpm coin and stated, quote, we're supportive of crypto currencies as well as they're properly controlled and r

mr. solomon for a good research report from goldman sachs on this issue. i've heard my colleagues on both sides of the aisle condemn stock buybacks. i'd like to say that capital allocation is a fundamental responsibility of boards of directors. i looked at the statistics. r& d spending among the fortune 500 is up and on par with where it's been for 30 years. point two, we talk about shareholders like they're some unknown group of people. american citizens, labor unions, pension plans, and 401(k) plans, and your report shows no correlation with ceos manipulating their compensation using stock buybacks. i yield back. >> thank you. the gentleman from massachusetts, mr. lynch, is recognized for five minutes. >> thank you, madam chair. i want to follow up on a question that was asked probably several hours ago by the gentleman from indiana. you each responded to his question about systemic risk and the things that keep you up at night. you all mentioned that shadow banking in some form was a source of risk, although a number of you said it's not systemic yet. i

ashley: goldman sachs saying mr. oing to win based on the strength of our economy in 2020. i guess that's playing into what you're saying but you agree with goldman sachs? >> you know, again, i'm not a political scientist but ray faire, a nobel winning economist, says if gdp is strong the incumbent wins. i believe gdp will be 3% next year. i think if that happens, ray faire would tell you the incumbent would win regardless of which party. the president has that strong a growth rate, they are likely to win. ashley: which makes next year critically important. you don't see any recession on the horizon, maybe mid next year or anything like that? >> no. i think it's highly, highly unlikely. the way to think about it is that with all the factories coming home, the unemployment rate in the 3s, wage growth so high, then you can expect demand to go high, too, because everybody in the cea, we put up a chart the bottom 10% of income distribution saw wages grow 6.5%. so that 6.5% growth in wages is going to lead to 6.5% growth i

and china's goldman claws close dawns this can but and folks like it is either salient and is ready shameful really under a sponsor ball statement but do you think it is not possible that mr deuce is not aware of what's happening in transition. well plugs like in should knows this because an international business compound in light of folks like in the first response ability to play again chance of growth lightweight asian and shook all brits i didn't is this in or i'm an seitan is complicity so and if you knows you know is a folks fuckin operate a car it could be thought of sister to start a new chip and. folks bargain is beginning to sort of begins to operate promise us equality and employer and the chinese and believe something we were employed here is this car company but i have kind of a few days hold on many we were employees from folks like in no is a concentration camp david talks in knows that it is the one big question to this writer it's a question that will be asked in the near future a president of the world we go to congress thank you very much for your comments on this story i thank you. and he reached out to folks fogg and talks out of five stars in an e-m

asked china's goldman close close dawns this can but and folks like in this leader are saying it is ready shameful really under a sponsor bald statement but do you think it is not possible that mr deuce is not aware of what's happening in transition. well folks like ian should noses because an international business compound in light folks are going to cause the responsibility to pay attention to grows a white white asian and it should all brits i didn't is this in order meant seitan is complicity so and if she knows you know is a folks bargain operate a car in the capital of history to start a new chip and. folks bargain is beginning to sort of begins or break promise us equality and employer and the chinese and believe something employer is this car company but i can ask today's whole many we were employees from folks like in no is a concentration camp talks knows that it is the one big question to this writer it's a question that will be asked in the near future a president of the world we go to congress thank you very much for your comments on this story. i think if. that's all so much of a win even with pictures from indonesia shows a mammoth election cut in south elephant

mr. david m. solomon, chairman and chief executive officer of goldman sachs, who has been at goldman sachs since 1999, becoming c.e.o. in october, 2018, and chairman in 2019. without objection, your written statements will be made part of the record. before we begin, i would like to swear the witnesses in. would the witnesses please stand and each raise your right hand. do you solemnly swear or affirm that the testimony you will give before this committee in the matters now under consideration will be the truth, the whole truth and nothing but the truth, so help you god? thank you very much. let the record show that the witnesses answered in the affirmative. please be seated. each of you will have five minutes to summarize your testimony. when you have one minute remaining, a yellow light will appear. at that time, i would ask you to wrap up your testimony so we can be respectful of both the witnesses and the committee members' time. you're now recognized for five minutes to present your oral testimony. >> chairwoman waters, ranking member mchenry, and members of the committee. i'd like to thank you

mr. cannon will give us a walk-through. accounting with fred cannon. and goldmanh earnings today. it is like "game of thrones" will they be jp morgan or will they be wells fargo? this is bloomberg. ♪ xfinity watchathon week has sadly come to an end. what, what, what! no! but don't let that stop you from watching the best shows and movies from showtime, hbo, epix... jesus, what happened? ...and more. it's just the tip of the iceberg. upgrade now to get more into what you're into. thanks! just say "watchathon" into your x1 voice remote to upgrade and keep getting more of what you love. ♪ tom: good morning, everyone. "bloomberg surveillance." in keene guy johnson, guy for francine. here is the first word news. buttigiegpete announcing he is running for the democratic nomination for president. he has seen an uptick of support recently. , and 37 years old, gay spent eight years in the naval reserves. president trump has opened the door to a third summit with north korea's kim jong-un. the president describing the relationship between the two as excellent. kim says he i

goldman sachs of 1995 and '96. a much different firm. there were 6,000 people that were there there's 40,000 people there. you can't grow that and have the same culture, plus respectfully mrng down everything that was a money-maker years ago and he's getting to a firm which is a fee-based utility that the rest banks seem to be goldman sachs today is not goldman sachs that you remember it to be, the billions remembers it to be. >> the show. >> the show. >> i had to bring that up. >> right, but the old -- you're talking about when we used to talk about goldman sachs in the context of morgan stanley, and they are almost two different firms. goldman sachs is moving more towards morgan stanley. >> more back to the old days of goldman sachs. they are the lead underwriters for all of these major ipos that we're talking about every single day. >> to answer your question, i understand why the stock is trading higher, but in the broad scope of things, i don't understand why banks are trading at premium -- well, premium mulls pat. you say the multiples are ridiculously cheap they are all utilities look at j.p. morgan, for example, tangible book and jpmorgan came out at $-5-57.5. you

mr. solomon, you are recognized for five minutes to present your testimony >> chairwoman waters i appreciate this committee focus on accountability. as the new chairman and ceo of goldman sachs, we just celebrated our 150th anniversary. our clients all around the world ranging from large and small businesses and endowments and start ups and individuals. what remains true today is our employees work everyday to provide these clients with best in class service and to work hard to earn their trust today the u.s. financial system is safer and more resilient and financial institutions holding more capital and they reduce their leverage and holdings and liquid assets. goldman sachs's equity has doubled. we are confident that we can withstand shocks dodd frank has made the system safer and we made important progress adopting to that regulatory environment after ten years of experience seems appropriate to assess whether improvements can be made to avoid duplications and inconsistencie inconsistencies. we under took a three-year review of the firm's business standards and practices and most extensive review of the firm's history and ranging of conflict of interests to transpar

mr. westbrook, i think it is unfortunate that some of the brokers didl street not go to jail. as a result of their dealings in the crisis. subprimeknew the securities, some were junk, especially goldman. goldman sachs got a bunch of credit default swaps because they knew at some point people would stop paying their mortgages. everybody blames the little guy who took the mortgage that they could not afford but actually the big firms knew they were packaging junk and selling it all over the world. i would like to know if you think the repeal of glass-steagall had an effect and why they reexecuted glass-steagall? glass-steagall was the bill that barred investment banking and commercial banking from being together in one firm. that was revealed and people blamed it for creating these megabanks, supermarket banks that do everything. i think that size is a problem and to the degree glass-steagall caused these banks to get bigger , there is probably something to look at. i do not know whether that bill would address the complexity of the banks we have now but i -- maxine waters made a point of this yesterday, are these banks too big to manage? setting aside whether they fail, if they will n