>> the federal reserve and the occ which are the regulators in the united states will take a look atin and it will fall under their payment systems methodologies. again, they will use existing regulations. the thing with the federal reserve from the occ specifically when it comes to block chain, i don't think you will not see it separated out. you see the examination authorities of both regulators, saying, we want to make sure this is ok. it is a function of how big does it get. a lot of people are saying, we want to build block chain. if you start building a ledger that is handling $5 billion in payments, that is when the federal reserve and occ is going to step in. if it is a small ledger, they will be ok with it. once it gets larger that is when the examiners will take a look. nejra: i want to turn briefly as well to the treasury report, a separate issue. one thing that seems to have got wall street fluttering are the mortgage provisions. >> that's right. the treasury report, this is the second of four. there is a piece in there about securities, specifically talking about the ris

>> the federal reserve and the occ which are the regulators in the united states will take a look atin and it will fall under their payment systems methodologies. again, they will use existing regulations. the thing with the federal reserve from the occ specifically when it comes to block chain, i don't think you will not see it separated out. you see the examination authorities of both regulators, saying, we want to make sure this is ok. it is a function of how big does it get. a lot of people are saying, we want to build block chain. if you start building a ledger that is handling $5 billion in payments, that is when the federal reserve and occ is going to step in. if it is a small ledger, they will be ok with it. once it gets larger that is when the examiners will take a look. nejra: i want to turn briefly as well to the treasury report, a separate issue. one thing that seems to have got wall street fluttering are the mortgage provisions. >> that's right. the treasury report, this is the second of four. there is a piece in there about securities, specifically talking about the ris

the thing with the federal reserve and the occ when it specifically comes to blocking, -- block chaint think you will be separated out, i think you will see the examination authorities of both regulars -- regulators saying, we want to make sure this is ok. it is also a function of how big does it get? a lot of people out there saying they want to build lock chain, but if you start building a system or leisure for example that is handling $5 billion in payments, that is when the federal reserve and occ is going to step in. if it is a small ledger, they will be ok with it. once it starts getting larger, that is when the examiners are going to go in and say, let's take a look. nejra: nathan, i want to turn briefly as well to the treasury report, a separate issue. one thing that seems to have got wall street aflutter somewhat are the mortgage provisions. nathan: that's right. the treasury report, this is the second of four. this deals with capital markets. there is a piece in there about securitization, specifically talking about the risk-retention rule. this is important because there wa

why shouldn't the occ consider revoking your charter? >> senator, because we provide products and services to one out of three american households. we've talked about many mistakes that we've made, but today, we more often times than not, we do that appropriately. the company is growing, and the company provides jobs to 270,000 people. >> so you're too big? >> no, no, we're not too big at all, i'm reinforcing that every day we have 270,000 team members that go out and-- >> that sounds like what you said, that the reason that your charter shouldn't at least be considered for revokecation is the first thing out of your mouth was your size. >> no, the first thing out of my mouth was our customers that we serve one out of every three customers. we take that responsibility very seriously, when you look at the bank in totality today, we're doing many more things right than we are wrong, but i appreciate that today we're talking about wells fargo one year later and the changes that i've-- >> sure, i'm sorry, i'm going to cut you off. i want to

no, they did not. >> were you supervised by the occ at this it time? >> yes. >> did that relate to this situation? >> yes, it did. the prior comptroller of the agency has testified to that. >> did the cftb come up with anything during the period of time? >> not to my knowledge. >> are there any outstanding issues today? >> oh, sure, absolutely, i have a long to do list. >> and how is the company reacting to that list of questions. >> i think that you're implementing too, right? >> we're making fundamental changes, not only because they make sense. our regulators believe there are other changes we need to make. we're being very responsive, i'm sure if they were here, they would say we're not moving as quickly as they would like. which i appreciate that, but our commitment to making, to fixing anything that's broken and making wells fargo the best bank in this country is sacro sankt from my perspective. >> in a private conversation, there's no way to sugar coat this, it's a serious issue. i want to get to the governance issue. you have an internal audit

important for industry and you're starting to see that with the leadership changes at the fed and the occ. you're starting to see the pendulum swing back more to the middle and, you know maybe we get some legislative change that comes out or amendment to dodd frank i don't think that's as necessary today with a regulatory reform coming from the occ, the fed, the ic and state regulatory action. i think it's more balanced and it does make it an easy environment to serve your customer, serve your communities. essentially a bank like ours is a community facing organization. it's a community bank with a larger balance sleet and this environment with this regulatory shift is going to be positive for us i'm very encouraged by it. >> you're making this big acquisition where you talk about how you're not necessarily ready yet to have big investments in artificial intelligence and labor reducing technologies. once you complete the acquisition it'll be time to bring this in and shaave a lot f money for your shareholders? >> clearly the technology faces or industry are significant. they're going to r

why shouldn't the occ consider revoking your charter? >> because we provide products and services to one of 3 american households, we talked about many mistakes we have made that today more often times than not we do that appropriately. the company is growing, the company provides jobs to 270,000 people. >> you are too big? >> we are not too big at all. we have 270,000 team members. >> sound like what you said. the reason the charter shouldn't be considered for revocation is the first thing out of your mouth with your size. >> first thing out of my mouth with our customers, we serve one out of every three customers, we take that responsibility very seriously, when you look at that in totality today, and appreciate we are looking at wells fargo, the changes -- >> 5 minutes only. that sounds to me, we allow members of the panel and audience to make a judgment about whether -- to explain this to somebody back home. you made $21 billion in profits last year, you made a nice salary. i want to personalize this. your board makes a nice amount o

>> the federal reserve and the occ which are the regulators in , the united states will take a look atwill fall under their payment systems methodologies. they will use existing regulations. the thing with the federal reserve and the occ in terms of block chain is you will not see it separated out. you see the examination authorities of both regulators, saying, we want to make sure this is ok. it is a function of how big does it get. a lot of people are saying, we want to build block chain. if you start building a ledger that is handling $5 billion in payments, that is when the federal reserve will step in. if it is a small ledger, they will be ok with it. once it gets larger that is when the examiners will take a look. nejra: i want to turn briefly as well to the treasury report, a separate issue. one thing that seems to have got wall street fluttering are the mortgage provisions. >> this is the second of four. there is a piece in there about securities, talking about the risk retention rule. this is important because there wasn't a lot of chatter in washington to deal with this rule.

why shouldn't the occ consider revoking your charter? >> because we provide products and services to one out of three american households. we talked about the mistakes, but today were often times not we do it appropriately. the company is growing, the company provides jobs to 270,000 people. >> so you're too big? >> no, were not too big, at all, but we have 270,000 team members. >> it sounds like what you said, the reason it shouldn't be considered for revocation is because the first thing out of my mouth was her size. >> the first thing out of my mouth was our customers, we serve one out of every three customers. when you look at the bank in totality today were doing many more things right than wrong. i appreciate that were talking about wells fargo one year later in the changes. >> that does sound to me like to be, i guess we'll let members of the panel on the audience to make a judgment about whether your answer suffice. i'm not an expert in banking. explain this to someone back home. you made 21 billion in profits last year. you made

the thing with the federal reserve and the occ in terms of block chain is you will not see it separatedsee the examination authorities of both regulators, saying, we want to make sure this is ok. of how big does it get. a lot of people are saying, we want to build block chain. if you start building a ledger that is handling $5 billion in payments, that is when the federal reserve will step in. if it is a small ledger, they will be ok with it. once it gets larger that is when the examiners will take a look. asra: i want to turn briefly well to the treasury report, a separate issue. one thing that seems to have got wall street fluttering are the mortgage provisions. >> this is the second of four. there is a piece in there about securities, talking about the risk retention rule. because thereant wasn't a lot of chatter in washington to deal with this rule. you hear about it on wall street but not in washington. it suggest the regulators should look at the risk retention rule. this requires sponsors to retain 5% on their books. it is a big deal. is $12 billion to $60 billion in capital. one

occ, federal reserve, cfbb, is that correct >> security regulators, too. >> were you supervised 2007, 2016, were you supervised by the federal reserve? >> yes >> in their oversight, and i'm sure they were quite involved, did they reveal any material issues during that period of time >> they have, but that's confidential information that i can't disclose, but we have an act of dialogue -- >> relative to this breach -- >> in terms of the retail accounts no, they did not >> were you supervised by the occ during this period of time >> yes >> did that oversight reveal material issues related to this situation? >> yes, it did, and the prior comptroller of the currency, mr. curry, has testified to that >> did the cfpb come up with anything, any material issues, during this period of time >> not to my knowledge >> in dealing with these regulators, are there any outstanding -- >> absolutely. i have a long to do list yeah >> and how is the company reacting to that list of corrections? >> we're listening i mean, i think that -- >> i'm sure you're implementing, too, right >> that's where i was go

as the cpih issues >> sure, we have an active dialogue with our regulators, the federal reserve, the occpb when talking about bank related issues. so there is a tremendous amount of dialogue, for example, as it relates to the collateral protection or cpi issue, when that got escalated in the third quarter, we reported it to our regulators on a real time basis and we have been working with them not hoonly to keep them apprised of those issues, but with the occ, working with them to make sure the remediation plan we had for the -- any customer that was impacted by cpi is acceptable. as it relates to the fundamental changes that i've made since i became ceo in compliance, we have done the following things, first and foremost, we have centralized all of our enterprise risk andcontrol activities that was one of the failings that the report from the independent board of directors found, and we agree with that. so those have been centralized we're hiring a new compliance officer, we have completed and devised a new compliance plan. we have created a conduct office in the centralized risk group

stefr occ steph curry and kevin durant were ejected.z saw against the fired up grizzly. curry playing on back-to-back nights. beat new orleans earlier. curry trying to keep the warriors in it after they were down double digits earlier. back-to-back threes. warriors within seven. memphis not known for the three-ball. brooks from deep and grizzlies extend their leave. 74-58. draymond, nice feed to klay thompso thompson. down 14. gasol, 34 points, 14 rebounds. a little hook in the lane. a ten-point grizzly lead. less than a minute to play. curry on the layup, doesn't get the foul call. explodes. chucks the mouthguard. he gets sent packing. ejected. the warriors go down 111-101 is the final. >>> a double overtime thriller in berkeley came down to one decision by cal football coach justin wilcox. rolling the dice, going for two and the win against arizona. bears trying to keep the momentum from last week's upset of wazzou. the back handoff to patrick laird, takes it wildcats answer with two straighted i straight touchdowns. khalil tate runs

the occ time. that'll of the charts. -- battle of the charts. representing the biggest risk for markets. this is bloomberg. ♪ ♪ mark: is time for the global battle of the charts. when we look at the most telling charts of the day and what they mean for investors. you can access these on the bloomberg by running the function feature at the bottom of your screen. kicking things off today. christine. >> bonds have more fun. volatility foral treasury features and s&p futures. a week that started with john taylor emerging as the fed chair front runner and ended with legislative progress on tax reform. volatility is still low on the top panel of this chart but it has been enough to push treasury volatility above stock volatility. this yellow line, trading above zero. the last few times this happened this year has not been too long. what will make it last longer this time? it depends. will investors find the narratives of bonds which are central banks in politics more compelling than the story of, another day, another record high for stocks? check out

eli jake occ with the group defend puerto rico headed there last night.asked berkeley community for donations and taking 300 pounds of diapers, medical gear and generators with him, it was an honor to collect all of those donations. >> my heart is full, it's such an honor to be able to represent the bay area, represent puerto ricoan toss go back to puerto rico and bring these donations. >> eli will be in puerto rico for a week and a half but still wants more donations for his next trip at the end of the month. can you go to ktvu.com to find out how to donate, make sure you look under web links. >>> for the first time in more than 15 years san francisco is expanding its recycling program. the bins are changing, along with what you can put in them as part of a move to recycle more items. ktvu telling us it's part of the city's plan to get to zero waste. >> if you live in san francisco listen up, your recycling routine is getting an upgrade. >> everything here goes in the blue bin. that is new. >> the city's department of environment says blue recycle bins a

instances of staff fraud have occ occurred regarding applicant fraud in the past state has suspended resettlement programs because of fraud. they have implemented mechanisms however they have not jointly assessed applicant fraud risks. state and uscis do not have information that may effect the integrity of the process. we recommend the state review fraud risk assessments and use them to examine existing fraud controls. we also recommended that state and uscis conduct regular of the program. they concurred with these recommendations. in closing given the potential con kwenss that the outcomes of decisions can have on the safety and decisions of refugee pop populations and united states it is important that the u.s. government have an effective refugee program while preventing those with malicious intent from gaining entry into the country. this concludes my. >> thank you. i will begin by recognizing myself for five minutes. mr. henshaw, as you know last year the u.s. entered into an agreement with australia to accept over a thousand refugee. many of whom are from countries of nationa

recommendations don't require congressional approval, just getting some new people in the fed and on the occed. we think that's going to happen in the not so distant future. >> banks so far, are there any that are particular standouts? >> this week, certainly the revenue vernements will be challenging. but as we look to the biggest banks, the jpmorgans, citi groups, they kind of have those adversely impacted by the regulatory environment we think they have the most to benefit as it comes back. >> what do you think of wells fargo after everything that this bank has been dragged through continued trips to capitol hill. >> it's certainly been a tough 12 months for wells fargo. longer term we think they'll turn the ship. they've made a lot of progress since the issues came to light last september we have a little bit more to go. as they clean the decks in 2017, we think they're poised to make a comeback in 2018. >> uy, what do you think about wells fargo and the reputational sting? >> on principle i wouldn't buy wells fargo. i think they've made strides over the last few months we've talked to m