price look at how much they've lost in their book value when banks have lost so much value that sandy weill the father of big banks is saying they're not making enough money to survive anymore let's break them up then you know something has really gone wrong in the industry and the question is do they recognize it right i mean this is the big debate do people within the industry realize that it really does have to change or do they think that right now it's just kind of a cyclical moment things aren't so great and they'll be able to go back to making money in the same ways and with the same incentives that they had in two thousand and eight and that will tell you everything about the future of the banking industry what do you think is the answer to that just judging on the reporting that you do what do you think that people within the banking industry think because we have the sandy weill's but we have the jamie dimon saying bigger is better you know that's misguided right we'll say and i mean jamie diamond has to protect his stock price. god bless him because i mean if he came out and said

a lot of money there said prizes have recovered so as an example in two thousand and seven the sandy weill bought a condo in west fifteen and he paid forty three million he sold it to three months ago for eighty eight million so you can see home prices in phoenix have collapsed in that land down and nation wise wide. but prestigious trophy properties have continued to actually go up in price the same applies to singapore hong kong tokyo london trophy properties are strong and the property that is owned by average the media. how's the old as being week two just recently when it started to rebound somewhat yet so it was a very picture inequality is at play a very different picture in new york or in phoenix so would you say then that the economic picture is worse in the us than it is being presented through various data points that people gravitate towards and what would you be looking for as a sign of a real sustainable recovery. well if you are just say g.d.p. growth in the u.s. and i'm not saying that g.d.p. is an ideal measurement or rather one should pay attention to standards of living

there's a lot of there was a move to get rid of glass steagall of course under sandy weill citi bank as part of this move to deregulate then we had the brooklyn born reported refusing to regulate fraud in the derivatives market you know she had that isn't it with alan greenspan and robert rubin and so there has been under the so-called libertarian flag a move to deregulate because of their interpretation of the government that is being interfering with your thoughts well again hard i would argue that that is pure nonsense and that you've got some people that are trying to use the libertarian banner it as a cover for yet more theft this time by the financial industry the fact of the matter there is that the creation of unbacked credit within the financial system that is the giving of credit with no collateral wind is nothing other than counterfeiting. if you look at it from a mathematical perspective that's exactly what you have you have ten thousand units of production and ten thousand units of credit currency in one unit of one by one you know to the other if you can met make anothe

billions of new shares where be in particular got crammed down even more than the other participants sandy weill however he was part of the group of six that rescued citi group he invested twenty one point two million dollars and sold at a profit of six point two million dollars only two years later that's a profit of twenty nine percent in two years that they're all crammed down you know they bring in a preferred share that has senorita all other shares and dilutes everybody else all the other shareholders and quantitative easing is just a global cram down done by central banks they bring in a transfer of one hundred billion or join dollars of fresh money and they cram down all the existing holders of the particular country's currency and they dilute the value of that currency and lowball you've got prices going up and people riding in the street thank you central bankers. so this final headline here max hunder a set stage for three privately run cities so these are cities in honduras that will have their own police laws government and tax systems they can. they can negotiate international trad

you disagree with sandy weill on this, right? >> yes, i think it's a horrible idea to break up the banks. there was a reason they all became large, and that was scale and efficiency, economies of scale that drove it. it wasn't an unnatural act. the result of that, in my opinion, has been a lot of efficiency that benefits the clients and customers both in the united states and around the world. there was a recent study out quickly on this by the clearing house association. the first time i have seen this people because talk about the economies that takes the top 26 banks in the united states, and basically says that after a lot of study and research they did, it benefits $50 to $100 billion a year because of these efficiencies. it was natural for it all to happen. second from a public policy perspective, we have to remember that we as a country are trying to compete in a localizing world. we have the best banks in the world. they have certainly had a impact on creating large businesses. why would you want to break all of that up,

. >> guest: had they talked to sandy weill lately in terms of just that issue? i'm joking but the fact is that guy who led very much to eliminate glass-steagall, to a lemonade -- >> host: citibank. >> guest: to eliminate the firewall between wall street and thanks. now they are saying that was a terrible mistake and the whole argument that there are too many regulations and that is commonly what you see among some of the little ones, absolutely no basis for. it wasn't regulations that led to the collapse. at it was the fact that there was very little oversight. there was a whole mindset that the deregulation mindset in the financial services have created in part the whole mortgage catastrophe. one of the things we saw in the writing the book at the veteran center in southwest florida, and everybody knows a lot of the current veterans what they have come back to. what is interesting about this center is how many veterans went back in the korean war, the vietnam and the gulf war 15 or 20 years ago. a lot of these people were on the verge of losing their house. one

. >> sandy weill and came up with the prime. >> how much money do you think was spent on branding companyith whatever that is? >> a lot, and for a while i didn't think verizon was such a great name. >> verizon has grown on me. it's been around long enough. if you can survive long enough it will grow on you. >> except they're trying to force fios down my throat. >> fios is great. >> i have copper wires, they're trying to put fiber in my house, keep showing up. >> wait a second, you have comcast. >> and i wouldn't -- >> i don't have comcast anywhere near me. >> that's your excuse for consorting with the enemy. >> i'd rather pay for it than get it for free. >>> louisa boyeson is in london, good morning. >> hi, hello, good morning. i'm sure you might be able to borrow one of the danish names for a grocery store like boleson, eima, neitl, they're out there. markets are across the board, down by 0.7% on the stock 600. remember that on friday we saw just a little bit of moderating towards the very end of trade as we came back from those very close to 14-month highs so we're continuing lower this

. >> last eagle, sandy weill's came out is that it should be reinstated. i think the misconception there is that most of the the high-risk balance sheet activity is not an investment bank system. any rationale behind a? >> the risk of activity in the world is uncorrelated and correlated lending whether it's in the form of ceos or mortgages or leverage finance. they were all bending in one form or another. in the economy went through a recession 90% of the losses were due to -- not necessarily the trading activity although i will tell you it turns out a lot of those banks have a lot of loans in inventory. so we are going to stay a wholesale bank wholesale investment bank and we are frankly the only ones left. morgan stanley is but as you know they just ought the big retail business and they have gone into retail. gee i hope they are right. >> last man standing. >> will i don't want to be the last man standing for a few minutes. [laughter] the point is we have always had a matter of strategy 20 years ago that if we stayed focused on our core competence and n

ed and sandy weill talking about breaking up the banks, not for regulatory sake per se but from a businessective and that's the case you've made. if that argument holds as much water as i think you and people like sandy and phil purcell think, why has jamie dimon and victor moynihan not pursued that? >> i think they should. they should have robust discussions with their boards and shareholders and at least do the analysis and determine whether they would be worth more in pieces than they are in very one large complex financial institutionses. obviously chase's stock does better than b of a or citi. shareholders need to look at that but i would very much like the market to drive this. one of the things government can do is try to force simplification of their legal structures, some type of s subsidiarization models. that would make it easier for shareholders to see how it could be broken up. >> they say it is a, too complicated to break them up. >> right. >> they say how would do you it and b, bill harrison was on cnbc last week and said this is what the client wants. you don't buy that. >>