back in 2009, they buy smith barney, try to put it together.ter it looks like it is all coming together. the chairman was doing victory laps in terms of the performance. what would a merrill lynch be? a company that will outperform when the retail investor comes back. so, morgan stanley in terms of the cycle is going to do well, and that probably is a 2014, 2015. when unemployment drops, retail investors begin to melt down grandma's silver and come back and the stock market. cheryl: talking about morgan stanley, one of the things they have been focusing on, focus on high net worth individuals and managing their money. wells fargo blowing it out when it comes to loan origination, mortgages. you do see somebody like wells fargo who wants to compete with wells fargo. >> and origination business, the rates are rising. remember they have the will call via business, which is number three. number one morgan stanley, number two is merrill lynch, but unfortunately these wealth management businesses are much more diverse organizations. difficult to belie

they bought smith barney or citigroup out of that side of it. i like that going forward. over the next two and three quarters you're going to see big numbers. >> i don't see how they're going to get the roe improvement. you go with goldman sachs. >> i don't know why you need to do this here. i think these guys at one point one times tangible book. they are maybe not one and a half. why do you need to jump in here with the second quarter that's largely suspect. >> june auto sales spiking to prerescission levels. for all the detroits big three forbes say sales rose 14%. toyota seeing a gain of ten percent. at this point grasso what's the trade? >> ford is still the best in breed there. i would still be a buyer of ford. ford f series knocked the cover off the ball. what does that mean to productivity going forward? are people like john being ford f 150s? >> yes. >> are they really used as work trucks or have we changed and they're being used as family vehicles. that knocked the cover off the ball and i'm wondering if that's the leading indicator. >> pete bought a four door b

can say with, almost absolute certainlity if i had started my first really big job was running smith barney. if i started at the bottom there as trainee, i never would have made it to the top. because, this is sort of the old wall street, is that the interviewing process they use and questionnaire was from the marine corps. in order to then -- you had to make it in. women financial advisors tend to be successful but more slowly than men financial advisors. the industry keeps them out before they're successful because they're forming these deep relationships. in order to be successful in the way the business works is to get your first promotion, you go to be the number four manager in a big branch in new york or cincinnati. then you go to be the number one manager in a really small branch. i'm sure there are lots of wonderful husbands out there that will move six and eight times. my husband doesn't have to be one of those nor will my children. that path, let's call a spade a spade, was not conducive to getting women to the top. only woman at the top was a single woman who made those types of

completing the sale of brokerage smith barney, pumped up the bank's capital too. that capital level is already on track with regulator's rules years before required. and the bank is a stones throw from other benchmarks set for 2015. add to that the $1.2 billion in annual cost savings it laid out last year, and even critical analysts like mike mayo say the bank may finally be on a path to consistent revenue growth. >> if citigroup can become boring, the stock goes higher. the big issue for the last two decades is when they swing for the fences and they need a lot of singles. >> as u.s. consumers keep shedding debt and balking at rising interest rates, there's concern citigroup could rely too heavily on emerging growths. management today acknowledged some weakness there. korea remains a weight on earnings. and the cfo said problems there could continue for a year. even so, corvath said any fear of a slowdown, especially given latest data from china has not caused the bank to rethink its strategy. >> and now to boeing, shares of boeing were flying high today, leading

this is a huge business of theirs now that they've consolidated the rest of smith barney and it's just a great time right now. people are coming back to the markets. people are coming back to stocks. morgan stanley also crushed it in institutional trading. it's really broad based where they're finding success. it echoes what we heard from the bang of america unit merrill lynch and i think it continues for more than just one or two quarters. >> can you really buy everything in this basket? can you buy morgan stanley here? can you buy goldman here? >> it's a small basket. there used to be ten of these. there's only a few. >> buy all of them. >> if you want real capital market exposure it would be goldman and morgan stanley. if you want a diversified basket, you buy jpmorgan. it appears investors are looking through their net interest margin weakness because it was liquidity driven and if you want to play the yield curve more as a pure play, you do the regionals. >> i was going to ask you about the regionals. >> i'm surprised that key is up so much. they had a good quarter. just imagine w

have about 16, 70% of their ustry, merrill and smith barney have about 16, 70% of their advisors as women. so it really is men with men. and they think they're getting the whole family but when the husband dies, and the guy dies first, right? that just happened. >> thank you for looking at me with concern. [laughter] >> the guy dies first, is that the woman typically does on average, does not keep her money with a financial advisor on average she's because she gets like she wasn't as the link is as you would've wanted. >> we have 42nd but let me ask you both very quickly, if the tilt was the other direction and you have many more women in the boardroom, many more ceos, just much more embedded to the system, with the financial performance, with a stake oversight society really different? would talk about if women ran the world, what would be different? just snapshot of how you would see that, alexa? >> i would say the best person, man, woman. i never saw myself as -- >> are using that to be politically correct? >> i never saw myself as a young entrepreneur. i saw myself as young onto

. >> maybe retail sale, a big retail component because they've brought all of the old smith barney andnerate a stable kind of earning stream. citi sold it to them, people were saying it does dumb by citi. that's an okay business. i like what citi's doing with emerging markets going down. i can only imagine like the paper speculated today emerging markets bring in opportunity. like citi more than morgan. i like goldman more than morgan. morgan stanley. >> jim, bob daal here. we talked about difference between those companies that have more regulated businesses and those that can operate without the capital regulation. within financials. >> right. >> a point of view there? >> i happen to like the regionals because i believe rates are going up and they're going to reprice the cds will go up little but they can be able to make a lot more margin on, you know, everyday turning the lights on business. i thought the quote by john stump was fabulous about checking accounts. that that's what he monitors. you make a lot of money when you put money in the checking account for wells and then invest

everyone is so excited about morgan stanley getting smith barney. you, but merrill was much better a broker. >> in all of them i can tell you they're all getting their act together. because of ge's arrangement with ubs -- somehow we ended up at u ubs. but they lend money. you don't need mortgages. you don't need credit lines. they make money just by having the assets there, they get 1% but it's net of -- they really have their act together. >> people get credit lines to go buy homes at merrill lynch. that was a pretty good business. i think it is still a good business. but again, i mean, bank of america was really a story about we've made a lot of bad decisions between -- merrill was not a bad decision. countrywide was terrible. if you get countrywide to be an unimportant part of the business, then i think you have the story where people say maybe the book value should get a little bit more of a premium. this was a terrible situation. and this quarter was a pretty good quarter. >> and this is the first time you've seen this. >> when warren buffett a