sonali: we know there are deals coming back.he banks are more engaged with potential buyers but the three biggest banks on wall street, some of which have worked with elon musk before -- one of my favorite examples is morgan stanley. morgan stanley has given millions of dollars of loans to musk in the past when it comes to his mortgages. they are converting to a bigger corporate client as they help him with this. jp morgan has actually sued elon musk before. part of twitter's defense team. are they going to bring in any other banks? allen and company worked with the company's in the past. can there be more players and any potential bidders will start to bank up. jon: lots to continue watching. sonali basak and ed ludlow joining us. we stand the twitter story. coming up, oil prices under pressure for the first day after four straight winning sessions. imf cutting its global growth. this is bloomberg. ♪ kriti: this is "bloomberg markets." i am kriti gupta with jon erlichman. the imf fleshing out looks due to russia's invasion of u

sonali: bank of america on monday. four tomorrow. it will be a long day.dman sachs and morgan stanley reporting at the same time. that will be a lot to absorb. we want to see competitive training here -- trading here. it did not fall near as anyone expected. it only fell about 1% which is good for goldman. matt: we were looking for a drop in the beak the street's estimates by like $1 billion. sonali: that's a good sign, especially currencies and emerging arc is for really solid gains. citigroup is another place that could bode well for trading if they are able to keep those numbers. the other thing jp morgan said that was positive about prime balances that are high. the buy side is also ready to be taking risks. to be clear, volatility is a double-edged sword. they took losses tied to the russian securities as well as that big nickel client, $220 million loss. jon: when i was listening on "surveillance," you highlighted the loan growth component. it is hard not to think is a good to the other bank earnings everyone will look closely at that as a gauge of w

sonali, what do you see? management revenue coming in a love light of expectations compensation expections coming in line, keeping control on costs. investment banking revenue coming in a little shy of expectations. they will be a question if some of that will come back. elon musk didn't a morgan stanley as his as pfizer for his advisor for twitter. sales and trading came in above expectations. a light quarter for ipos but heavy quarter for volatility. morgan stanley winning on the business that it knows best, typically on top and wall street. tom: staying with us. the headlines come out and press releases come out as a blur. what do you see on the morgan stanley difference between goldman sachs? lisa: interesting the net income beat, compensation expenses in the first quarter were above expectations. a bank that is waiting on multiple fronts when we are talking about the goldman sachs, morgan stanley duopoly shifting a little bit. tom: how is the melding together of e*trade and everything going for mr. gorma

sonali mentions the book value. it to the absolute train wreck which is european banking before ukraine, during ukraine, however you want to frame it. then it is the overlay of the big banks of america. ken leon, let's begin with what the evidence is in the quarter report that jp morgan leads on ratio analysis. ken: they do. we talked about rising rates over the last five years. the only bank that had higher net interest is what the banks were in 2016. they are obviously able to grow the banks. that is not the problem. the issue is, you need the extra kicker from investment banking. it is just noted that might be on the sidelines until the second half of this year. lisa: on that front, light investment banking for jp morgan. what is the readthrough going to be for the investment banks of tomorrow? ken: we will set them down with income from equity underwriting and m&a down 20% to 30%. there is hard to find any leading deals right now going into a more optimistic second quarter, which is why given the uncertainties y

sonali: what is the catalyst?ng to drive bitcoin higher not only this year, but to where it was last year? we have days of declines. we are back down to $42,600 or so. remember throughout march we got a little higher than that. we did get to $47,000, $48,000. but we are above $40,000. there is not the same fear of it really going much lower. there is a lot of conversation about legitimizing the asset. more companies using the lightning network, that was a huge story this week. at the end of the day, it is not just about the same people who are picking up bitcoin, the lightning network, at a marginal rate. it will be about companies and countries adopting bitcoin as the asset class starts to mature. emily: i want to bring in our next guest, who is joining us from bitcoin 2022 in miami. adam, you have been a player in this industry for such a long time. i am curious -- what is the move after the many, many years who have been in the crypto industry? and how much do you think is changing in this moment? adam: i think

sonali: i want to shift gears.ot of the trouble we saw, the idea of deals slowing down, we are not seeing it right away in your performance. you are part of one of the largest deal announced in talk about this year. what does this mean about your propensity to deploy capital and how big can you see yourself going when it comes to buying assets? where are you looking for opportunities? jonathan g.: i would say it speaks to the breadth of our platform. we did announce this year four large transactions that share characteristics, but they speak to our global reach. we committed to by the largest casino company in australia, the biggest logistics business in europe. also you mentioned a large transportation infrastructure company, and then the student housing deal we have talked about as well. these are big businesses. one of them involves our private equity business. a couple of them involve our real estate business, also our infrastructure business. that allows us to deploy capital. we can also do things that are big

sonali: goldman sachs had already settled a record buying year. when we talk about this trial and a lot of detail was bought -- brought to the service about exactly the crimes committed. roger ames, the first banker to face prison time, 30 years could be a long time for him. he has millions of dollars here at play for himself when the crimes were committed. really, the page has turned for goldman largely because of compliance changes. it is a story we have not seen before coming to closure here. jon: certainly the trial did provide all sorts of details on how this came about. nothing short of fascinating. sonali: especially because tim leistner who also pleaded guilty was one of the people testifying. a lot of the things we knew had happened. it is the details of how they happened. again, eight weeks that people were brought to light here on how these crimes were committed. jon: sonali, thanks. we appreciate that update. we will continue to watch that story. i want to very quickly mention some headlines from the president of the european commissio

sonali: market strategy has changed so much. is another story on the terminable about pay interns are getting. i want to really quickly, because you asked, point back to what jp morgan was saying yesterday about this. the idea that there needs to be liquidity at the front end of the curve. interestingly, a very highly red story yesterday is the idea that the big short in treasury markets is starting to ease. qt is changing, the quantitative trading is changing the markets. you hear banks preparing for that. guy: how much visibility to these guys have now. the economy in some anyways over the past three years post-2008 has been on the rails. it is off the rails now. as you think about valuations for banks, how much clarity from these calls? sonali: you have heard anchors outlining an array of risk. and to some degree, quantify them. those provisions have not spiked meaningfully at all the banks unanimously. those can change quarter to quarter. what you hear is banks talking about plans to return capital to shareholders in the wak

sonali basak, thank you for your breakdown.using wigs to solve the problem of bias in ai. fascinating conversation with the cofounders of parfait on how they are looking at data sets to improve for people of color. this is bloomberg. ♪ caroline: disrupting ai. the ultimate goal of parfait, a company founded by two sisters, getting into the rapidly growing wi g market-- wig market. they have pretty big names including serena ventures, backed by serena williams. it is good to have time with both of you. first and foremost, talk to us about what inspired you to take a rapidly growing market. >> yeah, the origins of parfait started with a problem experienced by many women, managing and caring for our textured hair. the journey for me started at 10 years old when i had a terrible experience with a chemical actor that made my natural hair fall out. i was using here with an extension to give my hair break and a chance to grow. i spent the last 20 years navigating the market of extensions. from our collective experience involving techn

sonali: how long can that last, in terms of passing on costs to consumers?rs say the consumer is strong, but the inflationary pressures are here to last for a bit longer, so what is the breaking point? stephen: is not clear how long they will be here. the price at the pump has radically changed in the last six weeks, with the unfortunate and tragic ukraine situation. that can reverse itself with increased production, certainly with the u.s. and other sources, discussions with venezuela. the consumer fundamentally is in strong shape, as our small businesses. there is a resiliency, particularly in the midwest. we see a lot of our customers working hard every day to get through the challenges, and frankly to deliver great results. and they are able to do that sometimes with our support. kailey: because the consumer has been looking good, because the economy has proven resilient, the federal reserve thinks it can be aggressive with monetary policy. how about directly impacting the businesses, when at a certain point it can crmp demand? stephen: the goal is a sof

we'll have you back for more in a sonali basak super bowl tomorrow.u so much for your insight, as always. talk about those earnings with gerard cassidy, rbc head of equity strategy. as an outperformer for jp morgan. thank you so much for joining us. let me put that question to you. jp morgan coming out with low loss provisions, a stark amount, but at the same time buying $30 billion in tiebacks, or i should say authorizing a plan to do so. how do you square the two? gerard: thank you for having me on the program. the provision was higher than expected, no doubt about it. it was driven, as you just mentioned, probably due to what is going on over in russia in the ukrainian war. they also had to build reserves based on the new accounting methodology that all of the banks have to use, and so they have to take a look at life of loan losses. in doing so they built up the reserves, because when you think about what the world was like when they announced their fourth-quarter results in january versus what it was at the end of march, it has changed dramatical

sonali: the reserves didn't decrease as much as analysts expected. remember, wall street is such a big risk management here, jon. they're a lot of reading the tea leaves for what could go wrong this year and what companies are preparing here. we expect the worst is not over with. kriti: you cover the banks. we've been covering the banks quite a bit on bloomberg television and radio. what's interesting to me also, it's not about cards but loan growth as well. these are beacons of american consumer health. obviously, the health of the global consumer as well. what are the messages that the bank earnings are telling us that we will be watch? jess: what customers are doing well in particular? you look at american express and they're bringing on platinum gold card members. those are people with money to spend. what happens when you go to the middle and lower-middle income consumer. sonali: anyone with a student loan is still under a moratorium period here. when that ends later on in the year or falltime that's hundreds of dollars that you are going to hav

sonali: it's a great question.eeing the private equity firms dip into the debt markets here. early provide a lot of private credit and financing when a lot of the banks and their investors are shyer on that regard. that said, m&a has not bounced back to a huge degree. we see some one-off rumors about deals involving large, wealthy families, corporations, as far as i know and as far as our sources are telling us, it is not that activity is completely dead. a lot of it is being put on pause until there is some stability toll on two. all that said, and hundred billion dollars in debt underwriting is expected this quarter alone. jp morgan's underwriting was better than expected. that should read well for a firm like goldman sachs going forward, and bank of america. guy: let's go to main street. what did we learn about the consumer today? sonali: there are some areas of strength here. you had jp morgan, either way which is about to become the first $4 trillion bank in the united states, jp morgan really bellwether of th

. -- sonali: let's try to boil it down for you.to get together groups of people who want to invest in certain projects or give to certain charities, and some of the examples we have seen are for example, constitution dao, which raised about 40 $7 million to try to buy an original copy of the constitution. as you know, they were outdated. have invested in a series of nft's and given millions of dollars to charities, and ukraine dao, which has raised millions of dollars for ukraine since the start of the war in ukraine. it will be interesting to see how they continue to take shape in the process of investing more and investing more through digital ecosystems. emily: thank you. i want to bring in our next guests for a deeper dive. the cofounders of syndicate joining us now, which is shaping its own role in the dao space. there are plenty of definitions out there. in the simplest terms, what is it to you? >> the way we think about dao is it is a technology that enables communities to coordinate capital natively on the internet. if we t

sonali: we are learning how the losses are being contained.igroup was the most exposed and their exposure has dropped $2 billion to about $7.8 billion. they still have loans, counterparty exposure in derivatives, but it is much more contained and we know that it is about $1 billion for the russia closure alone when it comes to citigroup's positioning. another $900 million when it pertains to other risks surrounding the uncertainties of the ukrainian invasion. kriti: there's a massive debate -- are we in for a recession? does that on the horizon or are we simply in a slowing growth environment? where to the banks stand on that? jamie dimon has been vocal, saying the consumer and the economy is fine. what are the rest of the banks say? sonali: not only is david -- is jamie dimon saying that but also david solomon with his risk list, one of them accelerating deglobalization, and he said that plus inflation impact, the risk of rising rates, could be meaningful for markets. with that said, the backlog for morgan stanley and others is robust, stable

sonali: most of this was because of russia.ou are not seeing them prepare for a lot more in terms of worsening credit quality, what of the banks saying? jp morgan said the probability make -- went from low to slightly less low. if we had a hard landing when it came to the fed, the consumer this time around has a full balance sheet and less by means of revolving and credit cards. people are spending more but they have dry powder on the sidelines. jon: what more can you tell us about the use of the credit card period thought that was interesting analysis. -- credit card. i thought that was interesting analysis. at what point are retail and food's going to be stifled because of inflationary rushers or is this the brunt of the impact. there are many things that they need to wait to play out and they worn the picture could get much worth -- worse if stagflation becomes worse and fears get worse. this is not a crystal ball. no one is looking into the second half of the year. what if inflation gets worse as well? a lot of risks on the

sonali basak on the new citigroup. sonali: you are seeing them beat on fixed income trading, equities trading. they are really shocked that they will hold on strong to this trading environment. like every other ceo this morning, jane fraser talking about the volatile market environment, how that has led to lower capital market activity. however, she will still invest in that investment bank, even though revenue is a little bit short of expectations. on russia, you have about a $1.5 billion reserve build related to that exposure. that is in line with what was expected by at least mike mayo. a bigger sense of exactly how much will be lost relative to the russia exposure. lisa: as we get headlines from multiple disciplines here, what is the take away as we get the bulk of the bank earnings? is there a theme emerging for you that you think will be the story over the first quarter? sonali: we now have five of the six banks reporting, and you have some strength in the consumer, some optimism but uncertainty about how that lo

sonali: you work with the lightning network. that is very bitcoin-oriented.e seeing bitcoin and dogecoin rise on the back of these announcements. so what do you think about the potential for bitcoin, other currencies, dogecoin, we're seeing them drop a bit now. but we have seen them rise on the excitement of elon musk and twitter. jack: yeah, you are seeing everything in the world rise on excitement because the federal reserve and other central banks are perverting risk tolerance and is scaring the life of a -- out of everything. everything is more appealing than holding dollars or something that will bleed to death. i would not take a lot of noteworthy nests that dogecoin is up. so is the couch in my living room over there. who cares? bitcoin is a known monetary policy, the best asset ever. it is better at being a central bank than central banks. it is better at being visa than visa. it is better at being western union, better at being chased. why do i need to focus my time on anything else? we have a lot of work to do with empowering the world with the grea

here is sonali. talk us through it. he faced three counts of conspiracy and is found guilty on all counts. he was the only banker to go to trial in this case. as part goldman goes, they are watching it closely and so far as what details came out of it, we did see the extent to which this played out. tim leistner testified in this trial so it was eight weeks of a lot of detail. goldman has allocated $5 billion around the world, to pointed in dollars -- $2.9 billion in -- they have made a lot of changes when it comes to compliance. certainly a turning of the page. guy: in terms of closing the book and turning the page, clearly it would be for oden. what were the face in penalties? give us the expected sentencing around to this. sonali: the most significant thing is he could be spending 30 years in prison. given he was the only banker to go to trial, we have tim leistner who also pleaded guilty. plenty of goldman executives left. many faced reduced pay. facing risen for 30 years because of this. guy: thank you for the upda

our crypto and remitter sonali basak here for more. defi here is supposed to be the big bank killer, the big wafer appeared to pure transactions to happen outside of the normal financial system. it was also the big trade that mike novick read said would be the big trade for this year. but it has been down quite a bit. if you look at the defi index we have between bloomberg galaxy, it is down almost 72% on the year. it tracks bitcoin to some degree, although the moves are much more volatile. bitcoin is up 2%. you also have a rise in other defi assets. so it's time now to dive deeper into how defi is changing among the asset classes. emily: stay with us. we will move into a defi exchange infrastructure provider that just raised $70 million. here to join us, a greylock partner joining us from the crypto conference in the bahamas. what is the mood in the bahamas in the crypto community? >> it's great to be here. there is a lot of innovation happening. what has been interesting is seeing the confluence of crypto entrepreneurs, investors, re

sonali: that is the big question.re is one meeting people keep talking about that happened in the wake of some of the price movements. the banks had all gotten together and really had a conversation about what they do with these positions. the big question that remains is, should they have called the regulators in that event? why did they try to handle it on their own? the banks sold the stocks on their own, got out of the position early on. some of them could mitigate losses and some had a much bigger losses. the banks are fighting among each other. [laughter] with some of these moves that happened early on in archegos. what we do know, and we have talked about this, the regulators have been investigating. the doj and others really looking at what happened. if there's anything wrong the banks had done. also, the fact that should there have been more regulation in place? now, we are waiting for a new fed's supervisory chair, will they go back and say the banks should have a better handle on how much leverage clients a

jack mallers and sonali basak with us now to to discuss.re you have opinions about this as a twitter user but also business twitter i know is one of your customers. what has been your reaction to elon musk sealing the deal and making it officials? jack: ladies, hello, happy monday. thanks for having me. i am very excited. i look up to elon as an entrepreneur, as someone who makes the world a better place in my opinion. his existence has been net positive in my opinion. i always thought that an open payment standard that allows for natively digital physical settlement, that sounds crazy but is it is cheaper, better, faster, more inherently innovative platform. it allows natively digital companies to enable natively digital payments. and i don't think we have ever seen a social network really exercise muscle and it seems like elon has been hinting at it and i am very excited to see it come to reality, hopefully. fingers crossed. emily: so many people do not realize that there is already a relationship between strike and twitter. twitter said

cofounder of lightning labs as well as our own sonali basak. >> looking forward to bitcoin-izing theith lightning. >> next, we will go live to cape canaveral with ed ludlow. this is bloomberg. ♪ emily: spacex's mission to the iss, part of a bigger mission. ed ludlow spoke to nasa's head of human spaceflight. >> part of our job is to figure out how to do it then make sure we are working with companies and other people so they can learn from us. that's what has been going on over the last two or three years. we've been working with these different companies having them do our lessons learned. allowing them to use the contractor we use for training and continue to bring industry and among the lessons and the 50 years or 60 years of spaceflight we have had so they can do it themselves. ed: you run space operations. what do you get out of this? >> i'm hoping it gives us rides in the future. in 20 or 30 years, i am able to do science and research and technology development on space stations that i don't have to invest in. i'm buying a ride. what we're thinking about is our future. we are t

and so molly women -- sonali women were dealing with issues of women who were victims of violence and we had a whole program for victims of violence. and how do we address rape as a tool of war. in the 1990's. it did not start then, it did not ended now that it has not ended now because just yesterday, we are talking about ukrainian women, who have been victims of rape in this unconscionable war that the russians are carrying out against the ukrainian people. heard an ethiopian civil society voice, an african, talk about in ethiopia, women who were victims of rape in that war. so it still continues today and we have to be prepared to address it, wherever we see it. and we have to call it out. and we have to call out countries -- out of embarrassment or whatever -- whenever they deny it, they cannot deny it. what they have to do is hold their people accountable for engaging in these actions. and we have to hold countries accountable for holding their people accountable. for these actions. and we have to give voice to the women who have been victims of this issue. you can tell, for yeme

i want to dig into the story with sonali basak.u hear how the cryptocurrency is digesting elon musk joining the board of twitter, he has been such a loud figure in the community. there's a huge crypto community on twitter and the future of twitter could be more decentralized. >> it was interesting to hear her talk about it from the decentralized social network standpoint. you can also think about it from a commerce standpoint. twitter has already started to integrate pieces of the lightning network to make things possible through the network which is very popular when it comes to bitcoin and payment transfers. the idea of decentralizing social media, there are a lot of projects out there that people try to use when it comes to media and decentralization. there is still -- they are still in early days. emily: stay with us, i want to bring in our next guest live from miami. the ceo and chairman of ledger. give us a flavor of bitcoin 2022 this year. it was big last year. is it bigger this year and what are people talking about? guest:

our crypto contributor sonali basak is here. it's not moving, why not?friction when you look at it. we are back to where we were at the beginning of the week. a little higher than where we ended monday. back to where we were last week. we haven't moved -- there are some long-term trends about how people are using bitcoin that are worth taking a look at and that is settlement. bitcoin surpasses visa in the amount it has been settling. that is due to the work on layer two protocols. it's worth taking a look into how bitcoin and the networks are changing payments because that will be the adoption that drives the price later on. emily: i want to bring in our next guest, ceo of tezos. what do you make of the fact that we are seeing a lot of movement here in the crypto markets? >> this ruptures one of the main narratives people have been saying. that it's and uncorrelated asset to traditional equity markets. other things are unexpected like at the beginning of the pandemic. >> i'm curious about what you think of the conversation for bitcoin versus ethereum, pr

thank you to sonali basak for that.ied in the document will be a few sentences that are telling. jonathan: which ones have you picked out? the one that people keep bringing up, to take the portfolio from $1.5 billion to $35 billion in one year is pretty phenomenal. jonathan: that is -- tom: that is bad but what i want to know is the paper trail they must have of the deceit along the way that they allege. that to me is more interesting of how they manipulated -- let's say there are 20 parties. how did they manipulate the 20 parties that got hung out to dry? jonathan: will be interesting to see the evidence that mr. hwang presents on what the banks did or did not know. tom: a moving target. look for a trial a year out or more. it is never a trial to speak to edward yardeni, president of yardeni research. has enjoyed corrections and bear markets such as we are in right now. i know it is not 1974, but what is the character of this downdraft? edward: the key characteristic here is the stagflationary environment that we have

we are joined by sonali basak. it's been a crazy week in equities. how has it been in crypto?was down 2% over the last 24 hours. that brought it down to 39,000 640 or so. it hasn't gone anywhere in more than a week. it has come full circle even when it caught a bit for a while. when you look on the year, you have pressure on bitcoin prices. they are generally down on the year. they have not recovered to the highs of last year let alone the highs of this year. the question becomes what kind of info -- innovation happens when bitcoin is under pressure? what happens to layer one and they are two protocols? at what point does venture capital and other form of fund flows impact was happening when it comes to creating new assets? >> thank you for that update. coming up, i want to bring in our new guest. thank you for joining us. how do you do that? >> our founder is an award winner in computer science. he is a professor at m.i.t.. he invented a few things that are central to cryptocurrency. he launched the space and he watched the layer one protocols. they were costly, they had a la

thank you, we thank sonali. new frontier fund will do that, which companies they will be backing to help the climate, this is bloomberg. ♪ caroline: 925 million dollars, how much companies are about to buy carbon offsets to remove the co2 from the air. a is owned by a stray also got funding from alpha but -- alphabet, and others. it is great to have some time with you. talk to us about the progress you have made so far. how much you are looking to be offsetting some of the impact in the businesses you help the network and movement of funds in climate change and withdrawing some of that. >> in order to hit local warming targets we need to do two things. stop emitting and remove carbon to the oxide that is already in the atmosphere and ocean. we are going to do a huge amount of both we are behind on the second because we did not really realize we were going to need to do it as much as we now know that we do. our focus so far as to write has been a small corporate commitment. it expanded to make it easy for many us

sonali: i want to bring in the silver gate ceo because he's been facilitating this and a lot more inptocurrency space when it comes to loans. thank you for joining us. why are you comfortable lending against bitcoin to this degree and how have regulators become comfortable with that? >> i appreciate the question and the opportunity to talk about silver gate and what we do. we have been banking bitcoin and broader cryptocurrency system since early 2014. we've been doing this for several years. when we first started, it was that coin only. as you are aware, bitcoin is a digital bearer asset and it trades 24 hours a day seven days a week around the world. that gets to the heart of your question, which is when we are lending against bitcoin, we take the collateral for the loan, we have the ability if the borrower does not pay us back or if we need to satisfy a deficiency, we can look at bitcoin and sell it 24 hours a day, seven days a week. emily: bitcoin is so volatile. how does that work when one day it's $46,000 in the next day it's $38,000 in such a short time come within weeks? does

thank you for joining us along with sonali basak. coming up, the year of the wedding.will chat about whether the post wedding boom can turn the share price around. that is next. this is bloomberg. ♪ emily: we are on the cusp of one of the busiest wedding seasons in 40 years. fashion rental platform rental runway posted earnings. the company recorded a net loss. it was narrower than expected. joining me now is the ceo. great to have you back with us. you have been telling this story since a rent there one way rent -- rent the one-way -- rent the runway went public. why do you think that still is? >> we are so proud of our q4 results. i think 2021 for us showed the resilience of our business model. a year that was anything but normal. now we are entering into one of the best macro environments ever and we are excited to have the investor community watch us grow. emily: let's talk about the boom for weddings. what kind of impact you think that will have on the business? >> it really drives cost decision, customer acquisition for us. have seen people come to rent the runwa

sonali: you seal a continuation of what you see with jp morgan with losses coming in higher-than-expectedwant more commentary from charlie sharp on why that is the case. you also have revenue in line with expectations but efficiency is not as low as analyst expected. that is the story you have been focusing on, the story of cost. can wells fargo maintain costs as some businesses come under pressure? we will see what citigroup has to say as well but so far you have a mixed picture on the consumer here as rates rise. tom: thank you so much. wells fargo with other big news today. we were -- before we get to gerard cassidy, i think it is important, given all that is going on in a presumed slowing economy, the age-old answer of the banks is to cut costs. lisa: that is definitely what we saw it wells fargo, however they are huge lending bank and it is interesting some comments about broad-based loan growth for both consumer and commercial. tom: what do they say? lisa: it's results reflected continued economic recovery of process -- progress. that's notable and interesting. tom: some of the sout

kailey: sonali basak is with me now. what were the big takeaways for you?e big thing is where consumers were spending. it is a huge jump when it comes to travel, entertainment but less when it comes to retail and restaurants. gas prices eating at some of that spend and that was a big jump as well. he was asked about a recession a couple of times and what that would do to consumer spending and loan growth and what executives at bank of america were saying is that consumers were to flush to cash. they had a note of cautious optimism. it was really quite a bright spot here when they were talking about the scenarios. this is not a quarter you expected banks to really talk about records in many businesses. bank of america, because of the healthy growth in the commercial businesses, loans grew much faster on the commercial side and equity trading actually hit a record. kailey: bank of america obviously rounding us out. you have had an exhaustive couple of days. when you put it all together, what was the big theme for you? >> the banks being ready for any scenario