are being taken away from big banks or if this is just adding to the , loans out there because these are loans to banks don't want? >> it's interesting you mention that. john mack was at a breakfast this morning at the new york stock exchange and he did for -- predict that to be the case. he's a backer of lending club and has some skin in the game but says this is going to be the new model, this is the type of business that does disrupt the traditional banking model. and that is coming from someone who knows morgan stanley quite well. >> one of the big issues is they are unique. when you look at the business, is this going to be a race? because the returns look awesome. is there something unique about that is this for your business that is going to keep imitators at bay? >> absolutely. one of the reasons this is so powerful is that this is a marketplace. by aggregating borrowers and lenders, you generate a tremendous network effect and have great returns to scale. as you get more experience in the market, your credit algorithm can actually improve. >> are they

lemonis: so, the bank loans are somewhere around $630,000. scott: mm-hmm. and so, if i take the accounts payable and the bank loans, i'm pretty close to a million dollars. scott: $900,000-something, yeah. lemonis: we're drowning in debt right now. wendy: my kids and i, we all agree as a family he needs help. this might be it. lemonis: are the kids here now? wendy: jackie? lemonis: business like this has to constantly evolve. and so, what we're talking about is kind of the number of issues that exist inside the business. jackie: i mean, just based off of our conversations at every dinner table, we're wearing too many hats, and we're involved in so many things. and i think that that's gonna, like, run us ragged after a while. lemonis: does he give you the opportunity to do your job fully? jackie: no. ben: that's the thing that bothers me the most. lemonis: 25 years ago, scott came in, and he saved this company. now scott needs to let his kids do for him what he did for his father. if it's okay with you guys, i'd like to spend a minute with your parents just al

lemonis: so, the bank loans are somewhere around $630,000. scott: mm-hmm. and so, if i take the accounts payable and the bank loans, i'm pretty close to a million dollars. scott: $900,000-something, yeah. lemonis: we're drowning in debt right now. wendy: my kids and i, we all agree as a family he needs help. this might be it. lemonis: are the kids here now? wendy: jackie? lemonis: business like this has to constantly evolve. and so, what we're talking about is kind of the number of issues that exist inside the business. jackie: i mean, just based off of our conversations at every dinner table, we're wearing too many hats, and we're involved in so many things. and i think that that's gonna, like, run us ragged after a while. lemonis: does he give you the opportunity to do your job fully? jackie: no. ben: that's the thing that bothers me the most. lemonis: 25 years ago, scott came in, and he saved this company. now scott needs to let his kids do for him what he did for his father. if it's okay with you guys, i'd like to spend a minute with your parents just al

the regional banks. the energy -- right now analysts think the first risk is it could hurt loan growth. the other issue would nonperforming loans increase. banks are familiar with big f c fluctuati fluctuations. still among the universities of regionals covered by raymond james 20% of mid sized portfolio energy firms and much to the riskier oil service companies, over 18% of tulsa based financial portfolios and stock lower this week. the company's chief credit officer down playing the impact of oil slide and said portfolio split 60/40 and most loans are to enp firms secured by proven preserves that can fund loans using hedges to protect themselves. san antonio based is down as well. the bank's 15% exposure relatively high but ceo dick evans maintaining lenders protected by diverse group of loans conservative under writing and the fact that the bank has only lent about 15% of its commitment. the greatest risk is said to be loans made to oil services firms because they are going to be hit hardest and first if lower prices prompt companies to cut back on production then you are concerned if

not 5.5 million. >> the bank wants to end the relationship immediately. >> to make matters even worse, that $4 million is the bank's limit. and they're demanding payment on that loansh. and we have about 30,000 of cash to cover the expenses. honestly, i don't know how they're making payroll on a weekly basis. >> i mean, this business is insolvent. >> they're almost bankrupt. >> depending on how much they can collect of their receivables, their total assets are no more than 5 million. because their total liabilities are almost $8 million, the level of insolvency they have isn't $500,000, it's nearly $3 million. that's six times what i thought i was signing up for. >> it's almost financially impossible to figure out how they're gonna be in business 10 to 14 days. >> wow. >> i would run. [indistinct chatter] >> hey, guys, we gotta talk. we got a problem. i just got through talking with jamie. and there's a $3 million hole that you can't explain. and you have $30,000 in the bank. are you guys aware of that? >> we had no idea. i knew the bank account was low, but i didn't know the gap was that large. did you? >> i didn't think it was 3 million. >> the deal that we made

that's the difference. banks loan based on what you've done in the past. common sense says you should loan based on what the person will do in the future. certainly the general idea behind the loan company earnest which says it looks beyond credit history and fico scores and looks carefully at potential when it decides to whom to loan. louis barrel is founder of earnest loans, himself a harvard grad who had a tough time getting a loan. thanks for being with us this morning. so it would seem obvious, but obviously banks have been doing this for a long time. they must know what they're doing. why is your system better? >> yeah, thanks, scott. i think what we do is, we do the most thorough underwriting in the country. we do that by digging into everything about a person's full profile. wire looking at education and history. metrics of financial responsibility. we look at bank accounts, late fees or lack thereof of -- >> what sort of banks? >> not really. most bank what they're looking at, they try to make the process as quick as possible. what we're trying to

the banking system currently owns approximately $90 billion of non-performing loans. this is one of the biggest concerns to greece's lenders. they say that banks need to write down those loans. this means they put them on the market. if they don't want them, they sell them for what they can get. banks have not yet done this because those loans would probably go for roughly 30% of what they were originally worth when the banks sold those loans. banks want their books to look healthier than that, so they're holding on to loans in hopes that market conditions will improve, and they'll one day be able to sell those loans for a better price. while they're doing that they have to hold a great deal of cash in their covers because there is a great deal of uncertainty about how unhealthy the banking tem is. that means that the company is not going to th towards new loans. companies may not survive much longer because they don't have access to liquidity and loans. >> and what is happen until brussels, will it give greece more time, then? >> well, the greeks would like not to hav

basically in the postwar years will underwrite -- if you have fha approval, they will guarantee 80% of the bank loan. so if there is a foreclosure, the federal government will basically ensure that the bank is protected. one of the things, one of the main components in there, is houses that have multiple electric circuits. one for lighting and another for major appliances. the fha, the federal government, is of a way guaranteeing the houses will consume ever higher rates of electricity in order to receive this insurance. so i think that that is one of those ways, like carl was saying. i think the central dilemma of resolving climate change right now is the way that, at least in the united states, the way that the american built environment set in place is so deeply dependent on heavy and extensive uses of electricity. and that finding -- and so dependent on coal as the fuel that creates that electricity. >> can i ask you a question in the back? i am trying to figure out if the real thing here is developing phoenix and other cities, whether in the united states or other parts of the world, can we bui

banks cannot wriggle out of that. bindrope the weather this a stress test is to imagine something bad and ask the banks how bad it would be on their loans banks go -- oh fine. they are not incentivized to say anything otherwise. what is interesting about a test like this is how the bank deployed it. individually allowed much wriggle room or are they not? the fall somewhere between ecb which is to benign and the fed which is too aggressive. this, the u.k. would be solvent and every bank bust -- if any of the major banks divide without intervention it would be miraculous. fair -- thet of banks are very leveraged institutions and they would make a lot of money -- they make about 2% on their assets, year in and year out. we get complacent during the good times and let them run their capital down to low levels. under the risk weighted scheme it is 2%. the banks technically go insolvent but if you give them long enough, five years, they come out of it again. the real issue is whether you want to hobble the financial system so they held huge amounts of capital or you accept that they periodically have a down cycle and let them trade their way

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the loans in scenarios. it's added protection he says. a greater risk are one area that analysts and the banksg are loans made to oil servicers, these are a smaller percentage of total energy loans and they can be unsecured or asset backs. servicers are hit first by cutbacks impacting the ability to relpay the loans and people are watching that area right now. back to you. >> thanks very much, mary. >>> next guest says it may not be the regional banks to feel the pain. the big banks could be in real trouble here. let's bring in james saminski. explain how big of a deal this is. >> this is a very big deal. i'm hearing from mom and pop investors happy with the gasoline prices going down and then a big shock in the statements. saw that the oil companies invested in, the energy sectors, banks has big exposure and ramped up. barrelclays and community banks. so i think we see problems and weaknesses with some of the big banks. goldman walked away from a deal and i think banks disclosing the extent to which they have energy exposure. >> the debt that was issued had to be junk bonds taking a higher ri

the banks buzz even though they were -- because even though they were still productive, the banks got destroyed with their capital, which we're still debating. right now these banks have the greatest exposure to these energy loansleast as a percentage of their total assets. wow. since november 10th these guys are taking it on the chin. these are the top six, and the best performer coming into today's session was down 7%, the worst down 19 president. so -- 19%. so that brings us to our next real, real deal, guys. well, first of all, does anyone have a problem with the notion that there can be good asset bubbles? anyone think that that's a -- >> i think there are good asset bubbles. >> yeah. >> yeah. charles: well, i think when my bank account is nice and fat -- [laughter] >> but there's a two-edged sword here with these energy stocks. because of the fact that all of the stimulus by the fed, keeping interest rates extremely low which leads to bubble, right? led to the housing bubble, now we're leading to, a lot of people, getting into a very capital-intense business called oil drilling, oil searching, digging, whatever you want to do, fracking, it's all going to cost a lot of money. they had to borrow a lot of mo

process, we will retain the ability to put back loans throughout the life of the loan. >> i hope that means you're vigilant that the tendency here could be that this gives banks the benefit of the doubt that homeowner's don't get, but i know your values and i know what you're doing in that job and i know you'll be vigilant about that. speaking of potential fraudulent activity that you mentioned a second ago. "the new york times" highlighted fannie and freddie's use of debt collectors to pursue families who lose their homes to foreclosure for any debt that wasn't covered by the value of their home as it was under water. homeowner's just starting to get back on their feet for a year or two years or even longer can find themselves with tens of thousands of dollars of new debt, depending on their state's laws for collecting these deficiency judgments. simply, your agency has the duty to protect taxpayers but demanding payment from borrowers who already documented they can't repay seems both expensive for fhfa, who must pay the collectors and obviously harmful to the borrowers who can't escape debt on a home they don't even now own. how do you ensure that deficien

the city profits. candidate banks profit? of course, because they're loaning money to the city and the city is deep in debt, but it knows, the city does, the banks feel that the city can pay off the debt, because the real estate market copes going up and up and up and up. you know the erving berlin song "blue skies"? it's always going to be blue skies. so when it hits, the banks call in their loans, the banks go under, but so did the city. and new york city is officially bankrupt. so that's the thing that powers this. it's powered by an idea. confidence. there would be those who would say new york is overbuilt. then the next day there would be articles contesting that whole idea -- this city can never be overbuilt. it's a growth-driven place. it always has been. >> thanks a lot. you talked about the fact that no one expected the depression to come. >> well, some people, you know, their profits only when it comes. >> my question is, among your characters, were there any who were, sort of like the sky is falling kind of characters? >> sarnoff. he sold off his st

but let's look at the banks because the banks have rallied. we've had another take up by loans. results out show lenders borrow 129.8 billion euros. that is just shy of expectati expectations. bank stocks have rallied on the back of the news, especially in italy where we had unicredit up 0.9%. credit agricole in france is up 1.25%. seema. >> yeah. these loans are expected to incentivize bank lending. markets are reacting to that tltro announcement. take a look at bonds. bond yields have hit the day's lows amid expect ages that the low volume in the auction has increased expectations that the european central bank will have to launch its full blown quantitative easing. but the question is, is this already priced into the market? at this point, markets still moving on the prospect of full blown quantitative easing. let's take a look at currencies. the euro is at a session low after that announcement. the norwegian krona hit a six-year low after the central bank could cut to counter the price. the swiss national bank kept its rates on hold, confounding expectations that it would pre

the other. >> but small groups are concerned -- banks are consolidating but they are giving help the car loansoans you need the small banks to provide. charles: i did not like the bailout. i think we would have been better off right now. >> but to left-leaning governments don't do that. but what i dislike about dodd/frank if you wanted to start a firm the first niner 10 people have to be lawyers or regulatory people. you could not started to day like we did. so ironically it is eliminating competition to allow them to get bigger and more powerful. charles: one alternative is peer to peer lending it began in 2006 in the u.k.. how fast is a growing? eighty-four% a quarter. now while standard loans are down from their peak of a hundred and $40 billion will get this. a really cuts out the middleman, one player allows lenders to play in as much. but eppley says with a propaganda says. then they can consolidate their credit-card bills. the write-down would is 3.2% vs. 3.7%. you seem skeptical? >> i quoted four times the median income and i put my credit score was good the offered $2,100 at 29%. that

the banks they need it quickly. from what i learned about in the bronx in the 40's and 50's. from your local, non-bank person. >> a loanwhat they call them. but this is more fundamental. it is a very good technology. the time has come, whether it is peer to peer lending, but there have to be constraints and safeguards and individuals who will take advantage of the system. >> it is a great point. right now, companies like yours and lending club and others are growing, but they are growing unfettered. there is really no true regulation around companies. what happens when regulators catch wind now and you have enough loans out there that regulators begin to say, hold on and wait a minute, we need protection here. >> look at our marketplace. we focus on super prime with mortgages to deliver a better project -- product. cooperation, high regulated in that context. regulated through the fcc. i would not say it is unregulated. i would say the issue is we do not have the burden that comes from insurance or what comes with that. it is one of the big advantages with the industry and why you'll see us trading with different multi

the big bankings. what you're focusing on are these community banks. they've actually shown it's easier for a small business to get a loanm a big bank, not necessarily one of their community banks, and that's where i think the issue might be here. i cowant to give a great -- do want to give a great shoutout to wells fargo. they've decided to expand and try to work on giving more residential loans -- charles: yeah. i'd like to look at the data before i give them a round applause. yes, go ahead. >> thebacks made all of -- the banks made all of their money with supporting the private equity funds. one of the reasons the market went down, charles, i believe that we saw junk bonds and a lot of these private equity funds had issued for their underlying company, when those prices start to drop and the yields start to rise, what's happened now is we should see capitalism at its best, and we're going to go back to residential loans, and i'm optimistic -- charles: listen, i know the government's doing this 3% down thing. i think that's too gimmicky, but you talk about people being happy, there's a wide gulf between the haves and h

talking about inflation, i think that the banks want to loan the money out and the regulations good tempern the bed. >> i have the latest on the survey of officials which will be a big topic for us tomorrow. let's talk about deflation. what about it. >> there's a major difference. these rates are actually falling. prices are going up, but not as fast. oil is going on, that's inflation. there's nothing wrong with that. but it's a major issue is that there's less profit, unemployment increases and it's a very bad cycle. charles: something, i with this report and i thought about you. the price is going down, i'm not sure why that is happening. viewers are loaded up. >> that is what we are seeing drop in price. this will affect the consumer as people go out and shop more. and this is where i get frightened is where we see the earnings. because the margins are too narrow one prices come down and retailers are not making enough money. we are seeing that impact when the earnings report continues. charles: i have to blow the whistle. open up another page from "payne's investment playbook." right n

the lowest rate of increase in five years. big reason for that was a drop in gasoline prices. government officials have urged banks to ease conditions on home loans, and the central bank has lowered key interest rates to prevent a further slowdown. analysts, though, say that there are growing deflationary pressures. >>> and officials at the bank of japan have released data just -- that showed just how hard it is to pull the country out of deflation. prices of goods traded among companies have fallen for the first time in 20 months. now this does not include, though, the effects of the consumption tax hike in april. analysts say -- at the bank say the producer price index in november dropped 0.2% from a year earlier. the index began to rise steadily after the ctral bank introduced large-scale monetary easing in april 2013. but falling crude oil prices in the past few months have slowed the rate of increase. boj analysts say lower prices of gasoline and light oil caused last month's decline. >>> well the yen's decline appears to be weighing on consumer sentiment here in japan. cabinet office officials say the index fell in november for the fourth s

in an industry working without the support of bank loans, these new costs are serious roadblocks. >> les, which consist of approximately 35 pages, that was debilitating. >> we put some additional requirements on the manufacturers, and we passed that rule in emergency fashion so we could get safer edibles out in the marketplace sooner rather than later. >> i wouldn't say that the government is a partner with the industry right now. we battle every day on new information that comes out and new rules that possibly could be made. ten milligrams is a serving that if you sell one ten-milligram serving size alone, then it just has to be in an opaque package. >> it's a 25-milligram bar. people can eat that in one serving. it's got a $1.50 clip on it, which is the most expensive thing in this bar. and it's trash. it's $1 million a year for packaging. i can't believe i just said that out loud. >> i don't know how much it's going to cost us yet. i know that we're going to have to change the labels on everything. >> the packaging will completely change everything we do. >> if it went through, sus

. >> so the structure of this loan, it is a bank loan and goldman sachs will be the lead arranger of the agent and wells fargo, has indicated that they are very interested in being one of the major lenders in this as well. and it will be 171 million loan, and so to the tifia loan, and it has a four-year term. we do anticipate drawing down on tifia after we close on blocks five and eight next year and being able to pay back the bridge loan at that time and it does have a prepayment, with no pentty out at 12 months after close but we are or it does have a four-year term and just in case. and you know, land sales, sometimes the close is delayed for various reasons and the developer is not ready to close on a particular date and so they can get pushed out from time-to-time. and so, we have got time to deal with anything that may come up with the 4-year term. and it is a variable rate based on the three month (inaudible) as of last week was under a quarter percent and the margin on the loan is 2 and a quarter percent. the interest will be fully funded from the loan proceeds, at close. and

the refinancing rate auction later today? how much are banks expected to take? the second round of long-term cheap loans is going to banks. we want to see more money going into the balance sheet and they say they will boost the balance sheet by one trillion euros. it is unlikely to happen. look at what is happening in the markets. the markets are showing risk aversion and we are showing germanoming out of bonds. we are seeing them borrowing on the downside and a quick look at stocks to watch. .e have a few clear lookouts it could downgrade the overall outlook for the earnings. that is what the press is reporting. it is all about brazil and telecom. we could see telefonica make a play for the assets. it is the key issue over there company we see the picked apart and looking at telecom italia. assets -- assets?italian >> what a 24 hours we have had. dropping below 65 dollars a barrel. the lowest we have seen since 2009. demand is the lowest. u.s., thiser to the one has to be the candidate for the chart of the year. we have the chief investment officer. it helped to manage the euros. -- 93 billion euros in assets. i want to t

the company is not a bank. it specialize ins sub-prime mortgages. it handle did billing, payments and loanications n 2013, it agreed to pay $2,000,000,000 in consumer relief as part of a national settlement following the a accusations. one housing attorney said that didn't stop complaints. lisa sitkin works for a non-profit legal serviced a advocacy group in occasion land california representing hundreds of homeowners. she deals regularly with oquinn. >> many of the cases we see that involve oquinn have actually involved accounting errors of one kind or another. those range from billing the person the wrong amount, and then causing them to go into arears because of that. >> it grew after the financial crisis when banks began selling off parts of the business that serviced loans. in 2009, oquinn handled $50,000,000,000 worth of locations. this year, that number is more than 400 billion. now it's theforth largest mortgage servicer in the u.s. it has been in the crosshairs of new york services regulateo. he found the information technology systems didn't keep pace with the expansion. among ot

the bank. you have bank loans, credit cards. the main reason is to refinance with a lower interest rate or get credit at the lower interest rate better terms. and a better experience than with banks. >> what happens when interest rates rise? >> we don't think we are rate sensitive at all. when interest rates rise, all interest rates rise. our ability to compress the spread remains the same. we have prime plus. >> what will you do with the money you raised today? obviously trading well above $15 a share. what are you going to use it for? >> that gives us a larger capital base. gives us more option in terms of how we grow in the future. we made an acquisition this year. we might do more in the future. >> are you looking overseas? >> we have more forecast on the domestic markets. domestic opportunities are so big. it's trillions of dollars. it's not an immediate opportunity for us. >> john meeks from the board is here, too. >> congratulations. >> thank you. >> it's been nice getting to know you in advance and now that you're public,

loan the money. eager borrowers say that i can get a return on my investment using these proceeds. those between shall meet, even if the regulators -- >> the banking>> the fees will go to others, unregulated entities, increasing the risk when all of these loans move off of the regulated grid and into the unregulated grid. i think it will stop because it is wrongheaded. >> i am not so sure that it will increase risk when you move it off into the unregulated sector. >> we will have to continue this debate another day. >> rich, thank you. >> richard burley, bill cohen, my guest host for the hour, author and bloomberg contributor. and all sorts of other great things, wouldn't you say? >> whatever you say. >> all right. what is it like having warren buffett is your biggest shareholder? we will ask someone who knows. ♪ >> time for bloomberg's "on the markets." market, in the oil brent crude is down another 2% in trading with a 65 handle. brent has not been this low since 2009. opec cut its forecast for the amount of crude oil it would have to supply to meet world demand after the lowest in 12 years. opec figures now it will have to supply $28.9 billion

the banks weren't loaning me another dime and i invested millions so i could easily go broke if this didn't fly. this wasn't some hypothetical case. my feet were in the stirrups. garrett's wife, martha -- garrett was the superintendent or head of the plant sumpter, right under john -- predicted -- his wife predicted william would be a money making venture, and true enough within 60 days of producing its first piece the company was profitable. martha predicted just as every a spouse grew to understand was no none at the industry who worked harder or longer hours. they kw it from the telephone ring. he calls on christmas morning. make sure the drykin is turn on so we don't ruin the stack of wood. calls at 1:30 a.m. they cabinet room forman giving us trouble? he's got to go. he calls on your vacation, and if you dare object, he reasons if i'm calling you, then i'm working, too. he calls on saturday when you're mowing the lawn, and i you can't get to the phone in time he'll accuse you later of having screened your calls. at precisely 9:15 every new year's day he calls the previous year's

the banks weren't loaning me another dime and i invested millions so i could easily go broke if this didn't fly. this wasn't some hypothetical case. my feet were in the stirrups. garrett's wife, martha -- garrett was the superintendent or head of the plant sumpter, right under john -- predicted -- his wife predicted william would be a money making venture, and true enough within 60 days of producing its first piece the company was profitable. martha predicted just as every a spouse grew to understand was no none at the industry who worked harder or longer hours. they kw it from the telephone ring. he calls on christmas morning. make sure the drykin is turn on so we don't ruin the stack of wood. calls at 1:30 a.m. they cabinet room forman giving us trouble? he's got to go. he calls on your vacation, and if you dare object, he reasons if i'm calling you, then i'm working, too. he calls on saturday when you're mowing the lawn, and i you can't get to the phone in time he'll accuse you later of having screened your calls. at precisely 9:15 every new year's day he calls the previous year's

bb&t we were a small bank and regulations become a priority because they can put you in jail and your talent is limited at top of the organization. instead of focusing making loansnd creating business and making economy better you spend all your time making government regulators happy. is has done, dodd-frank has done tremendous damage to the community banking industry. david: on january 1st, we have a new congress. we have the same president who approved of all the new regulations but the new congress doesn't but what can they do to change things? >> there is a lot of stuff they can do, repeal dodd-frank that would be good but they won't be able to do it getting it through president obama but this is a little esoteric but one of the biggest problems that's happened is fact that the federal reserve is forcing banks to be obsessed with mathematical modeling. small business lending, which is what makes small banks work and hugely important in terms of job creation is part art and part science. i was a small business lender and fortunately helped a lot of businesses get started that created thousands of jobs. the loans i made 30-years ago we can't meet today becaus

the banks are already well capitalized. said for everyone advantage point in rising capital would mean another 10 basis points on the typical home loans. already the banks suggesting any costs involved would be passed promptly on to the customer. said thesey himself banks are not exaggerated. they are rising today. a commonwealth bank and trade are up. may -- they check out over the previous few months. they already have to carry more they haveo they say to do the same. it is going to level the -- level the playing field. >> australia's banks are strong. why was the report commissioned in the first place? , they do these every couple of decades in australia. a branch review of the financial system. the flowing of the ozzy dollar. the next one was 97, and that led to the setting up of that regulation authority after a few minutes ago. .t has been 17 years they took 6008 hundred submissions, made 44 recommendations. the one the treasury is really focusing on is the increased capital ratios for banks. another global financial crisis, he doesn't want the us trillion taxpayer -- the australian taxpayer to be on the hook. >> we will take a

the buyer, but i think you are right. they have to get it at 40% to have a true healthy recovery. >> lending standards are still stretched for many banks even if they will back the loan, your neighborhood banks will be a little bit more nervous to do that loan. larger will be more apt to loan to these american buyers but we have to get them back into the market. i should also say under the program i would mortgage insurance which can be 80, $100 of your payment, once you get under 80% paid off on the loan, the private mortgage insurance, you can cancel that. they had this exact program in the early 1990s, and it worked. we did not get in the crisis until the early 2000s. the housing market was very strong. good times. charles: i see your point, for irresponsible would be first-time homebuyer. a lot of people off the fence now. skyhigh rent in new york. >> we have a new rental record being paid in new york city as of today. it is the entire floor, the 39th floor. a tenant has just signed on the dotted line. all i know it' is it is an international buyer. fox business will get access next month, normally 30,000 per night for the floor. all they would say is interest fr

the oil park borrowerings. we know there is plenty of direct loans from banks but half the bonds goes bad because oil is collapsing, half. pretty worse case scenario, don't you think? let's game it. what will happen? how about a production challenge company coming in and buying everything it wants in order to be able to increase the production, wouldn't that be something? exxon is challenge in production and can continue to drill in or now pray the weak players. i think mop up a lot of debt as it picks up losers and come on top. what matters to me is i want to put this down and housing led recession where a huge percentage of all home loans made between 2005 and 2007 defaulted. amazing. making things worse the debt was all over the place and secured and synthetics and impossible to untake l. the debt is concentrated in a few companies with documented reserves. nobody knew what to do with those default housing loans. there were $2 trillion in loan and it seeped to stop performing. the banks took homes they didn't want and those who bought housing debt who thought it was prime and wasn't, they got crushed because th

reporter: yes, the bank of america will be forced to pay more than a million dollars to a florida couple over harassing row bo calls. now the bank flooded the couple with a estimated 700 loan collection calls after they fell behind on mortgage payment, back in 2009. a federal judge penlites dollars the bank about $1,500 for every call. i love this story, ukee, erika. >> wow, that's a nice check they're getting there. >> take that indeed. thanks, jill, appreciate t coming up after a short break, traffic and weather together, we do it on the >> good morning, you know, usually it is very quiet at this time. we never usually have any major problems or delays, unfortunately, that's not the case this morning. traveling on the northbound side of 95, very serious accident situation, as you will notice here, that was blocking the last and -- left and center lanes. seems to be blocking all lanes right now, actually maybe i'm seeing a tiny bit of tail light moving through. regardless, we have an accident on the northbound side of 95 at allegheny that's going to slow your commute. so if you are watching us right now, i would definitely advise you to just wait it out until we can clear

when the original borrower took out a loan against the warehouse, he pledged additional pieces of property other than the warehouse as part of the loan. the loan is now in default, and the banks foreclosing, so when i buy the bank note, i'm not only gonna get the warehouse as collateral, but i'm going to get other pieces of property as collateral as well. my plan is to liquidate those other pieces of property, which will lower my investment from $240,000 to $140,000. >> you are 100% correct. >> do you understand? >> you should. you should! >> to me, the net result is the same. >> yeah. >> to me a note sale is actually an easier deal, and i have no problem with that. if you could do 240,000 for the note, i can tell you that that number works. >> under these terms, are you comfortable moving forward? >> yeah. >> okay, so we have a deal then? >> yeah, 240,000 will be the purchase price. >> let me ask you a question. this is more of a trivia question. what would you guess that we do as a company? >> mr. green tea? >> yes. >> uh, make tea leaves? >> okay. >> [laughs] >> thanks, buddy. i appreciate it. efharisto. >> what--what do you do? >> we make ice cream. >> oh, really? >> yea

banks use to do. providing consumers with capital, but consumer loans from banks, since 2008, have really fallen by the. so stepping in our silicon valley startups. joining me now from chicago is the avant credit ceo. tell me how your business works, what businesses -- problems are you trying to solve? me on.k you for having but we are doing is simple, the lower the cost to borrow money and reduce the friction in the process by creating a digital bank that will solve their unique financial needs. >> the investors you have lined up are pretty amazing. tiger global, peter thiel, kkr. talk about what it is about your powerpoint deck that is so awesome? >> honestly, it's been a great run. our company is only two years old. we are nearing our two year anniversary on new year's eve. we have had great investors starting with august capital, tiger leading the last two rounds. we have had great support from peter thiel, kkr, etc. their belief in the future of revolutionizing the consumer banking industry is what is working. we have assembled a great team and we have executed. >> explained how the business works

the cross-border lending. where, if you have a spanish bank that's lent the a german company, now that loan is up for refinancing the spanish bank is pulling back and focussing on spanish market companies. and that is where patient capital can come in and meet the financial needs. >> where are eoin. >> a net basis. some we incorporate some total return aspects. but typically 6-8% yield. maybe another two to three percent in warrants you can get and equity type kickers. >> we've seen a huge jump in cost of funding, high yield energy pretty much across the board. whether producers here in the u.s. or overseas. that an opportunity because you can then step up with capital? or a negative because exits get pushed out or less deals happening in the sector? what is your take on the provide side looking at that. >> the private side looks at things typically in a two to four year time horizon. so when they they about where are the opportunities in energy they are not necessarily look at $3 and a half natural gas price or $54 price of oil. they are saying we think the normal price of oil is 75 to 80 and if we can generate

the company. what this is, is a syndicated loan the banks are taking on.hey're usually low interest and they signal a bet that wall street really sees low risk in generating strong cash flow to hedge for xiaomi to pay it back. despite the fact that profits at this point are only slim, bankers i talked to say the fact it's profitable after four years is a hugely promising sign for this company. the fact that it's been able to get market share in what was a traditionally lock and loaded business for other giant companies in this space, this shows they can build some serious momentum. >> 500 million users. people forget in the uber deal and this one as well, the preference. you put $1 billion in. you have at least the right one times your money out, maybe multiple times your money out. when someone says it's a $40 billion company whether urber or xiaomi it's a bit of a misstatement in some ways. >> if uber and xiaomi came to you for capital which would you choose? >> oh, my god. that's a tough question. i don't think i would be comfortable with either one at

first, getting the approval from the buildings department and getting a bank to give her a loan whiched. she was able to complete the project thanks to private investors. >> i realized i could not get any financing from a bank. at that time, they would not lend on buildings. >> finally, how to install an elevator to the top floor. now linked to the private rooftop. >> this is the rooftop, the penthouse for the top floor apartment. it has a fantastic view. >> one unit per floor -- about 1300 square feet. $6,000 tos from $10,000 a month. kong's a bit of hong heritage maybe what makes it home and unique. at this point, doing a conversion on something and not realizing where you are. this one has been modernized. >> going to be looking at another aspect of hong kong after the break. the city has enjoyed its best ipo run for years. we will look behind the headlines and a less flattering headline behind it. we will tell you what that is. we will have all of the opening numbers and a look at sun hung afteroperties up 2.4% trades were suspended on friday. ♪ markets forpacific third straight d