the banking industry. a hard look at what the taxpayer money is buying. it is now in loans or asset purchases so we can say, we have made a profit. but if you look closely, these banks don't exist without huge federal reserve and federal government infusions of credit. what do we get from it? host: mary jane is joining us from ohio. good morning. mom today is going in for financial advice from her banker. they contacted her and want her to take the money out of the savings account, and it is a sizable amount. she has money invested but she wants to keep a fluid part of money for her in case she needs it quickly. is there some reason why they would be paying so much attention to her lack of making money? is there something going on right now? she's older and they want to get the money out of the savings and into some other fields. i don't know what it is, i will go with her today. is there something we should be on the lookout for that might be a trigger? i don't want to end up like greece, where they take all of the money that you have in the bank. if you could give me insi

the banks loaned a and borrowed. in part because the regulations because they were outdated. so a combination of deregulation and the barking and the spending spree encourages more borrowing with a neutral innovation. in all leads to an increase in their work to intelligent work. it ended its unraveling. >> but the political response calling from sheila bair and president bush, did they get their right? >> once bernanke in the federal reserve acted that the doctoral thesis had to do with the great depression. that is because of the collapse of the banking sector. and those that talked about the monetary to make sure that lindane continues. the bush administration pushed through but in terms of fiscal policy the bail was important because a reassure the financial sector that the banking system would continue. the banks have been holding lots of assets that were more valuable than they originally thought. for it is like the is on the banks in japan for a while. and it took awhile to make them solvent. economic ruin the cannot -- economy without a financial system. >> host: was

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 banks loaned, and they also borrowed. financial institutions borrowed, and they were partly able to evade regulations because the regulations were outdated with respect to, you know, how much you had to hold in reserve as capital. so you had a combination of financial deregulation, that's a sort of direct government intervention. you had the government itself embarking on a spending spree after the 2001 tax cuts. we cut taxes again in 2003. that encouraged more borrowing. and we had financial innovation. and all these three things led to an increase in borrowing by all sectors of the economy, and it all worked fantastically to give us in this period of prosperity until, of course, it didn't work. that is, people said, oh, let's reassess whether housing prices will keep on going up. oh, those securities that we issued, i don't think they're worth quite as much as we thought or the regulators thought. and the whole system starts unraveling in reverse. >> host: the political response to 2008, ben bernanke, henry paulson, shei

the banking industry. a hard look at what the taxpayer money is buying. it is now in loans or asset purchases so we can say, we have made a profit. but if you look closely, these banks don't exist without huge federal reserve and federal government infusions of credit. what do we get from it? host: mary jane is joining us from ohio. good morning. mom today is going in for financial advice from her banker. they contacted her and want her to take the money out of the savings account, and it is a sizable amount. she has money invested but she wants to keep a fluid part of money for her in case she needs it quickly. is there some reason why they would be paying so much attention to her lack of making money? is there something going on right now? she's older and they want to get the money out of the savings and into some other fields. i don't know what it is, i will go with her today. is there something we should be on the lookout for that might be a trigger? i don't want to end up like greece, where they take all of the money that you have in the bank. if you could give me insi

lot of them just are not interested in doing it anymore so this is how a lot of the banks feel about the small dollar loans because you have a 500-dollar deposit in the bank and that costs the bank money. as soon as it goes below a certain amount of money it becomes expensive for them to deal with it so they would rather have 100,000 so they can make money off of that and these days that the small dollar loans and so savings and also the loans that yield very little profit and are harder to service so they largely left this industry. so again i think we should lament this and it's sad that we lost george bailey's bank but what do we do now? this is one way the federal government through the structure which is an independent agency self-funded and sustained can come and fix the problems easily and here's why. the post office -- again going way back. the origins of the post office are fascinating. really and truly. .. >> >> but there were profitable and subsidized so they made that decision and to service every route regardless of cost. the third reason that washington d.c. and new york was center of politic

rishaad: they certainly art. >> can the chinese banks are for the bad loans? e funny answer is, yes, they can. especially the big four banks that are owned by the government. they have trillions of u.s. dollars in foreign exchange reserves and the full support of the central government behind them. other large banks don't have this. it is a priority to keep stability in the banking sector, and i think as a result we will not see those bank get into any trouble. it may be something different at the lower end of the scale. at the upper end, pretty safe. rishaad: you look at the basic numbers, return on equity, the dividend yields even, they are gigantic. >> would you rather own european banks or ccb? rishaad: that's your top pick, isn't it? >> capital is king in banking right now, and since the global financial crisis. highest capital ratio of any globally systemic bank, and by far the highest in asia. the roe is 19%. they have the capital to deal with the bad loans, the capital to pay back dividends, pretty sweet. rishaad: it is. again, are you 100% ok with the

sufficiently financed so that they can get the inventory, they can grow, they ans -- that the banks can make loanshat small businesses will be able to use to grow. so that is why it is extremely important to understand that dodd frank, the effects it had on the banking system, and the entire economy. that is one issue. understand the reason we should be concerned about what caused the financial crisis is that we adopted a law that has made our financial system function much less effectively, much more slowly, and it will continue to do that as long as it is in effect. i am part of a group in washington and some other organization like ours to try and repeal the dodd frank act over time because that is the only way -- >> [applause] mr. wallison: that is the only way we believe this economy will ever return again to the kinds of growth that we had before. now, why did we have this problem? why did we end up with a system in our mortgage financing business that caused this financial crisis? the collapse of all those mortgages. what i'm showing you here is something called "the affordable housing goal

the banks. it will go to the shadow banks, non-bank lenders, the middle market loans that the banks usually makes to bdcs. you can namee, them off. the concern with that is that it is unregulated risk for one, and two, a lot of these have not seen a credit cycle. you go through a credit cycle, these models are unproven. while it may not be a risk for the system, the risks are creeping elsewhere. joe: talk about that some are. when you say thanks are becoming utilities, that seems like a win. but we just move the risk into different areas. david: we are in enterprising market and people want to make money. these different activities are happening, just not at banks anymore. some of it is. consumernce, subprime used to be an arm of citibank called will make financial. now it's owned by fortress led group called spring leaf financial. just one example of an entity that used to happen within a big bank, now happening outside the system. joe: is someone active in the credit markets? are you interested in investing in some of these loans that are produced by these online target places -- online marketp

lemonis: the bank loan. -$100,000. -john: yes. lemonis: and so, you're trending down. -right? -john: correct. lemonis: well, i'll give you a lot of credit, both of you, for putting together solid financials, but i don't know how responsible you are in managing the people here, and the biggest risk in this business right now -- -it's you guys. -john: oh, yeah. -we're what's broke. -becky: yeah. that's why i called you. lemonis: but i'm not a guidance counselor. becky: oh, i know, but... lemonis: you know what i like about both of you? becky: [ laughs ] lemonis: you have passion. even if i don't agree with the content all the time, you have passion, and that's not something that you can teach people. the criticism that i have is that the business is bigger than both of you. john: agreed. lemonis: you guys made this investment together. you're either gonna go forward together, or you're gonna burn together. i want to do business with people that will always do the right thing without conditions. but i just can't understand it. i need you to explain to me again why it is that you

the bank loans you money. your gap you have to fund through dentists, russian oligarchs. [laughter] laugh, there used to be jokes about whose russian oligarchs got stolen by who. or subsidies in some point or another. in that process, where you want online to come in, either to pick up the slack on dvd or because they wanted to be part of the content creation process, it is really still absent. when you look at the pressure, it is much more about a marketplace that now consists almost completely of television and theatrical. it does not yet offer the promise that we wanted for content that could be video-on-demand or a netflix release. thinking about, the original content from netflix and amazon prime, are they sticking with more traditional actors and producers? are stickingem with very traditional actors. we should talk about that. i think a lot of the netflix content is buried television longform, but they are also turning themselves into a studio. if you want to go work there as an employee, producer, you might find a way to get on there. if you produce a film like so

the banks refused the necessary loans. the lumber companies are paying more than ever for the trees. but no one wants to talk to us about all this. >> they're all afraid, but they don't know why. >> is that typical? >> yes, typical. >> and then it starts to rain. the city of chusovoy looks even more depressing now. most people here have given up hope that the new factories will ever be built, or that the streets will be repaired. [laughter] germany has taken in one million refugees this year, by far the largest number here in europe. chancellor angela merkel has faced strong criticism for the open-border policy responsible for that influx. she continues to insist however, "wir schaffen das," "we germans will manage." but what about the refugees themselves, will they manage? building a new life in a foreign country is no easy task. take ahmad shehabi, for instance, a young syrian refugee we accompanied five months ago, as he took the dangerous balkan route all the way to germany. we caught up with him again this week, and f

the banks refused the necessary loans. the lumber companies are paying more than ever for the trees. but no one wants to talk to us about all this. >> they're all afraid, but they don't know why. >> is that typical? >> yes, typical. >> and then it starts to rain. the city of chusovoy looks even more depressing now. most people here have given up hope that the new factories will ever be built, or that the streets will be repaired. [laughter] germany has taken in one million refugees this year, by far the largest number here in europe. chancellor angela merkel has faced strong criticism for the open-border policy responsible for that influx. she continues to insist however, "wir schaffen das," "we germans will manage." but what about the refugees themselves, will they manage? building a new life in a foreign country is no easy task. take ahmad shehabi, for instance, a young syrian refugee we accompanied five months ago, as he took the dangerous balkan route all the way to germany. we caught up with him again this week, and f

the loan today too. that $28,500 loan. that was made by an online lending platform called prosper. so they are not the actual issuer of the loan. it's still a bank that issues the loan but that's an interesting development since we last talked. now the company isn't commenting citing privacy laws and there is no indication that loan was given out to mr. farook with any wrongdoing. but stoaking this existing debate about these online lenders whether they should be regulated more heavily, you know, investigators will definitely be looking into whether he used that loan to purchase the guns. one source did tell us at bloomberg that mr. farook said, indicated he would use that loan to consolidate some debt. now that's a pretty common reason for applying for a loan like this, the deficit for banks is you can apply for a loan saying you are going to use it for whatever you want and actually end up using it for something quite different. >> rose: you know what surprises me still, even though they were as radicalized as they were, a lot of people say well, i didn't notice anything. >> certainly, right. we're hearing from a lot of family members. a lot o

the cfpb has been watching out for banks who have been denying people mortgage loans because of their race, hudson city savings bank, the cfpb and justice department allege this lending agent, the largest lending bank in new jersey that has clients in other states was essentially ignoring entire neighborhoods, people of color and providing loans the white people in disproportionate numbers. it did settle this fall for $30 million and this is a prime example of the way the cfpb is trying to bring scrutiny to the lending banks. which means opportunities for americans. if you can't get a home loan or auto loan it can certainly set you back. adam. >> libby casey, in washington. we'll be right back. br >> next month, salt lake city will inaugurate its first openly gay mayor. her impact is already being seen in the city. she has called out the mormon church, and she's asking some top city officials to step down. jim hooley has more. >> if there's any indication that salt lake city is a conservativliberalbass john in e state, it's jackie basupski. >> we're talking about the transition fund.

the first had to do with the forced marriage of the seattle and the des moines federal home loan bank. and i specifically asked that you ensure that the new banks' affordable housing program distribute its funding equitably throughout the combined district. that's something that when the bank was just in seattle, they ensured. and in fact, the des moines bank, the new consolidated bank, came out with its nine criteria for distributing funds and made no mention whatever of equitable distribution. i cannot exaggerate to you the depth of my disappointment on this. i convey it to you. i'm not letting go of this and i'm deeply disappointed that there was not more attention paid to this basic principle. the second letter that i sent to you had to do with concerns about the proposed rule to limit membership, i think 66 of my colleagues got on, the rule came out, we hear rumors that it's not going to be changed. i've signed on to legislation with mr. lukemeyer, mr. carney, mr. mchenry, to sponsor a bill to stop it. in a private meeting i put a question to you, which i now put to you publicly,

. >> the washington post says donald trump got richer at the banks and investors that loaned him money. reporter and the trump campaign : is waving off a new radio ad put forth by a group calling itself "make a america awesome," calling it a hack job by those seeking to make a living off the trump name. yes 2016 is just about here, and analysts say a lot of fortunes can change in the coming weeks. >> candidates who are up even on new years eve could be down by february 1. that' reporter: one more bit of trump news. starting next week his campaign says it will hit the airwaves with the first ads of the his campaign, pledging to spend $2 million a week in new hampshire and iowa. so if you think trump is on tv enough already, buckle up, cuz the ad blitz is gonna be huge. tom: straight ahead at 6:00 the search is on in belmont tonight as vandals armed with b.b. guns continue to shatter windows across the town. jean: plus looking for a safe , ride home tonight? the options available tonight in the city where the only official first night celebration is on average, it takes three hundred ame

if you look at the bank loans, they had a big outflow from bank loan funds. so the idea here is that you're going to have to raise your reserves, take some losses on some of this energy credit and also just in general you have a flattening yield curve, a lot of stuff is working against financials right now. used to be that financials big banks would trade much more closely to the corporate bond market, now that they are not big dealers anymore, they don't hold the inventories but it matters. like tim mentioned raw nerves across a the love different asset classes you probably can trace it to the ecb surprise last thursday. investors staying back on their heels. >> these currency moves are wild. what we see in a day, in a week because of central bank surprises that's what has people really worried. >> what do you see going on? >> i'm going to say it's a world that's trying to make something out of not a lot going on. and what i mean by that is you have certain things that are going on, which is the saudis are driving market share gains and that's what's going on

cfpb and in a lot of respect it was danny and freddie influencing the private sector telling the banks whose to loan money to and who not to. get to the facts. for my friends on the left, they see the private sector as a problem and everything should be done in washington by bureaucrats and politicians. this is a slap in the face to the american people. they are figured out -- they are smart enough to figure out what works and when does the end doesn't need the people in washington to do it for them. >> if they would use this to responsibly are you concerned with the lack of accountability? >> edits the serious problem that all you have to back for accountability is the public exposure that they claim they rely upon but would get the decision they have made rather than rely upon the data they cherry pick the data the process they don't reveal to the public to say this is what the data tells us what you do it in one case they have demonstrated the value read they did put the data out for people to look at it ended disproves of functions but encourages the public and that is what we need. >> going bac

the royal bank of scotland is still on the road to recovery. he has limited thousands of jobs and shedding assets. bloomberg spoke to him about the banks commercial loanbook. >> our exposure is a lot lower today than it was seven years ago. that will be address the next couple of years. that could be an issue in the stress test taken at the end of this year. i would be a bit more comfortable if i could have less exposure. parts ofe been selling their book and there have been strong buying positions. think we will be in a very strong position, especially from the commercial real estate. it has been a mess of change in this organization. >> everybody passes the stress test. there was a line in there for you have done some actions with citizens and capital. short in some parts of the assessment. can we identify? can we identify where you were short? >> we still have some large areas of litigation. the big one sold off in 2015 and 2016. we dealt with the foreign exchange issues. we have the security issue in the u.s.. we don't know how big it is, but we six -- but we suspect it will be a big one. is overind of numbers $30 billion mortgages that were sold.

situation with the credit markets not working first frank affect a lot of the community businesses, big banks won't make loans to small businesses the way they used to because i think it's just too expensive. regulators get on your back. regulators keep telling banks raise your capital, which is also depressive lending. so the economy, it's amazing we're in second here instead of first. david: and of course next week we have the fed move. what do you think is going to happen? are they going to get spooked by what happened in the market today and put off a rate hike? >> if you do, you're going to see even more turmoil because the fed indicated was going to finally start letting markets operate in the credit markets by having real prices for the credit just the beginning. and then they pulled back. if they do that again next week, by golly you're going to see even more tush las turbulent and trouble in 2016, get it over with and what the fed should do instead of saying this is a tightening or raising of rates, get the credit markets fully functioning again, first step put a positive on it instead of making it l

loan. >> sabrina: right. >> tom: in the end, you won't see that right away. one of the big things that's gonna happen is the difference between a short term interest rate that the banks charge and the longer term rates you see on home loans and things like that. the consumers, whether or not they see the impact right away, is probably gonna be questionable. you won't really feel it 6 months out, a year out. absolutely, you'll probably see those interest rates starting to go up. and i think if you're considering buying a home or considering that car? you start thinking about doing it sooner as opposed to later. >> sabrina: and are you thinking that maybe if you have a variable interest rate it's different and will have different effects on you than if you have a fixed interest rate? >> tom: absolutely, if you have in that rate sooner. the variable rate's gonna have the chance to go up and so you're gonna be worried now about increasing rate when for the long term. >> sabrina: mmhmm, ok great. so let's talk a little bit about your reaction to the increase in the interest rate. were you surprised at all? >> tom: no, when you'vr been watching this for the last few years,

investigators now tracking how the terror attackers spent a $8,000 lo $28,000 loan from a bank. syed made a series of transfers possibly from his mother's account at another bank and the fbi is looking whether he paid a friend who bought two rivals used in the rampage. what is the role of the banks in catching these kinds of red flags? >> former prosecutor and defense attorney here to analyze this. did the banks drop the bol? >> i want to say the banks did drop the ball but it's an easy ball to drop. we have a couple of balls to talk about here. one is, how does a man who grosses, $53,000 a year get an unsecured loan for more than half of his annual income? if i were the fbi, i would want to know if isis is working at the lendsing institution that gave him the money in first place. once he has that money, the bank is required any time somebody moves cash in the amount of $10,000 or more, they have to fill out a currency transaction report. it's a must. that's an easy trigger because they know $10,000, boom, triggers my requirement, i file the report. the second thing that the ban

we're looking at banks, community banks, that are there in the traditional business of banking, taking zps and making loans to businesses and individuals. and the way this would work -- we have not accepted all of the recommendations but we have focused on a number of them. which would be to be eligible for regulatory relief, the financial institution must hold note-trading assets, no derivative positions other than interest rate or foreign exchange, have a limited notional value of all the bank's derivative exposure otherwise and maintain a ratio of debts to assets no less than 10%. and in return for that we would give under this legislation we would give relief in this form. those banks would be -- the compliant banks would be exempt from basel risk-based capital standards. the test -- the stress tests, in some cases they would be exempt. in other cases the stress tests would be every 18 months instead of every year, so trying to reduce the cost there for compliance. and also exemptions from submitting call reports and schedules. now, this actually goes back to mr. sherman's question before where we're a

the bank may have had good collateral. it was just a liquid. that imbalance was creating the crisis. dr. bernanke: they created a run, they would take their loans which couldn' t be sold, but they would offer them as collateral to the central bank, bank of england, or the fed, and in return, get cash to pay off their depositors. it was a way of stopping a run. central banks were created for that purpose. the idea of addressing financial panic was not a new idea. >> in your book, you write about being a student of this. now you are meeting a financial panic and a balance sheet recession which could lead to another great depression. you and the federal reserve are taking steps to stop that from happening. tell us the steps you had to take. dr. bernanke: the first thing we tried to do was be a lender of last resort. investors were just running away from risk every way they could. everybody wanted cash. nobody wanted to hold other assets. >> we live in a society of fear and greed. dr. bernanke: way on the fear side. >> you are trying to bring people back psychologically. dr. bernanke: what the fed was trying to do was make sure that companies, cred

bank account. did it go to enrique marquez as payment. >> what else do we know with about the company that provided the loan here? >> the company is called prosper. they're san francisco based. they appear to be a lending, in other words, you don't have to go through a bank to get a loan. i can go on the website, apply for a loan and then another individual who has money to spare can provide me that loan and reap the interest from it. prosper does not even confirm that the loan indeed came via its website. but they do say every single loan that they make comports with all u.s. anti-terrorism laws and money laundering laws. we'll find in the coming days a lot more about this company and wherein deed that loan did come from them and who provided it. >> jonathan hunt in redlands, california. our next guest says the bank deposits will be significant in this investigation. chris webber is former fbi assistant director during his 24 years at the bureau, he was responsible for eight divisions. he also commanded a team in iraq which ran counterterrorism and terror financing investigations. he's now and attorney and

nbc news has confirmed more than 28-thousand dollars was recently deposited in the couple's bank account was a loan from prosper .. an on line lender. still .. there are questions about funding .. and others who may've been involved in the plot. "we want to find everyone who participated in the preplanning, if there was , we don't know." he's not considered a suspect.. still, agents continue to question enrique marquez.. a former neighbor they say agreed to purchase two assault rifles for farook -- weapons used in the attack .. and investigators are looking at a number of people seen entering farook's garage in the months prior to the attack. they also hope to learn more from farook's mother.. "i'm not sure if we're done questioning her yet." their questions likely center around the house she shared with the couple.. a house officers have described as an arsenal.. and bomb factory.. jay syed farook was born in the united states. his wife was born in pakistan and she came here under a fiance visa. donald trump says that wouldn't happen under his watch. donald j trump is calling for a total and compl

farook indicated he would use the loan to consolidate debt. the difficulty for banks is that you can apply for a loan and say it is for whatever you want but use it for something different. charlie: what surprises me still is that even know they were as radicalized as they work, a lot of people say, well, i did not notice anything. esme: certainly. we are hearing from a lot of family members, people that knew them, that they did not notice anything. they went to the mosque, but you can say that about any number of muslims. i think that is something that you hear a lot about after these mass attacks. family members and friends are coming out and saying that we had no idea. it makes officials and jobs harder. the fbi did not have the couple on any kind of terror watchlist. this really amplifies and dangerous and under the radar people like this can operate in today's day and age. charlie: thank you for joining us. esme deprez, bloomberg news in san francisco. ♪ charlie: we continue now with our coverage of the republican presidential race. donald trump faces criticism b

banks that are in the. traditional business of banking taking deposits, making loans to businesses and individuals.f bak andthe way this would work, we have not accepted all our recommendations. but we have focused on a number of them which would be to be ibf eligible for regulatory relief, financial institution must hold note trading assets, no ution mu derivative other than foreign exchange, have a limited note t notional value of all the bank derivatives or otherwise, and f maintain a ratio of gap equity assets of about 10%. no less than 10%, i'm sorry. in return for that, we would ass give, under this legislation we would give relief in this form. those banks would be -- the couple pliant banks would be exempt from basil risk-based capital standards. the stress tests, in some cases they would be exempt. in other cases, they would be every 18 months instead of everh year. try to reduce the cost there for compliance. and also exemptions from tr submitting call reports and schedules.ons fr this actually goes back to mr. sherman's question before where we are actually regulating this activity.ctually not ne

the attack. money placed into his bank account before the shooting was a loan from a lending company to pay for the care of the infant daughter. make sure you join us tonight for a town hall on america's security versus america's freedom. the new normal start at 7:00 on our sister station channel eight, or even watching streaming live on our website wjla.com. students at catholic university returning to class just about one hour ago. the delayed this morning was sparked by getting another scare. the second one in only 24 hours. the shelter in place order was lifted last night. it came after reports of a suspicious person. police saw a man who is a person suspected of making threats monday night. officials later determined there was no threat. city public schools closing its many howard campus today. the closure is due to a water issue in the building.no word yet on when exactly the issue is or when it will be resolved. we do know it was a foggy start in the morning. look at these live pictures. we cannot complain about the weather and the temperatures this week. let's get right to doug hill for a l

now, we are looking at banks, community banks that are in the traditional business of banking, taking deposits, making loanso businesses and individuals. and the way this would work, we have not accepted all our comments, recommendations. but we have focused on a number of them which would be to be eligible for regulatory relief, financial institution must hold note trading assets, no derivative other than foreign exchange, have a limited notional value of all the bank derivatives or otherwise, and maintain a ratio of gap equity assets of about 10%. no less than 10%, i'm sorry. in return for that, we would give, under this legislation we would give relief in this form. those banks would be -- the couple pliant banks would be exempt from basil risk-based capital standards. the stress tests, in some cases they would be exempt. in other cases, they would be every 18 months instead of every year. try to reduce the cost there for compliance. and also exemptions from submitting call reports and schedules. this actually goes back to mr. sherman's question before where we are actually regulating activity. if a bank

counter-terrorism agents are also following the money trail.there are indications 28-thousand-500- dollars from an online loan.. deposited to the couples bank account two weeks before the killing spree.. may have been acquired to take care of their 6-month-old daughter.. and farook's mother after their death.. i'm jay gray, in san bernardino, now back to you. the third man who unleashed carnage at a music venue in paris last month has been identified. he is foued mohamed- aggad and like the other attackers, blew himself up. the 23-year-old man is from a small syria in 2013. news reports say mohamed- aggad was known to french anti-terror services and had a police record. what a great day for weather! chief meteorlogist ron demers joins us with our first look at the forecast at 5. for the third straight day, sioux city hit a high in the 50s while western siouxland was basking in downright warm temps making it all the way into the 60s. a weak cold front will move through tonight but really only bring us more wind as opposed to colder air. that means we can again expect warm highs for this time of year again on thursday as we won't fall too muc

the etf. we have bank loans down 5% from the close september 16th, the close before fed day. we have emerging market equities down 5% from their close before fed day. we have the crb, the commodity prices down an incredible 14% since the close before fed day. we have emerging market down 2% on its etf from the day before fed day. >> so you continue to build the case that the fed is going to make a mistake. you continue to -- sounds like you're continuing to build a case as to why the fed should not go. even though you think they will. >> what's the purpose of raising rates today with all of these indicators weaker than they were three months ago, and you gave the reason for not raising rates primarily that these indicators were weaker. i think the fed is raising rates because they promised they would in 2015, and they just can't do it one more time to just fail to deliver on the type of rhetoric that they've given while maintaining credibility. the fed will raise interest rates. the thing that has worked in the fed's favor for raising interest rates is basically the s&p 500,

the rate banks charge each other for overnight loans have been near zero since 2008. >>> wall street posted biggs gains in more than a week thanks to gains in energy and bank stock. the dow rose 156 points and s&p gained 21 and nasdaq climbed 43 points. >>> chipotle says it will not be raising prices to cover the costs of new food safety procedures. chipotle enacted the new procedures following and e. coli outbreak that forced the company to close more than 40 stores in the pacific northwest and 50 people got sick. >>> beginning next year, ford will test a self-driving car in california. it will be used in the research. ford is already testing self-driving facilities at its michigan facility. ford joins google and nissan and others who are testing autonomous driving cars. are expected to travel this holiday season. from wednesday, december 23rd to january 3rd, 100.5 million americans will take a trip and 1.4% more than last year. run within? the drop in the price of gas. 90% will be traveling by car. >> grandma gets the guest bedroom ready, we are all coming over! maybe a pull-out cou

bank will raise the interest rate it pays on those excess reserves, reducing incentives for banks to make loanswer rate. at the same time, the fed will borrow cash from banks and other non-bank institutions like money market funds at a fixed rate in exchange for securities. these reverse repos should put a floor under rates. wouldals expect funds trade in a range between the other two, at least that is the hope. we have never been at zero before, so nobody knows that the plan will work. just as important as what they do is what they will say. out thee to throw statement they basically used for the past five years and start from scratch. look for a change in guidance from being reasonably confident inflation will move back to toir twosome -- 2% product seeing actual progress. and a pledge their closely monitoring oversee development and the dollar. janet yellen will be very careful in connecting the dots during her news coverage, offering investors a logical justification for what the fed is doing and what it sees ahead. indonesia's central bank will be one of the first to meet following the fed

and maybe speaking more broadly about what it sees for the loan books of the banks, more broadly than just specifically itself. should we be worried about loans to the energy space by the big banks that are going to be troublesome in ways that we're now finding out some of the problems in high yield are hurting some funds that were overexposed in more risky areas? >> it's all about how much exposure do they truly have to that entire market. i think it's limited than a lot of folks think. i think some of the bigger banks might have more exsposh ur. exposure. the rest of the regionals along the way, the suntrusts of the world, i don't think you'll see nearly that type of exposure. >> got a lot of stuff trait ahead for you. including president obama is scheduled to speak in the next half hour from the pentagon. we'll bring you to that. plus, apple sharesters are red. in a key level after morgan stanley predicted i. phone sales will drop for the first time ever. and how low will crude go? investor who's been making money on the oil collapse gives us a trade update. as we head to break, ta

the couple got a bank loan for more than $28,000 just days before the massacre. to reuters, the couple may have drained their bank accounts, maxed out their credit line, a strategy often used by terrorists before embarking on a suicide mission. also tonight, alarming new details about the ties to terror. authorities say a post on facebook indicates both the husband and wife pledged their allegiance to isis. what more are you learning? >> let's begin with the money. that loan you were talking about. cnn has been speaking to multiple law enforcement sources who tell them a $28,500 loan was taken out by farook. half of that money went to his mother. some of it went to household expenses, according to those multiple law enforcement sources. and that all of the money has been accounted for. the key thing here with this money is that the money did not appear to come from an outside entity and the money did not fund this operation, the arsenal, the guns, the bulletses, everything seized by federal agents. that was bought prior to this loan. pam brown confirming this mone

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 banken 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? >> yeah, that's what i sai

the red alert and post two ago because of smog. schools reopened. they eased traffic restrictions. they are getting a loan from the -- asianvelopment .evelopment bank outgoing president christine fernandez skipped the inauguration of the new argentine president. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i'm david gura. betty? betty: david, thanks. a big day for interest bank -- decisions. the s&p bankew, president explains why. >> there is no necessity to change monetary policy with negative rates at .75 basis points negative and also to intervene in the exchange market as necessary. betty: and we also heard from the bank of england as well. mark: we certainly did. the governor mark carney and his fellow policymakers left the -- joining us now, and david nolan. thank you. the boe said today there is no mechanical difference between what it does and what the fed does. do the markets believe that or not? david: not really, no. you're absolutely right. the boe is caught in the middle. once the fed moves, at that point, the market will bring .orward the likely timing and the boe, when they published a

the nation's biggest banks said they were going to increase their prime rate. the prime rate is the interest rate used to price lots of consumer products like auto loans, credit cards, home equity lines. so, if a bank raises its prime rate, it means your credit card rate will also rise. citi, jpmorgan, pnc, u.s. bank and wells fargo all raised their prime rates to 3.5%, but wells fargo also said it won't raise its rates on deposits. >> which, ty, brings us to our next segment, staffing cash in a savings account has yielded nearly nothing for years, aside, perhaps, from peace of mind, and that's not likely to change very much. our senior finance correspondent, sharon epperson, explains the real impact the fed decision may have on your finances. let's start with savings accounts. wells fargo says, you know, it's not going to increase the rate on your savings deposit. why? why is that not automatically -- >> it's not tied to the prime rate. as tyler mentioned, the prime rate is really what we're watching here, and anything that's tied to that, you're definitely going see an increase, but that's not true of savings accounts and deposit accounts, so you're not going to