the bank to do it and the bank will probably be respectful in their response but interesting to see if they will cooperate. the other request they wanted, in some way separate, any details of the loansk made to president trump, loans may several years ago before he started his run for office as a developer in manhattan. that is something they want to have detail on. mark: the other big story is deutsche bank may be close to settling a u.s. federal reserve inquiry into how billions of dollars moved through the bank and out of russia. do we have any idea of what fine deutsche bank may end up with? >> we do not because this was something, a year ago, when the review began, look like it could be serious for the bank. for a number of reasons, this investigation has proceeded quietly. we do not have insight into what the thinking of lawmakers is. because it is deutsche bank and because of trump, questions the democrats on the financial services committee have raised as to whether or not the justice department can impartially make a judgment regarding the banks which is an interesting question financially, politically, otherwise. mark: you go. vonnie: it is getting very confusing because r

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

that's what the bank loan activity is. ters are likely to be better in the bank lending side. chondromalacon on consumer and pressure in the subprime market, yeah, that's an effect of rising rates. >> if you look at what's working, technology, consumer discretionary. cyclical stocks? >> tech is different. tech was a combination of growth and cyclical. people felt in case the cycle is shaky, we knows there secular demand for cloud, for artificial intelligence, autonomous driving. all those things capturing peoples fascination. i'm a little nervous about how far tech has run, particularly software an serviced zfservices. we backed away from tech as it's been getting better. we loved it a lot last year and made a fair amount of money. now we think it's better to look at more traditional reflation plays, so industrials, financials, materials are more chemicals in the u.s., it's not as interesting to us. we're underweight materials. in consumer discretionary, media, consumer services, there are some areas of pressure. >> if you

clear look at the first quarter, you'll see very clearly that the product that banks sell is not interest rates. the products that bank sell is loans. if banks don't sell loans, they don't make money. in the first quarter, you saw a decline in commercial industrial loans. you saw weakness in residential mortgages. you saw clear problems in auto loans. you saw problems showing up in credit card loans. it was virtually no category of loans, other than commercial real estate, that went up. they went flat to down. so the net effect is, these companies not only are dealing with the fact they weren't selling their primary product, but they were getting recalls. in other words, loan losses were increasing. loan losses are going to skyrocket in the automobile sector. they've already started moving up. loan losses are going up in credit cards. loan losses are going up in virtually all personal loan categories. mortgages are not expanding, because as interest rates go up, the refinance market dies. so, you know, you've got this theory that just because interest rates might go up, that they should be some increase in bank earnings which is a

want the government banks to be in the picture because of the size of their loansn the asset side, 90% of distressed loans are with state banks, so the private sector has done better there, but if you look at the new information coming out, talking about the diversions between what the private banks have reported versus the amount that r.b.i. audits have disclosed. with one bank of the reported number was 15% of the actual audited amount, so that will affect a little bit of trust investors have placed in the kinds of numbers reported. these two issues go hand-in-hand because if you have bad debt and can't write it off, then it puts a strain on your balance sheet growth, which is what happened with the government banks. so much.thank you joining us from singapore. the state bank of india at with results later on today. coming up, more diversions, this time in china. the widening gap between a-shares and h-shares. ♪ ♪ rishaad: this is "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: ikea aims to double its sourcing from india ahead of the opening

bank loans. we think bank loans are a lot more attractive, the valuations there. ink there still are good opportunities out there in not just bank loans, but emerging markets. for active managers there are opportunities that remain at jonathan: do you share on bank this point in the cycle. jonathan: do you share on bank loans? gregory: i am much more skeptical on bank loans. i actually like u.s. high yield better. if you look at the refinance ability, it is 50% to 60% and there is downside but no upside. jonathan: bonnie? bonnie: i would concede the culpability is a negative for the sector, but when you look at the spread in high yields historically it is on the tighter end. we feel like that in addition to the fact that it is a floating rate asset and we are in a fed hiking cycle makes it more attractive. jonathan: we have the opec meeting earlier this week, in fact, we had an opec decision to extend cuts for nine months. i want to fuld in the opec story fold in the opec story in high-yield, and show how resilient energy has been. if you take the energy index and

bank. and bob costa joining us from washington. when you hear break up the big banks. an interesting phase. how real? >> the banks can get back to loaningmoney -- let's get something clear. the banks are still loaning money. president trump said we are going to break up the big banks. he is not the first to say it. gary cohn has already said it. when president trump did say it today you did see the bank index drop but then it came back. those in the banking universe said yep, he will get right on that. with the amount of things on president trump's plate, infrastructure, tax reform, health care, even dodd/frank -- he mentioned it there, it's going to be seriously majorly changed. great. get to the details, by the time they break up the banks the bankers in those seats right now are going to be long gone. >> robert costa, break up the banks can sound so pleasing during campaign season. isn't this one of the talking points that actually made some bernie voters trump voters? >> that's true, brian. there is this strain of populism that's coursing not only through the american right but through the american left. when we see some of it being

day from 1987 to present you lost 14,000 banks in the united states because they don't customers, and the biggest banks in 2007 and 8 were not american, and the loans american bank system are not greater than the deposits in the american banking system. charles: an amazing economic run from the time glass-steagall of put in until it was pulled out in 1999. i was in your shoes, i whole heartly believed, just a couple of years ago. but as i watch it closer and look at numbers for myself, i just don't believe that city bank or -- cit cities bank or j.p. morgan do not. >> j.p. morgan biggest source of profit is consumer banking. >> it's trading. >> no, it is not trading. charles: they made trading, commodity, investments. >> trades is not their biggest source of profit, the biggest source of profit are credit cards, mortgage, small be loans, middle market loans, that is where j.p. morgan market come from sniem. >> not saying put them out of business but make the huge, huge banks split them in half, i want to bring in our panel to help in the discussion, we have brian brin berg and chris. we start with you professor. >> i don't care so much about breaki

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

bank loans are more attractive. i think there still are good opportunities out there in not just bank loans but emerging markets. for active managers there are opportunities that remain at this point in thele. jonathan: do you share on bank loans? gregory: i am much more skeptical on bank loans. i like u.s. high yield better. if you look at the refinance ability, it is 50 percent to 60% 50% to 60% and there is downside but no upside. bonnie: i would concede the culpability is a negative for the sector but when you look at the spread in high yields historically it is on the tighter end. we feel like that in addition to the fact that it is a floating rate asset and we are in a fed hiking cycle makes it more attractive. jonathan: we had the opec decision to extend cuts for nine months. i want to fold in the opec story in high-yield, and show how resilient energy has been. if you take the energy index and compare it, this is the correlation for crude and high-yield energy. it has completely collapsed and completely rolled over. why has that relationship break -- broken down so aggressively this year? brian: ever since last year's lows, as oil rebounded, the correlation eventually broke but i

bank loans. i think there still are good opportunities out there in not just bank loans but emerging markets. thee managers there are opportunities that remain at this point. jonathan: do you share on bank loans? gregory: i am much more skeptical and i like u.s. high yield better. if you look at the refinance 60%ity, it is 50 percent to and there is downside but no upside. theie: i would concede culpability is a negative for the sector but when you look at the spread in high yields historically it is on the tighter end. it is a floating rate asset and we are in a fed hiking cycle makes it more attractive. jonathan: we had an opec decision to extend cuts for nine months. [no audio] so aggressively this year. brian: ever since last year's , the as oil rebounded correlation eventually broke but i think this is just another testament to kind of the overall high-yield market, whether it is straight high-yield or bank loans, etc.. coupon,re buying the the income stream and there is not much concern about risk. there is not a lot of price upside risk so it is a coupon clipping market at best. if the con

congress remains in the dark on whether loan storage bank made to president trump were guaranteed by russian government, or were in any way connected to russia. that's the pivotal sentence in a letter to deutsche from members of the house financial services committee. the suspicion is that russia may have helped to curry favor with a potential trump administration, a stunning thought. for its part, deutsche still holding internal reviews of the trump loans under lock and key and isn't obliged to publish them, either. brent: let's bring in our financial correspondent on wall street. this is a situation that is just starting to develop. what does it mean if russia backed loans to trump, would that be illegal in the first place? reporter: you are right, there are still so many loose ends. i did talk to a lawyer earlier and she does not believe it is necessarily illegal, and if the russian guarantees for some of the loans, those guarantees would not have come from the government, from the russian government, from the russian treasury, the more likely from some oligarchs and shell companie

banking system. capital.s the cost to look at europe. 80% of their money comes from a banking system that is struggling. anemic.rowth is the ability for banks to write off poorly performing loansnot there. has a very negative impact on their entire economic landscape. to move fromwere that, it would represent a departure from liquid markets. 2008, the focus has been liquid markets. like some of our competitors did and we learned some very important lessons. for us, one of the key lessons was to stay focused and liquid markets. and that's the way it is going to stay for the time being? ken: that is the way we are. reputationel has a -- i'm not sure what word to use, tough, ruthless, perhaps for chewing through people and spitting them out. you are the guy who runs the business. tell me what it's like from your perspective. perspective, it has been 27 great years. i've worked with some of the brightest people in finance and i have seen their careers awesome. i've seen them make a huge impact on the capital markets. we bought the portfolio and reshape the u.s. options market. it takes a special team to make that happen. like a sense, it is professional's ports team and if you are

. >> i would bring that right to the banks the loan growth the money center banks, they are hinged toonsumer. the housing market has structural issues, but it doesn't have themematic issues, that's a tail wind. banc of america is a name that has the most operational. 2003 was the level it had to hold. it did not. i'd love to see you get above there. >> just because the consumer is spending, doesn't mean it's healthy. >> c'mon, you sound like me. i said that for years, don't confuse, whether or not they should be spending. they have proven they'll spend regardless. market goes higher. they didn't feel good. >> irregardless? >> i didn't say irregardless. >> trade school. >> don't go there. >> irregardless is not a word. >> i think that consumers, credit card debt is north of a trillion dollars for the first time. >> what's your point? >> oh, you know. my point is, don't confuse the health of the consumer with thater want to spend. >> retailers gap and ross stores out with earnings. for more, let's go to morgan brennan at headquarters. >> hey, morgan. let's start with gap. old navy, cont

the bank's own review of this whole russian money laundering mess, and they also want information about deutsche bank's dealing with the president of the united states specifically the $300 million in loansresident still apparently owes back to that bank. quote, from their letter, congress remains in the dark on whether loans deutsche bank made to president trump were guaranteed by the russian government or were in any way connected to russia. i've always thought of these things as two different stories, deutsche bank having this russian money laundering problem and deutsche bank being the largest known lender to donald trump. i've never thought about the two stories being the same story. are they? how would we know? house democrats alone can't force deutsche bank to turn over anything. they need the republican colleagues to help them. but why are they asking? is there any reason to believe those two stories are connected? and are they likely to learn anything this way? how is deutsche bank going to respond? the investigative reporter on the legal enforcement team at bloomberg news. i appreciate your reporting tonight. >> thanks for having me here. >> you know this stuff infinitely bette

interest rates, but if there was a rise in interest rates, there would be a lot of repricing in the bank loanarket that would ring the floating rate down. libor would get repriced which is in fact what happened in that round. we were believers in credit then bad,ow, so we made that but when it becomes is a grind it out market where you are paying attention and what comprises the names of the benchmark, what industry is waiting to have an trying to make sure you get every basis point because in a market like this, every basis point count. erik: great to see you and thank you very much. he happens to, own most of the milwaukee brewers. julie: thank you very much. we will have more from the milliken cons -- milken conference. scarlet will be speaking to someone who said they were expecting a correction late this summer. we will ask if he has changed the outlook. let's get a check on headlines from the bloomberg first word news. mark: house leader kevin mccarthy told a close don't -- closed door leading of republicans that now is the time to repeal obamacare. he said house members should be ready

collect the central bank devalued the egyptian pound in november in exchange for a $12 billion imf loan meant to overhaul the economy and encourage more foreign investment. while the government originally thought inflation would cool down by now, it is continuing to rise here at the central bank posing monetary policy committee is scheduled to meet later this month to discuss the looming crisis. >> back to you. molly: thank you for that business update. time now for our press review. molly: i am joined by florence for look at headlines. we start in the united states. donald trump was given his first interview since that shocked firing of the fbi director, james comey. >> trump explains to nbc news why he fired james comey. he said he was planning to fire comey regardless of any advice or recommendations from the justice department. he told nbc he fired call me because he was a show boat, his words. the wall street journal, which, keep in mind, plotted trump for firing comey earlier this week, has pointed out that this is in contradiction with what the white house initially said he initi

banks. what are the numbers looking like? they must be getting worried about this as well. did stick upbers reasonably well. the banks have been independently tightening when it comes to raising interest rates on investor loansng up what they will into investors. in some respects, a bit of a nudging from regulators, and the banks are taking on some of the burdens themselves. for the bank of australia, inflation was the favorite topic. for the new governor, household debt, he talks about that all the time. it does indicate how much a vacant during this is for the central bank. there will be a speech thursday this again.ssing it speaks to a broader point that we have house prices running away, particularly in sydney and no bearing. it is the opposite story on the other coast. homeowners will be glad for this type of problem in perth. house prices are falling there. haidi: it's interesting. we are getting the start of chinese bank earnings season starting as well. it's sort of a transition. bang, as we go -- transition pretty but it has been good so far. paul: there were up an encouraging set of numbers from the anz. cash profit at $3.41 billion, up 23%. markets expect a lot from australian banks, so it was off

the deals undertaken in recent years have benefited large banks that use vertical integration model. the big banks originate the loans, sell the risk to the market, one concern raised about the structure is if it is scaled up too much you may choke off lender access to the mortgage market. in other words small lenders, large-scale operations and securitization affiliates. as congress contemplates the next phase for gse reform, needs to be mindful that credit risk sharing deals particularly those involving upfront risksharing don't box out small and community-based lenders? >> we definitely need to be aware of that and we are aggressively working on making sure that does not happen because one of the things we tried to do during conservatorship is make sure large and small lenders are treated alike and that should be true in the credit risk transfers. >> thank you. i know my time is up but i will submit additional questions for your response as well. >> thank you, mister chairman. welcome. good to see you on this side of the capital. thank you for your service and being here this morning. you and i discussed residenti

71 of the privately insured savings and loan institutions. >> they're faced with the dilemma of solving the worst financial crisis in ohio history. a situation that is being called the worst banking> in the deregulatory climate of the '80s, savings and loans which had traditionally been doing business in mortgages, were free to do anything they wanted. >> the entire industry got taken over by entrepreneurs who saw them as piggy banks. >> vernon savings was shut down by federal regulators. saddled with $1.3 billion in bad loans. the owner lived a life of private jets, yachts and mansions. >> they took risks that should have been untenable for a banker. when it all went down, the entire industry went belly-up. >> quiet down! >> i'm going to disperse the whole bunch of you. >> this was the third day on the run on the savings and loan corporation. >> i have no choice, we have to close. >> i don't think it's right. it's our money. this year, a record 260 banks will go bust. that's almost 800 in the past five years. bad loans to the third world. bad loans to the oil industry. bad loans to real estate developers. >> one of the reasons bankers made outrageous loans was because of federal

the banks to, an impact.oes have at the same time, interest rates are at a low level. -- jumping off of what you are saying about the tightening, standard and how that might affect the homegrown loanse bank, i want to draw up a chart on those numbers. you can see the orange bars represent the year on year growth, which is near 8%. if you look at quarter on quarter, they certainly have been slowing, and much lower for , slightlyat least lower than the industry average. since home loans, mortgage lending is a big part, for the west part it is 60% on a such a large part of their portfolio, if standards get tighter, how will that impact the banks who are look, if you tighten lending standards, it will have some impact on lending. , i mean, what is supporting home growth lending -- it is saying interest rates are quite low. there is still demand, yes. we do anticipate some slowing, and house prices being where they are, in sydney and melbourne, we expect some slowing to occur. betty: the question is, how much does it slow before it deteriorates their loan portfolios? how can they stand before it really becomes a material effect for them? part of theirbig loan book. it will have some imp

if you look it allegations and made it to make the banks engaged in discriminatory loans that was very much like the gun to one relationship that was an issue in havens both for zone of interest and proximate cause. >> i am sorry. t the testers were not city employees but private organization employees. so why attributing the testers work for the city? >> this is appendix page 20 in haven. the complaint asks for the city's expenditure to identify things like testers. >> why is this different than the other allegations that had to do, like here, with loss revenue, with loss tax base which the court cited as well. here there are direct expenditures in terms of increased monitoring boy police and other services. are those city expenditure? >> with respect, i think that is glad stone. our position is that to the extent the city can adhere to complaint that looks like glad stone, the second bucket in which the city serves injury in which there is a segregation claim being advanced. the realtors were steering african-americans out of the village. that is anti-discrimination harm to the villa

dodd-frank is going to be seriously changed, the banks can go back to loaning money. nus: racing for brexit. the british chambers of commerce calls for a frictionless future as the u.k. prime minister alludes to the meeting with shot clock younger headed toward -- jean-claude yunker. anna: france's final stretch.

is going to be very, very seriously changed so the backs can go -- banks can go back to loaning. a: there was a shudde little bit of an earthquake in financial stocks. let's look at this bank index, it looks at the u.s.'s 24 biggest banks. you can see on your screen we saw this plunge at about the 1250 mark when donald trump made those remarks. it did climb. still higher by about 1%. we will callnking your bluff on this, donald trump. we do not think you're going to do this because you have not had successes and other things. right now it could be all talk and very little action. the direction not coming anytime soon. i did speak with a government policy analyst in d.c., he said it is tough to task in the u.s. senate. he does not think any pragmatic senators will put their next on the line for this right now. yvonne: in that interview the president talked about his relationship with two controversial asian leaders, north korea and the philippines. the headline was that he would be opening to meeting with kim jong-un. ramy: not just open, he itd he would be honored -- made a lot o

. >>> the supreme court ruling 5-3 that under the fair housing act banks can be sued by cities that result in loan defaults and forclosures. the court threw out an 11th circuit court of appeals rules that allowed a lower court to reexam minute a case brought against well far go and bank of america to prove there's a direct connection between them. this oral argument was heard by the court in november. it's an hour. >> your argument first in case 151111, bank of america corporation versus the city of miami in the consolidated case. >> mr. katyal. >> thank you and may it please the court, the question is whether the cities can sue under one of our nation's most important raws, the fair housing act. my answer is, yes, sometimes. first, the answer can't be yes always because that would be advice serrate approximate cause and zone of interest and the answer can't be, no, never, because cities can identify concrete harms that fall within the zone of interest such as discrete expenditures to combat a particular defendant's racial misconduct. this fails both zone of interest and approximate cause, because

banks oil market -- if stop trusting one another, which is what we are seeing, the policy banks are pulling back entrusted loans to the other banks as they were keeping wmp's off their balance sheet, if they start that, that is how it happens. look at that and watch if rates spike. understand, you have expressed your view on china through asian currencies. many of those currencies actually strengthened in the first quarter. the hong kong dollar weakened. do feel confident this is the beginning of the busting of the chinese credit bubble, those are going to start working out well? mr. bass: without talking about what we do, more broadly that is right. the currency is the ultimate arbiter of the credit system. what will the chinese regulators do? they will expand their balance sheet. they will recap the banks. they will do everything they are supposed to do to fix this. what does that mean the chinese currency is worth? that means it is worth a lot less than it is today. erik: there is active speculation that president xi is not going to let anything disorderly happened in china. if that is true, is an orderly un

the european banks. if we can just resolve the issues around nonperforming loans -- many people are focused on the banks . the economy in italy needs strong banks. bey need banks that will investing, that will be lending. until we get the nonperforming loans off the balance sheet, that's not going to be happening. vonnie: that was the barclays ceo bob diamond speaking to bloomberg's erik schatzker earlier from the military conference in beverly hills. turning back to the trump administration, lets to talk about after lawmakers settle on $1 trillion -- 100 thousand dollars, to avoid a u.s. government shutdown, when he of the many topics that will be disgusted at the milliken conference this week. let's head to -- discussed at the milliken conference this week. let's head to beverly hills. john is with a special guest. >> by special guest is steve mnuchin, treasury secretary. i thought maybe we could begin with that deal with congress. is it just a case of kicking the can down the road, i do you think you got enough stuff out of it? no, first of all it's important to keep the government open. i think there

the banking sector is one that could see some consolidation across the gcc. if you look at met -- most banking sectors, they never cross the one or two banks. in terms of loanthen you go to tier two and tier three banks and the market is more fragmented. -- there iscan see a case for consolidation among tier two and tier three banks. something was announced on the lines of that in saudi arabia bank, to see consolidation's. you could see some coming in the uae, it the gcc generally speaking. yousef: where do you see capital inflows going from here? ultimately the saudi stock market is trying to open up to foreign investors. if you look at demand for saudi bonds, there has been a lot of appetite. it has outweighed supply. when you look at the stoxx, that is a different story. it has been slow to gain momentum. will that change, or what will be the catalyst? is it the ipo of saudi aramco? think the inclusion of saudi arabia into the e.m. index is definitely a game changer, not only for saudi, and it would change the landscape of the equity markets in the region. i think the big change would be, if you look at saudi arabia, you need to make some assumptions --

banks. some of the upfront credit risks undertaken in recent years have benefited law large banks. in other words, the big banks originate the loans secure them and then sell the risk off to the market. one concern that's been raised as if it is scaled up too much you might end up choking off small lender access to the mortgage market. in other words they cannot compete because they don't have large-scale operations or secure affiliates. as congress contemplates the next phase for gse reform, do we need to be mindful that credit risk sharing deals with up front risk sharing don't box out small and community-based lenders question. >> we need to be aware of that and we are aggressively working on making sure that doesn't happen. one of the things we try to do during conservatorship is make sure large and small lenders are treated alike. that should also be true in the credit risk transfer space. >> thank you. thank you mr. chairman. welcome. it's good to see you on the side of the capital thank you for your service and being here this morning. we recently discussed the issue of residential property assessed clean energy loans. comm

if we allow deduction for that we should pay tax and interest from the bank for loaning them money. so were not talking about the morality of tax code in the distortion in the current quote. and to the idea about revenue neutrality which we talked about deficit neutrality which allows us to bring a spending cut. so instead of say we need pay force, and how to reform medicare, medicaid, social security, tough set some of the reductions in revenue coming in. we start talking about revenue neutrality not deficit neutrality we are in a trap where we allow one party to raise spending and we get caught. now we have to keep the spending level up with revenue. we will always get second or third best tax reform. i understand will make compromises. i'm okay with that. i wanted to was talking about the morality first and what were trying to get so it's known and we know what were getting for the trade-offs. >> my quick take is that i think a reasonable compromise would be capping the mortgage interest deduction at a dollar cap and capping the exclusion for employer-provided healthcare. i think

the point is that there has been some migration of loans from the smaller banks to the larger banks. loans get made. so it's not a problem with the economy. and i have learned that some of the smaller banks are spending too much money, because they are worried about compliance. so i do think that the volcker rule should not apply. i didn't think it would to banks under $10 billion. and i think i would explore, and i'm open to a debate on saying that smaller banks would be exempt from the rules against subprime lending if they're willing to make loans in their immediate area and keep them on portfolio. that i agree to. >> i hope you'll come back soon to talk more about this, sir. >> sure. >> thank you for your time. >>> coming up, the copresident of fox news parting ways with the cable news giant amid scandals at the network. details and what it means for the future next. and then linda mcmahon says regulations are stifling small business. it is her job in the trump administration to help spur small business growth. we'll hear her agenda in just a few minutes. stay tuned. you're watchi

we do support reopening the bank for more than $10 million in loans. ave a team that will work with you on making sure it's not just for two large companies. >> but the majority of the republicans in the senate a year or so ago voted against reauthorizing the bank because we could not get real meaningful reform. so that would be a priority i think for a lot of us. maybe not all of us. >> we'll work with you on that. >> senator brown. >> thank you. i want 30 seconds to address what senator shelby just said. the blemish on this committee and this committee's stonewalling last year affected economic growth because we didn't have an export impart bank as you just said for over 10 maryland. a couple of real quick questions. there's a vote called on the floor. are you aware, mr. secretary, of any white house -- these are housekeeping measures we sometimes do. are you aware of any white house guidance formal or informal urging administration officials not to respond to or to delay in responding to democratic senators? >> i am not. >> thank you for that. are yo

kind of hope whenning they discussing trying to bail out the banks years ago, they would have tried doing something the public in essence, if a loan, it d a 30-year would break up by three, so years, there would be one year they would not have to pay for whatever the interest were cut into, which ould alleviate some pain and burden that apparently the -- extorted stem kind of not allowing home loans to be reconstitute again. give the public a break on that attitude of their -- having that fore g system go into closure, as easy as they were able to afterwards. much.you very guest: i mean, so i think the thatr raised a good point, is with all these discussions of reform that have gone on for almost 10 years, right? there is question of whether the consumer or homeowner, the affected, feels reforms have addressed their concerns and whether they feel plugged the process. we're looking at narrative, which is can president trump get agenda through capitol hill. if you are a homeown wore has the issues, by there is a different question, which is how do i talk to my find out if they know what is person to me. host: from colorado, independ

dodd-frank is going to be very very seriously changed so the banks can go back to loaning money. >> theresident meanwhile speaking to bloomberg in the early hills, california. steve mnuchin weighed in on banking regulation as well mnuchin: we are determined to make sure we have proper regulation so we don't but taxpayers at risk but we also don't have overlapping regulation and we have priorities. banks and insurance companies know what they can do. in market from singapore. we saw a market reaction today, a bit of a knee-jerk reverse when it came to the u.s. banks yesterday. about tax, a bit of a struggle. how much of a political reality is glass-steagall? >> i think is not much of a political priority. expectationsarket is that any action on regulation will be positive for banks in the short term. the easy games for them are to cut down a certain bit of the overlap in regulation steve mnuchin said. if they ever move toward breaking up the big banks that is a long-term project. and at theunlikely moment that is purely rhetoric. any progress is more likely to be positive than negative.

the non-performing loans. we the italian financing minister saying it is exaggerated but the numbers i hear suggests it has risen 6% in 2008 to 18% of all bank in 2016, maybe non-performing. and that is a huge number. what it says is that italian banks have to recapitalize the valuation of the loans have to be at more realistic levels because i'm not going to buy italian bank equity if you quote your debt holding at 100% on the euro. so thoth those changes would have to come forward. the question is will they actually -- i'm very optimistic on the italian side that even if you have a leader from a five-star movement in rome next february or march, they don't have much of an option but to go through with the reforms. you have to reach it. hi, vonnie. vonnie: hi. how are you? you mentioned the unemployment rates in france and germany. let's move to the states now. here, it's 4.4% which should have us jumping up and down but what exactly does it mean and why are we not seeing wage growth here improve? >> vonnie, that's a great question. you quoted the 4.4% figure. that is what the u-3 unemployment rate. i don't like that measure at all. i think

be dodd-frank is going to very seriously changed, and the banks can go back to loaning money. anna: meanwhile, speaking to bloomberg at the milken institute global conference in beverly hills, california, steve mnuchin weighed in on banking regulation. >> we are determined to make sure we have proper regulation, so that we don't put taxpayers at risk, but we also don't have overlapping regulation, we have priorities. banks and insurance companies know what they can do. manus: joining us now to make sense of the weekend's events and comments, simon french, chief economist at hand euro gordon. talking about a variety of issues, they have a deal done over the weekend with the government. also mnuchin thinks it will be two years before they get to 3% growth. there's a lot of long talk over the weekend, very little new. >> there is very little to substantiate a 3% to 4% growth target, unless the white house hey been talking about -- t were talking about recent jobs figures, less keen to talk about growth numbers. that a place to the fact that the conversation now has a shift beyond

the jd's point, if we allow deduction for that, i shouldn't have to pay tax or interest to the bank for loaning them money. we are giving up some of the moral high ground by not talking about the tax code or distortions in the current code. to the idea about revenue nye -- neutrality, deficit neutrality is what offsets some of the deductions in revenue coming in. when we start talking about revenue neutrality, not deficit neutrality, we are in a trap in which we allow one party to raise spending and we get caught, now we've got to keep that spending level up with revenue. we'll always get second or third best tax reform. i understand we're going to make compromises and i am okay making compromises. but let's talk about the morality first so that's known and we have a better discussion of what we are giving for those trade-offs. >> my really quick take, richard, i think a reasonable compromise for tax reform this year would be capping the mortgage interest deduction, the dollar cap and capping the exclusion for employer provided health care. i think that's a reasonable first step to take. okay.

and dodd-frank is going to be very seriously changed so the banks can go back to loaning money. he called for a new version of the depression era law that called for the separation of consumer banks. and trump says he would meet ifh north korea's dictator the circumstances where right. he said he would be honored to do it. >> under the right circumstances, i would absolutely meet with him. most medical people would never say that, but under the right circumstances, i would meet with them. north korea and its nuclear weapons program is the biggest foreign-policy situation facing trump. and steve mnuchin sending a message that the administration is serious about ultralong bonds. tosaid it would make sense finance the government with bonds longer than 30 years. the u.k., their main business lobby listed its demands for the next government. the british chambers of commerce says a good brexit deal is important, but only if domestic policies to back it up are in place. they want no new business taxes, better infrastructure, and an immigration system that gives them access to skilled l

in many countries, the shadow banking sector provides greece to help the anthony's functioning smoothly. small businesses get the loansed, savers get better returns. so raining it and can be the right long-term policy but can also slow growth but raise risks in the short term. government officials know that shadow banking presents a danger that they attack at their own peril. you can read more about shadow banking and more at the quick take on the bloomberg. barclays chief executive jes staley get support from an overwhelming majority of shareholders. some of the banks director still under fire. this is bloomberg. ♪ vonnie: live from new york and london, i'm vonnie quinn. mark: i'm mark barton. this is "bloomberg markets." executive jes staley faced shareholders at the bank's annual shareholder meeting, first public meeting with investors since then whistleblower ganda put his tenure at risk. we just learned most are backing him at the top. joining me now is a u.k. finance reporter stephen morris. he said, i have written a story on the numbers. them.go through staley, 2.8% against. if you include those who them are fo

i'm going to the bank, to discuss a mortgage. ugh, see, you need a loan, you put on a suit, you go crawling to the bank. this is how i dress to get a mortgage. i just go to lendingtree. i calculate how much home i can afford. i get multiple offers to compare side by side. and the best part is... the banks come crawling to me. everything you need to get a better mortgage. clothing optional. lendingtree, when banks compete, you win. okay! ...awkward. maria: welcome back to "wall street week." here at nasdaq headquarters. we are here with adena friedman, she is ceo of nasdaq. you have been at nasdaq for 0 years. let me ask you about the fastest growing area of your business, market technology grew 18%. what's driving the growth? >> that dovetails nicely into look at strategy of nasdaq. not only do we provide the technology that serves our own markets here and in the nordic, but wheat provide technology to 90 markets around the world. and we are the number one provider of tre surveillance technology around the world, what we arthe rket infrastructure player.

bank is getting the word out about its effort to fund the big dreams of small business owners. first state community bank met with small business leaders from across the state to discuss its community loand. the bank says it wants the fund to be a means to help revitalize delaware communities with an emphasis on minority lending. >>> we have an amazing milestone to share with you tonight. anna vespe celebrated her birthday. she took for the other residents at cadbury senior services and she credits her long and healthy life to her family religion and her optimism. she looks great. from all of us here at "action news," happy birthday anna. >> that's lovely. >>> still to come on "action news" at 5:00 a check of that accuweather forecast. >> drone6 operated by our faa certified "action news" photographers looking live at the stotesbury regatta on the schuylkill river and we see some races going on there towards the left of your screen. they've been going on all day. they'll be there until tomorrow. meteorologist cecily tynan has your exclusive accuweather five day forecast when "action news" comes right back. regatta love it. [laughter] >> time for accuweather at the "action news" big boar