integrity of the financial stability oversight council and the office of financial esearchment it is through thee entities that the dodd-frank act identifies risks in our financial system and guards against another financial crisis. fsoc and o.f.r. have been intentionally placed outside political pressure. they make our financial system safer and protect the american people from a future financial crisis. however, the bill we are debating today would cripple fsoc and o.f.r. by subjecting them to unnecessary political influence and putting our financial system at risk. my colleagues across the aisle would have us believe that fsoc to o.f.r. have free reign -- rein to set and approve their own budgets and therefore gencies that have run amuck. f.o.c.'s budget is approved by the majority vote of its members. fsoc does not have unchecked budget authority. fsoc's budget is similar to and modeled after the fdic's budget model. the fdic also sets its own budget. it has time and time again acted to protect the american people from financial collapse while setting a reasonable and prudent budget. no one is calling on congress to rein in the fdic. the bill is nothing more than a

the u.s. financial system or to allow the execution of transactions. we have ruled out giving iran access to either of those two options. but we are committed to ensuring we fill our commitment to the jpcoa with giving iran that kind of sanctions relief to which they are entitled as a result of the following through on the steps they have taken to rollback significant aspects to make it clear they will not acquire nuclear weapons. >> get the debate last night bernie sanders said if he becomes the nominee, that he has not shown he would be committed to this decision in a given the amount that we have heard with the president lambasting how far is the white house? >> what i can tell you is the president has complete confidence that the chief judge has demonstrated over his career on the bench to interpret a the lot and understands the responsibility of the judges to interpret the law. as we also undiscussed the president did not have a specific discussion how they would rule in particular cases that raises some questions because there are some cases for

in response to the financial crisis the federal reserve is aggressively injecting liquidity into the financial system. the concept of liquidity will be explored but the federal reserve is doing everything in its power to lower interest rates from struggling banks businesses and consumers would have easier access to credit after the real estate bust. here's the part that's almost north korean in its weirdness. the federal reserve accomplished its task by creating new money from nowhere. there's a windowless room at the federal reserve bank in new york where traders created new electronic money and use it to buy billions of dollars in financial assets. in january 2008 and january of 2014 the fed injected roughly $3 trillion in new money. one minute the money did not exist, the next minute the trader acting at the best of the fed.bonds by private institutions and pay for those securities by transferring electronic funds to the countenance selling firms, new money. that is the sound of a guy sitting at his computer in new york creating a billion dollars and using it to buy assets from citibank. click, cl

we have a new structure of the financial system. for the move on financial system to play the role it used to play. one of the roles is to liquefy money and lend money to legitimate businesses. that is what you have got here. thehave got a large part of puzzle in terms of the regulators getting their hands around a bad system, for everybody to make sure they understand who the boss is. it is government. that is part of taxation and the whole thing. i am not intimidated by what we are seeing. , we are closer to the as rather than the beginning the financial services showing up as the evildoers in the room. zeb: are we going to hear that from the bosses on the panama papers? do you expect to hear that the u.s. department of justice is opening up new investigations as a result of these papers? course. there is always a line of american litigators looking to help themselves to free money going around. what we have now is a very different scale and nature of offense. even mr. thiam was happy to hegest that in his opinion was saying in cod

the dodd-frank act created the financial stability oversight council, dedicated to identifying threats to the stability of the american financial system. the fsoc is supported in that mission by the office of financial research, which was also created in dodd-frank. the o.f.r. is armed with subpoena power to compel vast amounts of nonpublic, sensitive information from institutions across the financial system. the o.f.r. feeds this data to the fsoc which is empowered to designate banks as well as nonbank institutions as systemically important financial sifis.tions or this increases regulatory burdens faced by these institutions and has far-reaching effects in the financial system. it trickles down to customers, resulting in higher borrowing costs that may stop americans from realizing their dreams of home ownership, purchasing a car or pursuing higher education or other goals. but despite the vast power that the fsoc and o.f.r. have, neither organization is subject to the annual appropriations process. the o.f.r. is fund through the an assessment on banks that pays for the fsoc through these funds. as such, the fsoc is insulated from t

it is very exposed, the financial system is very exposed to them and i think over the next six months see some retribution. it won't be easy. i think you will see the resolution out there. trend growth is much weaker and that is going to affect the balance sheet and it will affect the balance sheet even more. the lack of recognition there is what worries me. guy: let's -- we're about to talk to christine lagarde. we already talked about peripheral europe and the comparison that can be made with the emerging market story. a number of questions, let's sigh the periphery blows up again. it could be greece. let's say it comes back and this summer we're once again talking about peripheral banks. walk me through how investors are going to read that and extrapolate into the space the e.m. is unlikely to be a safe haven. let's go to turkey. that is unlikely to happen. the initial part of 2012 when europe first saw the problems, i think it is likely to happen again. i think the more interesting part is the falling. europe had its problems revealed en you had the growth led by the u.s. the stuf

welcome, craig peered is the financial system more fragile? i don't think it's more fragile, but the fragility has been transferred. we've gone through a lot of regulations -- they've relocated the fragility. post: when you look at regulation hast caused the most change? craig: that the mandates for derivatives have been the biggest in terms of compliance burden on market participants and implications for stomach risk. risk. systemic lisa: the biggest exchange transaction in europe, they are arguing against having a too big to fail moniker. you think the combined entity uld be too big to fail? craig: the individual entities are too big to fail, so the combined entity would be too big to fail. lisa: there was a story today about how the committee came out and proposed a way for banks to atone for derivatives. require them to hold less capital against their derivative partly because of what they have to post with the clearinghouses. do you think in general there is enough collaborative -- enough collateral being posted? craig: collateral is exac

>> if you mean not authorizing u-turns or the financial system in the u.s. that is present. >> we could codify that and iran would not consider it a violation? good. we will attend to do that. on the ballistic missiles, you know, i pointed out testimony from secretary kerry, ambassador mall, we knew and the language said called upon this situation would likely occur. it has and it is disappointing. i was disappointing the letter from our european parties said it was inconsistance and not a violation. would you have any problem with us codifying putting in place some sanctions against them for clearly, in our opinion, violating the agreement as the administration explained to us the agreement said? >> thank you for the question. a very important one. as i noted, we remain absolutely oppose to iran's ballistic missile program. we believe that we have both multi laterally and unilaterally the tools necessary to attack that missile program and do whatever we can to interdict technology that iran is seeking to advance its ballistic missile program. we believe we

>> if you mean not authorizing u-turns or the financial system in the u.s. that is present. >> we could codify that and iran would not consider it a violation? good. we will attend to do that. on the ballistic missiles, you know, i pointed out testimony from secretary kerry, ambassador mall, we knew and the language said called upon this situation would likely occur. it has and it is disappointing. i was disappointing the letter from our european parties said it was inconsistance and not a violation. would you have any problem with us codifying putting in place some sanctions against them for clearly, in our opinion, violating the agreement as the administration explained to us the agreement said? >> thank you for the question. a very important one. as i noted, we remain absolutely oppose to iran's ballistic missile program. we believe that we have both multi laterally and unilaterally the tools necessary to attack that missile program and do whatever we can to interdict technology that iran is seeking to advance its ballistic missile program. we believe we

we're trying to dig into a lot of detail to make sure that taxpayers are not on the hook, and the financial systemd safe. liz: what do you worry about, neel? and i ask because you watched and participated in post-financial crisis dealings to try and fix the situation. please tell me what you see now that is extremely worrisome to you when it comes to the big financial institutions. >> well, the biggest risk right now that i'm worried about is just that we're running out of time. if we don't act while we still remember how bad the crisis was, i'm afraid we're going to turn the chapter on this. we're going to tell ourselves, hey, this problem can't happen again. and in 20, 30, 50 years from now we may face another terrible crisis like we faced in 2008. as you know, societies tend to forget. everybody moves on. we need to deal with the crisis once and for all, deal with the too big to fail issue so that 20 or 50 years from now we're not back in the same situation. liz: everybody thought that dodd-frank would make sure, and we were promised this, that there wouldn't be too big to fail banks. and part

the u.s. financial system is not true. while secretary kerry has said we need to accommodate their ability to have economic growth that they thought they would have under sanctions relief? mr. shannon: the point the secretariat was making is that attempts to access money being made available to it through the lifting of sanctions, there will be instances in which we have had access that money by clarifying regulations under which money can be transferred to them. seekse found that as iran those funds, there are banks unclear of the nature of the revelatory structures. the secretary believes it is in our national interest to ensure the commitments we made our being followed through on. this is part of a larger engagement we have had with the from the commitment they have made and the commitment we made. sen. corker: so the dollar issue is bogus. mr. shannon: as far as i know, yes. so there was some concern there was a little bit of a wink and nod going on where we were saying to institutions that we are not coming after you

the u.s. financial system is not true. sen. corker: while secretary kerry has said we need to accommodate their ability to have economic growth that they thought they would have under sanctions relief? mr. shannon: the point the secretary was making is that as iran attempts to access money being made available to it through the lifting of sanctions, there will be instances in which we have had to help iran access that money by clarifying regulations under which money can be transferred to them. we have found that as iran seeks those funds, there are banks unclear of the nature of the revelatory structures. the secretary believes it is in our national interest to ensure the commitments we made are being followed through on. this is part of a larger engagement we have had with the iranians from the commitment they have made and the commitment we made. sen. corker: so the dollar issue is bogus. mr. shannon: as far as i know, yes. sen. corker: so there was some concern there was a little bit of a wink and nod going on where we were

boe governor mark carney says the decision in the financial system -- the eu.de in seven weeks. .hina's stocks tumble stimulus on the back of an improving economic outlook. ♪ anna: welcome to countdown. 7:00 in the morning here in london. i am and the london -- i'm anna edwards. news courtesy of the chip designer on holdings. a little bit ahead of the estimates. they are talking about profit before taxing 112 million pounds. t1 processor royalty revenue up in dollars by 15% year on year. they say normalized revenue number. forive you that, 276 points -- 276.4. the slowdown in apples numbers. could that impact on the first quarter royalty numbers coming weekgh from this company? numbers for pcs and smart phones. story, wehinese macro are seeing some fascinating revelations about the slowing of s.e chinese market barclays talking about smartphone concerns. they are saying in terms of their royalty revenues, in dollar terms up by 15%, stopping 2016 with a current technology gaining share in target and market. .alking positively there let's talk about where these m

but it has the potential to destabilize the financial system. the imf report warns negative interest rates could reduce profits of regional bankser and credit unions. the director of the imf s ske with nhk. >> i think that negative rates are a net positive for the economy because they have to relax further monetary and financial conditions, and that's something that should support demand and inflation. >> the imf report also touches on japan's plan to raise its consumumption tax from 8% to 10 next april. imf officials support the hike as well as short-term measures to deal with the impact. >>> checking the markets the rally in tokyo shares continued for a third day on the back of a weaker yen. and it reached its highest close in more than two weeks. for the details we go to the tokyo stock exchange. >>> investors are in a buying mood after encouraging figures came out on wednesday. sentiment was boosted by the rebound in oil prices which cents tokyo shares higher. nikkei average added 3.2% to end at 16 rk,911. the improved sentiment drove down de

and the financial system, and this is dealing with the offshore accounts of the wealthy and famous and powerful people from around the world that deal with the law firm and panama, and the law firm was able to hide the assets. it's not clear how many americans named in the documents, but thousands of europeans are involved. >>> making drones to deliver special medical supplies in rwanda. the zipline international plans to make its first delivery of this specially designed drones to rwanda in july, and the drones can deliver packages of blood and medicine in 30 minutes or less, and they plan on using a military grade gps to stump to fly the drones in places that are hard to get to. if that is successful, they will branch out to other countries later this year. >> that sounds like a good use for drones, especially after a disaster. >>> 4:16 am is your time. let's check in with sal. >> good morning, pamela j cook. >> and what is your middle name, sal? >> all you need is a social security number and the birth date.>>> good morning, there's not a lot going on. there is some road work going

the u.s. dollar or u.s. financial system? >> the question -- we're continuing to look at how we comply with the joint comprehensive plan of action to make sure that iran gets relief under the nuclear portions while we keep pressure on iran on these other issues. >> yeah, but remember the basic commitment that was given to us in congress. the iranian banks will not be able to clear u.s. dollars through new york. that's the commitment and they're still in violation of ballistic missiles and abusing its people. thank you. >> time expired. the chair recognizes the gentleman from california, mr. sherman. >> thank you, mr. secretary. often when you come here i ask about contentious issues, ask you to break up the big banks. i've said something about tpp that wasn't entirely favorable. this hearing has been contentious so i'm going to devote my five minutes to things it won't be quite mr. capuano, but these will be the least contentious issues you deal with today. it basically involved working with me on a few issues that will never

fourth, to prevent a repeat of the financial crisis, we must continue to lead efforts to reform the international financial regulatory system. u.s. leadership in this area has already resulted in more rigorous capital standards for banks, greater transparency in the derivatives market and stronger tools for managing the failure of financial institutions. with of to the critical standard-setting reforms in place, the focus must shift to implementation and close attention to emerging threats. fifth, we must continue to combat terrorist financing, corruption, money laundering and other financial crimes. the treasury is strengthening its anti-money laundering and counterterrorist financial rules at home working through the financial action task force to improve enforcement global hi and partnering with countries to combat terrorist financing specifically against isil. because we must keep up with innovation in the privacy sector and by our adversaries, regulators must update their regimes while insuring regulations do not impede legitimate provision of financial services especially to the underserved. finally, we're committed t

the u.s. or financial systems to the leak. >> it told us something about how the offshore financial system works and especially about the kinds of people using it. it is the same system politicians and mega-wealthy and billionaires are using to move money and to transactions. is used by criminals, drug kingpins -- >> it's not clear how many americans have been named. the list is said to include thousands of europeans and 12 heads of state. the documents suggest that people close to russian president vladimir putin secretly shoveled as much as $2 billion through banks and shadow companies. the kremlin said the leak destabilize russia. >>> opponents of the $15 minimum wage collected signatures to try to get the issue on the december ballot. the ruling came down in dc superior court, reversal of a ruling made in january. they have until july to collect 25,000 signatures to try to get it on the ballot. california governor jerry brown signed a $15 minimum wage bill into law that will give californians the highest minimum wage in the country. the minimum wage begins in 2022, there. on the east coast,

the traditional financial services industry. in a speech today, the comptroller of the currency said his department is considering new rules that would encourage innovation. but at the same time prevent undue risk to the financial system. the companies that have been creating more efficient payment systems and lending platforms include on deck, apple, and google. >>> a separate report from citi group says the rise of technology in the financial services sector could result in a 30% decline in banking jobs across the u.s. and europe, about 2 million employees. could potentially lose their jobs to startups. the report describes the industry as being at a tipping point and it is in the early innings of a trsition. >>> the future of movie theaters has also been called into question. while total box office figures have been increased in recent years thanks to higher ticket prices, the number of tickets sold in the u.s. has been on the decline. that's because people have more options than ever when it comes to in-home entertainment. but as julia boorstin reports, one theater is going to great lengths to reverse that trend. >> reporter: this is the cutting edge of movie theaters. the three-screen panoramic theater with surro

have been trying to use the media generated by several issues to attack the image of the country and its financial system. we will not permit that because this is the government that has done more in 21 months in the history of this country on matters of transparency in the financial system. >> he said the leak had strengthened his government's resolve t. >>> johanssen will gs lead the gochtd until fall. gunlaugsson stepped aside, after his wife was implicated in a scandal. >>> police are investigating a contract formed by former uefa official indicted in the u.s. infantino replaced sepp blatter. >>> creating offshore accounts for clients who have been indicted in the widespread investigation. >>> rich and powerful were thaimed in the panama papers leak. one influential man in calcutta told al jazeera he has no idea how he was named. divya gopalan has more. >> more than 500 indians famed in the panama papers. industrial and politician is listed as a beneficial owner of hoptic bvi limited, a shell company said up by mossack fonseca last year. >> i don't even know this company. when i replied giving the ne

and the problem with that is in the wake of the financial crisis the big idea's been get more capital into financial institutions, and the whole system will be safer. and we have, collectively, the largest financial system in the world that instead is being drained of capital with no real plan for their futures. so i think that leaves all of us in a somewhat precarious position. >> thank you. well, that leaves me with even greater unease than when i read the book. [laughter] maybe ben can give us some more happy news, but i doubt it. his book is entitled indentured, the inside story of how a few people took on the injustices in college athletics and how the industry is where it goes and who gets it. i have to kind of make a confession here. before i read ben's book, i was very much on the side that said, hey, college athletes, they're getting a great free education. why do they need to get paid? they're not employees. i have to tell you you know that line in jerry mcguire where they say to tom cruise or she says to tom cruise you had me at hello? ben, you had me at page 2. half and i'm not that -- [laughter] and i'm not that easy. in

meanwhile, the man who created the financial system got a reprieve. alexander hamilton will remain on the $10 five. >>> check this out, a man in texas tried to cross a flooded highway on wednesday, apparently misjudging the depth of the water. by the time he realized it was a mistake -- whoa, man, too late. it ended up sinking. the driver, he had to get out and swim to safety. that was a big whoops. but they all -- >> the road was blocked. >> do not drive into watt zer right. in fin h if anyone had a rescue, it was ridiculous. >> silly. >> alex, as far as the weather goes on the west coast, nothing like this. you've never seen anything like this. this was a couple of days ago. this guy in his truck should have hit the gas a minute ago. i guess he thought he was safe in his vehicle. right through, i mean so fortunate that it did not smash through the window and do some -- a lot of arm. incredible stuff. that tornado was swinning in the opposite direction in the southern hem misouth. >>> big storm, sitting here, coming our way, rainfall over the next 24

the average family that relies on alternative financial services spends an average of $2,412 a year, about 10% of their income, just on fees and interest in the financial services system. think about that. just to put that in context, the typical family spends about 10% of its income on food. so these are families who are pending as much on just access to pay your bills and cash your checks and get a small dollar loan from time to time as they spend on food. why? because they can't find a way to use the traditional banking services. now, for those who end up with payday loans, the costs can spiral out of control. a single loan can quickly become a cycle of debt after debt after debt, fee after fee after fee. title loans can be just as bad, but they add the extra pain of losing the car and losing the way to be able to get to work. the business model for many of these lenders is simply to trap people, ensnare families that can't build enough of a financial cushion to weather the ups and downs. and that trap makes it sure that they will never be able to build that cushion. so how does this happen? well, it happens in part because of deliberate policy choices that are mad

bankruptcy relief that would facilitate the expeditious resolution of large financial institutions and minimize the disruptive impact of a company's collapse on the financial system. the legislation larningly accomplishes this goal by -- largely accomplishes this goal by establishing a resolution process authorizing a court to provide relief by transferring a debtor's assets to a bridge company under an expedited time line while minimizing adverse effects of the bankruptcy on the financial system. while these aspects of the bill are commendable, i remain concerned, however, that this legislation lacks a funding mechanism to allow the federal government to provide liquidity to the company which is a key difference between an orderly resolution under dodd-frank and the resolution contemplated by 2947. in a typical bankruptcy case, the debtor's reorganization may be funded by private parties or by the federal government, as iltreated by the general motors bankruptcy. in many instances, liquidity, provided by the u.s. government to prevent the collapse of financial institutions, has either returned a profit to the taxpayers or is likely to be repaid. leading bankrupt

the damage to the financial banks, the damage to the in the financial system could potentially overwhelm investors into risky assets, and the financial system is inherently linked to the economy in these countries. between an inherently european and japanese banks and u.s. banks. it is a global financial system, so there is a lot of potential damage, and investors are testifying that they are more worried about the potential damage than the potential impact. david: thank you. always good to have you with us. coming up next, in addition to earnings, this week is full of economic data. next, we look at what investors should be paying to those retail sales outlooks. on "bloomberg ." ♪ ♪ >> this is "bloomberg ." -- dreary, great city. italian banks leading the gains across equity markets. dollar versus yen breaking a losing streak. abenomics on the trend. treasury market up two basis points. joining us from bloomberg radio is tom keene. also, a bloomberg utilities chief. let's get a check with first word news. >> authorities in belgium said the extremist who struck belgium plan to an

today against those who would illegally evade taxes and hide their wealth in the corners of the financial system. britain will work with major european partners to find out who really owns the secretive shell companies and the trusts that have been used as conduits for evading tax and laundering money and benefiting from corruption. been the stockmarket has focused on china this friday. gdp growth is been reported of 6% in the first quarter -- 6.7% in the first quarter. it was probably in line with expectations. oil prices have also fallen after hitting their highest levels of 2016 earlier in the week and all eyes are on d oha, where the oil producers cartel will be discussing output production this weekend. house oilronto minister -- tehran's oil minister says he will not be attending. our correspondence have more. -- our correspondent >> has more. this oil port -- our correspondent has more. >> all of the exports leave through this oil port. iran is back on the global scene. >> we have been busy. look at the infrastructure. they allow us to accommodate docking vessels and we are showing that w

the financial crises. we have learned the structure of the financial system matters a lot. ratively being good in the u.s. that we did have some banks clean up with recapitalization, but it is partly because we had a less diverse, less concentrated financial system. there was an alternative inilable in the bond markets the community banks, so that kind diversity for a large economy matters. another thing we have learned, returning to the fiscal policy point -- which my colleague blanchard did with his time at the fund -- there has been a shift. fiscal policy works a lot like the keynesian expert -- like the keynesian textbook said. you do not get these huge confidence effects. there is no cliff for a country that issues its own currency in terms of fiscal policy, no magic number. all of these things are textbook. if you talk about brazil or nigeria, we should not lose sight of the fact that for all the terrible things the rich country financial systems due to themselves and others, some of a is just, you mismanage commodity boom or a fiscal policy, it is just classic stuff.

their public service, intellectual capacity and careful stewardship of monetary policy in the financial system. each has made a contribution to economic growth and stability of this great country into each we only dead of tremendous gratitude. calvin asked me to reflect on my experience as a student of international house. three decades ago, he asked me to reflect on how it helps develop the career i have been lucky to have here in the united states of america. i was accepted international house, lucky to be so and arrived here on the seventh of september, 1985. it was a harsh and humid day. like so many other foreign students who lived here i was tremendously relieved to have such a safe and welcoming community to move to in new york city. tradition ofegan a writing a letter to my family in australia, something i continued for many years. my father passed away several months ago. before he did he gave me several shoeboxes filled with my letters. kept inbered, each their original envelopes. for those of you, this is a letter with an envelope. [applause] i have a child in berlin who has not in

. >>> a major vulnerability in the global financial system may have been exposed. as we reported, hackers were able to steal hundreds of millions of dollars from the bangladesh government account held at the federal reserve bank of new york. and now we're hearing from a new york fed executive. emoney javers spoke to him exclusively and he joins us this evening. >> reporter: the new york ted official told steve liesman and me that the fed is taking this issue very seriously and cyber security at banks arountsed world that the fed transacts with is "critical to the stability of the global financial system." in february crooks got into the computer systems at the bank of bangladesh and requested 35 transfers of nearly $1 billion out of the bank's account at the new york fed. in new york, systems blocked some of those transfers. but ended up releasing $81 million to accounts in the philippines and sri lanka. some of that money was sent on to casinos in the philippines and converted to chips on the gaming tables there. authorities still don't have any idea who stole all

in 2014 that the debt, written investment firm posted a threat to the -- pose a threat to the financial systemexpanding in the united states as it looks to grab a bigger , rivals are scaling down off rations. sumitomo mitsui has hired a barclays veteran to lead the team and will hire up to 10 more senior bankers over the coming months. china's consultancy services will appeal a verdict in an infringement case. a jury found the software maker should pay $1 billion. said it did not derive any benefits derived in the documents downloaded. the world's finance chiefs ended their meeting on an up the note, yet cautioned that the current market call may only be temporary. we have the main takeaways. what did they say? >> the g-20 struck a positive note. risks andwledged the the rocky start to the year for the financial markets. this time around during the spring meetings, they said the risk to the global recovery had stabilized. remember, we are seeing global stocks rising since the start of the year, since february, that will also shanghai see volatility index is recovering. christine lagarde sang t

the minimum ratio could be reduced to 120% without risk to the financial system. e ratio used to be 100% before the global financial crisis. again, later today, china construction bank out with its results. rishaad: we are going to have a more detailed look at that through the course of the program. kanye.talking to andrew we are watching chinese oil stocks today good pitcher china falling to the bottom of the barrel. it is posting the first quarterly loss since it first listed. rivals managing to stay afloat. what happened ye? reporter: cheap oil is a boost for the refiners. not have a does strong presence when he comes to the downstream sector. we saw crude prices slump 36% and a gated that january low in january so that is why we saw net income plunge for petro china to $2.1 billion. wayhave to go back to 2000 first started listing. the first quarter, compared to a year ago, we were still seeing about $900 million in profit for petrochina company compare that to its rivals. cytotec saw a different story. it is the asian oil refining behemoth. they saw profits tr

the u.s. financial system. you can see him friday at 8:00 p.m. time. >> more problems for one of the large bondholders has called a default because of the drugmaker's failure to file its annual report this year. centerburg partner sent a notice of default. 250 million invested in the bond. i have said they remain some scheduled to file the report by april 29th. largely in reaction to its pricing of drugs. >> textual changes were pulled widely. new rules from the treasury department will force firms to change their internal fighting strategy. the ceo fights to get much or customers. the fashion brand focusing on stores in japan, especially a sales slump in china and the u.s. cinema come 2016. more tickets than any other age group last year. nicole: here's a look at docks we're watching right now. shares of starbucks fell more than 2% yesterday. deutsche bank downgraded on that stock as the coffee chain to launch a loyalty program in the program making many of its rewards customers and greek because there were issues in nuclear wars based on how mu

the financial world that are overextended and tend to be conducting unduly risky activities. there's a lot of reliance on very short-term borrowing to make liquid investments. a large part of it in the financial systemtself. without contributing to productivity or real investment, and increasing risks in the economy. fareed: you said you thought the last financial sector innovation that added productivity to the economy was the atm. do you still feel that way? mr. volcker: there may be some others, but i can't think of any others. [laughter] mr. volcker: i can think of some that have contributed to uncertainty and complexity and problems. fareed: ben bernanke, when you took over the federal reserve, it had about -- you had assets of about $900 billion. you ramped that up to about $4 trillion. over $4 trillion. there are a lot of people, as you know, on the right, who look at that with horror, and they say, "how will that end?" so, how will it end? how will you unwind that asset portfolio? mr. bernanke: fortunately, i don't have to do it. [laughter] ms. yellen: he did bequeathed that to me. mr. bernanke: let me just say, i think there was an enormous amount of understanding and the media advanced a l

the financial world out of overextended and are conducting unduly risky activities. there's a lot of good lines on very short-term borrowing to make liquid investments. large part of it in the financial system itself. without contributing to productivity a real investment. and increasing risk in the economy. >> you said you thought the last financial sector innovation action to adequate activity for the economy was at the atm. do you still feel that way? >> there may be some others i can't think of any others last night i can think of some that have contributed to uncertainty and complexity and problems. >> ben bernanke, when you took over the federal reserve it had about 900, u.s. assets of about $900 billion. the ramp that up to about $4 trillion over $4 trillion. the are a lot of people, a lot of people as you know on the right who look at that with horror and they say, how will this end? so how will you unwind at enrollment a has a portfolio of? >> fortunately i don't have to do it last night. [applause] [laughter] >> i think it was an enormous amount of understanding an immediate advance a lot of very important views on the subject. for example, if you would like a few years and listen

the u.s. financial system. nprecedented leak of 11 million documents from a law firm in panama. the information comes from a year-long investigation in the so-called panama papers. a total of 12 current and former leaders around the world argentina, ukraine and 128 politicians and public members are involved. let's bring in our senior correspondent. rich afrd quest is joining us from new york. we know they use them to hide their wealth. what is most significant about this revelation? is any of illinot illegal. >> proof, wolf is what it is about. this shows the web of intrigue and the side, the scale, the depths. though most of it probably wasn't illegal. not all of it is designed for plaunderring purposes. these companies and off shores some for avoidance of tax, others will have been to shield assets from divorcing spouses. some will have been to protect the privacy of what people were doing with the assets. and yes, there will be a large dose of this that will have been criminal behavior, as the looting of com

institutions had failed to credibly show how it could go bankrupt without bringing down the rest of the financial systeme banks have until october to revise their living wills. another failure would have real forcingl consequences, them to hold more capital or face of the restrictions. sources are telling us that senior staff is being cut at .apan's biggest brokerage it has not been profitable and its overseas businesses since 2010 and is planning to close operations in europe, cutting senior management jobs in high yields and asset-backed yields divisions. it plans to shut down its equity sales and research. but saided to comment, it would get details when it reports earnings on april 27. global investment banks are also cutting thousands of jobs. struggling investment fund says it may be the victim of it $3.5 billion fraud. aat is if payments into sovereign wealth fund never reached their destination. authorities from switzerland to the u.s. and singapore are trying to determine if some of the billions of dollars that were raised were siphoned out inappropriately. 1mdb amassed more than $12.9 billion

panama papers, the government has been on a mission to tell reporters how much it has reformed the financial systeming it stronger and more transparent. it's a sector that has spurred growth and brought in billions of dollars. it's also long been known to attract criminals laundering money and rich investors two months ago the country was removed from a global list of money laundering countries only to now face the threat of being put back on such a list. >> translator: it's a shame the news story comes out at the moment we want to show the world that they are comply with banking normal mvps. they talk about us like we are specialists in money laundering. >> many leaders around the world don't buy the manmanian government claims it cleaned up its act. they are pushing for more draftic steps. panama city. >> in the united states, president barack obama says tax avoidance is a global problem and one his administration is working to stamp out. patty colhane has this report. >> american people aren't talking a great deal about the panama papers in part because no americans have been named yet. presiden

panama papers, the government has been on a mission to tell reporters how much it has reformed the financial system, making it stronger and more transparent. it is a sector that has spurred growth and brought in billions of dollars. it's also long been known to attract criminals laundering money and tax shelters. two months ago the country was removed from a global grey lift of the money laundering countries. only to now face the threat of being put back on such a list. >> translation: it's a shame this news story comes out at the moment we want to show the world that they are complying with banking enormous. they talk about us like we're some specialist in money laundering. >> reporter: despite banking reforms and more transparency, many leader around the world don't by the claims that panama has cleaned up its act and they're pushing for the governments to take more drastic steps >>> in the u.s. obama says tax avoidance is a global problem and one that his administration is working to stamp out. >> reporter: the american people are not talking a great deal about the panama papers in part because

the next financial crisis going to come from. he says lenders are in a better position than they were before. financial situation is in a stronger place. the global financial system feels safer. there is now more debate about central-bank policy and would -- and what christine lagarde described as the cyclical nature of policies. rishaad: -- manus: the ever pressing fortion, are they planning brexit orsupporting a how it will impact business. has he given us an answer? aad: manus, wiggling -- he said they had no contingency plans that they were prepared to reveal but there are contingency plans. he is very much in the camp of staying because he sees britain's future as more secure. that is one of the reasons he says britain should remain within the european union. whichned the open letter had been signed by most of the ftse 100 companies. manus: good to see you. the day ahead -- an hour,just under there is a factory orders data from germany. at the same time, we get the numbers a slew of pmi including from russia, germany, france, and the eurozone as well as the u.k.. at 8:30 a.m., christine lagarde presents her agenda for the imf meeting. will be in speech it fr

and they are also putting policies in place to move the financial system towards the market-based systembut the transition in which china is inverse are complex -- is immersed are complex and they require a lot of skill and policymakers. when addicting we pay attention to in the report is the need to address the debt overhang of corporations in china, and also to make sure that banks are sufficiently resilient to cope with the potential bank losses that may come from corporate defaults in the future. these rethink our fundamental sets that china can take. in addition to sustaining growth and maintaining stability. betty: i know you also talked about negative interest rates. you mentioned that they actually net positive because it will suck demand. explain this. nominalthink negative interest rates are net positive for the economy. in that sense, they are like other unconventional monetary policy instruments that central banks are deploying. in order to lead to easier monetary and financial ,onditions that can lead consumption, investment and support, adding to demand an inflation, so fro

the general point of our financial system and the regulation of the financial system and what happenedtgage meltdown and have people been punished for that or have they been allowed to walk away with actually making more money, how do we know it doesn't happen again, that is a totally legitimate topic. before i was governor, i was attorney general in this -- did a lot of work on that topic. and it's one of those issues that manifests two tiers of justice, right. we can be very tough on criminal justice, on drugs, et cetera, but then you have white collar crimes in my opinion among financial institutions that wrap these mortgages, defrauded homeowners, defrauded the public. everyone paid the price. and it seems like they got away scot-free. and how do we make sure it doesn't happen again. that's not only a legitimate political topic, that's a necessary governmental topic. and it's something that we have to come to grips with, no doubt. >> governor andrew cuomo, thank you so much. really nice to have you on the show. appreciate it, sir. >>> donald trump will speak tonight under heavy sec

the big earthquake there that they are still trying to deal with a tsunami.ater, be 2008 the global financial system had a mill down and eight years later there were on shaky ground.large why a? >> i have always ben fascinated the largest financial institution in the world with $5 trillion of outstanding liabilities the companies were created to serve the american dream of home ownership to have home ownership even the financiale world most don't care about fanny or freddie but they are critical companies to have a mortgage or want to get a mortgage to help shape your ability their critical to the price of your house and critical to our economy. the treasury secretary described housing as the wheel within the wheel of the economy so basically everyone should care about the strength and the fate of these two companies and they were taken over by the u.s. government going into conservatorship and supported by a line of credit from the treasury with the idea this would be temporary and figure out a way to resolve this but instead here we sit going on eight years from fannie and freddie and are still si

find policies that work more directly on final demands, not just on liquidity, not just on the financial system part of that you can see in the financial exploitation bojmma, the ecb and the seem to have. no matter what they seem to do, citations just want move. if would you buy stuff inflation's are so low? ecb did withthe its last meeting, buying new bonds, closer to its new model in terms of directly stimulating the economy? steven: i think so. working more directly on equities, getting the benefit of the wealth effect. it's likely that in japan there will be a big fiscal component to it. the government spends some money. ultimately the boj buys it. whether or not they make the explicit helicopter link -- boj is reluctant to do that. in practice, it doesn't make much of a difference. er, alwayshen england good to have you. scarlet: the real cost in the brazilian real's rally. we have that chart next. ♪ scarlet: a look at some of the biggest business stories. intel is cutting 11% of its workforce, as it heads towards a 50 or decline. -it is cheating focused -- shifting focus to connected devi

the financial crisis. a federal judge removed the tax of the financial stability -- the tags the financial stability council put on metlife. it overrules the obama demonstration's plan to regular distances he believes could destabilize the financial systemt: tesla received more than 325,000 reservations for its new model 3 electric car. far more than elon musk's company had expected. tesla may use the big number to justify an additional $3 billion capital raised to build factories. alix: research firm his book data says and capitalist making fewer bets on u.s. startups. the findings show last quarter has the fewest number of venture deals in four years. no tech company went public last quarter's. any of those that did in 2015 have got off to a very rocky start. and that is your bloomberg business flash. joe: "what'd you miss?" america's urban revival is not as widespread as you might think. according to one recent study, the flight to u.s. cities could be characterized by one word -- gentrification. the people that move into cities are increasingly white, wealthy, and milledge. those -- and middle-aged. to tell us more about what the urban response looks like his an independent economist, who wrote the report. he joins us from san franc

the financial world that have extended and are conducting unduly risky activities. there's a lot of reliance on very short-term borrowing to make a liquid investments. a large part of it in the financial system itself. contributing, increasing risks in the economy. fareed: you said you thought the last financial sector innovation that added productivity was the atm. do you still feel that way? someolcker: there may be others, but i can't think of any others. i can think of some that have contributed to uncertainty and complexity and problems area and -- and problems. fareed: ben bernanke, when you took over the federal reserve, it had about -- you had assets of about $900 billion. you ramped that up to about $4 trillion. over $4 trillion. there are a lot of people, as you know, on the right, who look at that with horror, and say, "how will that end?" how will you unwind that asset portfolio? mr. bernanke: fortunately, i don't have to do it. >> [laughter] let me just say, i think there was an enormous amount of understanding and the media advanced a lot of very uninformed views on this subject. for example, if you went back a few years and listened to media, congressmen, variety of media, the