plus u.s. banks find out why the sector could be facing a $500 billion loss under a crisis scenario. we break down the fed stress test right after this break. >>> welcome to worldwide exchange. i'm seema modi. >> i'm wilfred frost. the u.s. dollar on a tear ahead of the u.s. jobs data with expectations of other month of gains above 200,000. but could bad weather put a damper on february's jobs number. >> the results are in. all 31 u.s. banks passed the first round of fed stress tests but goldman sacks and morgan stanley fair the worst under a severe crisis scenario. >> apple pay gets hit by fraud. criminals are using relatively low tech methods to take advantage of the mobile payment system. >> another major incident on the rails. a rain carrying crude oil derails in illinois with several cars catching on fire. you're watching worldwide exchange. bringing you business news from around the globe. >> welcome to the show. u.s. stocks did end the day higher. right now futures pointing to a lower open ahe

u.s. banking system. so when investors look at citi there's a real value here because over time the profitability will rise as they continue to simplify their business model and as the global economy continues to recover, especially here in the united states. >> they strip down they sold off units. i believe they sold a prime brokerage unit a prime finance unit not long ago. in today's "new york times," there was an article that pointed to the strength of its derivatives operations. some people might see that as a little bit worrisome because it was derivatives that were blamed for so many of the problems during the financial crisis. why is citi different on this score and why, if it doesn't, why doesn't it worry you? >> i think when you look at the derivatives business for any company that's in that market as well as citi of j.p. morgan chase and goldman sachs, morgan stanley, it's all about management of risk. and if y t risk properly it can be a very profitable business. that's what citi has done. now

the largest u.s. banks their second report card today -- the fed releases results from the second phase of stress tests. goldman sachs barely passed the first tests and is hoping for stronger results from the second one. citigroup flunked last year. the ceo needs for the bank to pass or his job may reportedly be in jeopardy. the general election -- general electric ceo had a better year than his ceo did. his compensation more than doubled to $37 million. ge shares in the meantime fell 10%. he will see all of the increase right away. most of it came in his pension. his base pay was raised 8% to almost $4 million. the company said it was because of his unprecedented efforts to reshape ge's for folio. the jolly green giant may be getting a new home. there is a report that general mills may sell its jolly green giant frozen food business. the sale may take place this summer. green giant makes more than 160 products and generate revenue of about $700 million. that's a look at the top stories we're following on t

bank of america was told to resubmit its plan and the u.s. . the fed is using these stress tests to prevent a repeat of the 2008 financial crisis hundreds turned out to remember the victims of the military helicopter crash in florida. it was dark and foggy at the time of the crash. the weather forced another helicopter to turn back just before the crash. it shares of shake shack fell more than 8% after going public failing to live up to investor expectations. same-store sales will only grow in the signal digits. -- single digits. hbo says get ready for the super bowl of boxing. floyd mayweather called it the fight of the century. they held a press conference to promote their welterweight champion ship out, may 2. -- championship bout. more than $200 million. i am excited about this. tom: a giant deal. a dream matchup for the sport. you wonder how they can leverage off of this huge moment. olivia: does this go on hbo over the top? tom: i don't know. it is a huge moneymaker. let's do a data check this morning. here we are, thrilled to bring you

u.s. bank-type stock.ike that sector anyway. >> you're not going to believe this but i'm intrigued by shake shack. >> i know. tremendous growth. with mcdonald's and the trouble they have been having and you wonder if this is a bigger issue and then you think about shake shack and their position. >> the valuation. >> the valuation makes me sick. >> but you're looking at it. >> i know. >> this is shocking. >> i am shocked. >> it's the kind of thing i buy for my kids and put it away and when it gets to 7 i'll sell it. >> will were massive bets against the euro. dan is at the smart board. >> this happened before the close. there was a buyer of the january 10294 put spread paying almost 200, 200,000 times. that was nearly $40 million in premium and if the etf is down toward that short strike at $49 the trader could make up to $120 million. that's a massive, massive position. i suggest with the thing so oversold possibly it's a hedge but let's go look at the charge right here. this is euro versus the us dollar.

for great rates and step-by-step guidance from of the nation's top mortgage lenders call on u.s. bankward upward! >> patrick reed not okay here at 18. ball buried right below the lip of the bunker. and his reaction when he saw it break came out somewhere down the bottom. but not to be. >> really tough here. ball wants to squirt to the rough right. >> did it pretty well. everybody's been scrambling at 18. why not have patrick reed join the group of great saves that we've seen. >> just hit behind it. worry about the follow through. >> well he saved that spieth has come alive, i think we've seen it all today. >> he hopes that he has the chance. >> that's true. >> to make that putt to stay alive. >> because spieth is lined up for a birdie that could be a winner. but o'hair is lining up for one of his own. we saw reed make one from back here in the vicinity earlier this afternoon. >> and notah, this is on a similar line to where he played his third shot in regulation. is that not correct? so he should have a pretty good idea about how it moves. >> gary you took the words right out of my mo

. >> coming up, u.s. banks. yes, it is true. all 31 banks. what areas are still concerned for the market. find out after the break. ♪ >> letters bring you up to speed for him -- let's bring you up to speed on some of our top stories. stake is worth 92 million pounds. europe's biggest software company, s.a.p. is cutting over 2000 jobs. the company ships its focus to internet-based applications. according to a brief, the settlement would resolve a separate moderate -- separate money laundering matter. let us keep an eye on banking. a marked improvement from the dark days of financial crisis. the big banks were subjected to u.s. federal reserve's stress tests. they passed. caroline hyde is here to elaborate. they do these tests. much curley burley is made -- much hurly burly is made. why do we care? >> they can whether a storm. stock market plummet by 63%. this is the kind of pain the u.s. reserve revels in. it makes each bank work out whether they can whether the storm. they can. they are more financially -- this is the first time since these t

erik: u.s. banks their annual report cards from the federal reserve with the second round of stress test results. the stakes as you may be aware, are especially high for citigroup ceo michael corbat. his job is on the line. goldman sachs just barely past the first round of tests last week so will regulators give lloyd blankfein the green light to racist dividend or buy back stock? with us is intelligence analyst alison grimes. the fed looks at five measures of capital adequacy and on one of those measures, goldman barely cleared the bar. allison: but they did do well in other measures and depending on what is in a capital plan, they may have additional tier one issuance and if that is the case, depending on what they have factored in, all hope is not lost for a buyback. erik: meaning what, selling back preferred stock? alison: they could do prefer although they are maxed out on that bucket. however, they could do cheaper subordinated debt. stephanie: was it a surprise that goldman did so poorly last w

. >>> first breaking news on the latest round of the u.s. bank stress test. kayla has more back at hours. kayla? >> reporter: hey, nellis is a. for the first time sense the stress tests were introduced by the federal reserve in 2009, all banks that are undergoing the test in this year, 31 global banks representing 8 0% of banking assets, actually were found to have enough capital on hand to weather a depression-like environment without needing money from taxpayers. that, of course, is what these tests serve to find out. this scenario this year, the most intense stress scenario saw unemployment at 10%. brent at $110. dow below 1,000. usd/euro at 1.21. the introduction of a new event, new hypothetical event whereby corporate debt defaults at a much higher rate than currently expected. of course, the default rate is normally fairly low, but if that default rate were to go up, you would see spreads widen, volatility go up and see a follow-on effect in the equity markets. in that suspect, you saw an effect on the big banks. see looking right there, tier one common

for great rates and step-by-step guidance from of the nation's top mortgage lenders call on u.s. bankard! >> patrick reed not okay here at 18. ball buried right below the lip of the bunker. and his reaction when he saw it break came out somewhere down the bottom. but not to be. >> really tough here. ball wants to squirt to the rough right. >> did it pretty well. everybody's been scrambling at 18. why not have patrick reed join the group of great saves that we've seen. >> just hit behind it. worry about the follow through. >> well he saved that spieth has come alive, i think we've seen it all today. >> he hopes that he has the chance. >> that's true. >> to make that putt to stay alive. >> because spieth is lined up for a birdie that could be a winner. but o'hair is lining up for one of his own. we saw reed make one from back here in the vicinity earlier this afternoon. >> and notah, this is on a similar line to where he played his third shot in regulation. is that not correct? so he should have a pretty good idea about how it moves. >> gary you took the words right out of my mouth. his

. >> reporter: u.s. banks are in good shape and the dollar lost ground making goods more affordable overseas. >>> gm has recalled five million call -- honda has recalled over five million cars for air backs. >>> disney frozen ii is coming, anna the voice of kristen bell tweeted out a picture of herself saying dreams do come true. >> the birds snatch a superstar from their arch rival cowboys. >> we're following a developing story, the search for the gunman who killed a father out walking his dog. we'll have a live update at 5:30 a.m. buy one premium beverage package and get another for 50% off. plus get a 50% reduced deposit. the only way to caribbean is with royal caribbean. call 1-800-royal caribbean today. [rob] so we've had a tempur-pedic for awhile, but now that we have the adjustable base, it's even better. [evie] i go up...heeeeyyy... [alex] when i put my feet up on this bed my stress just goes away. [announcer] visit your local retailer and discover how tempur-pedic can move you. >> welcome back, 524 on

the federal reserve has given its approval for major u.s. banks to raise dividends and buy back shares. it was one result of the stress test that determined the banks have enough to withstand a major downturn. it's important to investors. some shareholders especially retires, rely on dividends for a portion of their income. >>> asian markets finished mostly higher after south korea central bank cut its interest rate. tokyo's nikkei added 1.5%. hong kong's hang seng gained half a percent. it was a generally quiet day on wall street with the dow finishing slightly lower. the dow lost 27 points. >>> service has been restored to itunes and app stores. yesterday the widely used services broke down and were inaccessful to users. apple blames an internal technical error. it came back yesterday afternoon. its bookstores weren't working either. >>> petsmart has gone private. petsmart excepted the buyout offer back in december. the deal values ss petsmart at $83 a share. >>> and a consumer advocacy group wants to shelf mattel's barbie doll this fall. the do

u.s. banks are adding lobbyists to target the watchdog agency that protects regular folks. the consumer financial protection bureau. the banks are also pouring money into efforts to roll back dodd/frank financial reform. and the new house republican budget targets both. republicans are doing exactly what wall street wants. and progressives in the white house and in congress will have to stop them. joining me now is vermont independent senator, bernie sanders. thanks for being here, senator. >> my pleasure. >> senator, banks are now talking about withholding donations. are they scared of the work you venn and others have done? >> well, i think they're beginning to get nervous that the american people are catching on, that the ethos of wall street is greed and fraud. that is unacceptable al for six financial institutions to have assets equivalent to 6 o0% of the gdp of our country to issue half the mortgages and 2/3 of the credit cards in this country. and the american people understand that we in congress are unable to regulate wall street in fact their power is to great they

and the campaign co-chairs and the gap who stepped up and i want to thank our partners in the new u.s. bank and the city and county of san francisco i want to thank the 5 past board chairs that are here bob emry and rocky freed and bruce the current chair is not here in hawaii good for him i had two outstanding capital campaign chairs for the last two years they made it possible to raise the money we've build a willie maze club and in the eastern mission and completely rebuilt another one billing freed and rocky your outstanding i was an integral part of the skeblg but made it clear you guys are way more important than i was your personal generosity and networks were great i appreciate it three years ago as we embarked on this project we added a third chair stephanie you've been amazing given this campaign the shot in the arm like me and rankling i didn't and bob your generosity made all the difference finally, i want to talk about don fisher and john calendar who maxine said our office is the stating office is 45ur9d upstairs i'm proud the men are trrmd they've joined the board in 1963 and

was taken as the authorities are not public but a recent look at the statistics show that average u.s. bankbery was about $7500. and these guys dob seem average and becoming increasingly bolar with each robbery and threatening customers and pointing guns at people's heads and jumping counters and making demands. all while wearing the signature black hats and black clothes and trench clothes and disguising their faces. >> i didn't get a good look at their faces and they didn't appear to be hustling that much. >> and still fast enough to get away. again -- >> maybe about two seconds before that, the cops showed up on the property is when they ran out of the building. >> just missed them? >> yes. >> but still tracking them well in the night and police collecting evidence and casting footprints in the snow. >> the f.b.i. is relying heavily on witnesses to help them find their suspects and witnesses inside the bank and outside of the banks and to help find the suspects armed and dangerous. anyone with information is asked to contact authorities. live in falls church, wusa9. >>> the f.b.i. is off

incredibly strong run, but we believe u.s. banksbe in a position to help the structural growth of the economy. we have been long-term shareholders of that. >> manufacturing sector, is that important for you guys? >> it is typically underweight. the success is the lowest labor cost imports. what we are observing now, a bit of a structural shift out of china, out of india, and some of the neighboring economies. pakistan, bangladesh, these types of regions. whether the industrial stocks are stable, it is quite questionable. we like the health care plays generics. you have to be selective i think. some things are very expensive and other areas where there are pockets of value. it is a difficult market this year after such a strong one last year. >> let's go back to china. you are underweight and india in manufacturing -- in india in manufacturing. how does this ramp up the pressure? >> a lot of spotlight if you see the latest pmi numbers, under 50 consecutively. a lot more monetary easing and a lot more tools to be put in place to boost

your account needs to be linked to a debit card or u.s. bank account. there is no set date for the new feature to be rolled out. snap the chat launched a similar service called snap cash in november. still makes me nervous. i don't know. >>> illinois congressman aaron schock says he will resign at the end of the month. in a statement, the republican says quote the constant questions over the last six weeks have proven a great distraction that has made it too difficult for me to serve the people. the "washington post" reported on his $40,000 office makeover with a downton abbey theme. there are questions how he spent taxpayer money. >>> northern virginia democrats are giving their first indication of who they think the democratic nominee for president should be. more than 1 thourgs activists and politicians took part in a straw poll last night. it's become an annual tradition. hillary clinton topped the poll with 48%. also receiving votes, former virginia senator jim webb, vice president jim biden and martin o'malley. >>> today is national kick butts tod

the real failures with deutsche bank, both u.s. units fail and they have restrictions on paying dividends. significant deficiencies across aggregation processes and they have -- there were problems with internal controls. sometimes there were widespread in critical deficiencies across their [inaudible] many things showing in the headlines. what are the next steps? >> they are limited for buybacks but that may not be significant. they were not planning that anyway. there are more roles that they have to make parts of the banks more solid. they have to inject capital. that was approved last year. they were not going to hemorrhage cash. their qualitative failure highlights meaningful work produced so they have things to do and they are going to reinforce the government and address the quality of concerns. deutsche bank says it was enhancing capital plan processes. there are two things that will change in their are at great plains -- they are at great pains to point out [inaudible] they were a new addition to the club. if you look at t

u.s. banking group. the banks had a poor start to the year.ck should start to do better this year. >> i can see the short-term being removed but not a long-term one. because this process will have to be repeated year on year. >> absolutely but you have the green light for one year and the banks seem to be getting better in handling the fed stress test. when the fed starts raising interest rates in the united states and we think that's going to happen whether it's june or september it's going to happen that will be good for the yield curve for the banks. banks will be a lot more profitable and without this overhang you can start to get multiple expansion on increasing earns earn earnings. >> when will the s&p financial sector from your point of view return to being the biggest payer of dividends? i was just looking at the numbers, banks have a trailing dividend of 0.08%. that's well below the s&p 500 average of 2%. >> it will be a number of years. probably talking about 5 years of dividend growth before that happens but the market is at about 1

you know, my view of it is, the banks have strengthened their balance sheets, u.s. banksnot as cheap as they were, however. still, favor using calls to make bullish bets in that space, especially with the market having had as long a run as it has. >> can we talk about bank of america? this is a tremendous stock in the past couple days and today in particular on a down day. >> in general, if you look at the kre regional bank index, because it's interest rates. net interest margin in the spread business. so in principle, it's not random they did well today. very well. and i would expect more of that. >> and that's the trade next week. if we get a continuation of today's weakness and the banks go down to certain levels, bank of america an obvious level 1550, $15, that sorts of thing, i think you buy in front of the march 18th fed meeting. >>> time for the final call. mike? >> your bullish bets in financials, calls are the way to play it. >> carter. >> walmart gets them. >> dan. >> i would consider protection. >> looks like our time has expired. i'm melissa lee. thanks for wa

guy: let's stay with the banks. u.s. prosecutors have asked barclays to provide more information related to an electronic trading platform that allows traders to take a "last look at in order before executing it there go let's bring in -- before executing it." explain why they are concerned about it. guest: it is a thing called last look. it is not just barclays that have got this. it is essentially a legacy thing. it used to take a while to take an order and execute it. it allows the bank to say, markets went haywire we can't honor that trade. this is still in place. the suggestion is that regulators in the u.s. are looking at this last look, which is an opportunity for banks to back out of a trade to see whether there is anything untoward about it, whether banks are using it to rip off their clients. that is the allegation. francine: we had this affects probe which you broke at bloomberg. how does that fit in? what exactly -- is this just an investigation to see if there is any wrongdoing? are the banks being accused o

twigses of deutsche bank and santander have a year to resubmit their u.s. capital plans. david? should mention that some of those banks that you mentioned, particularly bank of america, is down a little bit after-hours. might be because of some of the footnotes about them. liz: david, that is the one that is moving lower. deutsche bank, db is pretty steady from its closing price. goldman sachs standing pretty tall, so is jpmorgan. citigroup is moving higher because it finally broke the two-time losing streak of not passing these stress tests. this gives michael corbett a new lease on life as the ceo. they will be able at least, maybe five-fold or six fold up that dividend. david: it actually said, if they fail another stress test, he would probably have to leave. so he doesn't have to leave now. michael corbett looks like he will be in the driver's seat for a while. peter barnes, thank you very much. so who is going to raise dividends and issue buybacks? two top wall street banking analysts tell us what is next for bank of america and citi and more now that the results are in. w

what i think is kind of to me an interesting issue in some of the cases, particularly both of the u.s. bank and the bank of the united states and fannie and freddie itch want to good back to there's an economic historian at the university of maryland. john wallace, written a whole lot of corruption, particular hill at the state level in the 1800s, and you touched on this in the book, particularly in new york, and you think the federal government was bad. wow. of course especially in this era of great default and we remember during the 1820s and '30s and '40s with state-level defaults. one thing that professor wallace identifies is in his work is entry barriers, and so to me one of -- whatever you think fannie and freddie -- as an aside there are lots of arguments about the financial crisis. one merit of the chapter is you don't wade into those. this is not citiverse fannie. it is about here are these specific institutions that got privileges that nobody else got just like the bank of the united states, and so interestingly what professor wallace argues in his work is that you had all of the

again some of the conversations, particularly some bank work on a u.s. bank. my friend alex pollock at aei a number of years ago wrote a wonderful essay of comparing cnn friday to the first and second bank of the united states. to me it's always a wonderful parallel with some of the same problems they are. it's a great introduction. i was a little bit frustrated in terms of can we really have some fixes here? i'll put it this way. if you are looking for a laundry list of how we can fix all this and go back in time you will probably be disappointed. again, it's a great read of history. a great set of examples of the thesis is literally put out and i'm really enjoyed it and look forward to the next vote too. alternate over to chris for a while. >> it is a fantastic book. you are clearly an historian by heart. the detail is tremendous. you want a good introduction to american 19th century public policy. this is a great book to start with. your discussion of the rest of the patronage in the 19th century price of the party and progressive movement, new deal fantasti

chris: the big focus for the u.s. bankss how much will they be able to return to dividends and capital? francine: thank you so much for your time, chris wheeler. let's go back to last year when i was joined by tidjane thiam for the leaders lunch. we asked him where he thought he would be five years from then. tidjane thiam: i don't know. i lost my faith in the ability to predict things a long time ago. [indiscernible] i have become a bit philosophical. i hope to be surrounded by people whose company i enjoy and who i am happy to see every day. it is as simple as that. ♪ francine: welcome back. time for a check on the top stories. guy: u.k. lawmakers told hsbc's top banker that he is incompetent. hsbc's chief executive defended his personal tax arrangement. >> my inability to convince anyone that these were not tax evasions caused cap -- reputation damage to the bank. francine: investigations into sanction violations on commerzbank. guy: there has never been a better time to be born female. even the women still do not enjoy

u.s. account holders had been undertaken by irs. and last week geneva raided the bank offices of hsbc as part of a money laundering investigation and we know hsbc has a history of major u.s. sanctions and major money laundering violations and they now face major new charges of facilitating fax evasion and i know you may be unable to address details of an ongoing investigation but summarize what the fed would normally do to pursue allegations like these regarding tax evasions by major financial institutions and how long you would expect an investigation to take, not specifically here, if you are not able to do that and what steps you would normally take with other federal officials and other countryies' regulators? >> we would have some responsibility for this if it affected operations of a bank in the united states. in this case, the information has been provided to the justice department. the justice department has primary enforcement responsibilities related to u.s. tax laws. along with the irs. and the justice department normally cooperates with us and provides info

u.s. banking stocks. he joins us in the next hour to explain why. >> also still to come hilary clinton speaks out for the first time since her e-mail scandal. did her explanation do the trick or could this cloud her prospects? we'll discuss later in the show. >>> welcome back. they're up 5.3% after talks with netflix over a potential deal. they already signed a content deal and are now holding discussions with media set. the market taking the news well. they're underper post morteming down 3.9% after delivering full year profit guidance that fell shy of forecasts. speaking on squawk box europe earlier the company ceo discussed the current economic environment. >> the market will remain challenging without a doubt. there's a lot of volatility in the market and we will invest and continue to invest. so overall i would say 205015 will be a modest growth. we should not expect spectacular growth around the world. overall it will be another solid year. now adecco is in the green. that's up after 4th quarter pro

u.s. export import bank chairman.oomberg exquisite, nice to see you on this side of the pond. >> i have election envy. 50 days is such a nice compact period. ours, we've got 19 months ago. guy: the problem with that is it is really dull. you would think it would be compressed and more exciting but it is -- >> i will take a compression. guy: the wariness of a long campaign. francine: it is the british reserve. i'm putting it out there. now we can focus on business. guy: fred, so aside from the very dull political headlines in the uk, the other thing that is said to be making headlines is the u.k. decision to join the chinese infrastructure bank. fred: the u.s. has not responded well to this. there is no question we need more money for infrastructure. no question in asia in terms of roads, ports, schools broadband, communications we need more. with any of the eighth institutions, look at how they are formed and what will govern them. what the governing structure is. it is not just about money. so how they will look at e

past the deadline, but it's unclear if non-founding members will be able to help craft the bank's policies. u.s. treasury secretary jack lew is calling on officials in beijing to maintain fair governance in the new institution. lee told li keqiang it should work with existing organizations and banks. lew says he hopes his nation can work with aiib to develop infrastructure in asia. he also said they could use the structure of the u.s./china strategic and economic dialogue or the world bank. li noted chinese ministers they hope they approve the international monetary fund as soon as possible. this would allow leaders in experts say it would allow for china to have more influence in the organization. li's remark apparently reflects his government's dissatisfaction with the existing u.s.-led international monetary order. >>> so to join or not is a focus of the global markets. ai how does this affect the markets? >> analysts do say that asian markets could get a boost from this financial institutions. that would be because the infrastructure industry could expand. that could boost the value of rela

u.s. criticism of this investment bank. publicly, are we hearing any one noting those as missteps? ort of given that the u.s. has been wrong-footed on this. but having said that, the public criticism has basically been, can we trust this bank to be beyond reproach? will that lending, and this is all about infrastructure lending. they're talking about very big amounts of money to fund very big projects, and there's no shortage of those projects throughout asia. the question is, will that money be delivered cleanly and honestly, or will china use this bank as a way of exerting political leverage. we will lend you the money if you do something for us in return. that is the question. it's not an illegitimate question by any means, and we'll have to wait and see how this bank operates to make sure it is above reproach. if it's not, and it becomes a tool for china, then it's a failure. but think how many other founding members are involved. the very, very top level there. >> the aiib is kind of like a new club, everyone wants to get in and get that membership, but will it last in the long

this is one of the top two or three most popular of u.s. bank note. that's this indian of the lakot a sioux tribe. he is the only native american depicted on a banknote. there's a lot of controversy when the snow came out because the headdress is not sioux, it's pawnee. this led to a lot of speculation about, well, is this a real indian, or is this somebody from the bureau of engraving them printed -- and printing that put on the wrong bonnet? it actually is the right person. it is just the wrong headdress. because here is an actual photograph of this indian. again, i depicted it here, but you can also see it, an example of this note for my collection. so that essentially concludes what i wanted to say. i hope you've learned a little bit of history here and learned something about our financial system back when it started during the civil war days. and perhaps most important, maybe it will stimulate some of you to start collecting some of his kinds of make notes -- bank notes. i thank you for your attention. [applause] any questions? yeah. try to answ

really, what we're looking at here is now the u.s. banksapital deployment. the european banks don't really at this point, get affected by that next level. so the sense that they got passed and were able to pass on the stress tests, was the biggest, you know, issue they were trying to cover in this first round of review. >> kayla, do you want to respond to that? >> deutsche bank had some interesting results in this round of the test sharon. it would look if you look at the face of the capital levels across the board for deutsche bank that they are extremely high, far higher than any of their peers. but senior fed officials actually told reporters that only about 15% of deutsche bank's u.s. operations were subject to the stress tests, so it's benefiting from the capital at the holding company level, is my understanding, but such a small portion of the u.s. operations are being tested. that could change but that is actually making it appear that deutsche bank has multiples of the capital of its peers. and that will change over time. >> mike? >

for the environment and many here believe the chinese would not be driven to set up this new bank if the u.s agreed to increase china voting share in the imf. >> if it's up to indonesia the headquarters of the investment bank should be based right here and they say it's a logical choice because the country will be one of its biggest clients and they want to invest $438 u.s. billion in infrastructure and build railroad and 600 kilometers of roads and 28 sea ports and 48 dams and most of the money will have to come from foreign investments and they are working hard to host the bank and also eying one of its most powerful positions, the vice presidency. but many are questioning indonesia's chances due to a lack of proper infrastructure and space right here to host such a prestigious international institution. >> reporter: they are seeking to challenge washington's dominance of two of the world's biggest financial institutions the world bank and the international monetary fund but too long beijing says washington's voice prevailed here and institutions need reform and no longer reflect the chang

. >>> two reasons the fed says u.s. banks are in good shape. and u.s.ds are more affordable. >>> honda is launching a new ad campaign to reach owners of cars with dangerous air bags. >>> just 14% of them have been repaired. honda's ads will run on tv and radio this week. >>> "fosen" so hot going to be a "fosen 2." >> disney abc's parent company is reprising the >> cough up your paycheck. we'll be playing lots for merchandising. that's "america's money." >>> more disney news here. "star wars" episode 8 will blast into theaters on may 26 2017. the announcement came here in san francisco yesterday. the director behind the time travel film "looper," is set to direct the big budget project. and some of us can't wait. >>> all systems go for a band preparing for a big performance this weekend. ♪ . >> the irish pipers are putting the finishing touches on their routine for san francisco's st. patrick's day parade tomorrow. it includes 30 bagpipers along with 20 drummers. abc 7 is a sponsor of this year's parade. and michael finny will host our live coverage at n

the 31 biggest u.s. banks have gotten their annual report cards from the federal reserve.e fed will release the results from the second phase of stress tests. the first part of the tests last week showed that they do have enough capital to absorb losses. francine: brady dougan pasta parter from credit suisse may be good news -- brady dougan's departure from credit suisse maybe good news. you can read more from that story at bloomberg.com. guy: a loophole in ireland's drug laws means a number of drugs are legal today. there is a motion and legislation to close the loophole, but it will not pass until tonight. until then, the processing of a range of substances, including ecstasy and some new psychoactive substances known as had soft drugs are going to be legal for a very limited. of time -- a very limited period of time. francine: what a loophole. why didn't anyone think of this? we don't suggest you go try it out. don't try anything we wouldn't. [laughter] you don't know how the police would react. guy: how big is that list? francine: i'm just saying. we can tweet about it

u.s. banking system from what i can see, i know a lot of bankers, we did the largest l.b.o. that had ever been converted to a sale in the history of the u.s. in one check. i knew about every banker in the country. none of them would go with us to africa and they all pointed to the regulations facing them that cause them to say we don't know how to comply and so we don't know what they are and we're withdrawing. i had them tell me that face to face, one after another after another. how that factors into what we're talking about here today is not clear to me but it's the reason we had to revert to gap fund big individuals with projects like this. senator daines: thank you. mr. chairman. senator merkley: you started talking about the vaccine initiative. the basic numbers translate to about 25 bucks per vaccine about 1 50rks0 per life saved. i've heard the international vaccination effort described as the single most cost effective way to influence global health. is that a fair way to put it? mr. gates: absolutely. there's two things we do by vaccinating children. one is that we

your account needs to be linked to a debit card or u.s. bank account.re is no set date for the new feature to be rolled out. snap chat launched a similar service called snap cash in november. >>> megastar cher is helping a 96-year-old woman return to her alexandria home. edith hill and eddie harrison made national headlines when they got mattered lastrried last year and a court dispute followed over whether hill had the mental capacity to marry him. harrison died and the custodies putined. cher says she will help pay for upgrades to the home so she can return to her home. and her only response was ooh. anybody? cher? nobody? >> sorry. >> i'm giving you my best stuff here. >> i wasn't expecting a cher impersonation from you. >> it wasn't that good. >> no i'm sorry. >>> 5:41. rolling right along. [ applause ] >> thank you for the applause. i can always count on audio. >> saving you came. all right, chuck bell no applause for your forecast sorry. >> ooh, it's cold outside. >> what is happening? >> if you're cher, i'm son anyny because i'm the weather guy.

wells fargo continues to do everything right seemingly and u.s. bank corp. that's going to authorize another $3.5 billion stock buy back i believe. again with these two names, slow and steady wins the race. they continue to look. you chart them over the last four years and this has been a nice move to the upside that will continue to be unabaded for the foreseeable future. >> breaking news on jp morgan's plans. >> jp morgan announcing it plans to raise it's dividend to 44 cents a share and plans to repurchase $6.4 billion in stock. now that could be a disappointment to shareholders because last year they got an authorization for $6.5 billion in buy backs. so this would appear that j.p. morgan is taking it's expectations for repurchases down slightly. in december the federal reserve when it introduced new capital rules found that jp morgan had some insufficient capital levels and there was a thought at that time from the analyst community that jp morgan could have lower capital returns because of the need to retain more earnings for capital. >> it surprised m

and i think it is looking to join the chinese asian investment bank. u.s. raised concern over whether the new body would meet the standards of the world bank. u.s. oil ceos trying to persuade lawmakers to lift a 40-year ban on oil exports. the u.s. is selling oil $10 less than global benchmarks are decent yield phillips was among investors that flew to washington.' shares of toymakers rose on disney's announcement it is working on a sequel to "present." shares of mattel jumped after the news. disney also revealed the eighth sale of "star wars" will be released in may 20 17th. let's get more on our top story. greece. in a interview with nouriel roubini dr. doom argued severity would prevent a greek exit. mr. roubini: there would be massive contingent. -- contagion. there would be a run on eurozone banks. once one country is out, people will ask who will be next. economically and financially it does not make sense. even the germans realize it. geopolitical consequences, their actions are becoming more aggressive, not just in ukraine and the politics but also t

u.s. stock futures barely moving so far. the european central bank said it would start buying bonds on monday. that's a stimulus there. the dow gained 40 points breaking that two-day losing streak. today it's all about the jobs. the jobs in this country. the february jobs report comes out at 8:30 eastern. we'll be really closely watching to see whether we've had strong job growth and if wages are starting to rise. apple pay, paving the way for fraudulent purchases. thieves are taking stolen credit card data entering it into smartphones and making purchases without a signature. this comes from recent hacks, including the home depot and target hacks. 80% of the purchases have been made at apple stores. interesting. >> dramatic testimony, new disturbing images in the boston marathon bombing trial. we'll take you there, next. kaboom... well, i just have a few other questions. >>chuck, the only other question you need to ask is, "what else can you do for me?" i'll just take a water... get your credit swagger on. become a member of experian credit tracker

u.s. banking system from what i can see, i know a lot of bankers, we did the largest l.b.o. that had ever been converted to a sale in the history of the u.s. in one check. i knew about every banker in the country. none of them would go with us to africa and they all pointed to the regulations facing them that caused them to say we don't know how to comply and so we don't know what they are and we're withdrawing. i had them tell me that face to face, one after another after another. how that factors into what we're talking about here today is not clear to me but it's the reason we had to revert to gap fund big -- funding individuals with projects like this. senator daines: thank you. mr. chairman. sen. graham: senator merkley. senator merkley: you started talking about the vaccine initiative. the basic numbers translate to about $25 per vaccine. i've heard the international vaccination effort described as the single most cost effective way to influence global health. is that a fair way to put it? mr. gates: absolutely. there's two things we do by vaccinating children. one is t

bank. he said the u.s. would back the fund if it strengthened support for developing countries. sheets said the bank could help promote high quality standards by co-financing projects with the world bank or the asian development bank. >>> senior officials from japan and the u.s. are again trying to narrow their differences on the trans-pacific partnership free trade deal. they're back at the negotiating table, and are focusing now on tariffs for auto parts. japan's ambassador for economic diplomacy takeo mori is in washington for the talks. wendy cutler america's acting deputy trade representative is also there taking part. japanese negotiators demand the prompt removal of u.s. tariffs on auto parts. u.s. officials want to be able to restore the tariffs if japan keeps its market closed. lawmakers in the u.s. are debating a bill that would give president barack obama greater authority to negotiate trade deals. some strongly oppose the bill though. they say the trade deal will weaken the competitiveness of u.s.-made goods and rob american workers of jobs. negotiate ares worry that

the 31 largest u.s. banks passed the warm-up first stage of the fed's annual test.s for the second and arguably much more difficult and important face of the stress test that will determine whether the banks and which banks are able to increase dividends and share buyback programs, billions are on the line. who will rise to the top? who will miss the mark? joining me mike holland, holland & company company and brennan, i begin with you, we are about 40 minutes away from the release of the report. who do you believe will do well? >> good afternoon, thanks, i think most of the market is concerned on citigroup. citigroup is the one major bank we've seen fail twice already, and so this is an extremely important event for citigroup. so i think when you think about the investors and the greatest amount of concern, it's got to reside in citigroup. most people say citigroup denounced business mix, subprime lending business here in the u.s., they're exiting 11 consumer markets across the world. so slimming down, derisking the business. we think that's going to play to citigr