wells fargo is the snufflufgus. certainly, wells fargo, although they've been stepping back somewhat, is the whale in the room. >> what did you think of retail sales? >> let me just stay on wells fargo for a moment, because we have tim sloan coming up in a few minutes, the ceo of wells. what was the most striking part of that report, then, dan, that was your takeaway in terms of wells fargo in this mortgage reboot that we're seeing? >> the biggest problem for the mortgage market in general is that you pretty much run the course on refinancings. originations have been a problem for some time, for the sector as a whole. i mean, listen, i'm not going to front run tim sloan here. for only the second time ever, i'm probably going to agree with rick santelli on air, and say that haigher interest rates fro that standpoint is probably not the worst idea in the world. >> hey, rick, let me just take it off our shores for a moment. you've been doing a lot of reporting and discussing of japan and the jgbs this week and the fall

next is marked with wells fargo. >> hello, i work for wells fargo bank. i cover the northern california region. i usually focus on about $350 -- $350,000 of sbe loans. last year, for 2010, i did 43 loans. so we are lending. i usually focus on six different types of loans. start-ups, business acquisitions, real estate purchases with ti's, working capital, a partner buyouts, business expansion. when i am looking at a potential loan, i use the standard five c's of credit. the first one is character. what we are looking for is a minimum score around 640. we would like to say no recent bankruptcy foreclosures, bankruptcies, tax liens. if we see a loan that has been modified, we would like to see a reason it was modified, what ever reason it may be. it cannot be, i did not want to pay that payment any more. the second c, conditions. basically, how precise will the money be used? we are looking at a business plan. when you look at a business plan, that is just a start up. we are looking to see where there will be the need for lending. if you are an existing busi

that was 19 of the 20 questions on the wells fargo call was about it. if you think in the bigger picture. rising home prices and we are seeing a strong market this spring. are a good thing for banks. credit quality is better ant the en of the darks higher home prices mean people will borrow more money. >> bank stocks have been rallying since december. is this the end of the roally? >> i think home prices are a good backdrop for it. but the ten year bond yield has come down, that is tough for the banks inity short-term. over the next year, we think there will be background because of the home prices. >> any disclosure? you own any of them? >> no. i don't. >> we will leave it there. thank you for coming on. rector of research. >> thank you. >> well, besides the disappointing bank reports, discouraging news about the consumer also weighed on the markets today. retail sales fell in march. and an index of consumer confidence from if university of michigan showed a sharp drop in april. here is how the weekended on wall street. the dow down at much as 74 point

what do you see in the charts for wells fargo? > > wells fargo is sitting right at a 52 week high and it's really make or break time for them. all eyes are gonna be on them but personally i expect good things. > > it's the first big bank to report in. you say good things. but how good? > > this is a bank that recently raised their dividend. they said that they're going to repurchase more shares in 2013. they really have been conservative. they've got good growth, good mamagement. they've executed well 11 straight quarters. so, how good? i don't know. there is some concern about the mortgage origination because they are the biggest lender in the united states and they've seen some slow down there. but i think this is a bank that's firing on all cylinders. add in a healthy dividend yield and you're gonna see support for this stock. > >with such a big rally in the stock market overall, could a blooper coming from earnings such as jp morgan or wells fargo cause stocks to drift lower? > > absolutely it could and that's one of the big r

and wells fargo reports its first quarted numbers at 8:00 a.m. eastern, it's forecast to earn 89 cents a share on revenues of $29.6 billion. mortgages remain the story. wells is the top underwriter and is should continue to benefit from refinancing. as far as jpmorgan and wells are concerned, pretty flat in frankfurt. jpmorgan just up 0.75%. cnbc has an exclusive interview with jpmorgan's mariane lake. she'll be on "squawk on the street." and wells fargo's tim fox will be on cnbc at 3:00 p.m. eastern. >>> so for, what, an hour and 11 minutes into the trading day, we're weighted to the downside, as you can see, as we wait for that euro group meeting to get under way. this is where we stand, 8 to 2 decliners outpacing advancers. we have four days of gains. another record close for u.s. markets last night, as well. the ftse 100 up around 0.4% yesterday, currently wiped out those losses this morning, down around 0.5%. xetra dax down around about 1%. the ftse mib is off 1%, as well. now, no big focus news to look at, but we take a look at telecom itali

lincoln and wells fargo chevron visa and bon appear teeth and of course, [spelling?] at&t and to the foundation and we thank all of you. here's to union bank and hosts man and of course, to a t and t to our san francisco giants you are the only team for me now let's -- our great hero, david and john caste too. jock robber shell vickier braive show and callahan here's to you and we raise your glass and toes all of the -- [inaudible] there is such excitement blooming and i'll share it all with you 20 scene our new hospital will make it's grande beauty and we will continue to offer -- and we will stand strong and take a strand we believe in giving everyone a -- we say we building this -- san francisco has in store .... a new dawn a new day ... (applause) is. >> thank you seaner and beach blanket babylon. ladies and gentlemen, it is now time for the heros and hearts awards. our first award will be presented by tracy. president of san francisco market, wells far go to assist with the presentation of the awards please welcome louisa house worth. san francisco foundation boa

you hear the weird song. >> it's from the music man. >> wells fargo is reporting -- looks like the stock point. let me get all these metrics for you on wells. uh-oh. i just hit it and then it disappeared again. >> mine did too. let me just say. increased the quarterly dividend. we will start with 25 cents a share. same thing that had -- wait a minute. i already had it at a dollar. increase the quarterly dividend. >> 92 cents versus 88 they were looking for. i can't get into the release just yet. 21.26 billion in terms of revenue. the street was looking at that same level. 28.59. 11.79%. >> that's reuters saying that about the dividend increase. i already have it at a dollar. i don't know what to -- we'll have to check into that. >> $21.3 billion for revenue. >> very close to 25.59. >> 1.4 billion in this quarter versus 2.4 billion in the year ago period. nonperforming assets decreased by $1.6 billion. common equity ratio was 10.3%. i don't know how that -- that's under one. >> in terms of capital plan, 2013 capital plan, they received a nonobjection to it. they did not object to the 2013

jpmorgan chase and wells fargo, they are down fairly half of a percent, wells fargo down almost a full is questions about going forward, how will they maintain this kind of revenues because we are watching the mortgage industry that they both generate funds from its declining somewhat especially at wells fargo. jpmorgan first, the earnings came in at $1.41 per share, revenue 25.85 billion. just slightly miffed with the street was expecting. jpmorgan seeing it fall 12%. corporate and investment profits down 2%. jamie dimon talks about he apologized for the problem. next month's shareholders meeting again up to the board to decide whether he would split the role of chairman and ceo. shareholders have been calling for that for well over two years now. look at what happened with wells fargo. 13% of the revenue comes from mortgages. if you are thinking this is a good bet or not, they said we don't like bank stocks, they pay dividends that helps guid stock buyback programs but this is not a growth industry. liz: record profits in some of these cases and yet they continue to complain about ho

eye and so many iconic projects in both northeastern and fortunately and southern california and wells fargo such an integral institution and part of of the fabric of our society and vaginal foalgee president the bay area region together encompassing this whole wide region for wells far going and we are soon going to hear from tim quinn written economist from wells far go and going to get some insight from him and a major focus and this says so much about the strength of our economy and the economy is small business lending and really promising news and 2012 wells far go expended scene billion dollars in that now loan commitments to small businesses across the united states over 30% in 2011 and that is great news so thank you wells fargo and many thanks to our partners in associations who always help us in promote things event it takes a villages to market deimagine. >> joseph markenson, md: and new president and c o oavment bob electric sway and president and c o e dennis callahan and executive director dave metcalf, e c a karen inc.,el and inner city advisers jose conia and typely going to

the nnhb wells fargo index slid to a reading of 42 down from 44 last month. the index also fell below economists expectations. builders say they're worried about getting hold of construction loans and rising costs for materials. but our next guest is slugging off today's down beat report. he says the housing recovery remains robust. here to tell us why, jed, chief economist at trulia. this is a real estate with website. so, we are getting mixed reports. some places, home prices are up. a lot of demand, other markets, just the opposite. is this a regional housing recovery? >> we're seeing the recovery strongest in two types of markets. marks that have strong job growth like san francisco, seattle, denver. but we're also seeing strong price increases in places that were hit hard in the housing bust. places that saw big price declines line phoenix, vegas and detroit. >> i was in los angeles over the weekend and the lead story of the los angeles on sunday was a bubble market where there are options happening once again for homes being sold there, mainly because o

. >> she contacted wells fargo, asking the bank to send back the payment. however, not so easy. >> one person said well it might take a couple cycles. i said a couplecl sni sthed is my money. >> she marched down to wells fargo asked the teller to stop paymonhachk. >> if you do a stop payment have you to pay x number of dollars i said i don't care. stop it. well, they didn't. >> later wells fargo told carolyn the bank mail a refund check, however, she never got it and realized the bank was still taking payments for the loan though it was paid off. >> i'm retired and a widow. and i need the moon three months later she zrnt a refund and contacted the bank again. >> i said i'm at your mercy aren't i? he said, yes, you are. i said i'll have to call michael finney. >> she did. we contacted wells fargo. the bank looked into this case and just two days later a fed yechl delivery arrived at her door. >> jumping for joi.. >> it contained this check for $6900. wells fargo said koit not discuss the case because of privacy rules however, the bank tells us if a customer m

jpmorgan versus wells fargo. should you bank on ahead of the big earnings reports tomorrow? less than four hours to trade these names. let's debate it. stephanie link says jpmorgan, simon baker says wells fargo. 30 on the clock. >> this isn't really a play on the quarter, this is a play on being best in breed company. its average has been about two times over the last decade. the stock is down 3.5% since the middle of march. so it's underperformed. i like that risk reward headed in to the quarter. it has a diversified business mix. investment banking. core banking. mortgages. all kinds of credit card exposure. so i think if the economy recovers, it has the best shot of actually moving higher and you have a ceo that's determined to cut costs and grow profitability. >> talking about the ceo, most people those wells fargo because they don't make mistakes. you don't see them in front of congress. very conservative congress. they're coming up no international exposure. i mention it has a 2.6 dividend in the stock. thi

wells fargo sold his home at foreclosure action. the first day he heard of it was the first day of the sale. he couldn't stop it. wells fargo sold his only in 2012 and they evicted larry on december 15, 2012 leaving his brother, -- his disabled brother still in the home with a tenant. a second case is the case of [inaudible] who is mixed race disabled senior in the bay view and mostly bedridden and ill with emphysema and asthma. she's in litigation with the bank of america who sold her home in 2011. this morning i talked to her. she wasn't able to come because of her disability. she said she wanted to die in or own home. with current senior housing timelines she told me she feels like she would be dead before getting a placement and she is scared of being homeless. in another case a fellow named henry terminally ill gay man with aids complications living in the sunset. he's trying to get wells fargo to delay his eviction so again he can die in his own home. the financial strain and displacement and services and medical services and

wells fargo and j.p. morgan. both stocks are lower following earnings and we have becky to pretend it's the boyfriend shirt. >> in case brent muss berger is watching, that's all she's got. just that jacket. make sure you join us on monday. "squawk on the street" is next. >> and good friday morning. welcome to "squawk on the street." i'm scott walker and jim cramer live from the new york stock exchange. carl quintanilla is on assignment this morning. we do have breaking news we want to begin with. it has been reported that jc penney has hired blackstone for $1 million. blackstone is talking to banks to make a $500 million or greater five-year term loan to jc penney secured by inventory. blackstone is talking to three private equity firms who expressed interest in making an investment in the company. given where the stock price is currently trading it's unlikely that the company would look to raise equity now. it's my understanding that the time to raise equity would be later in the year once jc penney has time to

(applause) . >> thank you tim and thank you wells fargo bank for providing tim and now, we are going to invite our mayors to the stage and we are going to be able to hear about their requirement prierts and outlook and envision and is each mayor will get some time on the podium and then other manage editor will be leading a k q and a with them and if there are questions that you would like to ask him hold your hands up and either now or during the presentation and we will get to as many as we can and since fraction is the host city, mayor lee is gracious enough to allow mayor khan to go first please welcome dan angle who's president of golden gate university to introduce mayor khan (applause) >>> good morning. i noticed that governor rick pairy was mentioned articlier and i think i may send him a question and tell him why i came here ten year ago and there is some good news in recent california he picked out the top three firms he was after and called a joint meeting of the legislature and he did pretty well till he got to the third one he could not remember who it is of golden gate

morgan, wells fargo, i think, a citibank and allied financial.e helping homeowners who may not have received the best care when it came to foreclosure are having issues with their homes. they are now trying to rework it through modifications. the other portion is the $9 billion settlement that the federal regulators were able to broker with about 13 mortgage servicing companies. they are also supposed to institute some help to homeowners who are struggling in the form of principle reductions and interest rate to -- reductions. a lot of folks eligible for these have probably already found out about that. others may want to contact local housing counselors to see if they might be eligible for some assistance under any of these settlements. there are a few of them coming out of the crisis and a lot of them and to try to help people having trouble with their mortgages. host: here is a tweet -- thatst: there is disclosure all payday lenders are supposed to offer to their consumers to make sure they know what they're getting into. cfpb is looking at si

just like san francisco general wells fargo is also looking at many ways to improve the overall quality of the community that we serve we know that having vibrant communities means you have a vibrant business and in fact i am very proud to say that since the year 2,000 wells fargo has contributed more than $7,000 to the san francisco general foundation but just as important as the dollars that we give are the volunteer hours that our volunteer members donate to the many events around here that support the general. so now, on to the important stuff. and that is to honor our hero and is this year's hero and is heart's award recipients are leader in the community who inspire others to exceptional community service and i'm thrilled to be here to celebrate the community leaders the heros amongst us on behalf of all of the bay area team members that work at wells fargo the 25,000 of us. i have to tell you that we all thank the heros for their dedication to this community. the two men that we are going to honor today, display incomparable dedication to improving the mission neighborhood by hel

lori: jpmorgan chase, wells fargo, those without first quarter earnings. >> wells fargo trading down. both seeing signs of an economic recovery. they're reporting $1.59. you look at what they actually have as far as revenue for all the units within the bank. $25.8 billion. essentially, they are just about there. wells fargo, taking a look at them. ninety-two cents was the unadjusted share. the street not happy. 21.59 billion. this is a perfect way to sum it all up. jamie dimon said "small businesses remain cautious about the recovery and fiscal uncertainty are not investing their capital. back to you. lori: thank you so much. melissa: beating the street on first-quarter income. jpmorgan and wells fargo reporting a drop. demand is slowing. could this have a major impact on the banks going forward? joining us now is jim sinegal. thank you for joining us. what do you think about this trend and does it continue? >> yes. you know, i think it was something that was not unexpected. rates have been low for a long time. banks have been benefiting from high refinancing margins. there is not a l

tomorrow, big earnings out of a couple of big banks, wells fargo, jpmorgan, what's the forecast? >> a little concern about what we'll see from the banks, for two reasons. one, interest rates still low and bank's number one business is lending. lending at a lower interest rate, you make less money. we are concerned about that. and the other concern, they are making money off the mortgage boom. a lot of people refinancing the mortgage. analysts are cautious about what we'll see from the banks. >> thank you for being with us. >>> still to come, the big gamble maryland is taking to improve finances. a look at how treasuries fared today. >>> hundreds of good-paying jobs, millions in tax revenue for city and states and the chance for people to win big. no wonder more states are building and opening new casinos or allowing existing ones to add live table games, like the one outside baltimore did earlier today. will maryland's big gamble pay off? eamon javers has the report. >> reporter: there were winners and losers on the first day of live table gaming in the baltimore suburbs. table g