todd, first talk about zion. they didn't pass.d before, bb&t didn't pass last year and it's a pretty solid bank, right? >> right. it's a pretty solid bank but what you have to keep in mind there is significant amount of concentration risk within the balance sheet of zion. it is overly concentrated bank with commercial real estate, that leaves it exposed to some of the stress scenarios fed laid out. david: i see. >> interest rate scenario and stress on underlying asset classes within the commercial real estate sector. david: it is interesting. after-hours the stock is virtually unchanged. bid and ask after-hours. investors are kind of shrugging it off? >> that's actually quite surprising. the stock has been very strong so far this year. obviously the banks rallied very hard into the close on some optimism with the stress test today. and, but, i, i really think that zions, you will see weakness in the stock tomorrow. very disappointing numbers coming out from them tonight on all fronts. david: now we had john allison yesterday. i'm

zion's. goldman saks, jpmorgan chase, wells fargo and bank of america. goldman and b-of-a just resubmitted plans in the last week to meet one key financial ratio demanded by the fed. they will be returning less to shareholders than they originally proposed fed officials said. to be clear the fed did not reject the plan for citi and three foreign firms for lack of capital but rather for qualitative subjective reasons, such as risk management and risk measurement practice. the fed said citi was weak to project revenue and losses in its global phrase only zions did not get approval among those five because of weak capital. the officials that got rejected, have 90 days, must within 90 days resubmit their capital plans to the fed. zions already announced it is going to do that the fed reviews the plans to make sure after dividend and stock repurchases the bank will have enough capital to survive and continue to operate in another financial crisis and deep recession. it wants to make sure taxpayers never have to bail out banks again. david and sandra. sandra:

zions bancorp. it's going to shrug off this. zions. >> shrugging, we'll see. i'm melissa lee.for watching. we'll see you again tomorrow at 5:00 for more "fast money." "mad money" with jim cramer starts right now. >>> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cray america. i'm trying to make you money. my job is not just to teach you and entertain, also to educate, so call me. leadership matters. and right now this market is being led by the two largest sectors in the s&p 500. the financials and the

bank of america zions, two of the more standouts. >> zions coming in at 3 1/2%. needs to be 5%.ank corp. up 10% even know it failed the stress test. a, the market is saying i'm not a huge problem. b, this was a super-duper stress test. what they said is if housing prices in the stock market essentially fell by 50% in two years, could these banks withstand it? >> the failure of zions was not a surprise. they knew early on they wouldn't be able to pass the volcker rule. people knew there was something up. the bigger banks question is we've seen massive runs t in the names of bank of america for instance, citi, citi undert underperforming the rest of the sector. it is the next catalyst going to be whether or not these banks actually raise the dividend by the expected amount they are supposed to raise the dividend by. i mean, the steepening yield curve, that's great for the banks. we knew that was going to be in the cards. that is longer term catalyst for these banks. more immediately, will they announce capital return plans that will meet investor expectations? will that be able to

but let's bring in regional bank zions.ns did not meet the central bank capital requirements becoming one company that failed this year's round of stress test. i want to give you a look at how zions is performing. certainly the stock gained over the last year. the company has been improving as far as shareholders go. according to the fed, zions still has work to do. they will fed and treasury. the stress tests are certainly capping off a positive week of news for the financial sector. they are benefiting from fed chair janet yellen's statement signaling interest rates could move higher over the next 12 months. that is something the financials will watch. we want to keep eye on the market as well along with the banks today, adam. adam: cheryl, the united states is back in fitch's good graces. the ratings agency taking america off watch negative reaffirming the country's top aaa credit grade. blackrock says investors should turn to muni bonds over the government's debt including 10-year treasurys. he joins us now. peter, are.

terra data, zions bancorp and jpmorgan with some pretty significant gains on this up day with zions bancorpup better 4% and jpmorgan is up 3.5%, ty. so we'll see how it goes into the close, but they seem to be rethinking the fed speak of yesterday. >> this is what i love about the market. yesterday they freaked. take away 100 points, today, 100 points back. it's like it never happened. >> that's right. >> that's why we love mr. market. >> that's right. that's why we love being down here on the floor of the nyse. you never know what's going to happen. >> you never know. all right, sue, come on back. it's the first day of spring. that'll do it for this edition of the thursday "power lunch". >> "street signs" begins right now. have a great afternoon, everybody. see you tomorrow! >>> well, the dow reversing yesterday's losses and then some. but the big story right now, a possible breakthrough in the search for that missing malaysian jet. >> indeed, these satellite images taken by the private sector american company digital globe could be debris from the plane. phil lebeau has been following thi

. >>> ay, mamá, la música corre por cuenta de zion y lenox. >>> bienvenidos a despierta américa. >>>nera de comenzar tus mañanas ♪. ♪ porque américa despierta a puro corazón ♪ ♪ américa despierta a puro corazón ♪ ♪ cada mañana despierta con nosotros, tenemos las noticias que tú quieres saber ♪ ♪ con los deportes, amor y mucha diversión ♪ ♪ porque américa despierta a puro corazón ♪ >>> cómo dice (gritos) (aplausos) ♪. >>> sí, sí, sí >>> a puro corazón ♪. (♪ ♪) >>> eso es, señores, muy buenos días, hoy es jueves 27 de marzo del 2014, como ustedes saebn vamos a comenzar una mañana llena de emociones y cosas en despierta américa . >>> cómo están ustedes. >>> claro que sí, como ven, lily y nuestro hermoso kevin están con nosotros . >>> cómo estás, kevin. >>> hoy kevin le enseñará a bailar a alan tacher . >>> el enseñaré a bailar merengue, salsa y un poquito de reggaeton . >>> todo eso. >>> sí. >>> mira nada más. >>>c uídalo mucho. >>> pobrecito. >>> sí. >>> lo único que te puedo decir que una vez estuvimos una semana completa para enseñarle, y no se te hará fácil. >>> pero es un excelente

the only bank that didn't pass was zion's bancorp.tress defendant in just a few minutes. >>> australia now at the forefront in the search for the missing malaysia airlines jet. prime minister tony abbott said the search is focusing on debris spotted in the southern indian ocean by satellite imagery. that area is extremely remote. but if there is anything there, he says they will find it. >>> fitch and standard & poors put russia's outlook down. >>> mary barr will be testifying on april 1st. before the house energy and commerce committee. the panel investigating the automakers recall of faulty ignition switches earlier this week released a video statement of barra declaring something went wrong with our process and terrible things happened. 12 deaths have been linked to ta defect linked to the recall of 1.6 million vehicles. >>>ative niz earned ee ee ee ees missed estimates about i anickel. revenue slightly below estimates. it guided the current fiscal year below wall street forecasts. despite the miss, the company said it was prout of

zion's bancorp was the only one that would have less than the projected necessary capital by the endls stress that zion still has time to fix this situation through its capital plans. it has been struggling with some of

during sentencing, they plan to show evidence that torrez also brutally stabbed two girls to death in zion. laura hobbs and her friend, krystal tobias, were found dead in a park in 2005. police say torrez's d-n-a matched evidence recovered at the crime scene. but he remained free for five years while police blamed the father of one of the victims. authorities say torrez murdered the sailor while the father sat in jail awaiting trial for the girls' deaths. francis cardinal george returned to the altar for sunday mass after his week-long hospitalization for an infection brought on by his cancer treatment. the cardinal held onto a fellow priest for support, weakened by chemotherapy and the stomach infection. at the end of mass and outside greeting worshippers, the cardinal gave thanks for the many prayers from chicago's catholics. >> it's easy prey for other people i find. i count on others to pray for me. that's what it means to be a family, a community of saints. i know they dupree. i get messages and phone calls and letters and people who really pray for me. i'm grateful. >>the cardinal is

. >> a 38-year-old reporting missing sunday crews recovered his body in a remote section of mount zionational park. officials say mae may have leapt to his death. >> one man had to be air lifted to a burn center with serious injuries after a fire swept through an apartment building this morning on murietta boulevard. take a look at the cell phone video. you can see flames spitting out of the upstairs yun >> we were asked to leave. you can see flames coming from the building. >> we had burns and the concern is respiratory burns which can be very serious. >> the engine man hid before telling firefighters he was hurt the witness says the man had been drinking. investigators say the fire started in the man's unit but appears to be an accident >> police arrested six people in one of the biggest baggage thefts in the history of los angeles international airport. they targeted 25 locations in los angeles area. most were employees or former employees >> facebook ceo mark zuckerberg giving insight into a plan to bring internet connect activity to those who don't have it yet. this shows one of t

zions could each more stock to meet the guidelines. discovery financial, a credit card company, made an early announcement that if the fed doesn't object, it will hike its dividend and aim for a $1.6 million buyback. wells fargo bested its peers with a tier one common ratio of 8.1%. this year's exercise saw even stricter hypotheticals, where equities were halved, housing prices fell 25%, unemployment topped 11%. asia saw sharp slowdowns, but treasury yields spiked and litigation costs multiplied. even with the added difficulty, though, bank balance sheets performed better than in years past with fewer bad loans that would potentially default. if i fed officials said that's one of the biggest signs of confidence the tests are working. for now, we'll send it back to you. >> jason oh connell is still with us. jason, what do you make of this trust? we know the six major banks have a past, not all of them with flying colors, but we still don't know how much they're allowed to pay out dividends in shares and return money to shareholders in t

. >>> citigroup, zion's bancorp and the u.s. units of hsbc, rbs and santander as part of its annual stress tests. citi's plans were rejected for the second time in three years. citi haven't made enough progress in improving its risk management and control. in a statement, the ceo says he's disappointed. citi will stay pay a 1 cent dividend and continue its $1.2 billion buyback. it had asked to raise the dividend to five cents and the buyback to 6.4 billion. as for the banks, payments will be limited to last year's levels. the fed made bank of america and goldman sachs pay back their captain plan. as far as the shares of those individual banks are concerned, citigroup down in frankfurt. bank of america, goldman sachs down. hsbc and rbs off 1.24%. brian, what do you make of the restrictions on these banks and their capital plans? >> i'm actually very pleased to see this. because it demonstrates that the fed is indeed taking the need to recapitalize the u.s. financial system seriously. the fact that they failed five banks, includin

zion road. two had to be -- it took police several hours before they could reopen that stretch of highway. >>> d.c. police need your help to identify the man who sexual assaulted and kidnapped a woman in northeast. the attack happened around 11:00 in the morning last week, and investigators say the suspect is in his 20s with a slim build and a dark goatee, anybody with information about his whereabouts should contact d.c. crime stoppers. >>> tonight police are searching for a man who shot a convenience store clerk in the head. derek ward discover the clerk is expected to survive. >> reporter: it was quick, without warning. >> there were no adversarial interactions between the two. it was a surprise to her, i think. >> reporter: she was shot twice in the head and she secure vifed. >> we do have some good screen shots of the system's face, so we're hoping that we'll be able to identify this person in short order. >> reporter: the video can't show how devastating those shots were, not only to the v

and one hike in particular, in zion, this hike called angels landing.r heard of -- any hikers out there heard of this hike? [ applause ] thanks for humoring me. [ laughter ] >> seth: i'm going to talk to you guys after the show, and you better be genuine. >> it's amazing. it's beautiful, but you do like that strenuous push of the hike, and then you get to the top. and the thing that's really special about this hike is you go along, like, to the precipice, you do sort of the grunt work, and the precipice is like a knife edge. it's like you're on the top of a ridge, and it's just a drop off either side, right? and it's spectacular. and people come from all over the world to do this hike. so we do all the drudgery, like, six miles up, and it's hot, and it's in the desert, it's 100 degrees. the kids were amazing. we were there a 6:00 in the morning. we finally get to the beginning of like the really cool, stuff, you know, scary stuff. >> seth: right. >> and i started out, and there's like -- there's chain that you can hold on to, and then it's a 45 degree a

this is a church at mount zion. the windows are shattered and the store fronts have been shattered and glass all over the sidewalk here. we have witnessed a courtyard behind this and there is a playground that is covered in shattered glass, screens blown out of windows and, also, the firefighters are on top of the pile of debris and they are fighting this fire. they are going through the debris, brick by brick with mothers walking out of here with little ones if their arms, towels wrapped around their faces because of the thick smoke. that is why we must wear these masks. a developing situation here. two people are dead. many others are injured. >>> f.b.i. agents are searching hawaii moves big island on information that a suspect if a series of bombings in the bay area in 2003 could be hiding there, an animal rights activists and one of the most wanted terrorist fugitives and a quarter billion reward for the berkeley native who is behind two bombs that exploded in august of 2003 at an emeryville biotech company. he

zion's, metlife, charles schwab.r on our screens, on our desk right now and as mandy points out they are the best performing sector. >> yeah, they are the best-performing sector. what's the worst-performing sector? it is utilities, brian. and i think bob pisani has been really sort of mentioning a lot lately that interest rate-sensitive sectors like the utilities, like reits have been the best performers this year. utilities is the second biggest gainer on the year. today in terms of what we're seeing in terms of the reaction of the s&p has come back a little bit after the statement here. utilities, they're an interest rate sensitive sector. it is down by about 1% as we speak. >> again, here's where we're standing right now. i know, mandy, we took a turn. you know what's going to happen tonight. you know what's going to happen right now. and what's already happened, by the way. speculation of why the market took -- it didn't fall 300 points. nobody's out there -- >> we have to come back a little bit with that digesti

only zion bank coin, salt lake city, failed, the fed saying the banks are in much better shape than they were five years ago, mika. >> what about this other story that we have here, online home rental company air b and b got a $10 billion valuation. is it a real threat to the hotel industry? i hear great things about it. i've also heard some interesting stories on the other side of this. >> yeah. you and i are in the wrong business. we should be setting up some kind of digital sharing economy website because the latest round of funding values them at $10 billion, which is phenomenal when you think the hyatt group is valued at 8 billion and it has revenues in excess of 4 billion. right now airbnb, lots of investors seem to want to buy in in financing this business. is it a threat to the established hotel industry? not at this point i wouldn't have thought so but it's worth keeping an eye on. look at google. yahoo!. who knew? back to you. >> another case, the guys around us, i think they're 30, jeff. all right. it geoff cutmore, thank you. >>> what a day from march madness. we'll show you

the o r train being zion on tuesday e pool and there were i a k a and iron. on the top of all time the mi him. well no matter where the irish diaspora had to be is here in manchester are in london. i mean the mary kay many are awesome and she tied up our recently to china did our sydney an australian team never never forget it's there in mesa county roots and its allies at the lancaster county with groans runs across some old . glad to me on the soaps our house and force other annual dinner he's not. marcella wilkinson is the president of the mailbox as to associates in two giants me now marcella starts off when done it's a fantastic achievement to get out of its three hundred people. i think davis is in a lead at the politics in the sweet cakes and cakes. it cannot be named said seats and six. he concedes nice emails asking for thoughts. you are one hundred to meet msm. the two teams meet me at times. at sixteen hour and since nineteen seventy. and say anything. that's heidi's since me with a sydney or any county addicts. post run of the male community stand

we start with number 10, zion's --k or am i the only lender zion's bank or per and -- thanks corporationto fail the risk task -- tests. >> number nine, discover financial. he proposed a 20% dividend boost and a $1.6 billion stock buyback. they have benefited for more rapid loan growth and an 11% gain in fourth-quarter profit. >> number eight, wellpoint, the health insurer, with projections still below estimates. they expect to add one million new customers through the exchange is up by the affordable care act. >> number seven is nike with third quarter profits and sales that topped estimates, but signaled momentum may slow. the strong dollar might hamper revenue abroad. >> time warner cable's ceo is set to receive a severance comcastone -- when the agreement to buy the company is successfully completed. the other senior managers will get a big payout as well. rdenumber five, da restaurants. it's red lobster chains continue to struggle. they backed a plan to spin off dreadlocked there. four, blackberry. they agreed to sell most of their real estate holdings in canada, getting more cash fo

zion. the ants made by european club president mark chilton the knesset recently starred on to the city causing his decision to deliver a speech in jenin silly as this goes on top of a dispute over the eu labeling is really blessed by products of the injury a difficult time. the eu israel relations well i think ahead to use with medium for timmy to know this because the vcd so that the team checked you know the facts are built into the trees just west of the water distribution logo between the eastern end of credit unions signal. and i can get as close to the facts has to be checked. the single sold you get a reaction. what additional cities are aware of. the every year i would see the pretty sure you know because he did. president roh says. is it the stronger families and jolts particularly came under fire the highlight the alleged water consumption allowances of israelis and palestinians that influential foreign affairs committee chairman and the pmo broke has come to the president's defe

shake in fact the line of china to welcome what the world sees now is a peaceful meal called civilized zion the uh the uh the uh. oh lord also spoke with the haunting strategic cooperation and a new hero in the short odds. the two presidents also attended a concert to mark the event earlier on thursday present ceiling meets at the tomb of the unknown soldier. he also met french prime minister joan walk i wrote french national assembly speaker called buffalo and senate president tom pm now. bronze is the second stop on season things european tour. he will next head to germany and belgium. in a cctv. also on thursday president shooting pain visited the headquarters of unesco the united nations educational scientific and cultural ties nations in paris he became the first chinese president to pay such a visit and deliver them to start speech at the headquarters which a child takes up that story lazy desk i'll play toast to the first ever chinese president to the sixty s at the gas the uh uh uh. his speech at the headquarters in paris. doesn't she seem appealing spoken lines and helping put into

zion. either that or a seasoned residents of miami is most famous resort galloped to a divided about the impact a referendum biting the region to russia will have on the tourism industry crimea is known for its poultry and seafood but the thoughts and rocky hills that it is often self sufficient. it is subsidized by the government and the pens on ukraine fruit salad cheese tea drinking want to owe much of its fruit yeltsin known as the jewel of crimea has always been one of the favorite tourist destinations amongst russians and residents of the former soviet union in nineteen forty five soviet leader josef stalin british prime minister winston churchill in u s president from henry's about matt for a story conference. but city of two residents are worried that the marks. when that might change the fortunes of the peninsula after all i need depends greatly on tourism. i am going to be in the new weekend. the sierra i think there will be an aunt to me new toys. but none the less thank all thos

zion bank didn't reach the tier one capital environment. it says it well come up with a new plan to raise the necessary capital. >>> hewlett-packard upped its dividend. the tech company's board approved a 10% hike and the increase is expected to start in may. separately at the company's annual shareholder meeting yesterday, ceo meg whitman hinted hp might enter the 3d printer market in june. shares of conagra foods maker of ketchup and healthy foods surged. but its packaged foods company continued to struggle and sales just missed wall street estimates. still conagra shares were up 20%. a jump in home deliveries and selling prices, earnings jumped almost 35%, revenues surged 38%, but the home builder said it's still too early to predict the strength of this selling season. >>> and arkansas court tosses out a $1.2 billion ruling against johnson & johnson. the lawsuit accused the drugmaker of improperly marketing its anti-psychotic drug risperdol and concealing its risks. the judge overturned the ruling saying the law didn't apply to pharmace

there was supposed to also was hard work was recently recognized in a ceremony and reception at mount zion hotel in jerusalem. he was awarded the inaugural social entrepreneurship award given jointly by the astor foundation in hebrew university. you can be to enable you need your begun to lose it to go to the boy. you just do need to know what you're going and you will need ongoing you'll agree wind nm will . i am the company seeks all ratio in this week's missile didn't bother going off to spend a lot of it. a vindictive ingalls rink united states

♪ the zion is the act of taking andthing usable, practical needed and making it into an enjoyable, culturallyesign is the act of taking something usable, practical and needed and making into something enjoyable and culturally grounded. people tend to look at design as a style. a vision. it's a lot more than that. it's a visceral experience of how it's made, the material is, how well put together the object is. it's way beyond the visual. i love these moments where suddenly things click and you a very complex problem sorted out. we have this intuitive feeling that this is a great idea. the second moment i like is when something we do really changes the way a company or an industry deals with technology. there weredays, designers and engineers and designers were supposedly the superficial types and engineers were inside out. today, things are mixed up. designers are very savvy about engineering values. we make things simple, clear and looking awesome. >> you can watch our design series all week right here on lunch money. we have a technological marvel for divers. this thing is in kabul. a suit

meanwhile families the boys to deccan sons of zion tea. we are printed on demand or wash on our left. i can't sleep each night because all i think about is myself. up until now what else can mean to you. this is about his life. there's nothing you can choose how we can only wait for further updates. i firmly believe that my son. together with everyone on board. we'll all survive. how did the investigation into long process that can about the house and as the five days. malaysia's defence minister has given an exclusive interview to see ctv news. think about those families to force myself to be online when conditions are they the helm and ntuc your father and son and husband to sell it if that was. o family i would use of fuel right now. when i try to feature against it because this is the most difficult thing for me. true face. the more sensible than three percent my eyes really feel for them i read to them. and i bought my children with me according to court and pool i couldn't hope to have something much more to come and i'd prefer that

zion . u s fisheries authorities had been prompted to slash catch limits this on teens bowling ecp decline in numbers of the fish along america's when skies over the last few months. some fishermen in california say that in recent weeks they've had to return to port without a single facial waste every day and many of them have been forced out of business. you gonna do now. that is true that scientists say it's sunny and populations to recover soon it when just the fisherman who suffer with the west caesarean mammals and sea beds to eat sardines. also at risk. a recent series of sea lion dance off the coast of california is suspected of being connected to the disappearance of the oily fish. some scientists believe that the reason for the saudi population decrease is the presence of strong cold cold conditions which of course the fish migrate elsewhere however that may turn around to see a scientific models awful costing a little waltz is the twenty fourteen. a bill on a disney resort island o

it looks like zion's is the the capital missed level.se met it, but they now have a week to resubmit that plan, and there are discussions back and forth between the fed and the banks in this ensuing week. next week, we find out if any of these banks return capital to shareholders after they get the rubber stamp from the federal reserve. >> here's the thing -- in reality, if you had another 2000 a situation -- >> it would be more stressful. >> it certainly would be more stressful. >> this is a slightly stressed test. >> i mentioned there are 30 banks this time, so there are more, but interestingly, they use independent projections of balance sheet and risk-weighted asset growth. the got independent numbers, and they also are looking at counterparty losses, so that could be viewed as another improvement. they include an estimate of viewed ift could be the largest counterparty falls unexpectedly. >> most likely, the federal government would be there in the argueof 2008, so i would all these banks are still in the situation where that whole

zions did not. trading down a little in the after hours. roughly 1%.ames have all been big movers. look at old-school tech here. i'm talking microsoft. when was the last time microsoft was up 3%? i think what's going on here is these tech stocks are growthy. if you get higher interest rate environments, generally that's associated with more growth and you're buying into them. also, a lot of these soolder, my r speculative internet tech names might be played out. >> what if people here are rotating from consumer plays to enterprise plays? do you think that's part of it? >> that could be a little bit too. i want to note, the semiconductor index just broke out to like a 13-year high today. that's a one year. you got to go back to 2001 for a breakout. those are technically significant. the other thing i want to point out is remember what our leaders this year, health care, biotech. they had been a little bit weak recently. i think people are using those gains that you've seen in biotech and pharmaceutical -- there's etfs for both of them to -- for a source

zions is a loser.hat is not really what the feds are supposed to be doing. >> it is worth noting that what the fed said about citigroup with their reprise has is that they asked the bank to fix in the last year that were not there is you know, some kind of picking winners and losers and some randomness here, but to some degree, the banks did not fix what the fed told them they needed to fix. >> i mean, let's not forget there are some winners here. 25 of the 30 banks iddid pass. permissionrica got to quintuple its dividends. wells fargo even, which you might argue, paul, was among the best position banks going into the stress test them without permission, -- stress test got permission. if we were to turn the argument upside down, can we say on the basis of the stress test that by and large american banks are pretty darn healthy and should be able to return as much capital -- >> the banks are very, very healthy. it is mainly driven by the liquidy that is provided by the banking system into the u.s. econo

the final bank that failed, zion spang corporation, everybody knew they were going to fail the had someusehey derivatives that had to be marked to market. once they sell those off, that will put them above stress test levels. >> last week, it was about tier one ratio. how much capital do you have? this one was about how you assess the risk to the capital. news for you get good the wrong reasons. that appears to be the case for today's economic data. what went wrong? >> gdp was retired -- was revised higher. we were spending more, but we were spending more because medical costs rose, not because additional money was being spent or people were expanding their spending. that was not particularly good news. ,orporate profits were higher and not only that, they were getting better at a faster rate in the fourth quarter on a year-over-year basis. that's good news. mckee, thank you. in other economic news, fresh signs of continued week this in the housing market today. daren bloomquist is a vice president at realty trac. he joins me on the phone from irvine, california. thanks for your time. eigh

>> it's a question and you saw some issues last week with zion bancorp.ur belief in looking at this is there 12 new freshman and they are not going to get a pass when it comes to what they are asking for, but they may be more lenient in the qualitative process because it's their first go-round. i would suggest those banks in that for the first time are going to be a bit more subdued in what they asked for until they get their sea legs in the process. i would not expect them to ask for leaps and bounds in terms of what they are paying out, so they will be ready conservative. >> dan ryan, the head of price waterhouse coopers says the average cost for a bank to run the stress test and prepare a submission is $10 million. am i missing something here? how did an investment of that size help to reduce expensive -- expenses, which is what the bank wants? >> and it's going to go away anytime soon, especially the larger banks and increased costs tied to the regulatory process or just the overall regulatory process when it comes to the bank secrecy act or anti-mone

zion in utah, owe lick pick in washington -- olympic in washington. the statue of liberty. that's a few. then last week i had the opportunity to backpack for seven days in what is the best known and most visited, 4.4 million people last year, the grand canyon of the united states. in 1908 republican president teddy roosevelt granted national monument designation for the grand canyon under the antiquities act and all but two presidents since then have used this authority. at that time it was critical to protect the grand canyon because tremendous development was being proposed both for tourism purposes and for commercial uses and mining and other issues. so that was an extraordinary step that that president took back then. why would we turn back the clock? why would we strip this president or future presidents from having this authority to preserve and conserve national treasures? when they are indefinitely stalled in the morass of congress. it was dysfunctional for different reasons back then. but just as dysfunctionaler to more dysfunctional today than it was back then. th

salt lake city based zion only bank that came in below fed's capital 3 37threshold and faile. >> joiningwith his outlook on the market is steven whiteing, global chief investment strategyist for citi private bank. in what we're watching so much additional volatility to any period i think of 2013. is this going to be a signature characteristic of this market for the year? >> it would be amuseing if it is, the dips have been getting smaller and smaller in the market s for the last 5 quarter, volatility, is priced in the options market about half of long-term average. so, the typical interyear creation as recently as years 2010, 2012 averageed 12%, we had 6% or less at beginning of this year, and clue ou throughout 20i would be careful. lou: not as risky yet wireless ending to so many analysts, and strategyists, in the equities market start to talk about this is the time for caution we've exhausted the bull, we're in a fifth year. we're looking at earnings that disappoint some analysts. others are glad ended by what they see a nit 1% gain in the latest quarter. makes sense of it for us, giv

myself ad not call zion asked. >> are you in that organization? >> i'm an advisor.they were looking for someone and i said yes. always been has not clean. are they a terrorist group? no. >> when we talked about freedom fighters in the difference between freedom fighters and terrorists, someone mentioned the revolution. i see the difference as being whether they attack military targets or civilian targets. do you see that? am i correct? at what has blunted in october 1980 three. they went to the marine barracks in beirut and had two truck bombs. the targets were military but the incident would still be called a terrorist attack. >> i have time for one more question. did we get everybody? right up front. thank you for being with us tonight. >> i have some of your radio speeches and i'm surprised. i know you raise the question of qaran motivating terrorism and all of that. at the same time, you have been mentioning osama bin laden -- the >> we are having trouble hearing you. >> osama bin laden is an individual. he is not a prophet. he might be following the religion of

but on a practical level, he kept acceding to, basically, what the zion u.s. movement wanted -- can zionist movement wanted. that's truman. now, what can we say, finally, about him and about his decision? on the practical level, truman really had no choice but to recognize israel. the only way conceivable in which he could have achieved a federated palestine or even a different kind of partition in 1947 was to have agreed to send american troops to palestine to enforce an agreement. there was just in other way. american troops would have had to replace the british, they would have had to stand between the jews and the arabs, they might have had to stand there for a decade, maybe they'd still be with there, for all we know. truman was absolutely not willing to do that. in 1945 he wasn't willing to do that was america was demobilizing from the war. 1948, berlin airlift middle of cold war, worried to death, completely beoccupied by -- preoccupied by europe, not by pal student at that point. -- palestine at that point. and completely unwilling to contemplate sendi

zion's either, regional banks eastern. >> sydney down almost 5.75%. >> all banks down, insurance companies, people are getting used to higher rates, not great with a yield curve. and 3 on ipos. talking about king earlier's three ipos today all up double digits. tremendous relief to the ipo market. >> sure is after yesterday. >> king an anomaly. not like the whole ipo market is lousy. the problem with king. a very different way of interpreting the ipo market. >> bob pisani, thank you. see you later in the show. >> ty, up to you. >>> it's been the gold standard for credit cards for a long time, but is american express' platinum card losing some of its luster? the big changes that cardholders may need to know about. >>> plus, after decades of sanctions, cuba now open for business in a big way -- or is it, michelle? >> making big changes to invest law, tyler. encouraging some, maybe, but is the money going to roll in? i don't know, homer. discuss that right after the break. >> doh. be right back. ight back. real estate in hong kong, and the optics industry in germany? at t. rowe price, we unde

the zion bank failed, we knew it would. also, three units of foreign banks.ere denied the right to pay more capital back to their parent company. the fed's criticism of those banks, nothing short of withering. >> we are going to leave it there. erik schatzker, michael mckee, thank you so much. we are taking a very weak break. back with more "be smart" after this. ♪ snoopingt a resolution, lawmakers averaged a bipartisan deal stockpiling some records. now it is time to get the president on board. we spoke with mike rogers, chairman of the house intelligence committee, and ranking member, roos berger, yesterday. they said they thought they were closer to a final deal. take a listen. >> the administration is taking a move towards our position. we have been working with them on language that we have worked out over the last nine months. i feel confident that we will get -- that this will be the rally point where we can come together and say that it ends the government holding the metadata phone records that bothered a lot of people with a way for it to protect am

you cannot say enough about the new the zion.t smarter by keeping bloomberg view frequently in front of your eyes. peter ortzag writing up a storm as well. >> breaking news. progress on the men's wearhouse just of a bank merger. on non-disclosure with joseph a bank. entering the disagreement -- entering this to enter a deal. men's wearhouse said it welcomed the offer for do did salute -- to diligence. maybe we will have some kind of resolution in the near-term. >> data check. futures -20. they were bad and got better and rolled over again. -20 on s&p futures. oil is one nil -- 104.57. >> what is president obama's next step as he looks at the situation in the ukraine? tweet us @bsurveillance. ♪ >> good morning, everyone. bloomberg "surveillance." i'm tom keene. futures -20. dow futures -146. >> at the oscars yesterday. slave."s a best supporting actress for her role in the film. in terms of which movie ran -- one that most number of oscars, it was "gravity." it started sandra bullock as an astronaut who is left floating in space.

only zion's bank corps based in salt lake city posted levels that are below the fed standard. >>> "theobe." air b&b is on track to become one of the most valuable start-ups. industry insiders say the company is in talks to set a $10 billion valuation just for your information, we had the ceo here. i think i could have been his mother. just saying. the online service allows people to rent out their homes to travelers. the valuation is more than big name competitors like hyatt and wyndham and shows the great people in our force have great ideas. >> not that you own anything and everybody rents things. a different relationship. >> it's a smart business idea and it is paying off. >>> "usa today" law in hawaii that allows undercover police to have sex with prostitutes. >> excuse me? >> sex with prostitutes. the honolulu police stepped back on the law that cracks down on prostitution. they fought to keep an exemption for undercover police officers to have sex with prostitutes. they say it's needed to catch them in the act. it goes before the hawaii senate this morning. i think that one is an

chris, we should mention that zions also didn't do so well through this review.h, is $80 billion across the industry that will be returned according to some estimates to shareholders during the course of the year. where do people go as an investor? what catches your eye, chris? >> well, you know, for the most part the capital returns were roughly as we expected. and i think the industry is normalizing. and i think relative to the market, the bank stocks broadly are still reasonably priced relative to the market. the only one that is really really cheap is citi. but i'd also say, you know, we think jpmorgan is attractive. capital one. discover. and cit, those would be our other key names. >> good to see you both, thank you for your analysis. >> thank you. >>> we're watching shares also this morning of lululemon as you can see moving higher here after the conference call up almost 8% after the company reported mixed fourth quarter results. stock has been swimming around all morning. here fresh off the call joining us sam poser. senior research analyst at stern a.g.

zions bank was the only fail. >>> breaking fluz right now along the jersey shore. a raging fire at a seaside motel in point pleasant beach starting before sunrise this morning. now with the sun up, we have just learned that three people died in that fire and three more were critically injured. investigators are now sifting through the rubble. we will stay on top of the breaking story happening in new jersey. >>> a staggering new report showing just how serious california's drought is. 99% of the state is under at least moderate drought and nearly a quarter of the state is at the most extreme level. forecasters say an active wildfire season is likely. >>> and in southern california, a heroic effort overnight to save a police dog. bruno was shot and wounded in the line of duty yesterday after sniffing out a suspect. doctors worked on him all night long with the bullet just an inch from his heart. the six-year veteran of the anaheim police force, though, is expected to recover. we're excited about that. best wishes to bruno. >>> finally, plenty of march madness drama

nobody was hurt there, but at utah's zion national park, three b.a.s.e. jumpers died in the last two months alone. the third body recovered just this tuesday. for "good morning america" gio benitez, abc news, new york. >> thank you for that. >>> we turn now to a colorado 9-year-old who shaved her head as an act of solidarity for the friend who's battling cancer. her school's reaction? to ban her from the classroom for violating their dress code. that obviously sparked a wave of outrage. >> reporter: they are best friends who do everything together so when she lost her hair to cancer -- >> i got treatment called chemotherapy and it makes it fall out. >> reporter: cameron ren fro decided to shave hers off, too. >> since she was my best friend, i decided to shave my share because i didn't want her to be the only one. >> reporter: but this little girl paid a big price for her bold move. >> i couldn't go to school because of my shaved head. i wanted to share my story but they didn't let me. >> reporter: cameron's colorado school has a dress code in place that

zion's didn't meet the minimum threshold so it faces a unique challenge and cannot return capital. and santander, the fed had quality issues for the way they were planning. the issues were different for each bank. fed officials acknowledging significant issues at the u.s. subsidiaries of those foreign banks but acknowledging it was the first time going through the process. citibank will be the surprise to the market. the shares are down nearly 3% falling off a cliff after hours. the fed said citi is a different animal. it had issues raised previously by regulators it didn't fix and important to note, citi can still issue dividends and buy back stock, it just can't increase those amounts just yet. all five banks with those objections we should note have 90 days to resubmit the plans. for the other 25 banks we don't know whether they will increase their distribution or by how much. we just know the fed would allow them to do that if they wanted to. they will disclose that throughout the afternoon. an interesting tea leaf to read, investors could be disappointed by what they see from

zion bank was the only one not to pass. about. ikea is recalling seven different models. the retailer says there's a risk of strangulation but there are no reports of any children getting seriously hurt. customers did complain the canopy nets were pulled into the cots and becoming entangled around infants' necks. ikea will give full refunds to customers who return the products. >>> starbucks planning to turn more of its cafes into beer and wine destinations at night. the company is looking to expand alcohol sales to thousands of select stores over the next several years. the chain first offered beer and wine after 4:00 p.m. at one of its seattle cafes in 2010. this is part of starbucks way to boost sales after the morning rush. what do you think, would you wander in there for a nice glass of cabernet? >> it's mixing two things. i don't think so. it's already in 40 stores now. it'll be in all of the starbucks cafes. but i don't know, i think starbucks is a coffee place. would you go? >> it depends on the city or the town i'm

standards but in addition to hsbc, santander and zions were rejected each for a different reason. 25hough not all with flying colors. they did announce a boost to dividends and buy backs. goldman sachs and bank of america planned to give back more than the fed actually allowed them. the fed placed new restrictions on them. they had to resize those plans based on the fed's stringency. b of a says it will announce a $4 billion buy back. morgan stanley doubled its dividend an initiated a $1 billion buy back now that they have finished that acquisition of smith barney. citigroup, the only big bank to get rejected second time in three years. it was a huge surprise to the street as we can see by the move in the chart of citigroup after hours. it's now down by about 5% premarket. analysts expected citi to have the most upside after years of lackluster returns. they put a lot of faith in the new ceo and some of the priorities he put in place there. the fed said citi hadn't done a good enough job assessing its own internal risk. and it needed to go back to the drawing board. that was a $6.4 b