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Diving More Deeply Into Diversity
"Welcome to this special episode of. Yeah that's probably an ad. I'm coat m. your community editor and this week is a really special one. We have some inspiring guests in our room with us as it is black history month and as we continue these important conversations about race racial injustice social justice within our marketing and advertising communities so I'd like to introduce jason. Rosario who is chief diversity equity and inclusion At bbdo worldwide gabriel director of global diversity and inclusion at abercrombie and fitch company and jasmine cruise brand manager at beach. La and head of marketing and brand strategy at in her shoes movement. Thank you so much guys for being with me today I have excited to chat absolutely so before we kind of dive deeply into the conversation Let's start with jason Tell us more about kind of what you do. And what you're trying to do such a question i'll try my best to answer it as distinctly as possible. But i think i'm a jack of many trades but specifically at bbdo. My remit is to lead a global diversity efforts across the network on an enterprise level. And so what that means is to. My job is to figure out how we might be able to apply inclusive principles to every aspect of the organization from recruiting and retention and partnering with hr on kind of core cultural diversity equity inclusion initiatives. All the way through to pot a week rate more inclusive representative Client output in. How do we advise our clients to think through these lenses if you will so Broadly speaking that's my role Outside of that. I'm an advocate for a masculinity in mental health I started a or launched. An agency called the lives of men which uses the conversation around modern masculinity to explore. has implications on diversity equity and inclusion allied ship and the intersection of those conversations and mental health. So that is a sickness. I can put it Thank you for all that you do in the various spaces that you're a part of What about you gabby Where are you at with this new gig in terms of What you're trying to do within nf yet. I've been A diversity equity inclusion blinding practitioner for the last ten years in really this new hampshire with. Nfl has been really really exciting. discussed really the more fascinating part to me In having an opportunity to lead the effort goes beyond just diversity as a practitioner For me it's really all the other parts that keep me up at night The parts that would influence Candidates employees associates to wanna stay within an organization. So it's really around the side of the house that deals more with inclusion More equitable workforce building that sense of cultural belonging in an organization. And that means that are focused. Can't just beyond diversity for the sake of boxes but migiro really is rather to try and influence and create the type of environment where employees associates feel that they can bring their full selves to work each and every day in creating more accessible equitable workforce and in addition to that. I mean you know abercrombie and fitch. It's really really interesting. Time to work in the space where our mission is really been dedicated to amplify engaging in power empowering folk small different backgrounds and really foster in an open environment where folks can come together. Listen learn and really take action to move from conversations toward action and influencing the products that we're creating to reflect our global customer so it's been really fascinating You know i start my career in higher education working in nyu and columbia then pivoted to citi group Leading our diversity inclusion efforts early career talent and then transitioning to the fashion industry which is really really exciting opportunity to make a make an impact end create product that has the opportunity to create social change right across our across our communities in really interesting way. I have so many questions About kind of what you all have seen so far but first jazzman How do you include that d. i. lens as somebody who's on the agency side and also trying to you know achieve more equity in the greater world. Yeah i. I'm just so to be part of this conversation and hearing from jason gabby amongst inspiring folks so I think as an account manager really partnering with clients and but also partnering with leadership in how we infused diversity equity inclusion not just from an internal perspective but so that emanates within How we partner with clients We just ensuring that yes. We're being responsible and that brands are being responsible but also Figuring out how what we can do to not just check the box like abbie said but actually make tangible change. And so i think for me personally. It's just something that i've always been about which led me to Being part of the in her shoes movement A nonprofit base-year l. a. And so i have this unique Intersection where i get to see What does social impact look like from grassroots Point of view but then also in my day job like how. How can we partner with clients in doing this. Great work in continuing this great work especially with brands that wants to create
New CRISPR, gene therapy results strengthen potential for treatment of blood diseases
"Longer term results from a first in human study of the gene editing tool CRISPR showcase the technology's potential and delivered a win for the company that shares the platform's name and it's Boston based partner vertex pharmaceuticals meanwhile vertex saw its price target raised to three hundred twenty five dollars from three hundred five at Citi group but analysts maintaining a buy rating on the stock
SEC moves to expand mom-and-pop investor access to risky funds
"And more tech firms have been advancing into banking here to explain is the Wall Street. Journal's tell us tell us tech firms have been increasingly partnering with banks to offer financial products. Broadly why do tech companies want to be involved in finance tech companies. See an opportunity to extend their relationship with their customers through the device or through what they use for email or other things into their financial life and the vision is that the money should become something. Sort of seamless. To what you're doing so if you're sending an email and that email might be about Oh I owe you some money. Ah that money transfer could just be seamless with that email using your device paying for things You don't need to bring your wallet when you go shopping. Just bring your device ice. Just bring your iphone or your Samsung phone or whatever that might be so tech. Companies see an opportunity to further embed their products in your life by also tying them into your financial life. Google is partnered with Citi. Group apple has a partnership with Goldman for tech companies. What's the benefit of working with a financial institution rather than going it alone. So one of the scary things. Tech Company when offering financial services is the threat of being regulated by banking regulators. When they're offering those services that might have to cause them to radically addict changed the way they do business the way that they organized their company. It would be quite a big leap for apple or Google or whoever to suddenly just directly Gli go into the banking business or certain parts of the banking business by partnering with the Bank. They can have that bank. Do the highly regulated stuff and then an offer that service under their brand or through their systems. How exactly are these. Banking Tech Partnership structured. Is there a certain type of bank. That's more likely to win a partnership ownership with a tech company so far a lot of small banks have actually had great inroads into working with some very big tech companies. Green dot for example is one Pretty Small Bank. I think that actually works with some big technology companies like apple for example the advantage there has been that those small banks aren't necessarily trying to nationally you create a banking business retail banking business in the same way that a big bank like a city group or J. P. Morgan Chase or Bank of America might be and so that small bank might be willing to kind of do a lot of that behind the scenes work for that Tech Company and Big Tech Company might have some negotiating leverage over a small bank that it doesn't with a big bank let's talk about core deposits versus brokered deposits of the Federal Deposit Insurance Corporation the FDIC said that it wants to modernize how broker deposits or classified to account for changes changes in technology. How would it do that. And what purpose would such a change serve. How exactly a deposit is treated by. Regulators has been an issue for many years back in the nineteen eighties eighties. There were some notable bank failures because those banks relied on what are considered brokered deposits brokered deposits or deposits. Don't necessarily come in directly I e you you walk into the bank and you say I'd like to be a customer. Here's my money. They come in through some third party that might be say a brokerage firm that doesn't offer banking services. This is part of what it does is part of wealth management but sort of puts its clients money all into one bank one time and could move that money around as it sees fit without. Its without the ultimate ultimate customer. The person whose money it is really even knowing so these broker deposits at the time in in the past been called hot money because of how quickly they might move and regulators regulators fear has long been that broker deposits would flee a bank very quickly. Should that bank start getting into trouble. What regulators are now saying. Is that a lot of the rules rules. About what exactly. A broker deposit is which were set. Many years ago don't account for how technology has changed and how a lot of deposits are inter mediated in some way shape or form through an APP through a website through some other thing that might in some respects make them look like a broker deposit. There's a third party involved but don't necessarily act. Ah broker deposit and the the the FDIC which is the main regulator is considering modernizing some of those rules to account for how some brokered deposits some things that might considered broker deposits actually look like what regulators call core deposits which they consider the the safest least likely to flee a bank in signs of trouble form off deposits and this would benefit tech companies if these rule changes were enacted tech companies are at risk of being labeled as brokers Because essentially they are are the front end. The customer knows. Oh I have a checking account with this tech company right. I have a Google checking account. Should they offered. I haven't apple checking account. I have my money honey with square or with Amazon. Whoever might be they they might not necessarily know who the bank behind that ultimately is. So the question is so to those. Those relationships are likely to possibly look like a broker deposit the FDIC by reclassifying. Exactly what a broker deposit is in who a broker is might make it much easier. For those tech companies to to be delivering what our core deposits to banks and that makes tech company relationships that much more valuable to banks and it kind of shifts a little bit of the balance of power towards the tech companies away from the banks because the banks so far have been able to say look where the regulated party. Here we call the shots but if things things get a little easier on the regulatory front than the Tech Company might be able to say. Hey we're bringing you good steph. Here give us a good deal.
The Biggest Bubble in World History?
"The rant. This week is continuation of last week. Okay what i've done here is. I've added kind of another chapter to the story story so last week. I talked to you about the way that wall street turns conservative investment vehicles into pure toxic waste is what i'm calling colleague and i mentioned two examples right. The investment trusts starting in the late nineteenth century ending in the nineteen twenty nine crash and the u._s. thirty year mortgage around the time of the financial crisis. You know maybe from around two thousand two through just say two thousand nine this week. I wanna talk a little bit about mutual funds in that same light okay and the story begins with something called the prudent prudent man ruling of eighteen thirty. We're getting in the weeds here folks. There's a lot of material here all right so the prudent man fiduciary the tradition in american well in american law and in american finance goes back couple of hundred years before the nineteen sixties when when and mutual funds kind of blew up in the way that i'm about to describe but there was this one particular decision in eighteen thirty in a case called harvard college versus amory sorry you can google that and and learn the details of that amac and talk about just mention the a quote from the decision that was made at that time so so here's the quote from a decision which outlined the prudent man rule okay so these are the words of judge samuel putnam in eighteen eighteen thirty quote all that can be required of a trustee is that he shall conduct himself faithfully and exercise a sound discretion and he is to observe how men of prudence discretion and intelligence manage their own affairs not in regard to speculation but in regard to the permanent ah position of their funds considering the probable income as well as the probable safety of the capital to be invested and quote. That's a lot of that's a lot of stuff there but the salient points are prudence discretion intelligence probable income probable safety of the capital title so this is what's known as the prudent man rule it still alive today though you'd probably be hard pressed to find very many true practitioners. The decision was made in a boston court. Okay it became the ruling principle of among others a whole class of money managers that will called the yankee trustees they were the living essence of the prudent man rule and they viewed the avoidance of losses as more important than achieving leaving gains right very conservative so in boston almost one hundred years after the prudent man ruling the first open ended mutual fund was created in nineteen twenty four and it was very much a product of the trustee culture right people who took care of trusts and were these the yankee trustees who used the man ruin invested very conservatively it was called the massachusetts investors trust and it was different because it didn't have a fixed the number of shares like all the funds before it it's sold shares to the public based on demand and investors could sell them right back to the company at whatever the current price was right. That's an open and mutual fund as we know today so as a product of the boston prudent man culture it was so conservatively run it came out in nineteen twenty four right just when the twenties were kinda getting getting cooking and it was seen as being out of step with the times sort of like warren buffett in nineteen ninety nine fine and you know it it did all kinds of things issued detailed quarterly reports listing all of its holdings and transactions and costs that was the exact opposite visit policy of at that time the the new investment trusts of the era which refused tell investors what was in them in turn out as we said last week to be toxic waste okay now you fast forward a little bit you go nineteen forty-three edward crosby johnson. The second is a lawyer who takes over the fidelity fund and fidelity right. The company knows fidelity. It's got like two and a half trillion of assets under management today well. He took over this boston. Mutual fund operation called fidelity fidelity at the time. They managed three million bucks. It was hardly anything that was even a small amount of that time in nineteen forty three now in his book the gogo years author author john brooks noted of that event quote the man who turned the fidelity organization over to him refuse to take nickel for it in keeping with the traditional boston austin concept of a trusteeship as a sacred charge rather than a vested interest to be bought and sold and quote brooks looks continued the notion of a mutual fund as a trust was deeply ingrained in state street sort of like wall street and boston deeply ingrained in stay street st st st at that time and would remain so until about nineteen fifty five in quote so the laws governing mutual funds and trust were different but until the the mid fifties according to brooks mutual funds felt like trusts right it wasn't seen as an opportunity to get rich speculating with other people's money far from it. It was a sacred charge so but johnson you know eventually. He left those old conservative ways behind. It's a necessary step in solving the toxic waste. He was a fan of jesse. Livermore johnson love jesse livermore. That's what got him interested in. The stock market to begin with of course livermore was the famous trader who made lost i i if i'm not mistaken for fortune speculating on stocks you know including in the twenties and eventually shot himself in the head nineteen forty in the cloakroom grooming sherry netherlands hotel in new york so with his one transaction of taking over the fidelity fund the old conservative way of the yankee trustee was kinda taken out back and shot in the head johnson grew the business by trading stocks okay now the dow rose about one hundred and fifty percent between nineteen forty-three the year he took over and nineteen fifty two the year johnson met a man named gerald cy who's a chinese fellow his last name aside t._s._a. Sign was born in shanghai china in nineteen. Twenty eight came to the u._s. In nineteen forty seven to go to college got a bachelor master's degree from boston in university and stuck around so these guys met nineteen fifty two and they were both inclined more towards market timing and rapid-fire trading in large positions positions you know no diversification long-term view neither had a trace of the prudent man in him johnson. Let size start his own fund in nineteen fifty seven the fidelity capital fund. I'm sorry i left outside went to work for johnson when they met okay and he started his own fund in nineteen fifty seven the fidelity eddie capital fund from nineteen fifty eight to nineteen sixty five the fund return two hundred ninety six percent according to john moguls forward to a book called super money by adam smith breath aka george goodman good book. You should read those those adam smith books along the way si- had to deal with the crash nineteen sixty two that year the dow jones average fell twenty seven percent and most of the downward move which was really from kind of january first until june twenty six of that year most of that downward and move happened in two months between april twenty fourth june twenty six with a drop of twenty two and a half percent so is short and sharp and kind of brutal john brooks. It's not how well the mutual fund industry weathered the storm quote the great rising giant of american finance the mutual fund industry had come out with honors cash chevy still conservatively managed in the prudent fiduciary tradition the funds had bought unbalancing the falling market of monday and had sold on balance and the rising market of thursday day thus besides protecting their shareholders from excessive risk. They had perhaps actually done something to stabilize the market and quote. Apparently there's one particularly if you look at the chart of that time there's one particular week those pretty brutal right around the time it bottomed out and i think that's what he's talking about. Their size fidelity capital fund was down by may of that year but he recovered and the fun rose sixty eight percent in the last three months of the year okay so a few years later nineteen sixty five big year for gerald outside that year has fun was up almost fifty percent of course the turnover one hundred twenty percent right so turnover of one hundred percent means. You held everything for a year. Basically like you sold every share you bought that year so he sold one hundred twenty percent implies and even shorter period right so one hundred percent turnover would be if you bought on january first sold on december thirty first every share and this one hundred twenty percent is like i don't i don't know maybe he sold it all by by november. Let's just say but really what what happened was. He's just constantly turning over daily by then by nineteen nineteen sixty-five gerald saone twenty percent of fidelity instead of picking is his successor to run fidelity et johnson picked his son ned johnson then who actually was a pretty good stock quicker to write in a bull market. Everybody looks good. Silence fidelity immediately started his own fund called the manhattan fund. It started with around two hundred forty seven million in assets the quote the biggest offering an investment company history end quote according to the new york times by mid sixty st eight. It had five hundred sixty million bucks in it. The fun didn't do so well that year though and si- sold his company to c._n._a. Financial corporation regime for thirty million. He got out of the top pretty smart a year later. It fell ninety percent that was closed <hes> so by december thirty thirty one thousand nine hundred seventy four near the bottom of brutal bear market. The manhattan fund had these single worst eight year track record of any existing fund at the time accumulative would've loss of seventy percent of all the capital that had gone into it while manhattan fund wasn't the only one there were other kind of gogo funds of the year. I remember one called. The enterprise fund was up like six hundred percent at the top and down by more than half or so at the bottom but cy was the most famous money manager of time he was really the first kind of celebrity financial major financial guy he would later lie to an institutional investor magazine interviewer when he said quote we had one bad year in nineteen sixty eight night been killed in the press ever since. I don't think it's fair dr and quote one bad year. How about the worst eight years ever at that time size gruden end there. He later worked for an insurance company that bought american can a tin can manufacturer and he turned that business into a financial services company called primerica. You may have heard of it primerica which he sold to a guy named sanford weill in nineteen eighty eight. It's the company that became came city group okay short short story there from primerica to citi group so you know size fingerprints are still on american finance today so that's the short version of how ed johnson and even more so gerald cy turn mutual funds you know this thing born out of the conservative a bit of boston yankee trustee culture into they turned it into toxic wastes into these rapid fire trading vehicles in in in the nineteen fifties and sixties so mutual funds began life in america as a conservatively managed sacred dacre charge of the prudent man the yankee trustee and they ended up as the new gogo mutual funds of gerald site irritating huge positions in highly speculative stocks trading in and out quickly and size manhattan fund was just the most famous and most disastrous example but there there were others said and you know they took these huge positions they weren't diversified and the brokers hated it but they couldn't not do it. Because <hes> you know cy was a big deal. He was the biggest thing in finance at that time that two hundred and forty seven million deal right that was the biggest deal is like fifteen percent of all the offerings that year in mutual fund so you know it was the brokers had to deal with them. They had to play along with these huge positions that he was taking even though they didn't like it because it looked dangerous to them <hes> and trade in out very quickly. It's just like the investment trust of the late nineteenth and early twentieth centuries and it's just like what they did into the thirty year mortgage with mortgage-backed securities and c._d._o.'s in the housing bubbles it housing bubble singular really have one of those wall street takes these conservative vehicles and turns them into toxic waste. Every year is a little bit different. Every bubble has its own characteristics characteristics and course today. What are we seeing today the very biggest bubble in the history of the world the global bond bubble label featuring at last count according to data compiled on bloomberg. They keep track of it. If you have bloomberg you can you can log in and get the latest chart art of the world's negative yielding debt. It's over sixteen trillion about sixteen point four trillion according to bloomberg it's insane. It can't end well. These things things never ever ever do the thing that worries me about this and of course i have to give credit where it's due wall street had less to do with this than central bank central banks did this when this on them of course they're clearly taking a page. I don't know did wall street. Take a page from them. Wall street was around before central banks right so <hes> at least before the federal reserve's early so i think we we have to say that <hes> the central banks take a page from wall street and turned you know the conservative -servative thing most of the negative yielding data sovereign debt and they've turned it into toxic waste guaranteed to lose you money if you hold it to maturity pretty insane insane. That's the rant for this week if you liked it or didn't like it or have a question or a comment right into feedback back at investor our dot com.
The question is not whether the Fed will cut rates but why
"The marketplace word of the day today is expectations expectations used in a sentence. It might sound like this, the Federal Reserve yesterday acted in accordance with expectations and signaled its willingness to cut interest rates the Fed's turned, although not unexpected was a big one from where the central Bank was just six months ago you might remember when it was raising rates. No, we're not talking about a huge cut here. Maybe a quarter of a percentage point. But as marketplace's Tracey Samuelson reports when you are trying to game out what a rate cut is gonna mean in this economy, it is all about expectations. Let's say the fed does shave a quarter of a percent off interest rates at its next meeting. Well, the biggest impact typically on lower rates would be on kind of interest sensitive sectors of the. Enemy housing autos. For example, thing is Tony Rodriguez. Head of fixed income strategy. For new Wien says that the market is already expecting lower rates from the fed, so some rates consumers and businesses pay already reflect that that positive impact is already in the market. So, you know, mortgage rates have come down. Financing rates have come down for you. Know durable equipment, autos, etc. So that cut on its own wouldn't make a huge difference for the economy. What makes a big difference for the economy is does that change expectations about where rates are going into Holland horse? Chief economist for Citi group says, if the fed is cutting rates in the relative near-term, the question is they cut more over the next few months, or next few years in cutting rates, the fed would be sending markets. And I got your back kind of a message that is ready to act if say the trade war starts really slowing economic growth, Carl Tannenbaum is chief economist at Northern Trust, but it's making the statement that the central Bank stands ready to support. Port the continuation of the expansion, and that symbolic message may actually be more powerful than the short room symbolism might be more powerful economically than the cut itself. I'm Tracey Samuelson for
Citigroup Hit Hardest as EU Fines Banks $1.2 Billion Over FX
"Citi group was hit the hardest of the five banks that agreed to pay European Union. Fines totaling one point two billion dollars for colluding on foreign exchange trading. Tragedies traders ran to cartels on online chat rooms that were called the Essex express in the Jimmy the three way banana split and semi grumpy old men. Joining me a securities attorney David Bessinger a partner at pissing off Schmidt and Williams. Dave explain how the traders worked in manipulated, the benchmark foreign exchange rates in these rather colorful chat rooms. While there's three basic strategies I think L I is good old front running securities markets as well. And that's when I traders aware of the going price and has his own or her own proprietary position. And at the same time also obligated to sell for a customer and tells the proprietary, I the customers disadvantage say, for example, if I'm trying to sell an eighty thousand dollars tesla. And I can sell it at eighty five thousand I sell mine I before I sell my customers by selling mine. It's gonna have it negative downward effect on the pricing. The second strategy is called banging the clothes and in the foreign-exchange market, the measured volume or the dollar amount. But by the volume of trades. And so this strategy would be breaking up. Maybe one trade into fifty and by doing it. There were a lot more traces certain price, which manipulated the market. And then finally, there was a strategy called painting, the screen and painting, the screen fake orders in the market to perpetuate an illusory price and then broker can sell his or her own proprietary positions. There's other strategies but those three are predominant in the regulatory actions. So now the EU Commissioner McGrath said these fines will send a message, while they're certainly large they're lower than the one point three billion euro penalty for banks for rigging Europe or rates and below the record three point eight billion euro penalty for collusion. So how much of a message is it really sending? Well, that's a big economic question. It's hard to measure. Evaluated is, you know, this is just the latest that you mentioned you have the euro or scandal before you had the library scandal before that you've had the same banks involved in the credit crisis. You had them in the tech wreck and all sorts of other things. Certain point one must ask what the regulators having scandal after scandal. So perhaps your question is raising legitimate concern that these are not severe enough. One of the banks are said that quote this kind of behavior has no place at the Bank. We are today. Our culture and controls have changed fundamentally during the past ten years. Is that true or is there room for something like this to happen? Even today at these banks, did you have to I suppose take that spokesperson at his or her word? But, you know, the real issues when you look at the massive size of these banks, for example, this scandal in the forex market, the banks comprising the global group that were sued both by regulators in the. US. EU. Elsewhere marketed about five point three trillion dollar trades per day that was just in the four x then you have all of the other activities. They have in a number of areas from securities, underwriting, too bonds on issuance to, you know, all the instruments during the credit crisis. So you look at the large reach these banks, perhaps, we have another four x scandal. But it does seem to make you wonder if we'll have the scandal somewhere else. Dave, I was trying to go through the investigations that are pending. There's another investigation, Bob in Credit Suisse in this area, another looking at the trading of euro-zone sovereign bonds, another potential coordination options trading in the FX market. There are so many investigations. What does that say about the way the banks are operating in the traders are operating? Well again, it's such an incredibly huge market. And so when you look at just the release it, we're talking about, you know, the ease variety of text messages. And like you say, in the introduction, you've got the Essex express and so forth. But then you go back, Bloomberg ran the first story I think, apparently in June twenty thirteen and there was a whole host of other foreign exchange channels. As part of that came out through class actions, the United States, actions and so forth. So it's hard to imagine regulators getting their hands around everything. Because again, it's just such a huge market when three British traitors in a group known as the cartel were tried there were actually acquitted by federal court last year of using a chat room to coordinate trades and manipulate prices, what did they show that led the jury to acquit them I can't speak to that instance? But I think one of the problems that you see in a lot of the allegations is that the regulators will try to insinuate wrongdoing because of. Nicknames. For example, that British pound to the US dollar trade is called the cable the New Zealand dollar to the US dollar is called the Kiwi. They have enormous numbers of nicknames. A lot of them are kind of cockney flying to make the traders look bad. And the traders are legitimately allowed trading to communicate and they're gonna communicate often like everybody else does these days by text. And so a lot of the texts are a lot of them involve trading and taking and to convict criminal court, you've gotta show guilt beyond a reasonable doubt. You typically would have to show intent and a jury is gonna wrestle with those
It's Been an Interesting Year for Deutsche Bank
"The head of Japan Christian seven did an interview with the Houston business editor at the German newspaper did site. The two were speaking at a reception at the World Economic Forum in Davos, Switzerland. You wanted to become a journalist of all profuse Heusen, the newspaper, man, asking the banker if you were a journalist, how would you report on Deutsche Bank today? So in a nutshell what you, right? The Deutsches CEO is taken aback. He fumbles for a moment. I would say Deutsche Bank is the most significant self-help story, the financial industry. That's how the detailed editor doesn't really want to talk about self help sometimes with Dutch makes the case that just it seems to get better. There is another problem like in, in November when things really looked up and then all of a sudden stated Tony's came in search dodger Bank headquarters under the suspicion that Dutch was involved in in Monday, laundering activities. What was your first thought? In a nutshell. A few months earlier, the German police had raided the bank's Frankfurt headquarters. No. Of course at that point in time. It's it's disappointing not disappointing. You know, personally for me, but being subject to investigations and regulatory actions has become the new normal for Bank in recent years. The Bank has been fine billions of dollars for lax controls on everything from laundering Russian money to violating sanctions against Iran, Libya. And Sudan, somehow you life is tainted by pest how with the constant uncertainty that something is light pop up. You know, I think that makes live really interesting, right? I mean. That's life has become very interesting for deutchebanks. In a recent portfolio congress reveal that has been asking for detailed records of frump family business interactions with Deutsche Bank in the file in congress said straight out, it's investigating the relationship for possible money laundering, illicit financial deals fraud and foreign influence in the two thousand sixteen elections. By its own admission. Deutsche Bank has a history of serious compliance. Deficiencies when it comes to global money laundering in the very recent past. Now comes a new revelation from the New York Times deutchebanks own anti money laundering experts flagged multiple suspicious transactions, they were as recent as twenty sixteen and twenty seventeen and involved Trump's business and the one formerly run by his son in law, Jared Kushner among the transactions one, we're money had moved from Kushner companies to Russian individuals. The times wrote that deutchebanks money laundering experts were so concerned they wanted to report these transactions to the US treasury, but supervisors refused to do so. Carrie McCue, deutchebanks spokeswoman said in a statement alert dispositions by investigators undergo a higher level review by qualified staff. Transaction monitoring castle wide net and not all alerts will result in esscalation. She added we take responsibility for compliance very seriously. And that the Bank has increased our anti financial crime, staff and enhanced its controls in recent years. A spokesperson for the Trump organization emailed, the statement, this story is absolute nonsense. We have no knowledge of any flagged transactions with Deutsche Bank. In fact, we have no operating accounts with Deutsche Bank, we sent questions to the Kushner companies, the White House Trump's private banker and lawyers for the Trump's in Jared Kushner, the White House did not have comment. The others didn't respond. Meanwhile, the investigations pile up those Pena's were sent a multiple financial institutions including Georgia Bank, the house, intelligence and financial services committees are hoping to get information on loans. The German Bank gave a to the Trump and Trump organization and vicious presidential harassment. This is all these people do ever Trump earlier today and FOX and friends calling it harassment is the Trump family and the organization, sue deutchebanks and Capital, One two blocks of Pena's. So we've issued subpoenas into your Bank, and we are collecting a lot of the documents that we had requested. And we are reviewing I can only tell you that the investigation came about as the result of the testimony, Michael going. Hello, and welcome to Trump Inc podcast from WNYC, and propublica that digs deep into the secrets of the Trump family business. I'm Andrea Bernstein today on the show Trump and his family's relationship with Georgia Bank, a Bank with a history of problems. They were laundering money for wealthy Russians and people connected to Putin in the Kremlin in a variety of ways for almost the exact time period that they were doing business with Donald Trump. This is David enrich, the finance editor of the New York Times, and all of that money through DOJ Bank was being channeled through the same exact legal entity in the US that was handling the Donald Trump relationship in the us. And so there are a lot of coincidences here. There's a lot of smoke. I have not found any fire, but unfortunately, I do not possess subpoena power. We're going to walk you through all that smoke. Trump Inc, is an open investigation. So we're just going to say wait now. We're still not sure what this all adds up to. What we do know Trump right now about three hundred and fifty million dollars to your Bank more than he does any other financial institution. And so much is happening regarding the Bank so fast. But we decided to lay out what we've learned by digging into Trump's financial deals with the Bank and why his recent loans, raise so many questions questions raised by congress. The new York Attorney General and the bank's own employees. Let's get to know Deutsche Bank it likes to think of itself as a cousin of other global institutions like J, P Morgan Chase or Citi group, but Deutsches recent history, sets it apart from its competitors after the global financial crisis in two thousand eight Deutsche Bank, like all banks was under financial pressure. At the same time, there was more and more wealth, building in Russia and Russians wanted to get it out of the country. Maybe they earned it illegally. Maybe they were just scared that, if they kept their money in Russia, Vladimir Putin would have it seized banks are supposed to run checks to make sure they're not helping criminals move dirty money, and New York state regulators found deutscher didn't do that between two thousand eleven and two thousand fifteen the Bank improperly and covertly helped usher, ten billion dollars out of Russia and into London and New York and it got caught. We spoke to the woman. Man who did the catching my name is Maria Vullo? And I was the superintendent of financial services from early two thousand sixteen through February one of two thousand nineteen, she oversaw banking, and insurance in New York state, just after Trump was inaugurated Vullo signed a consent order with, which a Bank in it Deutsche acknowledged it had allowed bad actors to achieve improper ends. This consent order addresses the man had serious compliance. Deficiencies that spanned deutchebanks global empire. These flaws allowed a corrupt group of Bank traders offshore entities to improperly and covertly transfer more than ten billion dollars out of Russia by conscripting Deutsche Bank operations in Moscow London and New York to their improper purpose. Deutsche Bank paid over six hundred million dollars in penalties in New York, and in the UK and said it would address its deficiencies. Here's how the corrupts game worked it began in Moscow with an order by a shell company to buy a specific amount of stock, but the buyer, one asked for a particular company stock just the amount. They wanted to spend investigators found some prettiest Pacific emails like this one I have a billion ruble today. Misspelled, by the way ruble. But will you be able to find a security for this size? So then what would happen the same day, which a Bank made up Murchison in Moscow, it would make a sale in London of the same amount of stock the trades. Mirrored each other for that reason, they're called mirror trades, ten billion dollars were moved in this way rubles to pound two dollars, possibly dirty money going in clean money coming out. If you're a Bank, you're supposed to have systems in place to prevent trades like this, because it makes it easy for criminals to wash their money through the. Mancial system. So, yes, there was a supervisor on the Moscow desk, which appeared to have been paid a bribe or some other undisclosed compensation to facilitate the schemes employees complained. They were pushed off. No one did anything even when another bag asked which Bank is something going on here. Deutsche Bank responded, essentially, no, no problems here. Instead, they should have elevated the concerns. Yes, and should have raised a red flag again, and we're looking at issues, like know your customer, looking at who these counterparties are, and who's behind the counterparties, if one was going to actually do the proper KYC process, KYC know your customer, this is key underpinning of the financial system away to keep the money launderers terrorists, and other crooks out, or somebody comes to the Bank, who is this person Deutsche Bank, did not have a central? Is know your customer system and its Moscow office Deutsche Bank, had one person as head of compliance, head of legal and anti money laundering, all at the same time, and you certainly need more than one person who is doing three jobs to actually have an effective compliance system. I mean staffing for compliance is essential. And this was woefully inadequate. New York regulators were not able to track them the actual people behind the ten billion dollars in suspicious transactions. And so a very big question remains. What was the reason behind the because money was exchanged, why we still don't know. There's no evidence, these mirror trade deals, involve Trump were telling you about them because in the words of New York regulators, serious compliance deficiencies at the Bank spanned deutchebanks global empire during the same period. Donald Trump was borrowing hundreds of millions of dollars. And because congress is taking a closer look, according to a legal brief fits investigating. Whether Deutsche Bank is doing enough to stop schemes like mirror trading. The brief says this is important in determining the volume of illicit funds that may have flowed through the Bank and whether any touched the accounts, held there by Mr. Trump his family or business.
The End of An Era for Odd Lots
"Odd lots with the end of odd, lots odd lots or another way of looking at it is it's the thoughts odd lots. All the way down just before we freak. Everyone out is out. Lots coming to an end. I'm not. No, okay. This is not the end of the ALDE lots podcast, as we know it. It is. However, I'm relieved. Yes. It's good for both of us. It is however the episode in which we discuss the possible end of odd lots trading as we know it. So this is something we've never really talked about. I don't think which is where our name of the podcast comes from. I'm not sure we've ever even broach that headway. No, I think we just sort of threw it out there and started recording. But for those people that don't know all bought s-, it, it's basically a term that describes a order for stocks or bonds of an unusual size, basically often. It's it's small orders of bonds or stocks and up. So it's like if you were to place an order for I don't know nine hundred thirty seven shares of company or something like that something weird. That's not the normal increments. That would be an odd. Lots something irregular. Okay. Yeah. Exactly. And from what I remember we chose the name. Well, we are looking for something. Catchy. And I thought all bought boughts also sort of described the ethos of the podcast in the sense that we cover a lot of slightly random ground. Sometimes right store. That don't typically quite fit perfectly into the overall market themes, because of course, stories that fit nicely into the overall market stories are covered in pretty pretty nice depth, anywhere. I'm thinking, you know, back to our old days of like studying the talking about the cattle market, for example, you know, doesn't quite a fit into typical markets reporting. No, there's not enough cattle market coverage. That's for sure offficial bubble. That's right. But the reason we are actually finally talking about audits themselves is because there's been a little bit of news on this front few weeks ago. Bloomberg actually reported that I think it was J P Morgan and Citi group were shutting down there ought lots trading desks forever. So a big change for the lots market so to speak, right? So capital odd. Lots is staying but lower Keizo odd, lots appear to be on their way out. Or if lease you know, people are still going to be making purchases and random increment. But the idea of a specific desk devoted to them. Those seem to be on the way out, and we wanna know what exactly. And we actually have the perfect guest to explain exactly what is happening. He's a recurring ought lots guest of formerly at Goldman Sachs. Mr Chris white now CEO at Bonn, click enviable markets. Thank you so much for coming on again. It's my pleasure. I want to ask though before we get started by the first three time odd, lots guest. You might be. Yeah. We've had a number of two-time guests. I think you are the first three time. I was told by your producers that there would be something for me. So I'll be waiting after the show. I think it's called the Steve Martin award AGIP especial jacket. Exactly. Well, I'm thrilled to be here. Actually, a true fan of the lots podcast. You got a couple of of my all time favorite podcasts in your catalog. Particularly the one that you did with the Andrew low at the adoptive podcast was awesome. And then just so listening to the origin story of how you came up with the name fascinating for me as a true fan. But I'm happy to do. I think I've been brought in to the designated hitter. When it comes to talking about innovation and credit. You were invited. On today's episode talk about the end of odd lots that we were going to be doing some sort of retrospective. And yet you're actually going to talk about the end of the podcast. Okay. Absolutely. And I'm not embarrassed to say that I received an Email from your producer saying we want you to talk about the end of odd. Lots and I replied, and I said, I'm really sorry that the show is going away. Thanks for having me on the farewell and news like I don't know what you're talking about. But as you could see the title ended up odd lots for this for this one does sound like you guys are closing up shop, and I'm so glad to hear that it's still going on. And I'm also glad to clear up. What I think is a misconception about what's happening without lot. So let me know when you guys want to get into it. Let's do it. Okay. So the the articles or the the recent news items around the closing up of desks J P Morgan Citi are not that they're going to stop trading odd lots anymore. They're actually doing something that Goldman did think probably about two or three years ago, which is really take. The human element out of lots trading in the corporate bond space, and to to further add to your description, Tracy and online, I would say in the corporate bond market not allowed lots of created equal. We would consider there to be a odd. Lots and then micro lots which would be really anything below. Let's call two hundred bonds or two hundred thousand notional so they're sort of an in also sort of changes, depending on what your trading, and and really what you look at is the trade size relative to the outstanding size of the bond is going to determine whether it's an odd. So anything below a million in investment grade is generally considered an odd, blah, but anything below five hundred thousand in high yield is generally considered not line. So before we jump into this ONA, make sure that was level setting. So Chris just on that. No before we talk about what is changing when it comes to trading off, lots who would be trading off lots. Currently like, what type of investors are demanding these sort of smaller or regular size traits. Sure soup. Pure retail investors in the corporate bond space probably account for less than half of a percent of average daily volume. They are not like the equities market. And actually the equities market of old. I would say anything prior to the nineteen sixties was really dominated by the retail investor. That is not the way the bond market works. We're talking about is something I would call institutional odd. Lots and these are really the rebalancing trades would say that occur in the marketplace. Where we have a hundred fifty million dollar portfolio. Somebody tries to sell five hundred thousand dollars of it. And so what do we have to do? We've got a slice away a piece of that port folio and liquidated, and therefore that creates smaller sized trades in the marketplace and just to give you a sense of the magnitude of this activity or. Odd. Lots of we call them in the corporate bond space, you know, typically eighty five to ninety percent of the total trades that occur in the market on an average daily basis are in sizes less than one million, but those trades only account for about fifteen percent of the volume. So a lot of activity, but it's it's not a lot of volume. What is it? So before we could talk about why is changing or why the market structure around the trading of odd. Lots is changing let's about why it exists in the way, it currently is why would a Bank have had to have had a dedicated desk to trade these such that they couldn't just be traded through the normal route Greek questions, so if you look at the actual behavior of electrons trading in the corporate bond space, the dominant protocol is something called an RF cue, which I would best describe your listeners is it's an electronic phone call. And it's you as a. As a buy side asset manager being able to to say to the market him looking for a bid on IBM five-year bonds who's out there. Interested in in giving me a bid, and so making that electron phone call to ten dealers twenty ninety dealers at some at some point in time that became the way to trade a certain type of of or droid execute certain types of trade in the corporate bond market. But if you look a little bit further, the most the most popular way to trade odd, lots in through something called a list form, which would be a bid wanted in competition list or an offer wanted and competition list because be wicks and wicks and the business and what that is. It's a list of individual cases that you wanna trade. And typically these lists the individual line items are pretty small, you know, five bonds here twenty bonds there. Now, these lists used to be processed manually and typically list would take. I would say maybe three to four hours to process from front to back and the the domino electric trading system in credit place. I worked for called market access their their claim to fame. They're they're what they solved was turning that process, the list trading process into something that was leveraging technology, and nobody could deny the efficiency of turning something that took four hours into ten minutes, and we could design the benefits of it. So imagine your asset manager you need to buy or sell a group of bonds, an electronic system is the best way to do it because you can tell a bunch of people. These the bonds interested in trading and the system will then take all of the best bids and offers and present them back to you within a ten minute period. And then you can just say trade them, all and you go about your day. So I think the last time I heard about seventy five percent of the volume on market access was comprised of these lists talked about the decision by J P Morgan and Citi group to dispatch. The actual lots trading desk. What do you think is going on there? And what are they eventually moving towards sue markets are adapting and changing. And so the the environment for trading electrically has had some radical shifts in the corporate bonds space or meaningful shifts permanent ones. And those shifts are now changing the validity of having human beings actually, performed the trading function on the sell side because it's becoming less profitable believe. One of the biggest changes to the biggest change is actually would be the just growth in in in passive funds, so ETF's or huge component of electronic trading. They've been growing I think that the fixed income ETF, a you. I'm just surpassed one trillion recently, I saw so it, you know, it's still not as big as the active Lee managed to funds that are out there, not even close, but it is becoming ciga-. -nificant? And if you think about what is an ETF, it's people trading. These baskets of bonds that are supposed to represent an index. So that's been driving the activity. It's really been pushing it, and then the other thing that's happened is the systems used to be set. So that no a buy side asset manager could send increase out only to the side. So only two dealers. And so those are the people you could make your phone call students Haiti have a bid, but now these systems have started creating what's called all all our few trading. Which is I'm BlackRock, and I could send an inquiry that could show up on pimco desk and the impact of that is obviously greater competition. And so you're going from from in particular with market access in that probably had about eighty dealers on it that could respond to your inquiry. If you're BlackRock to assist in the now has seven hundred people on it that could potentially respond to your inquiry with this does for just a lot trading or really any market is more. Are in the market. It's going to become more competitive and certain trading styles are going to go away. And I think that's where we get to this question as to whether or not human beings on the sell side should be handling a lot trading in a manual fashion.
U.S. trade deficit hits 10-year high in 2018 on record imports
"Is an observation to be made here as we get going with the big picture economic news of the day. Which is of course, this morning's report from the good people at the Commerce Department that our trade deficit, President Trump's favorite economic indicator. You might remember. Anyway, it grew last year to a record six hundred twenty one billion dollars. That is we imported six hundred twenty one billion dollars more stuff goods and services than we sold abroad. Here. Then is the observation that for all of those hard earned American dollars. We send overseas we get stuff in return their goods and services other countries make that we want so we buy them global trade, the often overlooked point, though, is that the trade deficit isn't some kind of profit and loss statement for the American economy report card, and it's not in and of itself a cause for concern. In fact, the trade gap last year was largely. Driven by a strong domestic economy. Marketplace's Tracey Samuelson gets us going. President Trump talks about the trade deficit kind of a lot. We have a trade deficit with almost every country in the we have a massive trade deficit with everybody. But which aging we racked up trillions of dollars in trade deficits, also known as loss we are going to start whittling that down and as fast as possible. So the fact that the trade deficit grew nearly thirteen percent just last year by his own standard. The higher deficit means he's failing. And that we're losing that other countries are taking advantage of us, but Doug Irwin economists. And trade historian at Dartmouth College doesn't actually see it that way, he says it's natural expected even at the trade deficit increased last year in general what we've seen US history is that when we have a booming economy or a growing economy trade deficit tends to either stay the same or grow. Oh, and they tend to strengthen recessions from two thousand eight to two thousand nine the trade deficit fell by nearly half counterintuitive as it may seem the growing trade deficit last year was driven by how strong the US economy was especially relative to big trading partners, like the European Union and China, Catherine man is the global chief economist at Citi group consumers are buying more because they are have higher income because they're strong labor markets, and because they got a little bit of a tax cut that makes them able to consume more. And some of it falls on imports seem thing with business businesses producing because labor markets are tight they got a little bit of a tax cut. So they import intermediate product so that they can produce goods to meet the demand in the domestic economy, and for a communist, this is all very very predictable. They saw this coming a mile away. If the US really wants to reduce the trade deficit it should. Save more says Carl Tannenbaum chief economist at Northern Trust. One of the reasons we have a trade deficit is that on average our consumers spend a lot more of their income than foreigners to saving not as fun as spending. But ten imams says it make households more stable in the long run and reduce the trade deficit. I'm Tracey Samuelson for marketplace. Well, let's put a context on this morning's trade gap. Number reminder that it's the total value of goods and services that we buy and sell overseas, Tracy was talking about goods that has actual tangible stuff that blew out our trade deficit. Well, here's the deal. The interesting part is that we've got a trade surplus in services have for decades now actually of which we sell a bunch overseas
NBC to launch free streaming service in 2020
"Global growth the s&p down for only the third time this month. Paul Nolte is portfolio manager at kingsview asset management betting treated is certainly having an impact here in a slower. China is a slower global economy, and it will filter through and eventually make it back to you shores. And then I think is really what investors are looking at the S and P five hundred index dropped thirteen points down five tenths of one percent. Dow Industrial's down Eighty-six down four tenths of one percent. The NASDAQ composite index was down sixty five points, a drop of nine tenths of one percent in New York. Charlie Pellett, Bloomberg daybreak Asia. All right. We're thirty four past the hour. Let's get to Hong Kong. Bryan Curtis is they're looking at market action. Not a lot of doom and gloom. Which is surprising. Right. Yeah. I chalk it up to Citi group actually because the way that CitiGroup traded. It's earnings were okay. Not great, obviously fixed income trading was weak, but it's emanate advisory and some of the trading operations. I mean, the treasury operations did pretty well, and it gave an upbeat forecasting that trading. Looked a lot better here in the past few weeks. And if you look at the Nikkei, you mentioned that it opened lower. In fact, we're expecting everything to be a little bit lower today. But the Nikkei up about two tenths of one percent financials in Tokyo or up nine tenths of one percent technology stocks up seven tenths of a percent healthcare is benefiting as well. So it seems that that this is the pattern that has has developed here in the last thirty two to forty five minutes that investors are are going with the city read and still going with last week's trade, which is slightly better conditions. The possibility of of a trade deal between the US in China. And also the fed that is seemingly. The on pause. I think we mentioned as well. That Richard Clarita was saying perhaps you'll see fewer than two interest rate hikes. That's a possibility at least. So let's run through the numbers. The Nikkei up two tenths of a percent. Asx two hundred up three tenths of a percent. New Zealand up about one tenth of a percent, and the kospi is now pushing one percent gains the dollar is weaker that helps doll yen one hundred thirty four year old one fourteen seventy four the OSCE back over seventy two cents and the yield on the ten year. Two point seven zero percent. A quick note oil is higher that maybe leading four tenths of one percent Paul over to you. All right. Thanks, brian. China's sentencing of a Canadian man to death has been called arbitrary Justice in retaliation for the Weiwei arrest. Bloomberg's back global news in the Bloomberg nine sixty San Francisco newsroom. Ed. Yeah. Paul, right. Canadian Robert Lloyd Schoenberg has been sentenced to head been sense to fifteen years in prison last month for drug smuggling. Now, a judge on appeal suddenly has sentenced him to death. Canadian Prime Minister Justin Trudeau strongly condemning the action as retaliation for the rest of while way. Executive men want you saying the world needs to watch Beijing's use of the Justice system closing in on the vote on Brexit, e you deal in parliament, Prime Minister, Theresa may says MP's have to do the job that they were elected to do on all sides of this house, whatever you may have previously concluded over these next twenty four hours give this deal a second, look, but opposition labor leader. Jeremy Corbyn says no that's not right. We were promised the easiest
Markets bounce back; Chinese exports jump; Bank earnings
"Was strong. Both at home and abroad exports rose fourteen point five percent higher than the forecast of eight point two percent imports up fourteen point three percent now China's trade surplus was thirty two billion dollars. But with the United States, it widened to a record thirty four point one billion economists still expect exports to slow, but they've been strong all year in Hong Kong. I'm Bryan Curtis. Bloomberg daybreak. All right, Brian. Thank you. Bye US futures gain Wall Street is looking to earnings from J P, Morgan Citi group and Wells Fargo to shape sentiment today. We get a preview from Bloomberg's Ramy Inocencio for the third quarter. Analysts seem to agree that you shouldn't hold your breath. Not much is expected in terms of any fireworks. There may be some interesting lines about better cost control, but revenue just isn't expected to make major headlines revenue for J P Morgan and CitiBank are expected to rise for city card. Revenue growth will be in focus, but for Wells Fargo revenues expected to fall by two percent. And it's really going to be about executing. On core costs skulls Ramey delivered. His New York takes Remy. Equities in Europe are staging attempted recovery with the stock six hundred up a third of one percent. The sectors posted yesterday's biggest losses are leading the way. Today industries like autos technology and mining still this is just the first gain for European equities in three days with stocks still headed for their worst week since March Italy remains in focus at the parliament voting in favor of the populist governments fiscal plan that sets up a showdown next week when Italy's budget is doing Brussels John Rowe is head of multi asset funds at a legal and general in London. This is the crucial moment we've been waiting for in the talent situation. So they will always going to put in numbers that we're going to rile the EU, and we were going to get the standoff were to some degree the Italians need to cave to some pressure which. It'd be a good outcome from all showing that the checks and balances work or you got to kind of playing chicken with city knowing it's too big to be allowed to fail at the same time the EU needing credible threats to keep spending under control, and Reuters reports the European Central Bank will not come to Italy's rescue effort either government or banking system ran out of cash unless Italy first secure as a bailout from the EU, and it's stock sold off this week. Hedge funds have
Australia threatens ANZ, Deutsche and Citi with criminal charges over share issue
"Head of the senate finance committee orrin hatch called it a tax hike on americans that would hurt consumers manufacturers and workers alike the eu mexico and canada have all how to respond in kind targeting us goods an interim prime minister of pakistan has been sworn in during a ceremony in the capital islam about the caretake excuse me the caretaker prime minister naseer milk is retired judge and former chief justice he'll preside over an interim period before national elections which must be held in the next sixty days seconda kimani reports from islamabad five years ago after the previous have actions pakistan swords first democratic transition of power between two political parties today the government was replaced by caretaker setup after successfully completing its term in office in marks ten years of continuous democratic rule seen as an achievement in a country that has been ruled by the military for nearly half of its existence journal elections will take place on the twenty fifth of july and are expected to be tightly contested competition authorities in australia say that criminal cartel charges are being prepared against one of the country's biggest banks and to of it's advisors citigroup in deutsche bank all three banks have denied wrongdoing phil mercer reports under australia's competition laws individuals found guilty of criminal cartel offenses could spend up to ten years in prison and institutions find millions of dollars the allegations involve anz the nation's third largest bank and a senior executive as well as deutsche bank and citi group an american investment company they all intend to fight any charges brought by australia's public prosecutors the case relates to the sale of almost two billion dollars worth of shares to large institutional investors in two thousand fifteen th abc news russian media has said the north korean leader kim jong un complained of us heckman ism to the visiting russian foreign minister sagala rav telling him he wanted to boost cooperation with moscow he told mister level he hoped denuclearization could happen in a phased manner the bbc's howard griffith is at the korean border walks north korea to russia is very different to what.
BofA profit beats estimates on higher interest rates, loan growth
"The kind of progress that comes in the days ahead christine bank of america reports before the us opened day and concerns about loan growth regulation questions and the focus on the impact of rising rates i mean what what is it going to be with them specifically well bloomberg intelligence says that they should benefit or the revenue in their profit should benefit from the higher interest rate so that's something to look for it also says a investors should look to equity trading as a positive thing that will come out of earnings from multiple banks that report this week and we saw g p morgan and citi group post big beats in that aspect of the reports which came out on friday and so that should bode well for the banks are report this week as you said bank of america comes today before the us open we get morgan stanley and goldman sachs reporting over the next couple of days so any comments about increasing competition which we saw jp morgan flag will be interesting this is going to be probably a mix of a good with good with the bad here so it'll be interesting all right mix of good with about thank you very much indeed.
"citi group" Discussed on Masters in Business
"City group travelers and travelers and citicorp and then lo and behold after leaving immediately get tired very lucrative contract to do not a whole lot at citi group so in any case the gentler gentler in the treasured herman in the clinton administration was one of the proponents of essentially neutering the cftc not having it the powerful force of the regulation of derivatives he then in the obama era is eager to he sees the the the winds shifting we've just had the financial crisis he's eager for senior administration position and the opposition to him on capitol hill was intense because he was so deeply embedded with the ruben wing of the democratic party and he underwent a remarkable makeover and bernie sanders was one guy on the on the hill who had been a vigorous opponent of guns getting any powerful position and gansler just pulled this remarkable about face and to his credit unlike most politicians he admitted that he had been catastrophically wrong in the clinton administration in the clinton era and he has gotten it wrong he and he said he had learned a lesson and was embracing very enthusiastically this pro regulation progovernment of you of the financial world and so he came into the cftc which at the time was this kind of scrappy underfunded backwater of an agency in washington and did everything he could to he wants scalps he wanted to he wanted to see the see developing a reputation for being one of the toughest scariest slingers on wall street and what became investigation into librar that became the perfect vehicle for him what what's so astonishing is a lot of the people who set up the financial crisis during the clinton administration and let's hold the republicans aside guys phil gramm but when you look at the democrats you you of lawrence summers of.
"citi group" Discussed on KLBJ 590AM
"All kinds of things going on behind the scenes that we we had obviously no clue of and this is just some pretty fascinating details that are coming to light now well we got a story this morning about city group they become the first wall street bank to take a stance on nationwide gun debate the bank is announced today that they are restricting the cell of firearms by businesses and customers for example clients who offer a credit card that's backed by city group they're not gonna you know they're they're focusing on this debate and say they're not going to allow the customers they do business with to sell guns dany one hundred twenty one or the bump stocks and mark is on the of don show good morning that's what i'm hearing some morning guys breathing thank you my theory is i'm tired of businesses giving me their political point of view so i'm gonna give me give them mine and i'm cut up my citibank card last night and i have no intention to ever going back to them i've had business with them for fifteen years that's called capitalism mark that's how it works you don't like them you can take your business elsewhere and that's exactly what i intend to do and that's that's the way it works i think citi group is cool with that i think city grip does not want to do business with you that's what they're saying at that's pretty much what they're saying and i think they're gonna find out that a lot of people may have the same idea i do a nurse all kinds of places to get credit card mark in the mail every day this is the problem you have with this the fact that they're getting involved at all or do you have specific problems with the issues themselves as far as selling to or not selling thinking.
"citi group" Discussed on BizTalk Radio
"On radio the which on the integrated you get the brain cells working you're listening to this rescuers in the last basque hinlip quality programming with jerry called ball it doesn't get better than this i bad what once again to invest in the judge i'm gary cole palm your host thanks for being with us today are as i mentioned a rubber right before we came on the air uh gary cohn is resign he's the head of the economic council for trump and he's been widely praised by wall street so markets down three thirty in the aftermarket we'll see if that the uh continues overnight it's a long evening and we'll see whether trump the sites to announce somebody else uh going forward hopefully well doesn't matter what i think right are as i'm looking in the aftermarket just to give you an idea a lot of financial stocks are getting hit i'll goldman sachs to sixty seven two to sixty two jp morgan won fifteen to one thirteen citi group bus seventy four to seventy two and then you've got like amazon is down twenty bucks 1500 allstock licts three 25 two of three seventeen odds so you know some interesting aftermarket stuff it's a through one minute here in the wall street land off of this and again my worry um i worry about the management at this administration i i really am worrying about it there's always turnover iin the stay on that i understand is always turnover but uh all right that said let's do today's as well.
"citi group" Discussed on a16z
"Hi and welcome to the a sixteen z podcast this episode is all about the state of security as cyber physical and national security become one in the same how does that change how we think about the problem and how we address it from software to hardware the conversation was recorded at our summit event in november two thousand seventeen and includes stena errands fired founder and ceo of you bacau joel de la garza see so at box and niels provos distinguished engineer at google and is moderated by martine casado general partner at a sixteen i used to work for the intelligence community and i used to go to these kind of think tanks with the government which were about sovereignty ending events so you'd have these different experts in different areas and you think what can we do to the us critical infrastructure to create the end of sovereignty and then you'd have the civil engineer and you have the electrical engineer and you have some that understands hydro and we'd all sit in a room and what always struck me about this was two things number one hydro security and electrical security just like security right as part of security thing and the second thing is anytime you find voeller ability for example in the electrical power grid like the people that were responsible but they've kinda you know yeah okay we'll do some incremental fix or for cybersecurity had to kind of our own world and then anytime you know someone found a vulnerability like we don't understand what we're doing we're going to kind of make an all over again have we evolved as disciplined enough so we can just stop talking about cybersecurity is this entirely special new thing and we can just talk about security more broadly or cyber security really that separate that it kind of deserves its entire discipline so pretty similarly at citi group around two thousand five we generally had the belief that will.
"citi group" Discussed on Bloomberg Radio New York
"Coming holidayshortened week treasury will pack insecurities auctions totalling two hundred fifty eight billion dollars it will be up to bond traders to signal how much that extra supply will cost taxpayers following the recent bond market route that pushed yields to multiyear highs last week with the bull market turning nine years old in march this week's baron says investors should favour stocks that can navigate rising interest rates and benefit from higher inflation among the stock cited in this week's issue are google paragraph abed lam research citi group and cummins even with markets near record highs holland and company chairman my column sees value in some stocks in the us and china us companies like blackstone jp morgan microsoft the biggest of insurance companies in china he's you're all relatively okay valuations we fed a huge run with several years these are still okay even with interest rates going up the muller investigation showing sophisticated efforts by russians to interfere in us politics may add pressure on tech companies such as facebook and twitter to tighten up their platforms to weed out fraudulent postings and online political edge could face tougher rules more on that from bloomberg's charlie pellett facebook alphabet schuylkill and other online platforms will face strict rules for political ads according to a proposed framework that will be considered by the federal election commission proposal written by alan weintrob proba democrat and vice chair of the commission would require online ads to carry the same disclaimers from their sponsors as radio tv and print ads charlie pellett bloomberg radio in the week ahead reports from purchasing managers had manufacturers and services companies and.
"citi group" Discussed on KBNP AM 1410
"Ceos of barclays and citi group at currently we can hey harvard professor kenneth folk off arthur we haven't had president trump before and so you know that sort of odd i think introduces a certain land him deaths that humanitarian a panel aforementioned attending work on we don't see we don't have to dwell on ibm sorta torn between a crisis in china and an artificial crisis in the united states there's been during the day as for us uh so an and the stock market by the way i don't think an equity market collapse is nearly as bad as the debt crisis it's not plaza but it or not careless that crisis but i have to say it is not hard to imagine a stock price run i think the stock prices are built on highgrowth but very much the low interest rates and i don't know how everything from art in bitcoin to stock prices will react as interest rates you've been listening discussion i'm sorry environment june you you're the one that has to send an actually make investment decisions moves around these mix of issues talent how your decision decisionmaking change circling commodities prices if he is listening to all of that conversation it took a really bad financial crisis registered equity market correction be quite a severe correction then i think you have to look at what is what naturally systemic copeland a think listening to this conversation is one thing which is attentive systemic risks which has been mentioned after i don't win by the puplick clark inland g political stuff happens all the telling it has to be something which happens which fundamentally changes the way people react to events rather than the event sentences could change the animal spirits in some way an the evidence points to the fact that there's a relatively few recipes seldom out the geopolitical south would not technology with not talked about is extended list potentially from the plunge would not talked about the fact that we all have businesses which are absolutely relied on a very small number of people who prove flight pikes but affected lille this message is a he would think what happened to extend the cat that date if the technology sitting out there we'll somewhat lunches which will be kind interested the have markets would respond.
"citi group" Discussed on Bloomberg Radio New York
"The terminal here you have a pretty nice chart on the tax rates before and after the republican tax plan uh looks like banks got a pretty sweet deal in the plan yes if you look at the dow to their on what they used to pay an wet there are now park cassi mapping real pay it's quite nice citi group on these probably then looks like the least beneficiary but but even their 25 percent corporate tax rate effectively as went they see four the coming year down from thirty percent there's was among the highest in the end the ones that it look like they're benefiting the mostly from their own projections jp morgan as you had jamie diamond there um nineteen percent for a 2018 and wells fargo to nineteen percent for the corporate tax rate i really love the line in your story that says of billions materialize from city air for the industry that at least itself magical but who gets the windfall right because that is really the question i mean of course it's great to look about these different rates but where is the money actually going to go from that savings and there's been an as sort of a couple of different kinds of things being talked about and i don't think any one bank has fully need a decision a lot of them have talked about adding money to shareholders pockets because of course you know they are very large judge m large stocks than they do want to be able to return equity returned capital mean to their shareholders so that was something that was a big topic noone one really walked away from that and said no no we don't want to return any of this windfall to our shareholders but also you know if you look at the more from from the america perspective you know the consumer on the.
"citi group" Discussed on Bloomberg Radio New York
"Facebook and twitter facebook has more responsibility for what happened and then they acknowledge and ravel is at berkeley law professor and former federal elections commissioner they knew that they were a participant in something that was changing the electoral process but the possibility of sanctions against companies like google facebook and twitter congress were to pass laws requiring them to disclose who pays for a political ad has the tech giants nervous law professor nate per silly warns governor an reach a law that tries to respond to a particular problem but ends up chilling all kinds of political speech across the political spectrum companies say they are cooperating with congress but they're also lobby lobbying capitol hill to make sure any new rules don't hurt their business scott carr washington i'm christopher cruise and i'm susanna palmer from bloomberg world headquarters morgan stanley goldman sachs and citi group are celebrating nature banks include gbegan and bank of america may have missed the boat this as china has taken what it's calling a major step toward opening its financial indochino ease limits on foreign banks and saw his this all following the visit by president donald trump that was dominated by trade issues j p morgan pulled joint venture french fears baghdad never had one meantime jp morgan chase in company urged the judge to throw out an eight billion dollar jury verdict over a mismanaged inheritance p morgan's the family that sued it deserves nothing the bank said in a filing in dallas probate court that the law and evidence does support any claim against it it was sued by the family of former american airlines executive matt hooper who died back in 2010 without a will the families said the bank hard to administer the estate made major mistakes alibaba group holding kicked off its annual singles day shopping bonanza logging eight point six billion dollars kgb first hour shoppers from.
"citi group" Discussed on Bloomberg Radio New York
"The eurolat dollar 1794 began went thirteen point nine eight that's the bloomberg business flash tummy data and karen thanks so much michael schumacher were this and michael male of wells fargo wonderful to have their cross capabilities of a fixed income inequities mike male we spent way too much time with mr schumacher last time around i'm gonna put out on twitter you'll see it first on bloomberg radio city group reverse split from four five hundred is share total collapse and save ten dollars a share but if you forget about the gloom tend to 74 this is your single best by this is the thing you're like in the bus what is it specific about citi group that makes it more attractive 35 years out the other 'toobigtofail banks what we are positive on all three of the the largest banks but citigroup is our top idea we think the stock price can double over five years and it's not like the wine item that so gray it that thousands of items that are now much more solid shakur has had the biggest structural risk reduction of any large banks i might be the only person saying this but thank you regulators in a citigroup and some a large banks point kicking and screaming 'oh we need to have more capital he'd have more liquidity well guess what secrets balance sheet now is the strongest that have been in a generation and something happened during earnings which was unpleasant the stock traded down and citi group said they would take five hundred million dollars of extra reserves for credit car toys and stuff by contrast that to a decade ago literally a decade ago now when they had over a hundred times that amount and unrealised losses in the balance sheets night and day from where they were a decade ago to is america of shadow banking in 2017 in two thousand inching david global news in the other day from bank of america years ago who out absolutely nailed the derivative issues senior trenches in that that blew up an oil seven two we have shadow banking now make male there's always going to be a degree of shadow banking what i analyse and watch very strong would be the us banks which have the strongest balance sheet in a generation the.
"citi group" Discussed on KBNP AM 1410
"Volatilty lo every wearing no one's trading fixed income trading fell for for all banks fit for citi group it's one of their biggest and most him portent units for the invest back and among the biggest revenues and among wall street and so yes interest rates will rise and that's that's meant to be guided were also waiting to see whether corporate cuts tax cuts are actually going to come three from the donald trump administration and that's old and still an unknown for these banks and that would be clearly a positive what we expect from from bank of america wells fargo bank of america wells fargo don't really have an ask strong or as big trading as as citi group especially in the fixed income side and wells fargo will will be all about consumer lines they have a very big retail unit and we'll see what they say on the corporate lending site if they managed to squeeze out as much profits as their their rivals jp morgan to yesterday and for for bank of america they're quite strong in the equity side and that was a very very good quarter for for citi group it was actually surprising for the bank because they've they've retrenched in that unit in the past quarter so let's see what bank of america says on that side even though an investment bank is not the biggest part of these bank earnings it's one of the most highprofile so everybody will be looking at that march nut diets sofia thanks so much for joy and so they both on television aired on radio sofia or take asta joining us in studio reporting on bags let's get the other world national news headlines now for that we go to marcus carlos marcus much about the uk is pinning its hopes on european leaders throwing into bone at next week's eu summit that softer the blocks breaks brexit envoy michel barnier is that the latest round of negotiations had ended in deadlock bloomberg's alex morales reports britain wants need is to allow brexit talks to move on to discussing future trade that the eu says no sign of progress is being made and how much britain must pay as it leaves the 'blow that means britain may end up disappointed because european leaders don't want it to look like the uk is being less of the.
"citi group" Discussed on KBNP AM 1410
"Neutral rate uh i think it becomes more relevant to understand if your extremely accommodative and you make a move or two you're still pretty much in extremely accommodative territory now we're getting closer to the neutral pace where you could really start changing the the balance of things with additional rate increases especially if the currency market that starts to respond and we get data and we've seen this longterm weakening in the dollar if that starts to turn the corner then rate hike on top of that could have some degree of a destabilising impact on the economy that being said i think that they're so emphatic about december that maybe they will hike in december and have some buyer's remorse that we're still will not getting the improvement on the inflation front and that a lead them to pull back on the amount of a tightening at we'll see in 2018 and beyond my own view is that they allow go down to a piece of just two hikes next all right so car we you know we're going to be getting bank earnings stride we just cut blackrock today or not a bank acid manager but then we're going to get j p morgan we're going to get citi group later in the weekend bank of america and i want you to follow up on something you and lisa we're talking about speaking about offline having to do with the yield curve and the what bang so doing with all of the money that they have if they're not giving it back to shareholders because of federal reserve whatever you know buybacks dividends what are they doing with all that.
"citi group" Discussed on KBNP AM 1410
"Jerry and what once again to investors that jumped gary call bomb your host with pretape in the show in the final hour the market dow up thirty two s p less than one nasdaq now down eleven nasdaq one hundred down seventeen and just the the semiconductors still up at their pulling back a little bit uh i'm look at the see what the now are few things getting ahead but nothing really you know it's a somewhat of a quiet day just to give you out some names here that have some real good technical qualities in their micron offer yesterday's earnings m k sl another raw semiconductorequipment maker applied materials another one equipment maker federal express and i look for news on federal express i couldn't find any uh ultra clean you see t t another one in the financial citi group goldman said jp morgan morgan stanley uh i think a trade each trade schwab uh some of the management companies t rowe price state street bank ameriprise some of the regionals comerica pnc um so this some you know again they're not really going anywhere but they're setting up pretty darn well some of these names here and i just want to alert you to them uh what else i mentioned to you this sowed sot a lamb research in other semiconductorequipment so they're definitely is a theme there uh but i would just tell you listen up you know what this week was right or is still is its end of quarter windowdressing that is where the boys pylon the things they own a lot of to make the price is higher so the end of the quarter the numbers are better but of course endofquarter windowdressing in other words paint thing the tape is an illegal act and you can go to jail if you do it so it does not happen got that it's a legal so it does not happen i'm just going to be interested to see what happens next week as we get an sock toba and remember in my hands to my left next week not a lot of earnings uh the week of october ten you f citi group jp morgan bank of america pnc bank wells fargo in the latter part of the week and then we get to the week of october 16th and the nook next week which is i october 23rd everyone is reporting that's going to be the key the.
"citi group" Discussed on Bloomberg Radio New York
"To the california a group of people mike mayo your fiery ian impassioned in let's get right to the house of mr hor back people have been waiting and waiting why now and citibank so we expect citi group stock to double the next four to five years that's partly because of what michael corvette ceo and citi group has done and it's partly because of what we think they should do what citi group is done is they've reduction reduced structural risk permanent riskreduction it citi group to probably the lowest level that i've seen since the merger with travel this and that through the stock beta you're going to see the biggest reduction the stock beta the biggest reduction in the costs of capital and the biggest reduction in risk premium for any bank stock iran how much is citi group like cindy wiles citi group is a completely moved on from the wild years it so much moved joint both number one group can concentrate on being a large bank and optimizing what they have no more big bank mergers and night ernest if you never say never with mergers but the big mergers the merger after merger it took sake group you know like a decade and a half to integrate these acquisition taxi citi group had something called project rainbow which is creating wind global consumer platform they finally finished that last year and that's didn't back from the early part of last decade was sandy wiles acquisitions that's one number two would be the credit risk citi group has a lot more prime lending and super prime lending a whole lot less subprime lending us some of that was put in the books after sandy weill left for sure but i'd say in terms of the credit risk the overall risk profile of the firm acquisitions risk is a lot less at citigroup and over the next five years we expect citi group to buy back one third of its shares and the only thing that prevents them from doing that is messing up says long as they don't blow a big hole in your balance sheets long as they don't now trip on the way to.
"citi group" Discussed on FT Banking Weekly
"Most recently citi group has come out and said that they're going to establish an eu dealer which is the main trading operation in frankfurt others that have also made a similar announcement morgan stanley has indicated that it's going to base its main eu broker dealer business in frankfurt and deutsche bank has said that they can move hundreds of billions of assets that they currently have in london over to frankfurt and they're going to establish a second booking operation in frankfurt four investment banking assets that are related to eu clients and they've already talked about moving thousands of jobs out of london mostly backed frankfurt it's worth a final word about bank of america because they are one of the few that come out publicly and said we were going to choose dublin as all center yeah thank you america has said their main eu hub is going to be in dublin think they're going to have some operations elsewhere in europe so they might have some trading operations in frankfurt goldman sachs and jp morgan have said that they're going to spread their operations ransacking what we're saying is that your investment banking trading will be frankfurt focused you'll have asset management mainly in luxembourg and then you'll have things like custody and security services and backoffice operations of the banks in dublin so it's not gonna be one place where all of this brexit affected businesses can move to out of course we'll also have i suspect in terms of the investment banking advisory businesses they will look kate a lot more people on the ground in countries whether simpson guys whereas they might have previously been londonbased and fly out to madrid or cover until the elder coverage bankers so they're the people who are dealing with the clients four coporo banking services or investment banking services.
"citi group" Discussed on BizTalk Radio
"Spite of jp morgan pnc bank citi group wells fargo will reporting earnings and all the stocks down dow 84 s p eleven nasdaq 38 nasdaq one hundred forty four transports thirty nine advance declines on new york twenty two eight nasdaq was only sixteen thirteen and of those names that would down a jp morgan was down over two bucks only finished down eighty five cents pnc without a buck f only finished down fifteen cents but there was still down but no harm though fell for me the real story is the beta what we mean by beta i guess you can use a different term high lawyers just stocks that move verses owning a utility stock so let's go backwards on june 9 th we told you we thought that they was of imports changing of the guard we thought that more money will flow into the dow with pete types and out of the nasdaq types it's exactly what happens in fact while the nasdaq nasdaq one 100 semis were getting hits the dow s p which a sitting that all changed the gin on july seven that was last friday when i thought a low was being put it but no way shape or form the white think a eu's gonna come but it did the beta is back and let me tell you where it is back level what china a the yours when you have a chance here symbols go look how they all held right at the fifty day slashed and we moving average rich simple y y w b t a l sia at t e s h t h t e d you and of course the strongest name alibaba in that space be a ba on top that leaves that were really strong before the hit on june 9 nvidia reasserts self very good apply optoelectronics eight eight ooi really reasserts itself thanks book really reasserts itself semiconductors reasserts itself now other things have really comeback raith tesla acts terrible that looks okay but nothing special with rockets up a bigger names here but overall betabi back now white said yesterday by the market to buy bidding would sit around for a couple of weeks but.
"citi group" Discussed on WSJ What's News
"I'm speaking with erin back of the wall street journal and you're listening to what's news we know you will you who became a multimillionaire at forty three in you who was born one we know you lose sleep over how your kids will deal with inheriting fortune and you no longer getting a paycheck but not needing one either and also you who doesn't have to work but can help not to use siri launch benard you at be why mellon wealth management we know because we know you will the neck is the necessary insight to help you grow protect and transfer your wealth been why mellon is the corporate brand of the bank of new york mellon corporation and its subsidiaries thanks for listening everyone aaron jp morgan chase citigroup wells fargo pnc they all report on friday another big financial firms report next week which back his positioned at this point to report the best results so in my opinion jp morgan and citi group of the four you just mentioned and maybe of the whole group are the best positions uh just taking some of the trends that we've talked about a slowing loan growth is worse for small regional banks you know what i'm talking about a small business that as novica ticket alone to make an investment i'm talking about someone's probably getting a loan from a regional bank not from citi group citi group is going to low mortar fortune five hundred companies which have a lot more stable business ends its jp morgan citigroup have huge retail lending operations huge credit card operations and if you'll get the data while business lending a slow slowed lot credit card lending has remained very robust so i think that citigroup and jp morgan for those reasons looked wellpositioned regional banks like pnc and wells fargo is national bank but it's it's lending is kind of more like that of a regional bank and someone like citi group so i think they're not as well position is there any collective earnings estimate that you know of fog as far as how bank earnings are supposed to perform.
"citi group" Discussed on BizTalk Radio
"Citi group broke out of range today on volume belts sixty percent higher did again just like the financial pull back in at again i'm not so sure you're gonna make good cheese off of this but if the financial get some bid citi group would be the bank you would get yes that there are while other banks that are starting to shape up up bank in new york b k get a big gigantic base comerica in a big gigantic base so this a few in the lot of just don't look that great but just go look at the up the indices for the financial today and you will see looks like the support what's going to hold now again let me repeat whether we get some sort of move out of this is another story i think more work to be done us semiconductors trees up twenty points today on the socks almost going what we call parabolic straight up looks like an awful tower um i i don't know what else to tell you accept that that's what's going on at this juncture with the semis that i mentioned to you yesterday that intel had some inside a buying or did i will fight didn't just this a direct came in and bought some stock i think i mentioned yesterday intel's where was a year ago a semi conductors rupp fifty percent so what absolute lagging name and semiconductor lands out we'll see if it's meaningful but as a look into the semis today you got eightyear.