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He -- -- markets are closed and that's right the markets are closed tomorrow so you know what pretty good rally today of 3% and the NASDAQ and more than 2% and the Dow.
To get the start of the news this morning at wells part of that really sparked things -- about 173 points right now.
Just past the noon hour in New York on the Dow Jones Industrial Average because -- -- -- -- this morning -- today.
We're gonna make some money in the first quarter a lot more -- you thought we would like 55 cents compared to an -- and 23 cents.
And that nearly doubling it right and yeah exactly and then the the financials were.
Off to the races you know but the fact that Wells Fargo is doing well means that every other bank is gonna do well that's a separate question but for today at least.
They're all up a lot -- -- by itself almost 20% was actually up more than earlier but still.
-- question is that I know of all of you have that as well as that we have some of these banks either Citigroup Bank of America and the like saying that there performance is much better than we thought and this isn't a question that we even after congress and that about that visitor challenged in a cookie trashed and what information being trashed and -- -- that information suddenly change.
And writes it now and it's a really big question I mean I think it's great isn't it great to look at the market for them -- -- triple digits but.
Better damn well sure but not not if it's -- and rallying.
And something that cannot be substantially in -- carry them.
-- even if you can can you draw conclusions from -- one company is saying about -- other companies you to do in the future and I -- his Wells Fargo related to Citigroup for example -- there's anyway.
We're gonna talk about all that and more Danny -- -- military back is with us this morning are almost McDonald.
There's a lot about these banks and how they are really put together will be here to talk about the Wells Fargo story and also how the president is handling all these.
Types of things we've a couple of other very interesting guests for example Bruce Taylor chairman -- -- of Taylor capital parent of Cole Taylor bank.
Is going to be on a little bit later that kind of recognized as a bank -- -- exactly what the government said following all the rules and to be adjusting to get a perspective.
That plus Peter Barnes on the.
TARP to call penalties will be along Santa Smithson.
A lot more -- -- as I hear a paction including the doctor -- accurately.
Doctor -- getting us this morning.
Yes cells and we were just talking before you came -- about how the market sees -- doing well.
Wells Fargo support -- -- is the best player -- it could come up with her maybe -- bringing something special to us from here right there -- -- -- Yeah I -- you did but that's another story is that I.
What he's saying what are people saying this to you so far today the safari you know it's here we go again right I mean we've got the banks this whole rally started we had Citigroup come out and say they are making money the first two months of the year Bank of America as well.
Enough for the history lesson today it was Wells Fargo coming out and saying you know what not only are -- making money.
But it's going to be what a record first quarter earnings more than double what the street's expecting.
I had charge offs you know -- just 3.3 billion dollars a -- will break down more into detail on that -- in the fourth quarter -- -- -- two point eight billion from.
Wells Fargo and 3.3 billion from the legacy Wachovia which of course they acquired at the end of last year.
Keep in mind that what Kobe -- more than 400 million dollars worth of deposits and it really got access to a lot of cash.
With this acquisitions that's clearly helping Wells Fargo on that side and we know nearly putting more and more cash in the bank but they don't have to pay you very much for that right now I'm sure if you -- -- -- Your savings account recently that the raided the as the Fed keeps cutting rates it continues to get an -- of -- are paying us nothing for the money if they're still in the about it fairly high rates even if they're the DN your mortgage rate is below 5%.
They're getting it barring it from the Fed for next to nothing or your putting it in the deposit for next to nothing so that net interest margin.
The difference between what date -- pay for cash -- what they wanted out that is huge right now.
So we know it's going to be profitable in the long run.
Five they're able to continue on -- the big question mark of course.
Has been these toxic assets and now the change mark to market accounting.
Indeed it could help them and of course -- got its near the -- up so all this theoretically at least for the bull camp they think this is gonna come out courts are playing bears out there.
We had David -- on the show yesterday afternoon always there and now very bearish in -- -- down 3000.
It was a -- -- so they're still people out there.
We think that all of this is not going to help then of course runaway inflation will come.
-- -- you know that you'll see more failures ahead so you know depends on which side of the fence you're sitting on their fair but fox Pitt Kelton was pretty -- -- -- Ferguson make.
Think they'll be on pay back part.
By year's end.
Yes I saw that David Schroeder was on the -- -- ability of the day says that analysts they're so yeah that would obviously be.
A good sign you would think -- a lot of the banks seem to be focusing on the repaying those truck payments we'll talk to -- greenhouse a little bit about that.
No big thing today it was a couple that thinks that would the other big thing in terms of sectors of the retail right -- -- those numbers.
Need to find some bright spots but a lot of down a lot more negative numbers set on another day if it wasn't for Wells Fargo that we've been talking about how the market is being led lower by retail and we -- -- probably does and you look at Wal-Mart just pulling it down out.
Almost 5% you know right now -- and a half percent.
I needed disappointment from Wal-Mart yet -- -- -- coming out sort of defending it saying that Wal-Mart only getting bigger.
Really where we've seen success especially retailers we talk about the buckle a -- time zone 6% today.
You know even gap up 3% a stock that's really struggled for much of this decade.
No one else is up to end just because -- continued I'm hungry I was looking at into.
Is it when she was kidding about -- -- Kate got like 5% then you -- every Tuesday.
At nine and a half of 1% -- nine and a half percent so this.
This I don't know if it's only at lunchtime -- -- To check hit it close but yeah it seems like you know maybe it's just good for alleged that -- god GM brands as all of the -- if you dancing and that's really what helped the rally yesterday right besides that it is the big merger that we had in the morning with the homebuilders -- Is consumer discretionary stocks which.
Still it's interesting -- because that feeling the consumer is really left out of the news cycle.
I could -- talk -- the consumer and that that much because it focuses on the banks and government.
But still these are the -- this -- some -- -- carry her.
And don't look now Ford and GM both up for dead or some comments on the wires apparently made.
Some comments yesterday probably at the auto show here in New York to an analyst and -- -- general's putting in this one racing the Ford says even if they don't sell nine million cars total in the US.
They're not gonna need more government aid that of course is.
Contingent on two billion dollars it's already promised -- -- -- the Energy Department but.
That's not the end Arnold -- I think would have been more appropriate moral -- -- not needing aid but nonetheless the stock up 7% right now.
All right so uninteresting day as -- -- appreciate of the west should point out sees Melanie and Dan maybe all the talk about this but it.
Time in reading some you have technical analyst talking about this -- -- very positive going into long weekend but frequently you'll have a -- Monday's.
It's open it to keep in mind of course you never know what it -- -- -- Sunday night -- Monday morning nice -- -- perspective VIPs your greatest back eastern Monday I -- it stood at one -- to -- it's a -- day weekend for most of the European markets.
All right thank you Robert banana groves will be here tomorrow -- be here.
As a matter of fact yes nobody works of.
Seems angry here I didn't I didn't -- and do this our viewers now on the weekends I -- like our chat in another day chatting I kind of like amnesty -- I -- I'm sure we -- -- read something I -- I wonder what why is -- an Arizona -- -- they can't really know I'm reading your comments all the time let me think that -- -- it's got to be a way to work through that affected the -- guys you know so I'm twittering on the -- -- -- -- in the weekend.
I never -- -- -- -- hanging down themselves what are now object at the end.
-- saying one word two guys I didn't catch snakes alone but nobody thinks anything about the show as many of you know is that we're now podcasting so I -- get a chance to watch us live every day noon eastern time foxbusiness.com you can check out our podcast.
On iTunes just search for Fox Business into this and watches over and over and over and over again never stop yeah.
But today we didn't mention Warren Buffett -- -- you know but we could have because last.
Tonight we learned Berkshire Hathaway losing its triple -- credit rating later on centrist and it's gonna cut join us to talk about that -- see the poll popping up if you're watching the chat here.
You know the -- -- poll question becomes Berkshire Hathaway's.
Downgrade is a sign that -- mr.
-- lost the and become a magic touch maybe from anti business is bad for everybody across the board C insurance is just not a good business to be and we're deep.
Much of anything -- start weighing in on the poll question which I know you've already done which is great.
And will get to that Cassandra who is covering a story anyway in the network and when she comes and will we'll talk more detail about some of those -- answers.
Get -- -- -- -- -- here to remember it into practice because you can -- where that's at at the -- live all the time you can also email us -- and live at foxbusiness.com.
Even over the weekend if -- hadn't happened to -- talk about come Monday.
Email us let us know what you want -- to dissect discuss and -- go ahead and try to.
Make sure that we get the shooting and just in -- questions but I hear you talk a little bit about what's going on today.
This Thursday -- angry house for Miller tailback and company -- -- joining us again and I again been enjoying your notes since the last time you've been on to thank you know this.
What the market today -- this this rally which we haven't practiced being tethered to with the news from Wells Fargo is that really all that -- -- -- in this.
-- and I think right now.
Certainly Wells Fargo was the impetus for the rally that we've seen.
Today futures were up fairly modestly and then -- when the -- Fargo headlines sort of question -- obviously we saw the spike in English led to the rally that we're featuring now.
But as was mentioned a little earlier -- this is just sort of an extension.
Of the rally that we so.
Two to begin the current rally which -- about 2627%.
Off the -- we have to be when Citigroup and BankAmerica shouldn't they were.
Profitable in the first two part the first two months of the year of course march not as much as the beginning but again.
Wells Fargo just seems to be falling in line with what we're seeing from the rest of the financial sector the key now.
With respect to the earnings reports next week is exactly what effect of the so called below the line items for the onetime items have.
On these banks and what of their earnings gonna look like when we have to see the entire picture and seven just.
One part question we can all have one time items with our own personal budgets maybe you can explain had a little bit on these these onetime items that we should pay attention to when -- get those earnings reports.
Essentially what banks do -- -- -- to an analyst who they look at earnings with his so called operating earnings of core earnings.
And then there after they take into account were called one time items extraordinary items.
Could be strike -- or any sort of impact on earnings that are not deemed to be repeating and thus we can remove them.
From from the from the so -- -- -- -- take -- -- -- that the core functions of the -- house of performing it's really an accounting measurement but -- -- Please know I just find the kinds I've been here because that is that you -- -- can apply this to his bill to swinging saying where do you see city.
In the near future and that that's a great question isn't it kind of focused on one or two banks and then we -- the -- -- the conversation so.
Let's say city we're gonna get some -- their numbers for example onetime items that could affect city maybe gotten can't speculate at this time but maybe -- Robin and -- some of these other.
These other banks what -- That was also what I was kind of bring it earlier is can we draw away right now -- Wells Fargo says something.
You know -- they've been executing pretty well from throughout all of this right and does that mean.
No and all the banks are today but is it fair to draw that conclusion that all the banks are better -- -- of Wells Fargo Center.
Think certainly with -- interest rates up against zero bound.
It's very difficult for banks not to make money in -- certain aspect of the business.
There they -- obviously they take money in from deposits and they lend it out.
Longer term and higher interest rates and so in -- bank should be generating earnings.
You know there is a there's an individual an analyst.
-- on Walters and John Huntsman is a brilliant individual.
-- upon hearing that Citigroup and BankAmerica had comment about generating an operating profit in the first two months of the year he commented.
That the euphoria that investors were feeling as a result of hearing that was a little misplaced because in theory.
Citigroup's headquarters could burst into flames and Vikram Pandit could sell lemonade in the parking lot.
And Citigroup would still generate an operating profit.
That's a pretty good business to be involved eliminating -- -- and captain hunter -- I don't I wow you know we have a good laugh at the common good or that -- The visual of Vikram -- and -- -- Are we can run and yes yes anybody because I didn't miss it does underscore.
The point that -- -- a little earlier that is that we have to wait and see the full picture from the quarter before we can get excited about the -- right with -- that with respect to the comment about Citigroup specifically on the financial analysts I'm not gonna comment on their balance -- specifically.
But I have said repeatedly I'm certainly not alone that that Citigroup is certainly one of the banks in the direction of situations still.
I think you know we're we're seeing improvement -- a lot of metrics but.
You talk a little bit about what you do yet if you were a little bit about that the banks in general today right in terms of what we're supposed to do four -- if the music city -- -- a dire situation.
As you said still -- a bad shape other banks -- Wells Fargo not.
In that type of situation so in distinguishing between them stress -- is obviously in the news today according to New York Times apparently everything's going fine -- -- to pass it.
What's next here for these banks and how -- we distinguish between winners and losers and what we do with the losers.
Well I think this is certainly one of the aspects of from the -- -- that I find most infuriating.
And that is with the assumption with the the rumors are we hearing that some of these larger banks want to pay back the funds whether it be Goldman Sachs the TARP funds whether it be Goldman Sachs Wells Fargo and the Obama administration is indicating to them.
That -- is not the time to do it let's wait a little bit whether it be to see the results of the stress test.
-- to get some of the weaker banks up on stronger legs where we're hearing in the rumors that that.
They are preventing the banks the stronger banks to return the funds but there's a -- so we had heard nothing substantiates that -- a 100% they are merely rumors.
If you read into some of the statements from some of the bank CEOs it's certainly sounds as though some of them really want to give that.
Money all the processes they apply the treasury right to do that and the need the treasury will review those applications -- is -- the thing is.
That we haven't gotten past the stress tests so -- kind of wonder.
I mean we have this conversation after that and then if that's still the case that bank CEOs are applying to give the money back one reason or another they're being turned out maybe you should look into a pretty aggressively.
But don't you think we should wait till after the stress test because then you're kind of doing double.
From double jeopardy is the right term but you're saying all right here's the money back and and stress test conductor I guess -- Mormon you know -- just keep it yes it should we wait until that's.
Processes -- I certainly think that.
If you if you if you think broadly speaking.
I think it's fair to say from the Obama administration's point -- -- To hang onto the money let's get through the stress tests and will assess the situation there I'm certainly not think of the belief as some people are.
That Barack Obama is trying to control of banks and control lending to politically.
Influence if I'm I'm not saying anything along those lines because it's just another -- -- end of April right as a stress test results were already in April I -- -- like we had -- -- months upon months for this but I mean it's what whenever it comes out but as you mentioned just before the New York Times blew the cover of the story right there on the past.
Okay but here's say here's the caveat that some New York Times story that we also need to disguise.
-- -- New York Times and yes they are -- -- they all -- votes to pass however they're in need additional funds where that's from private investors in the market place.
More another government bailout any.
That's great that they could get a pass out of a pass fail -- stress -- evacuated are going to be -- they can you imagine if we go and we have another bail out.
At this time do you think that that.
First of all -- that.
With a market be able to sustain that's.
Well what do you think.
I think that in many respects are exactly correct you know wet weather in the market could sustain the market I think it in the end would be fine with a capital injection.
Whether it comes from the private sector or comes from the government in either way equity equity holders are going to suffer.
The question is going to be legislatively.
Right politically whether.
Banks that have passed these so called stress tests that were supposed to prove a liability.
Not yet need additional capital whether or not Barack Obama can push through further injections into banks that passed the test that supposedly was gonna demonstrate that they were okay.
Because -- can really make the point that GM failed the stress test and you're right they had a financial viability plan McHale yeah and next sixty days until the government -- Essentially you're gonna have to file for bankruptcy.
Ridiculous and I offer the banks.
The difference being that at this point I believe there is steadily increasing widespread acceptance of the fact that right now GM could.
We could let GM and -- prepackaged bankruptcy and the fact broadly speaking macroeconomic speaking will be.
Significantly lower than the loss of the Citigroup or bank America rhetoric doesn't make it right or wrong but you know the fact that the fact that systemically it's not nearly support different.
Yeah completely different business included an effect on the continent that's fair -- greenhouse military affects our guest today with this Phyllis McDonald's -- from a few minutes she's here early cousins and tiger because -- just joining us covers you're having with with -- as well.
You don't forget the idea and I think that we just posted a New York Times particle by the way the stress -- it's getting so much attention today.
This idea about you know people -- -- pay back the TARP -- decide of those conversations come up a lot the last.
We -- -- and whether or not they are being.
Allowed to pay it back what's going on in Washington without are we gonna wait till after the stress test and the still bothered -- partisan politics involved and what I don't know.
I just on that point alone -- it's -- you know Wells Fargo for example so they never needed to 25 billion dollars they wanna pay the money back.
But the question is for the smaller players who got that TARP money.
The rules as they were sent down by TARP was he had taped in order payback he had to issue more shares -- that acts like blood thinner -- existing common shares -- -- -- set to pay back that.
On the preferred to -- to issue more shares that was the rule.
So the idea is you know.
Is that rule still in place number one secondly if that rule is still in place do -- then do -- said FDIC -- debt to pay back the treasury which we've done a balance -- Says that that's a bit of a conundrum for the banks but getting back to the New York Times story you know.
I honestly don't -- concerns me when I see anonymous officials talking I don't like that I don't know how many officials talked to the New York Times -- -- may be -- seem to me one anonymous official.
And that really move the markets today so you know the question is everybody in the natives are getting restless -- they want to see the steam pipes to stop bursting at the banks.
And I don't think that'll happen anytime soon and why do I say that because commercial real estate still acting like it -- -- around the neck of some of these banks.
Commercial loans and I don't have a lot of credit cards tickets at face value -- take I think it's kind of note did not take it that's right that's exactly right I don't take it at face value.
And so what are we talking about their nineteen banks that are being stress tests and right now right and we knew about this since February and if the markets really went down on March 6.
You know intraday low and and really had a close in on March ninth.
On fears that bank nationalization.
-- and so what you're seeing is the markets we know don't like nationalization.
-- you see the commander in chief executive and amusing a pun there fired GM CEO we see a Treasury Secretary Geithner saying look.
I will remove bank management -- I think these banks management and the CEOs are not gonna cut including board members.
So you know.
As good as the markets get acclimated to the idea of -- CEOs being removed the also got acclimated to the idea of the GM prepackaged bankruptcy.
Isn't what the markets be acclimated to the idea of a restructuring or bankruptcy for a bank I think that could be the -- We appoint a little -- there because -- Reagan and and and and -- like to be your perspective on this Rick says how -- latest statement by Geithner.
That it will cost two trillion dollars or more to get the banks out of that out of this financial crisis.
And in the markets basically telling us they're solvents and gaining strength.
Who do you believe me it's a great question and you know.
I don't believe anybody right now you look mcdonalds.
I can but he does sometimes worry about some sort of things I see different civilly sue Wells Fargo really popping -- trading up more than 30% rain coming down more nets now and up -- 17%.
When you dig into their financials -- big about a 105.
Billion dollars 105 billion dollars.
An off balance sheet securitizations meaning these -- -- paper these securities are built an auto loans consumer loans.
Commercial mortgages warehouse off the balance sheet.
I think general Vegas in this country saying everybody all the banks all companies have to sleuths and put back onto the balance sheet all -- all that stuff that's warehouse saw.
That's gonna cause capital ratios to start to gyrate.
Watch political pressure being brought to bear on the -- maker saying you know don't put that into effect in November.
You know solid.
Put yourself in the future you know an episode -- the whole point of what this is saying to get a said hey we got a lot of this today on the face other surface -- -- all positive news but.
Be careful you agree disagree there's I'm excited because there's so much and there that I wanna respond to god -- start with the last point.
From the start with -- -- point nothing gets me angrier than the thought of politicians.
With respect to accounting.
For financial statements or anything along those lines don't do this don't do that nothing gets me angry than the thought of these politicians coming to.
That that the accounting groups within these institutions and dictating to them what they should or should not do in order to achieve certain and the -- the numbers and accounting are the backbone of everything that we're talking about math and finance and accounting this is everything and the minute that you start applying political pressure.
To the way that you go about determining these facts in these figures I think you've OK you've flown look at the next point in the second minute when.
Exactly right you know covering.
I -- the accounting.
I cover corporate accounting scandals -- the Wall Street Journal in the mid ninety's.
And in 1997.
Fed Chairman Alan Greenspan said look.
You know this derivatives fair value rule that you would be we've you've been covering a revolving covering that's -- -- and -- colossal break dance called mark to market.
-- at the time sent only have that rule applies to the large banks not the smaller players.
So there's political pressure from Alan Greenspan that's another sidebar -- -- -- -- the regulatory role non right literal some people would say that -- Fed Chairman had during the crisis.
But you know -- did makes a great point and we see that now at the mark to market accounting rules in other words more companies are gonna starts losing.
Some of these securities had been sitting on the balance sheet and not taking the profit hits from them.
Is that clear is that transparent it's a huge controversy and it's getting hits and yet it's going to help the first quarter -- -- was laying in my granting basically changed the rules make positive meetings with -- move that we've seen for the mark to market and and we're talking about as the earlier.
But heated -- than it did that change it to be more positive what -- -- -- into more realistic in your estimation helps.
That banks protect their earnings let's put it that way then good for -- I think -- -- has so -- vessel damage -- this question -- has always been -- thinking short term in this environment the banks -- and then look these -- -- have cash -- sit -- we're -- warehouse -- on the -- -- by the -- Maryland started doing this last year.
You know -- that the banks have been doing this already this relaxation of it you know but that has the has put down money into other comprehensive income right yeah.
Let me also note two quick things the first is that.
Fortunately for us the rules that were finally adopted are fairly modest at best they are not the wholesale.
Changes capacity that some people wanted to -- You know you saw immediately after the rules are voted on I believe -- -- Citigroup and BankAmerica came out and said it's -- -- pennies to our earnings.
Wells Fargo today said it's gonna -- -- -- earnings.
Fortunately the changes that were made were not the types of changes that some people that have advocated including some people looking for the wholesale suspending of mark to market which.
We should all thank you know -- -- that I didn't I think it would have been terrible idea I think -- -- didn't -- you can make a case that mark to market accounting is exacerbating the situation.
But my second point which I'm excited to make all -- -- Except no one of the -- -- very excited that what this is exciting topic and I'm very few people admit that account in deciding what little welcome to all come.
She doesn't pencil.
Yeah I don't know if to underscore what and in fact that we are taking them from the fact what is the benefit of mark to market accounting is that has helped expose.
The -- Situation that he's fine at that at the food at the financial stocks of the -- -- I'm the quicker that we learn as much as we -- the quicker we can get through this issue and one of the problems that.
Japan has and I'm not making -- an apples to apples comparison between the US -- in Japan.
In 1990 one of the problems of Japan had with their reluctance to more or less acknowledge reality.
And today -- walk to market accounting for all its issues is helping us.
Become aware of reality and we may have found all about this -- but for the tigers.
Let me clear that that the people that change that mark to market rule.
On the politicians find her and me in the business leaders here it is after viewers who would you like had changed the accounting world but I'm curious to hear -- they say if you say both holidays there was pressure and then.
The business leaders for the one -- did what I.
The banks are angry with that the American Bankers Association has been against it.
And they would put pressure on the politicians who put pressure on them on the -- -- -- the argument on the part of the benches had him mark to market when there are some market to mark to.
I had sent my first though like a -- Davydenko and -- I have never there are gonna go we're gonna talk of -- CEO and just the second which is interest and so will get done his view on all this which.
-- be useful I think but did you know -- who was also you made it to Japanese comparison moment ago Wright and another thing that I know you've been talking about assists.
This idea -- what we should -- we've got if there's a little bit earlier but this idea what we should do that the banks that are quote unquote if we find out insolvent right.
You don't think the propping up model zombie banks works in other words you could favor some form -- nationalization it's at a debate in reading that.
And where is that if a bank can survive but it's not just let it go look at the government out and the other -- -- the government take it over -- -- -- -- revealing a little bit.
-- to I to a degree I agree that they don't -- sound like can I -- Can't think that I can do.
Okay yeah I should say -- of blood on them.
But the truth of the matter is is -- this gets back to the very first point about whether or not these banks should be allowed to return a TARP funds.
You're talking about some institutions which are healthy right some institutions which are not.
And right now.
Through the injections of the TARP funds we're not entirely sure which ones are perfectly healthy and which ones are not obviously we can -- further digging and obviously we can do further research and we can determine that -- but as long as those -- Funds are on the books.
It is that's clouding of the issue allowing these banks to return the funds -- says to the marketplace buying -- for argument sake.
Thank a I'm -- gay.
I'm healthy enough take the TARP funds back I need to raise private private capital trying to sell assets whatever I need to do on the -- can be done because the arm of government is not involved.
As long as the TARP funds are there you have a clapping and -- Charlotte they're unhealthy.
That's the second point if you're unhealthy fat -- and I think you need to euthanize thank you think there's a dragging out of the Kevorkian's.
I think we joke but you need to -- -- doctor Kevorkian literally.
It quite right there's there's a lack of that consequence right now with all these government recommend restructure them that's -- will happen.
And even smaller and -- Philadelphia selling it to a point the first with respect to the mark to market accounting is who you know we talked about how do you mark having mark to market when there's no market.
One of the most important points that that gets glossed over all this is that.
Banks who've been making money for decades upon decades.
Sometime -- the recent memory chose to bypass totally illiquid market -- for illiquid markets and let's remind yourself that some of these it's not as if there were.
These mortgage backed securities of the -- attorneys were trading in the market the -- to IBM stock.
They were not the most liquid market to start with so obviously there's been a pullback in terms of fires -- -- -- -- from yes.
You know didn't get it -- had to answer is -- he makes a great point and a promise Citigroup -- In eight days they say the mark to market rules one -- -- change why because all the stuff was warehouse in the sense so they were already -- -- You know mixing crazy commencement -- one point one let me point out the best we've been here before.
The markets have been here before on -- -- you know paper securities that are we know basically papers security to get paper gains.
-- turn a twentieth century the bucket shop came into play no words -- literally wall streeters are making bets and putting them in buckets.
You know speculative bets that had no underlying stock with them that's similar to your credit default -- today for the -- -- regulators.
Knew I mean they should know that that Wall Street cooks up and they didn't come Cox all sorts of -- securities and makes money.
Often is that an electrical hot hot hot hot like that -- -- clients and flat rate could you do that you know.
Did agree to -- military's don't get our own Elizabeth MacDonald a KE neck you can read a great -- -- -- this is not comment probably -- for the fox does that work in a few minutes.
All right thanks -- we wanted to get -- to Bruce Taylor right.
But say it exactly where I came back terrible word here speculating about targeting -- rich Taylor the chairman and CEO bad Taylor capital group which is the parent Cole Taylor bank.
It's been recognized as a bank that's actually doing what the government wants that the TARP money which is interesting.
Taylor thank you for joining us we appreciate having your perspective especially when we again.
Speculate how much when -- in banking history -- I have -- Bob Bennett says thank you for joining us today.
You're welcome to talk -- a little bit of advantages yes great to have you talked just a little bit about this how much money.
Did this bank received and many say that you're actually using this money to do with the government intended by making loans to commercial industrial customers.
Where exactly give us an example of where exactly this money is going to.
Okay thank you we aren't.
In the fourth quarter of last year just under a hundred -- million dollars.
Through the Treasury's.
TARP capital purchase program.
We've had a unique opportunity here in Chicago a little bit that -- on our company.
Is we principally serve closely held businesses in the greater Chicago.
And with some of the disruption that's occurred in our marketplace do you do takeover of some of our larger competitors.
We've had unique opportunity to gain significant amount of market share.
So in the last half of 2000 -- essentially we were able to attract some very talented individuals.
To our company from one of our primary competitors.
And at the same time do about three years worth of business -- so I have very good Medicare.
It was -- -- national bank who was acquired.
By Bank of America.
OK so you really are our primary.
OK -- were able to get primary could go ahead.
They were our primary competitor.
And serving our target market which is -- the lower end of the middle market.
Okay -- -- isn't there and they're out of attended that competitive the rain here and you're and still didn't talk much about making these loans -- do you say that you take all the -- of the government has given you and loaned it completely out to -- no.
Well I was.
Our portfolio grew last year Larry approximately three quarters of a billion dollars.
These are paid to diverse group.
Family owned that owner operated businesses in the Chicago -- -- Everything from -- vendors wholesale distributors printing companies.
Media -- graphic arts companies.
Professional service firms.
Companies that do anywhere from five or ten million dollars a year in sales.
Up to as much as 200 million dollars a year in sales typically these companies.
Only source of credit is a commercial bank like -- -- like ourselves.
And we provide ten or fifteen million dollars worth the credit facilities to these various new relationships.
Okay a couple of questions one Texas just -- -- -- -- -- that rally eroded and don't wanna you know whether or not if you didn't get TARP money your bank would have failed so not so legitimate question to ask someone chance of that first national questions about the lending side of it.
But -- what about he didn't get this talk money.
Don't we we would -- We would not have felt but we would not have been able to grow our business we would not have been able to take advantage of this market opportunity and bring these new relationships into the comforting.
We would have been shrinking our balance -- as opposed to growing.
Parts -- your -- you tell him was there any consideration to not taking it only for -- you to give us an arms twisted into taking it you're.
Did you detect because you saw -- -- they're given to us in this opportunity we've got to take advantage.
It was really a confluence of events we we -- and certainly have had our challenges -- our portfolio.
Supporting local home builders but we also had his -- really once in a lifetime opportunity to build our business.
And bringing in substantial new commercial relationships to a company.
Perfect so it sounded -- stuck there with that would -- substantial commercial relationships.
He had the credit crisis we keep talking about then it was has essentially making loans are making bets on loans that work we're not strong -- so.
I chatter was no are you -- -- she responsible people how are you betting the practicing you're not.
Over extending yourself and loaning out his extra money that you would have never had to begin -- it.
-- What we have a very rigorous underwriting process and we are very hands on.
And understanding of businesses that we thank -- getting behind the numbers getting behind the management teams their strategies -- -- track record in history.
So we look at.
Did diverse and very broad set.
Criteria before we underwrite credit -- -- the fact of the matter is many of the talented individuals.
Who joined us from the larger competitors last year.
Has multi year relationships -- many of these companies -- -- and then also gave us great confidence in these new relationships we were bringing over.
There aren't a bond got another good question here what's the strategy for repaying this money if any at this point -- to retain the -- money.
Well if we don't we don't plan to repay the TARP funds here in the near future it's not a 2009.
And probably not -- 2010 event but we look.
That's our earnings performance improves over the next few years.
-- the result of the investments that we've made in our company.
Begin to be realized that we will be.
Through a combination of earnings and other capital sources which are not today available to the banking industry.
Will be able to love repay this -- And and frankly were on the same side as the government where we've invested heavily into our own organization.
And we're looking for a substantial return and you -- forward to giving the government a substantial until somebody on the board this who have lost somebody said other using.
What you're using this you're using it to get a competitive advantage you using TARP money -- Put yourself -- a better competitive position I don't know that on the surface and he's wrong with that or not I'm just wondering if that's the intention of TARP -- me to me it was to get the troubled assets.
And it wasn't put in place that way it did at the first that's -- -- -- TARP was supposed to stand for and to get the troubled assets off the balance sheets of banks that they would start lending again.
Now you've done that part of that you started to -- again but you also told us that you.
-- not so many words he didn't really need.
What did you.
Well if we were gonna support these local companies that we're looking up.
For other sources of financing crisis was a very important element to provide us the capital that we were going to need to.
To support that and I think supporting the local economy.
And supporting the companies who employee.
Tens if not hundreds of thousands of -- of Chicago and is very much in the spirit what this program is all.
Well -- if it's true a lot of you know the big complaint for a lot of these big banks is that they're sitting on all of this cash just to kind of make their balance needs better and make investors more comfortable to investment that -- -- points.
About being able to invest in small business but what do you say about the government is something that we would not have heard.
From a CEO like yourself maybe two years ago saying that -- partnering with the government that you have a great relationship with them that you're gonna pay them back eventually.
It just seems a little -- getting in here in here is still in the private industry government over here here here on the other side and and we know where we're capitalistic society were supposed to can operate independent -- each other and in a lot of ways.
Did it concern you to have that set and bill -- to -- to Washington.
There are certainly some downsides to that I currently there are some regulations -- -- -- -- constraints on compensation.
You know that have been put in place since the program was it was announced.
That that certainly is.
Cost of the program and and risk.
That we've taken but we also felt looking longer term.
And we look at our company longer term that this was.
Good opportunity for us to continue to serve the market that we that we serve and that we live -- operating.
But just I just -- come back to the original point which is that I I wonder I guess I'm asking about it and whether this is do you you said this is the attention of the money maybe it has done.
-- needed the TARP was to -- continued to take banks have what it felt otherwise.
And keep them in business for the greater good of the economy and -- this is our money right 700 billion dollars of taxpayer money.
That's put at risk so that there wasn't up -- larger systemic problem created by the failure of one of these big institutions.
Now what you did wasn't so it's initially will be different -- -- you could've survived and kept going and and and in your business could have and wouldn't have failed without this money but instead you've you've taken it.
Take a taxpayer money and and and created an opportunity for yourself and otherwise wouldn't -- Miramar -- wrong.
Well I don't think.
I think it was in an effort to pick to stimulate an assist the banks and helping stimulate the economy.
From a very precipitous decline that was happening in the less fortified months of last year.
I felt like I was Bernanke and Paulson went up to the hill that first day was hey if we don't get this done by Monday we're gonna have a big failure on our hands we're gonna have.
You know Armageddon -- ahead of so that mean I thought that let me guess that's the basis of where my questions coming from Madonna is not accusatory necessarily just.
That's that's -- the basis of where what -- what I'm thinking about unanswered question so wrong.
Well there and what they had in mind in terms of the larger more complex.
Organizations that exist and operate in the marketplace may be very different.
For them when you think about this you know there's thousands of community banks like ourselves right who want to complex organizations who want to involve.
In some of the that the toxic assets that I think all of us have heard.
So much about sorry I think maybe they were focusing more.
Come what may be there the upper 1% the financial institutions and it wasn't just the banking industry.
And I think in some extent we've been all.
-- with a very broad -- sure whether it's AIG or the investment banks you know but we we really are much more represented -- -- the community banking.
Across the nation -- we are these large complex now.
National end user -- fairness my questions probably wanted to be directed more to government -- -- in many -- say hey what if you know if that's the issue what they do this in your -- -- hey did get it and we took advantage of the did.
At a bend and -- -- going back to original point you did what they intended.
To be done with the money in that you lent it out to people and that helps to get the wheels turning again which I guess is a good thing with frank thanks a lot for coming out of those very interesting.
Conversation I'm glad we got to cover all those.
Cover all those issues frank Bruce thanks very much for coming on.
What is with me with names throughout your first -- swappers' Taylor the chairman and CEO of Taylor capital with a son from Chicago today article to Peter Barnes -- by the -- is doing yet.
Fox News Channel report as you can see behind me she's gonna play without wall today if you guys are watching TV at the same time watch -- of the Internet the should be fun.
The problem is Peters coming up from DC the problem -- she's got long fingernails there she is what is she doing with a baseball -- This is gone doctoral softball that is quite possibly look she can do it.
She can do -- I didn't should be able to do this but she can't see the problem Peter.
If she's got long fingernails and you're supposed to play you know Bill Hemmer is bored you're supposed to actually you know when you touch it he's got a touch your your fingertips and -- have a little bit of an issue with a -- so she's testing that's -- -- Fox News Channel.
Anyway did you hear that every -- that.
Do you hear that interview at all what the bank CEO we had on before you -- it was Bruce Taylor.
Jesse you know he tech and I know you when you're you.
Are gonna talk about how much is left in the tar but I just wanted to start.
Maybe you couldn't if I was on the right line of questioning or not with him.
I was trying to get to this idea is that really what we intended -- to deal.
In other words take a bank that and I had his words would have survived anyway.
Maybe he's not maybe that's not right but that's what he was telling us and essentially give them a competitive advantage right around.
-- well I yeah no I think I think you're you're on to something there -- because as -- -- member right after the tart pass that turned the secretary Hank Paulson brought the top nine banks.
The healthy ones as well as the sick ones and forced all of the top nine which represent more than 50% of the deposits.
In the banking industry.
To accept the TARP funds whether they want it or not and -- call.
And so what happened -- -- after he did that.
You have part of the idea there is that they didn't wanna create a stigma.
By by having banks identify themselves.
-- applying for TARP funds and thus creating a I problem with confidence in the banking system and that and that's potential runs on banks.
And so once that started going when all the top nine.
Institutions including you know Goldman Sachs which was at that time pretty healthy.
And JPMorgan you could argue was it is was healthy and is still pretty healthy you know then then the other banks out there in the country that had to compete.
With them in local markets.
Did -- get concerned about competitive advantage and so the rest of that one out.
Some that were healthy and some that were second up and applied for the money as well so that it just began now and others over 400 institutions including.
The -- that you just interviewed who -- that money.
And you know because it says so that was kind of I -- ground swell.
When that when we saw the first -- -- get healthy or sick.
Then everybody else thought they kind of had to get in the game so that they would need to be statement ties -- -- you know -- why isn't my bank getting that money is an unhealthy out again.
The Democrat perverse unintended consequence -- it's interesting to remember they got.
They got five years a cheap money and it said that the the government preferred is that five years at 5% and then.
The interest rate goes up to 9% so the government's intention is to have everybody try to pay this back.
Within five years right out of either new capital raises or out of earnings that's why would -- asked me who's gonna pay about our last minute and ten bags had no -- to do in the next year to serve because -- -- -- -- to five years to get there -- And it's certainly been covered today we wanted to have you ought to talk about it is.
-- -- goes along obviously what we're talking about here in the TARP right how much problem and it should be a lot of debate about this.
It's how much is left of the TARP money well wrong.
It's critical question because as you know we have the stress stress tests going on with the the top nineteen banks right now we're not sure if that fact as a result of that.
Some of these banks may require more capital we've also got the auto industry looking for more money a twenty billions in additional -- help we've got it life insurance companies looking for twenty billion so the question obviously is is is there enough money left in the TARP but we -- finally got.
Two independent reports this week one exclusively to us from the financial services roundtable that actually kinda get to this question as you called -- secretary Geithner about two weeks ago.
Said and then Sunday talk show that there was a 135 billion dollars left -- available TARP resources.
What we found out later and treasury spokesperson confirms this.
That he included in his assumption they -- payment of 25 billion dollars in TARP money.
From some of these banks say at Goldman Sachs which -- got ten billion and has said it wants to repay it by the end of the year so if you pull that out.
You get around a 110 billion left and available TARP resources uncommitted -- and that's what these -- an independent reports say is available as well we're showing about -- Peterson you know we're showing Vietnam like you went on TV as a as a full screen graphic we're showing our -- where people are commenting.
What's left of 700000 was authorized.
32 and a half billion on allocated -- nine Billy she said on committed and then on dispersed at this point.
Is that 371 billion -- that that that's the shocker here you know everybody looks at it says well I mean -- go to some of these numbers where they only had thirty billion left they only fifty billion left.
The reality is is that they've committed.
You know 50600.
Billion or whatever they have a 110 million or so that is uncommitted if you if you just take the Treasury Secretary assumption of the 25.
It because -- 135.
But the reality is they still got 371.
Billion in cash.
-- left in the bank that they haven't dispersed and suddenly it's -- to some of the analysts around town and they say listen.
Treasury could clearly play around with that remaining money that that on -- money depending on the need that -- over the rest of the year.
Are very interesting all right so then we posted Peter's article it's on the website -- this is not cutting us -- read that I want more detail and Peter will be reporting on.
The network throughout the day thanks Peter always good to see you okay things are -- months of the markets because we have not talked about the middle of the -- -- quoted one here in New York in the -- about 189 points were having a pretty nice day.
On Wall Street thanks in large part what happened at Wells Fargo this morning no doubt about that.
With the a better than expected first quarter outlook much better than expected to -- totally -- down on the floor of the exchange so the good rally continues here had a long -- in the -- -- -- -- had expected at it was pretty unbelievable.
-- -- cal Wells Fargo took off this morning we -- in the premarket up 34%.
Soon as that opening bell rang Wells Fargo -- -- -- up about 32 -- and maybe even the traders were taken aback by the fact.
Other gains of releasing despite the fact that you know when they're reporting three billion dollars but then the same time they took all that TARP money would you were just talking about -- Peter basilica sort of this this balance that people are looking at very closely but that was enough to give these markets -- -- in a big one at -- -- JPMorgan city.
Bank of America leading Atlanta Dow Jones Industrial Average losing really on the Dow has been Wal-Mart.
-- march sales basically disappointing folks but their outlook pretty solid and we got a lot of retail sales some of the retailers saying that the late Easter has affected their numbers but.
Overall I think that the traders are well aware of the fact this is a holiday week next week is really a holiday week with a lot of kids -- -- school today.
Is -- passover Easter people are certain take off.
Biden has been pretty -- but I think -- everybody is -- love hanging above 8000 this sentiment.
Has changed pretty much through a glass half full there's been talk about the stress tests everything from the fact.
You know we've heard Wells Fargo chairman thing that they were after -- -- -- dig -- bay agreeing with that sentiment just saying that -- -- are ridiculous because.
The FDIC does these kinds of tests all the time.
Anyhow but that being said we are -- points Bob last.
Friday's close so sometimes we just love to see us close above last Friday as that would show that -- building.
Really some sort of base to go off but even if we backed up and -- the back -- -- felt.
But hopefully nobody wants to -- is -- back down to 13500.
It's a pretty good day -- -- with some of the names down pretty much a lot of green on the screen as you can.
And yeah I want to green all across the board -- -- seeing Nicole because guys you're seeing the retail numbers -- kind of -- Robert and I talked earlier about -- I -- on a different day we'd be talking about a market being led lower because Wal-Mart deal for example what is good as we thought it would this is funny how everything just changed -- -- -- this morning right after Wells Fargo number came out.
Yeah that's right and also the Japan's stimulus to I think people love to hear me.
And -- they start to -- foreign countries and stimulus.
And and trying to go along with art stimulus plan that gives an -- she was involved as well but it's a global effort that they know that this recovery is not going to be done -- -- -- -- -- That's absolutely right article -- -- he's on the floor.
The exchange thank you Nicole we're up -- 185 the -- we'll keep you up to speed on the markets where you talk about Warren Buffett knows our poll question today you see it on the chat.
If you want to weigh in on that about tell what what -- on their Berkshire Hathaway with the ratings getting cut with Sandra Smith in just a moment and Jenna will be right back.
She comes from the Fox News Channel great report on baseball nobody covers baseball internally.
And nationally back just a minute -- right now from the nation's capital joined by the vice president small business in the US chamber of commerce -- about a court toys with this discussing what the White House is doing.
To help small businesses obtain loans -- -- -- -- we talked about this a couple times now in the last few weeks a lot of our viewers as it turns out.
There's an interactive Shelby gets talked to the -- we're on the air.
Own small businesses and seemed to be very very interest it.
In the topic are things getting better.
Well they are incrementally better we're we're happy to support that White House this initiative we were.
We knew early one that there was a problem and the credit markets even as.
Far back as early last year we heard from small businesses saying they cannot get loans.
Obviously traditional sources for lending.
Has been down for small business there they've seen erosion and there.
Housing erosion -- their 401K.
Credit even -- credit cards and bank lending has been down so we're very hopeful that we can.
Free up some of the secondary markets that seem to be frozen.
That seem to have clogged.
Some of the SBA lending in the White House plan is working and is that the takeaway.
Well it it it is to a point.
Start back with the stimulus we were able to get 730 million dollars into the stimulus.
That -- where it was able to reduce.
The Small Business Administration loans.
The fees for those loans were able to.
Get a increase guarantee.
And we had that nebulous point where the where that the secondary markets were frozen now realized.
Sell their -- into the secondary market.
So the rest of the banks are really don't.
In the -- these are SBA seven A and five before landing.
So the rest of the banks actually sell -- do their loans directly.
Since the White House has.
-- their program and that was the sixteenth of march.
We found SBA lending up now there's a secondary markets have not totally and frozen yet because of some of the restrictions on par.
Compensation limitations in the warrants have really scared away any of the investors.
But we still have seen increases in volumes of seven -- in lending since that.
March 16 release messaging device that and I -- -- some our viewers on small businesses it -- some are also concerned not only about access to credit a bit about taxes.
And I wonder if you could weigh in on that the idea that the taxes going up on people making over 250 grand could really hurts and small business owners is there anything on your end.
Of the spectrum you can do about that mean what do you say to people who fall in his or anything to people that fall into that bracket can do about it coming up.
Well well it hasn't happened yet and now we've applauded the White House when their efforts most the SBA lending program.
Right now the budget we are totally against raising taxes on small businesses and those -- the those those of the marginal income tax -- school.
For those making.
Single and 250 SA.
For -- These hit directly at small businesses.
And to -- that this will -- two out of three dollars the most successful small businesses two out of three of those dollars come from those households.
So we yards against that we're against the 950 -- that'll raise -- 150 billion dollars.
It's also not only increases in the marginal income tax rate but it's.
The increases in capped gains from fifteen to 20% on those that particular class of people that hits directly at small.
But there's another site hits you -- Gary from Idaho was asking about the stimulus.
For small business -- what your assessment of that we understand that April is the month that consumers as well as small businesses and young law are supposed to start to benefit for some of the stimulus.
But what do you think.
Well we've supported the stimulus plan most economists.
Agreed that we needed a big shot in the arm.
It was something that was timely -- we know that it wasn't a perfect plan.
Oh win the president came out with his plan he originally set 40% of it was going to be and tax relief.
We were very encouraged when it got into congress that was certainly turned on its head.
And we were very discouraged it until it got to the senate and in the senate we were able to get some of that back.
You got to remember that these this stimulus plan seventy billion of it was the elimination of the AMT for this year.
Which hits the small businesses -- as well as the public so a lot of this is and many different areas it's it's not go to.
It's gonna help small business -- directly it's not the direct effect that a lot of small businesses would have hoped.
Okay well goodness for a that you reported -- -- today Geovany is that things are getting better if if only for mentally better which has been getting worse that's for sure -- to you by thanks very much for coming out we're gonna -- stay on top of the story.
Without a doubt thank you -- and I don't -- with a set today now.
If you have bought in the poll question do so Berkshire Hathaway's downgrade the -- in the triple -- is assigned what that Warren Buffett wasn't about to touch insurance is the good business to be an.
Business just terrible for everybody that seems to be there right now.
Ford doesn't mean much of anything that I think that's the second place by the way it did for our viewers a lot of them we're doing double trouble and -- out on the news channel yes with your big board debut I get -- carrying value of -- morning.
Well so that.
Think whenever I don't know if it came across to pay nothing -- -- power couple a couple of your your friends like -- -- -- -- -- debut here in reunion Florida Madoff -- I was its title match based off.
And that cake has you know pay cuts for baseball top -- -- spending teens actually down about seven million dollars -- for teen pop.
Those poor guys that don't worry I think like -- like war 433 of them are making my ten million dollars OK so -- -- -- can survive the summer they can't work for one back that.
By the way up the depressant but what a terrible story and -- about -- -- -- pitcher.
But I was killed a car accident last night after the game -- just leaving the game stuff for the terrible story disgraced anyway.
On that note hopefully you've all had a chance to vote the poll questions and -- Communist Berkshire -- -- and the Fox Business Network today check your local cable systems.
So what's -- here I didn't AAA guy and you from golf -- -- Moody's which Warren Buffett on the big -- -- so that's ironic.
But I think Warren Buffett's company.
Berkshire have quit actually is 20%.
Of the parent company of Moody's.
Which is now slashed its triple -- credit rating two levels him.
And you know really looking back at it this isn't the first time that we've realized.
That -- Warren Buffett hasn't been able to avoid this whole economic crisis he just admitted last month to some quote.
Dumb mistakes that he made in 2008 the profits at Berkshire Hathaway.
Are down -- -- down 62%.
Last year the worst performance for the company.
-- 44 years since Warren Buffett took the company over seven.
Now it's lost its top credit rating you know this is the big platinum credit rating.
It is god which means that Moody's is basically saying that they don't think that they have the ability or they're not likely to pay back their debt so.
This is a big thing to be looking at and where to Warren -- go wrong when we all -- -- Warren Buffett narrative -- that's up -- the kind of the question we've been asking people is -- or did he go wrong or is he just caught up in a terrible environment like everybody else we'll tell you I didn't in the letter to investors he specifically stated that.
A couple of his big mistakes were taking stakes in a couple Irish banks.
He also made the mistake in his words of buying into -- Phillips -- biggest oil companies in the world.
When oil was at its peak price -- last summer so those -- some of his big mistakes but guess what his current holdings equity holdings.
Include companies like American Express Goldman Sachs Wells Fargo corporation which are still seeing significant declines -- still sitting on -- equities.
And one little trivia question I've been asking -- -- on this trying to.
Company's -- companies that still hold.
A triple -- credit rating there's four of them not only for companies laughed out there.
With the AAA credit rating I'll tell you what is at tech company one that oil company at one tech policy one -- one oil.
What's the other one and one it is -- consumer products company consume approximately three -- and one is that it.
If I get my status when I look at it away bank sort of it got payrolls are processing.
Company that -- -- -- practicing him with a sleeping in gets it right can I certainly do not have current.
Given and in our viewers will get at the very very Smart.
-- little bit on the -- there -- the -- the point to looking at the fact that there's only four companies last.
Which this platinum AAA rating and listen for -- thus this morning on our early on fox this is morning -- them he said the he brought that point up -- really shockingly think about it.
You know that this will be no financial institutions as we go on what I mean that's the only -- -- financial incentive right -- a lot of people guess maybe -- JPMorgan but the big argument right now come in general is whether or not so.
Tripoli by the way now we happen again and -- -- isn't to get some some -- -- -- center.
-- how bad Microsoft.
So yeah I didn't enter Ohio way to -- your paychecks.
On Iraq paychecks is another I'm not a you know is not my description that probably isn't exactly great but I'll get that would -- eighty -- -- arrested and then the final one.
-- -- -- -- -- -- -- I'll play smarter than I don't I would have had none of us got a -- what happens after.
I'm guessing you and -- and -- eleven.
People actually look at the ratings anymore have faith and then and -- you -- -- -- -- that I mean that's -- -- ask you may -- and there's also the argument coming from a lot of people right now as to whether.
Any company in this current economic -- should have a AAA rating is it misleading to say that any company right now.
Is you should be buying into the database company -- it's an interesting thing you know not only -- Berkshire Hathaway can't even keep their AAA ratings a sign of the times but also ratings firms -- Moody's crescent here -- and they've come under so much fire right.
And this idea that.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well thanks at that point to him.
They made a bad situation worse if anything -- little bit too late too little too for the rating agencies that they are taking a lot of the blame not there.
In the competence of these guys as a -- You know a lot of investors are loosing confidence in those -- All right thank you -- always we appreciate it's an adjustment of Buffett forget about Tripoli.
All right tomorrow on tomorrow Good Friday yes Good Friday not -- confronted -- at church.
Can't forget that that's that's right confronted 3 PM and -- -- Friday you know your tax is to us.
The great Tracy Byrnes could be here tomorrow I'll be re saying if she's encountered by trade and she's got -- answer a lot of your tax questions were spent a lot of time on that ahead of April 15 tomorrow.
On as you say Good Friday so we'll see that and don't forget.
The podcast is available on iTunes just search for foxbusiness.com.
Live and be with us every day live noon eastern time right here at -- -- an email access -- live at foxbusiness.com and you're watching us in the podcast.
Competitive -- tomorrow yeah.
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