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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg twelve Owners to San Francisco, Bloomberg

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Speaker 1: to the countries, Channel one, and around the globe. The

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Speaker 1: Bloomberg Radio Plus happened. Bloomberg got gone. This is Bloomberg Surveillance.

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Speaker 1: Good morning, It's seven thirty on Wall Street. I'm Michael

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Speaker 1: McKee along with Tom came two hours away from the

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Speaker 1: opening of trading. Hard to tell exactly what's going to

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Speaker 1: happen because features are pairing losses at this point. Has

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Speaker 1: some few futures down just three points the tenth of

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Speaker 1: a percent. They were down as much as nine points earlier.

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Speaker 1: Some of the news you need to know about what

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Speaker 1: maybe happening in markets today. Federal mogul says Carla Cohn

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Speaker 1: is offering seven dollars a share for the part of

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Speaker 1: the company he doesn't own. He owns about eighty two

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Speaker 1: percent of it. Also a Tribute Media announcing this morning

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Speaker 1: it is going to explore strategic options for the broadcaster.

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Speaker 1: It's also talking about continuing to monetize its properties, including

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Speaker 1: the Tribune tower. Nissan Motor shares up significantly after the

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Speaker 1: Japanese automaker says it plans the biggest share buy back

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Speaker 1: ever in its company's history, the first in more than

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Speaker 1: four years. And Valiant Pharmaceuticals the CEO is coming back,

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Speaker 1: gonna withdraw its financial forecast, will delay releasing its fourth

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Speaker 1: quarter results. Now check in with Michael Barr and get

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Speaker 1: the latest world and national headlines. Mike, thank you very much.

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Speaker 1: Ahead of Super Tuesday, Republican presidential candidate Marco Rubio is

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Speaker 1: blasting rival Donald Trump for not rejecting support from KKK

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Speaker 1: Grand Dragon David Duke and other white supremacists. When I

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Speaker 1: asked about Duke, Trump said, I don't know anything about

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Speaker 1: David Duke, okay. But in a two thousand New York

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Speaker 1: Times op ed piece, Trump said Duke was part of

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Speaker 1: her fringe element of the Reform Party. Democratic presidential candidate

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Speaker 1: Hillary Clinton is turning her attention to her republic Can

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Speaker 1: rivals after winning the South Carolina primary over Bernie Sanders.

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Speaker 1: During your visits to to Memphis churches yesterday, Clinton called

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Speaker 1: on Republican Donald Trump to unite the nation, and she

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Speaker 1: asked worshippers to reject the demagoguery, the prejudice, and Paranoia.

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Speaker 1: The Royal Caribbean cruise ship that was damaged in a

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Speaker 1: storm earlier this month, was forced to abandon its latest trip.

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Speaker 1: The Anthem of the Seas was forced to announce its

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Speaker 1: return to port in New Jersey because of weather issues.

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Speaker 1: The drama Spotlight has one Best Picture at the Academy Awards.

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Speaker 1: The film about the Boston Globes investigative reporting on sexual abuse,

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Speaker 1: a Roman Catholic take Priests took the picture. Leonardo DiCaprio

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Speaker 1: won the Best Actor Award for his role in the

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Speaker 1: movie The Revenant. Climate change is real. It is happening

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Speaker 1: right now. It is a most urgent threat facing our

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Speaker 1: entire species. Red Larson won for Best Actress. Global News

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Speaker 1: twenty four Hours a Day on Michael barn Like, thank you, Michael.

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Speaker 1: Now it's times for the Bloomberg. NBC Sports Updates. John Tesha,

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Speaker 1: all right, thanks Mike, and night after the NBA's m

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Speaker 1: v P. Steph Curry put on that shooting clinic, making

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Speaker 1: seventy five percent of his three pointers. The Knicks made

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Speaker 1: thirty seven percent of all their shots. Carmelo Anthony just

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Speaker 1: nine of twenty four. He's under thirty three percent over

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Speaker 1: his last three games and at the Guard Knicks never

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Speaker 1: led lost to Miami one now fourteen losses in the

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Speaker 1: last seventeen games. Dwyne Wade led Miami with twenty six points.

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Speaker 1: Joe Johnson scored twelve and his Heat debut. He was

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Speaker 1: released last week behind Brooklyn bad loss for the Islanders.

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Speaker 1: They had the lead, been went through the third period

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Speaker 1: and gave up three goals in less than seven minutes,

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Speaker 1: fell three one at Edmonton. Oilers had lost their previous seven.

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Speaker 1: This ends the Isisles. Three games went straight. Rangers tonight

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Speaker 1: host Columbus. They just acquired veteran Eric Stall from Carolina

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Speaker 1: for a prospect and two draft picks. Stalls a four

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Speaker 1: time All Star. He'll debut for the Rangers tonight against Columbus.

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Speaker 1: With the Bloomberg NBC Sports Update, I'm Johns. Thank you John.

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Speaker 1: Right now, as we mentioned, futures are pairing their losses

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Speaker 1: and in Europe we're looking at the stock six hundred

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Speaker 1: just about flat. This is Bloomberg Surveillance on Bloomberg Radio

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Speaker 1: Worldwide talking back up Bloomberg Surveillan and Sin Michael McKee

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Speaker 1: along with Tom Keen. Hard to tell exactly how we're

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Speaker 1: going to start the day. We were significantly negative in

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Speaker 1: the overnight hours in the futures markets and in Europe.

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Speaker 1: Europe is still down a lot the decks by eighty

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Speaker 1: five points right now, but S and P futures are

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Speaker 1: now down just a point. Doubt features off by eighteen

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Speaker 1: and NAZDAIC futures by eight That is much less than

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Speaker 1: we were down before on the day. So we'll see

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Speaker 1: how things work out at when the markets open. Right now,

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Speaker 1: The Bloomberg n j I T STEM Report brought to

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Speaker 1: you by New Jersey Institute of Technology, partnering with government

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Speaker 1: and industry to apply the university's world class research assets

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Speaker 1: to innovate and spur You can e MC growth. Learn

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Speaker 1: more at n j I T dot e d U.

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Speaker 1: Here's Bob Move, Michael, thank you. At seven thirty five

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Speaker 1: on Wall Street. Here's what's making news in science, Technology,

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Speaker 1: engineering and math. Something that Apple chief Tim Cook told

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Speaker 1: ABC News caught our ear last week. Here's what he said.

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Speaker 1: Here's probably more information about you on your phone than

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Speaker 1: there is in your house. As lawmakers prepare to take

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Speaker 1: up the privacy versus law enforcement question on Capitol Hill tomorrow,

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Speaker 1: sparked by Apple's refusal to help crack a dead terrorist

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Speaker 1: I phone. You might want to think about, if you

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Speaker 1: haven't already, what your phone can tell anyone about you

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Speaker 1: more than you might think. It knows where you've been,

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Speaker 1: and who you were with, the birthday gift you bought

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Speaker 1: your mother, and quite possibly who you plan to vote

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Speaker 1: for sex last night. It knows that too if you're

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Speaker 1: using one of the applications for couples trying to conceive

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Speaker 1: from pre installed apps that count your steps to save

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Speaker 1: passwords for banking accounts and social media. Smartphones have evolved

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Speaker 1: from devices to make calls into digital repositories for the

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Speaker 1: most intimate details of your life, and not just your

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Speaker 1: ssonal life security experts point out their windows into your

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Speaker 1: professional life as well. The world seven point three billion

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Speaker 1: people now haven't estimated three point four billion smartphones, according

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Speaker 1: to data from communications company Ericson, and we're all carrying

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Speaker 1: around computers the process more information faster than the computer's

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Speaker 1: NASA used to put humans on the Moon. And that's

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Speaker 1: this morning's Bloomberg and j I T Stem report. Michael,

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Speaker 1: Thank you, Bob Moon Phillips. Weegel was formerly at the

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Speaker 1: Treasury Department as a six Assistant Secretary for Economic Policy.

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Speaker 1: He was there December two thousand six to January two

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Speaker 1: thousand nine, which put him square in the crosshairs of

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Speaker 1: the financial crisis. He helped write the original TARP Plan.

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Speaker 1: He is now a senior fellow and professor at the

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Speaker 1: University of Maryland School of Public Policy, and he has

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Speaker 1: a new report out published by the milk And Institute

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Speaker 1: about the last Crisis, the next Crisis, and the future

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Speaker 1: of large banks. And I found it kind of fascinating

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Speaker 1: your look at the future of large banks, because in

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Speaker 1: a nutshell you kind of point out that banks fought

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Speaker 1: tooth and nail against having to adopt the additional regulatory

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Speaker 1: burdens of Dodd Frank, and yet Dodd Frank maybe all

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Speaker 1: that's standing between them and dismantling at this point. It

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Speaker 1: is an irony and good morning. Thanks for having me

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Speaker 1: on that. Yeah, I mean, you know, look, I think

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Speaker 1: bankers after the crisis understood that more regulation was needed,

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Speaker 1: but many of them looked at Dodd Frank and said,

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Speaker 1: you know, this is just way overboard. You know, things

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Speaker 1: like the vocal rule and false push out, which has

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Speaker 1: been repealed. Uh. But now with the calls to break

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Speaker 1: up big banks, and including possibly from my former colleague

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Speaker 1: in Minneapolis. You know, now in Minneapolis. Uh, the regulatory

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Speaker 1: system has to work because if it doesn't work, then

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Speaker 1: the banks are really in trouble. Well, you take that

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Speaker 1: part apart and you talk about would this system have

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Speaker 1: worked to prevent the two thou eight crisis, And your

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Speaker 1: conclusion seems to be maybe maybe not. Yeah, it's really

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Speaker 1: too soon to tell. And of course we're not going

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Speaker 1: to know for sure until the next crisis. Um, you know.

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Speaker 1: To me, the key is the the new Resolution Authority

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Speaker 1: that the so called Title too of Dodd Frank And

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Speaker 1: if if one big bank fails, I'm pretty confident that's

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Speaker 1: gonna work. Right that it's almost like a I G.

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Speaker 1: Is gonna happen all over again, you know, which no

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Speaker 1: one will like. But the FDAC, the said the Treasury

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Speaker 1: other regulators can can handle. That will impose the losses

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Speaker 1: that that uh, you know, have to be meted out

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Speaker 1: to make sure there's no bailout. Is a couple of

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Speaker 1: big banks fail at the same time, which is really

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Speaker 1: what Title two is meant to address. It's just not

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Speaker 1: clear that regulators are going to be willing to dole

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Speaker 1: out those losses if that sparks another panic, and so

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Speaker 1: that in stuff there's a choice then between bailout or

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Speaker 1: failure of the financial system. And you know, until we

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Speaker 1: resolve that and know for sure to work, we we

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Speaker 1: just don't know that we've addressed too big to fail well.

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Speaker 1: So much of this, I guess depends on how the

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Speaker 1: markets react to these developments confidence in what might happen

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Speaker 1: in a bank failure situation. When when when a bank

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Speaker 1: goes down, it's not that people think that the government

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Speaker 1: is going to be able to save them, it's that

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Speaker 1: the f d i S is there with bank deposit insurance.

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Speaker 1: That's exactly right, and that's right. That's the reason that

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Speaker 1: you know when the bank at the corner of fails

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Speaker 1: is orderly. You know, it's not that people have any

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Speaker 1: special trust in the fd I S too, you know,

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Speaker 1: to do the financial workout, although they actually do it

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Speaker 1: pretty well. Is that because as you said, that the

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Speaker 1: deposit insurance is there, and what title too of DoD

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Speaker 1: Frank does is as there's no deposit insurance, it's the

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Speaker 1: opposite all these you know, um, all all the non

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Speaker 1: deposit funding, that's all uninsured. And so you know Title

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Speaker 1: two says, if a big, big bank gets into trouble,

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Speaker 1: the people put their money there other than the insured deposits,

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Speaker 1: you will expect to take losses and UH. And we

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Speaker 1: we've seen at least one example during the financial crisis

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Speaker 1: when has a treasury of the panic that can ensue.

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Speaker 1: And that was when when Wamba failed and the FDI

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Speaker 1: see imposed losses on the senior bondholders, but that they

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Speaker 1: probably didn't expect to take. That led to the media

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Speaker 1: failure of Wacovia. And so that that's the kind of

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Speaker 1: panic that the how Who's meant to address, but instead

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Speaker 1: it might spark it in UH inadvertently. Let's come back

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Speaker 1: with Phil Swegel. He's a professor at the University of

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Speaker 1: Maryland School of Public Policy, formerly at the Treasury Department.

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Speaker 1: His new paper, The Last Crisis, The Next Crisis in

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Speaker 1: the Future of Large Banks. We'll talk about the next

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Speaker 1: crisis and the future of large banks. Coming up on

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Speaker 1: Bloomberg Surveillance right now JP Morgan Chase Centers today UH

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Speaker 1: slightly higher for the previous week. At that's the biggest

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Speaker 1: of the big banks. People wondering what's going to happen

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Speaker 1: to them if there is a crisis. Well, right now

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Speaker 1: the markets are telling us that there's no crisis, but

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Speaker 1: there is reason for concern SMP features down by two points,

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Speaker 1: down futures twenty points, A little deterioration in the last

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Speaker 1: ten minutes or so. This is Bloomberg surveillance on Bloomberg

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Speaker 1: Radio worldwide. We're cunning it onto the opening bill less

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Speaker 1: than two hours to go. Brought to you by n

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