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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm Karin Moscow.

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Speaker 1: This updates brought to you by Interactive Brokers and CME Group.

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Speaker 1: Oil is rising along with global equities amid speculation that

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Speaker 1: a production freeze by some OPEC members in Russia could

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Speaker 1: eventually help to evate the surplus. We checked the markets

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Speaker 1: every fifteen minutes throughout the trading day on Bloomberg nimex

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Speaker 1: Heurd oil is up five point eight percent of a

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Speaker 1: dollar seventy two is a thirty one dollars thirty six

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Speaker 1: cents of barrel. Brent is up four point nine percent

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Speaker 1: at thirty four dollars sixty two cents. Futures are higher,

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Speaker 1: with SNP eveny futures of nineteen points. Dow Emuni futures

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Speaker 1: have a hundred seventy one NASTACUMUNY futures up forty one

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Speaker 1: decks in Germany's up one point seven per cent. Ten

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Speaker 1: your treasure read down to thirty seconds. The YELD one

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Speaker 1: seven coms goal down one point seven or twenty one

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Speaker 1: dollars to t announced and the British pound is at

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Speaker 1: a dollar one, the Euro a dollar ten oh nine.

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Speaker 1: That's a Bloomberg business flash. Tom and Mike Karen, thank

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Speaker 1: you so much. Long ago in far away where I

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Speaker 1: would remember, and I'm sure that Arthur Levitt, the former

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Speaker 1: chairman of the SEC remember, was a field goal. No,

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Speaker 1: not Pete or Charlie Gogelac kicking field goals, three point

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Speaker 1: field goals a long time ago. But if you really

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Speaker 1: wanted to get paid and damage your client, you could

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Speaker 1: make three big figures or a field goal. I'm moving

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Speaker 1: a piece of paper over to one of your clients.

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Speaker 1: Arthur Levitt considers the final death of this where maybe Arthur,

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Speaker 1: we would actually know the mark up at least some

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Speaker 1: of the markup on some of our bonds. Are we

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Speaker 1: really actually too a visible market on bonds. I think

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Speaker 1: we're getting closer, whether we'll get there. We've thought this

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Speaker 1: for the past twenty years, the game of taking bonds

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Speaker 1: into inventory, and that afternoon, marking them up by one

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Speaker 1: or two points as much as that and handing them

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Speaker 1: to innocent retail investors as a game that was known

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Speaker 1: throughout the street. But I think that the Municipal Securities

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Speaker 1: Rulemaking Board and FINRA are now going to require brokers

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Speaker 1: to disclose exactly how much they pocket when they buy

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Speaker 1: corporate or municipal bonds and then sell those same securities

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Speaker 1: later in the same day. And I would point out, folks,

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Speaker 1: as you know, the field goal was a joke on

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Speaker 1: the street, but I want to point out, as Mr

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Speaker 1: Lovitt mentions one or two points, many many people would

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Speaker 1: mark up bonds constructively and ethically to their customers for

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Speaker 1: a quarter, three aids, half a point whatever. So you know,

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Speaker 1: it wasn't Mike. It wasn't so reprehensible that everybody did it.

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Speaker 1: It's just you didn't even know who was doing it.

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Speaker 1: It didn't because those markets have not had the liquidity

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Speaker 1: of our equity markets, and when you get mom and

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Speaker 1: pop buyers of odd lots, they're gonna pay a lot

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Speaker 1: of money for it. I don't know that that's going

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Speaker 1: to change totally. I think it probably won't, but we're

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Speaker 1: still in a better place than we were ten years ago.

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Speaker 1: We were talking earlier today with Brad Hints about the

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Speaker 1: outlook for banks and how regulator has increased their costs significantly. Uh.

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Speaker 1: One of the items of regulatory requirement banks having to

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Speaker 1: put up with these days, and the living wills, which

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Speaker 1: Jenny ellens Hays haven't worked out so well so far

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Speaker 1: as they've send them back to the banks to do

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Speaker 1: them again. Who should be the most worried the banks

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Speaker 1: that they have to keep doing this or regulators because

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Speaker 1: we can't get right. Well, I think regulators should be

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Speaker 1: nervous because their credibility is online, and I think the

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Speaker 1: American public should be most nervous. It's their money on

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Speaker 1: the line if they end up bailing out the banks again.

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Speaker 1: The regulators should have required more of the living wills

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Speaker 1: to be made public so that outside experts could have

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Speaker 1: evaluated them. They should have also publicly disclosed how much

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Speaker 1: funding they think it would take for those institutions to

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Speaker 1: be resolved in bankruptcy and exactly where is the money

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Speaker 1: coming from. Well, so I think there's a lot of

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Speaker 1: worry to go around. One of the points cash carry

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Speaker 1: makes is that the money doesn't have to come from anywhere.

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Speaker 1: If one bank is failing in isolation, they can let

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Speaker 1: it go. But the bank is unlikely to fail. A

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Speaker 1: big bank like that is unlikely to fail unless there's

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Speaker 1: some sort of overall crisis that means that the federal

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Speaker 1: government has to bail about. So his view is it's

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Speaker 1: by default a bailout. Yes, I think that's absolutely right.

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Speaker 1: I look, Arthur, at the state of banking, I mean,

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Speaker 1: and to go away from the reading of the weekend,

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Speaker 1: are we at a point we were where we are

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Speaker 1: utility banking? Are we in the cycle? No? I don't

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Speaker 1: think so, not quite. I don't think banking has changed

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Speaker 1: all that much. I think our regulation has changed in

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Speaker 1: some ways. It's become more punitive. I think the public's

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Speaker 1: awareness of the consequences of too big to fail is

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Speaker 1: much keener than it's ever been for so I think

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Speaker 1: the lessons of the market haven't gone unheeded. And I

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Speaker 1: think the political pressure on the banks is greater today

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Speaker 1: than ever before in recent history. So the banks are

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Speaker 1: not getting a free ride, but the regulators aren't doing

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Speaker 1: all they can, and the public obviously is bearing down

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Speaker 1: on the banks as the villain of this economic environment.

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Speaker 1: Arthur thank you so much. Arthur Lovely quickly this morning.

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Speaker 1: He's a former chairman of the STEC board member with

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Speaker 1: Bloomberg LP. Mike. The bond markup idea would be revolutionary

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Speaker 1: if it happened. I think so much of the reason

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Speaker 1: individual bond performance went away, in individual bond interest went away,

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Speaker 1: I should say, is because people have no clue what

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Speaker 1: they're buying. If I mean not that mistakes aren't made

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Speaker 1: every every day in the equity market, but there's even

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Speaker 1: there's a semblance of actually doing where you are. People

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Speaker 1: have no clue what they're getting in the bottom market none.

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Speaker 1: That's why they're they gravitate towards things like ETFs. Yeah,

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Speaker 1: and well that that and and also the unit trust

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Speaker 1: and the mutual funds as well. But individual bonds, I

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Speaker 1: remember a million years ago it was a huge part

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Speaker 1: of the business. And that is just evaporated. Futures very

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Speaker 1: stable up twenty as we get the markets open here

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Speaker 1: in five minutes, death futures up one seventy five. Yields

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Speaker 1: are higher by two and one basis points or so.

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Speaker 1: But early my headline today is curved flattening really significant.

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Speaker 1: Bears close watching as he goes through the week with

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Speaker 1: important economic data Bloomberg Surveillance. We're kind of down to

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