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Speaker 1: And that's a Bloomberg business flash. This is taking stock
Speaker 1: with pin Box and Kathleen Hayes on Bloomberg Radio. The
Speaker 1: shares of Wells Fargo have lost a little bit more
Speaker 1: than one and a half percent so far this week.
Speaker 1: The stock currently trades at forty three dollars and seventy
Speaker 1: two cents, and the treasurer of the State Treasurer of
Speaker 1: Illinois said the bank would no longer be a broker
Speaker 1: dealer for about thirty billion dollars of state investment funds annually,
Speaker 1: and he said that it would cost Wells Fargo millions
Speaker 1: of dollars in fees. Wells Fargo disputed that figure. Here
Speaker 1: to tell us more out the woes of Wells Fargo,
Speaker 1: and they also happened to take place in the city
Speaker 1: of Chicago. Elizabeth Campbell, our municipal bonds reporter for Bloomberg News,
Speaker 1: and she joins us from Chicago. Elizabeth, this is a
Speaker 1: story that just keeps rolling on. Tell us more. Yeah,
Speaker 1: and right here in Chicago, we're just yesterday our city
Speaker 1: treasure Kurt Summers told Bloomberg exclusively actually that he plans
Speaker 1: to the invest about twenty five million that the city
Speaker 1: has invested with Wells Fargo after um after the scandal
Speaker 1: came out. Basically, well Fargo is admitted to opening potentially
Speaker 1: millions of bogus client accounts, and Treasure Summers here in
Speaker 1: Chicago has said Chicago deserves better, and so his office,
Speaker 1: which manages the city seven billion dollar invest in portfolio,
Speaker 1: is planning to unwind these twenty five million of assets
Speaker 1: is as quickly as possible in a way that would
Speaker 1: be you know, protect taxpayers, according to Treasure Summers, and
Speaker 1: in a way that's prudent. So and that that's the
Speaker 1: news here, Elizabeth. Uh, you're The story also says that
Speaker 1: he wrote that Illinois won't be using Wells Fargo on
Speaker 1: any new bond sales until further notice. So is is
Speaker 1: a temporary unwinding if Wells Fargo makes amends, well commenced again.
Speaker 1: What we're you supposed to take away from this? Well, Yeah,
Speaker 1: Governor Rouners office told us that the Wells Fargo won't
Speaker 1: be on any new bond sales until further notice. They're
Speaker 1: not part of the deal that Illinois expected to price
Speaker 1: next week. Technically, Governor Rounders administration hasn't done any bond
Speaker 1: business with the bank. Um, we'll see if this spreads
Speaker 1: beyond just the state of Illinois. Chicago actually maybe be
Speaker 1: taking you further steps to several relations with falls Fargo.
Speaker 1: That the chair of the City's Finance Committee, UM, the
Speaker 1: City Council's Finance Committee, Alderman Edward Edward Burke Um, he
Speaker 1: actually introduced a measure on Friday that would bar Chicago
Speaker 1: from doing any business of Falls Fargo, including bond deals.
Speaker 1: And so that plan is going to be taken up
Speaker 1: tomorrow in the m City Council Finance Committee, meaning this Wednesday. Elizabeth,
Speaker 1: do you believe that any of this is the result
Speaker 1: of seeing John Stunt, that chief executive a Wells Fargo,
Speaker 1: appear before congressional leaders, You know, I do. It seems
Speaker 1: like this pullback from these state and city treasures is
Speaker 1: coming as the pressure is building on the bank. I mean,
Speaker 1: like you mentioned, CEO Strump just testified there's more pressure
Speaker 1: on him and perhaps even the bank's board to resign
Speaker 1: because of this fake account tobaccle. You know, and while
Speaker 1: he told lawmakers and patal Congress that the bank was
Speaker 1: working to help customers, they were deeply sorry that they
Speaker 1: broke their trust. You know, it seems like these treasures,
Speaker 1: including those here from the city of Chicago and for
Speaker 1: the state of Illinois, aren't waiting around um for any amens.
Speaker 1: Elizabeth Campbell, thank you so very much for joining us
Speaker 1: terrific story. She's our municipal bonds reporter for Bloomberg News
Speaker 1: in Chicago. Her breaking news story out about the Chicago
Speaker 1: Treasury investing twenty five million dollars of investments from Wells
Speaker 1: Fargo can atulations. Elizabeth, Well, let's move on to the
Speaker 1: big event tonight, the vice presidential debates Democrat Tim Kaine
Speaker 1: Republican Mike Pence. To politicians and their late fifties, each
Speaker 1: with subernatorial and congressional experience, set to face off for
Speaker 1: ninety minutes at Longwood University in Farmville, Virginia. Very happy
Speaker 1: now to welcome us a government reporter for Bloomberg News
Speaker 1: to lou Olarudnipa to tell us about the debate and
Speaker 1: what these two face so to Uh, how much is
Speaker 1: at stake? How much device presidents ever make when it
Speaker 1: comes to who gets elected to be president United States? Yeah,
Speaker 1: that's a that's a great question. And historically we haven't
Speaker 1: seen a very big impact by vice presidential debates on
Speaker 1: polls in presidential races. But this is a race that's
Speaker 1: unlike any of the race that we've seen in in
Speaker 1: recent history. So there are going to be a lot
Speaker 1: of eyeballs on this on this debate, and the goal
Speaker 1: for each candidate is to sort support and boost their
Speaker 1: their running mate. And this is a time where Donald
Speaker 1: Trump has had a pretty tough week after last week's debate,
Speaker 1: He's kind of struggled in the news. Headlines have not
Speaker 1: been in his favor, everything from uh, negative news about
Speaker 1: Trump University too, about negative news about his taxes tax
Speaker 1: returns that it were leaked to the New York Times,
Speaker 1: to his ongoing fight with the Miss Universe from twenty
Speaker 1: years ago. So it's the goal of my tens is
Speaker 1: going to be to change that narrative and to boost
Speaker 1: Trump at a time when a lot of his supporters
Speaker 1: are are worrying about the outcome of this election. So, Lou,
Speaker 1: you're in Farmville, Virginia, right, That's right, Okay, And maybe
Speaker 1: just tell people a little bit about Farmville. It's near
Speaker 1: the Appomattox River, and um the sort of formats for
Speaker 1: the debate because you know where their hell can have
Speaker 1: an effect on how their hell can have an effect
Speaker 1: on the debate itself. That's true. Farmville is a relatively
Speaker 1: small town. It's about an hour away from Richmond, in
Speaker 1: about three arch from Washington, d C. It's in UH
Speaker 1: Governor Tim Kaine, now Senator Tim Kaine's backyard. This is
Speaker 1: his home state. And UH it's the debate's gonna be
Speaker 1: held at a university UH school here, and it's going
Speaker 1: to be a traditional style debate. As a moderator, UH
Speaker 1: and UH they're both going to be asked questions and
Speaker 1: they're going to have uh plenty of time to answer.
Speaker 1: It's going to be a ninety minute debate only to
Speaker 1: UH two candidates answering, So they'll have a lot of
Speaker 1: time to delve into policy issues and really dig deep
Speaker 1: into the plans that their running mates have for the country, Um,
Speaker 1: and it's going to be an opportunity for both candidates
Speaker 1: to really introduce themselves to the world stage because, uh,
Speaker 1: a lot of people don't know these vice president vice
Speaker 1: presidential candidates. So totally one of our Booberg news stories
Speaker 1: UM does lays out six things we need to know
Speaker 1: before the showdown. Let's femail how many we can get through.
Speaker 1: First of all, who faces the bigger test and why
Speaker 1: in these debates tonight? I would say the bigger test
Speaker 1: is probably for Pence. He has to change the narrative
Speaker 1: for his his running mate, Donald Trump, who's behind in
Speaker 1: the polls, and the narrative right now is that he's
Speaker 1: losing and he's struggling, and he's been a little bit erratic.
Speaker 1: So if he needs to have a steady hand and
Speaker 1: really changed the narrative. And that's a very really difficult
Speaker 1: test for Kane. He just kind of has to keep
Speaker 1: things going the way they are and and boost his candidate,
Speaker 1: which is Hillary Clinton, who seems to be doing pretty
Speaker 1: well in the polls right now. Go ahead, preparation. Uh yeah,
Speaker 1: we famously saw last week that Donald Trump didn't do
Speaker 1: a lot of preparation, So I assume that his running
Speaker 1: mate is going to do a lot more. It's going
Speaker 1: to have done a lot more preparation for this debate,
Speaker 1: and they're both very well versed in policy, as you know,
Speaker 1: governors and uh, people with congressional experience. So I don't
Speaker 1: think that either will have trouble being prepared at this
Speaker 1: debate tonight. Nice guys, canna finish last. Yeah, they're both
Speaker 1: seen as as nice, nice people, as a very very
Speaker 1: cordial and we're not expecting them to be calling each
Speaker 1: other names or interrupting each other the way that Donald
Speaker 1: Trump and Hillary Clinton did uh last week. So it'll
Speaker 1: be interesting to see how they country response to that
Speaker 1: type of cordial debate. Very different from what we've seen
Speaker 1: this year in a very wild presidential season. According to
Speaker 1: a recent Fox News poll, nearly one third of likely
Speaker 1: voters have no opinion of either Kane or Pence. Is
Speaker 1: that unusual? It's a been unusual. These are two vice
Speaker 1: presidential candidates that did not run for presidents, so a
Speaker 1: lot of people don't know who they are. Often you
Speaker 1: see presidential picks choosing their their picks based on people
Speaker 1: they ran again, so people who have a national following
Speaker 1: and that's something that these two candidates don't have. And
Speaker 1: this is probably gonna be the biggest political state that
Speaker 1: either has ever been on. So that's that's gonna be
Speaker 1: an opportunity for people to reach a conclusion about how
Speaker 1: they feel about each candidate. Were already talked about how
Speaker 1: the four that will encourage the actual debate, but tell
Speaker 1: us about how much the records of these two vice
Speaker 1: presidential candidates will be scrutinized. Uh Yeah, this will be
Speaker 1: an opportunity to really dig into their records because there
Speaker 1: are places where uh, their their records differ from their
Speaker 1: running mates. Uh. We can think about Governor Pence and
Speaker 1: the fact that he voted for the Iraq War, something
Speaker 1: that Donald Trump says that he was against him that
Speaker 1: he says with a disastrous vote by all who are
Speaker 1: in Congress. We can look at Kane and the fact
Speaker 1: that he had somewhat different views on abortion uh as
Speaker 1: as Secretary Clinton. So this will be an opportunity for
Speaker 1: them to explain their own uh political records and defend
Speaker 1: their their running mate on issues where they have some differences.
Speaker 1: I want to thank you very much to lou on
Speaker 1: A Upita. He is our US government reporter for Bloomberg News.
Speaker 1: So joining us from the site of tonight's debate between
Speaker 1: the vice presidential candidates and to take place in Longwood
Speaker 1: University in Farmville, Virginia. That's about three hours outside of Washington,
Speaker 1: d C. You're listening to Taking Stock. I'm PIM Fox
Speaker 1: my co host Kathleen Hayes. This is Bloomberg