BIGGEST NAMES FOR A DISCUSSION
AT THE WHITE HOUSE.
AT THE WHITE HOUSE.
THIS WILL BE WEDNESDAY.
THIS WILL BE WEDNESDAY.
CHARLIE GASPARINO JOINS ME LIVE
CHARLIE GASPARINO JOINS ME LIVE
RIGHT NOW WITH EXCLUSIVE DETAILS
RIGHT NOW WITH EXCLUSIVE DETAILS
ON WHAT BOTH SIDES HOPE TO
ON WHAT BOTH SIDES HOPE TO
ACHIEVE AT THE MEETING OF THE
ACHIEVE AT THE MEETING OF THE
FINANCIAL MINDS.
FINANCIAL MINDS.
CHARLIE: IT WILL BE INTERESTING.
CHARLIE: IT WILL BE INTERESTING.
THERE’S REALLY NOT MUCH THEY CAN
THERE’S REALLY NOT MUCH THEY CAN
DO.
DO.
WE SHOULD POINT OUT THAT
WE SHOULD POINT OUT THAT
CITIGROUP IS TRADING, IF THEY
CITIGROUP IS TRADING, IF THEY
DIDN’T DO -- IF THEY DID A
DIDN’T DO -- IF THEY DID A
REVERSE SPLIT, AS YOU KNOW, THEY
REVERSE SPLIT, AS YOU KNOW, THEY
ARE REALLY AT $5.20 RIGHT NOW
ARE REALLY AT $5.20 RIGHT NOW
WHICH IS KIND OF SCARY.
WHICH IS KIND OF SCARY.
CITIGROUP WAS ONE OF THE MAJOR
CITIGROUP WAS ONE OF THE MAJOR
BANKS THAT WERE DECIMATED DURING
BANKS THAT WERE DECIMATED DURING
THE FINANCIAL CRISIS AND IT’S
THE FINANCIAL CRISIS AND IT’S
NOT TRADING MUCH ABOVE WHERE IT
NOT TRADING MUCH ABOVE WHERE IT
WAS DURING THE FINANCIAL CRISIS.
WAS DURING THE FINANCIAL CRISIS.
I THINK IT WENT AS LOW AS $2
I THINK IT WENT AS LOW AS $2
BACK THEN.
BACK THEN.
THAT’S AN INTERESTING, IF YOU
THAT’S AN INTERESTING, IF YOU
CAN GET A LONGER CHART, MAYBE A
CAN GET A LONGER CHART, MAYBE A
10 OR 15 YEAR CHART, WE CAN TAKE
10 OR 15 YEAR CHART, WE CAN TAKE
A LOOK AT CITIGROUP.
A LOOK AT CITIGROUP.
IT’S JUST AN INTERESTING
IT’S JUST AN INTERESTING
DYNAMIC.
DYNAMIC.
THEY ARE TRADING AT $52 BUT
THEY ARE TRADING AT $52 BUT
THAT’S REALLY $5.20.
THAT’S REALLY $5.20.
YOU KNOW, I THINK THEIR LOW
YOU KNOW, I THINK THEIR LOW
DURING THE FINANCIAL CRISIS,
DURING THE FINANCIAL CRISIS,
THERE YOU GO, LOW DURING THE
THERE YOU GO, LOW DURING THE
FINANCIAL CRISIS WAS LIKE TWO
FINANCIAL CRISIS WAS LIKE TWO
BUCKS.
BUCKS.
JUST SO YOU KNOW, THE $51.99 IS
JUST SO YOU KNOW, THE $51.99 IS
NOT WHERE -- IT WAS A REVERSE
NOT WHERE -- IT WAS A REVERSE
SPLIT.
SPLIT.
THEY ARE TRADING ALMOST AT THE
THEY ARE TRADING ALMOST AT THE
LEVELS THEY WERE TRADING AT
LEVELS THEY WERE TRADING AT
DURING THE FINANCIAL CRISIS.
DURING THE FINANCIAL CRISIS.
THAT TELLS YOU SOMETHING HOW
THAT TELLS YOU SOMETHING HOW
SERIOUS THIS IS.
SERIOUS THIS IS.
I WILL SAY THIS.
I WILL SAY THIS.
THE BANKS ARE GOING DOWN THERE.
THE BANKS ARE GOING DOWN THERE.
THE BANKS ARE GETTING CRUSHED.
THE BANKS ARE GETTING CRUSHED.
THE REASON WHY THEY ARE GETTING
THE REASON WHY THEY ARE GETTING
CRUSHED IS NOT NECESSARILY
CRUSHED IS NOT NECESSARILY
BECAUSE OF THE CORONAVIRUS AND
BECAUSE OF THE CORONAVIRUS AND
THE SLOWDOWN IN GDP.
THE SLOWDOWN IN GDP.
THAT’S AFFECTING OTHER STOCKS
THAT’S AFFECTING OTHER STOCKS
LIKE AIRLINES, YOU NAME IT,
LIKE AIRLINES, YOU NAME IT,
TRAVEL STOCKS.
TRAVEL STOCKS.
THEY ARE GETTING CRUSHED BECAUSE
THEY ARE GETTING CRUSHED BECAUSE
OF LOW INTEREST RATES.
OF LOW INTEREST RATES.
WHEN INTEREST RATES GO LOW, YOU
WHEN INTEREST RATES GO LOW, YOU
KNOW, JUST THINK ABOUT IT, BANKS
KNOW, JUST THINK ABOUT IT, BANKS
CHARGE LESS FOR THEIR PRODUCTS.
CHARGE LESS FOR THEIR PRODUCTS.
THEY CHARGE LESS INTEREST.
THEY CHARGE LESS INTEREST.
IT BECOMES MUCH MORE -- BANKING
IT BECOMES MUCH MORE -- BANKING
SERVICE BECOMES MUCH MORE OF A
SERVICE BECOMES MUCH MORE OF A
COMMODITY AND THERE’S
COMMODITY AND THERE’S
COMPETITION AMONG THE BANKS FOR
COMPETITION AMONG THE BANKS FOR
YOUR MONEY AND THEY FIGHT ON
YOUR MONEY AND THEY FIGHT ON
PRICE.
PRICE.
THAT’S WHY THESE STOCKS ARE
THAT’S WHY THESE STOCKS ARE
GOING DOWN.
GOING DOWN.
WHEN YOU HAVE INTEREST RATES
WHEN YOU HAVE INTEREST RATES
WHERE THEY ARE NOW AND MAYBE
WHERE THEY ARE NOW AND MAYBE
GOING LOWER AMID THIS PANIC,
GOING LOWER AMID THIS PANIC,
THAT’S NOT GOOD FOR FINANCIAL
THAT’S NOT GOOD FOR FINANCIAL
STOCKS.
STOCKS.
I WILL SAY THIS.
I WILL SAY THIS.
I’M NOT QUITE SURE WHAT THE
I’M NOT QUITE SURE WHAT THE
PRESIDENT IS GOING TO ACHIEVE
PRESIDENT IS GOING TO ACHIEVE
WITH THEM OTHER THAN TO SAY I’M
WITH THEM OTHER THAN TO SAY I’M
HERE WITH DAVID SOLOMON.
HERE WITH DAVID SOLOMON.
JAMIE DIMON IS RECUPERATING FROM
JAMIE DIMON IS RECUPERATING FROM
HEART SURGERY.
HEART SURGERY.
HE’S NOT GOING TO BE THERE.
HE’S NOT GOING TO BE THERE.
JAMES GORMAN FROM MORGAN STANLEY
JAMES GORMAN FROM MORGAN STANLEY
AND THE BANKS ARE IN GOOD SHAPE.
AND THE BANKS ARE IN GOOD SHAPE.
SO THIS IS A PANIC THAT THE
SO THIS IS A PANIC THAT THE
BANKS ARE NOT GOING OUT OF
BANKS ARE NOT GOING OUT OF
BUSINESS.
BUSINESS.
LIZ: WHAT ABOUT THE LENDERS?
LIZ: WHAT ABOUT THE LENDERS?
SOME OF THE BANKS THAT HAVE
SOME OF THE BANKS THAT HAVE
MAJOR LENDING EXPOSURE, SAY FOR
MAJOR LENDING EXPOSURE, SAY FOR
EXAMPLE THE SHALE DRILLERS, I
EXAMPLE THE SHALE DRILLERS, I
KEEP MY EYE ON SOME OF THOSE
KEEP MY EYE ON SOME OF THOSE
NAMES.
NAMES.
CHARLIE: BANKS ALWAYS TAKE
CHARLIE: BANKS ALWAYS TAKE
LOSSES ON CERTAIN SECTORS BUT WE
LOSSES ON CERTAIN SECTORS BUT WE
ARE NOT AT THE POINT NOW WHERE
ARE NOT AT THE POINT NOW WHERE
IT’S LIKE 2008.
IT’S LIKE 2008.
IT’S NOT EVEN CLOSE TO THAT.
IT’S NOT EVEN CLOSE TO THAT.
THE BANKS ARE WELL CAPITALIZED.
THE BANKS ARE WELL CAPITALIZED.
IT’S A POSITIVE ENVIRONMENT FOR
IT’S A POSITIVE ENVIRONMENT FOR
BANKS WHICH IS GOOD GENERALLY
BANKS WHICH IS GOOD GENERALLY
FOR MARKETS.
FOR MARKETS.
THAT DOESN’T MEAN WE ARE OUT OF
THAT DOESN’T MEAN WE ARE OUT OF
THIS BY ANY STRETCH OF THE
THIS BY ANY STRETCH OF THE
IMAGINATION BUT THAT’S WHAT
IMAGINATION BUT THAT’S WHAT
THEY’RE GOING TO DO.
THEY’RE GOING TO DO.
THE OTHER THING I WOULD SAY IS
THE OTHER THING I WOULD SAY IS
I’M HEARING THIS, IT SOUNDS
I’M HEARING THIS, IT SOUNDS
FANTASTICAL BUT I AM HEARING
FANTASTICAL BUT I AM HEARING
THIS ABOUT THE FED COMING IN AND
THIS ABOUT THE FED COMING IN AND
BUYING STOCKS ON AN EMERGENCY
BUYING STOCKS ON AN EMERGENCY
BASIS.
BASIS.
I HEAR THIS FROM TRADERS AND
I HEAR THIS FROM TRADERS AND
DIFFERENT PEOPLE.
DIFFERENT PEOPLE.
JUST SO YOU KNOW, THEY CAN’T
JUST SO YOU KNOW, THEY CAN’T
NECESSARILY DO THAT.
NECESSARILY DO THAT.
THE FED’S CHARTER PREVENTS THEM
THE FED’S CHARTER PREVENTS THEM
FROM BUYING STOCKS.
FROM BUYING STOCKS.
THEY CAN BUY BONDS.
THEY CAN BUY BONDS.
LIZ: WELL, I HAD THE FED FUNDS
LIZ: WELL, I HAD THE FED FUNDS
FUTURES 100% CHANCE OF A 75
FUTURES 100% CHANCE OF A 75
BASIS POINT CUT NEXT WEEK.
BASIS POINT CUT NEXT WEEK.
CHARLES: THEY DO THAT BY BUYING
CHARLES: THEY DO THAT BY BUYING
SHORT-TERM SECURITIES.
SHORT-TERM SECURITIES.
THAT’S HOW YOU MANIPULATE THE
THAT’S HOW YOU MANIPULATE THE
FED FUNDS RATE AND THOSE OTHER
FED FUNDS RATE AND THOSE OTHER
INTEREST RATES.
INTEREST RATES.
SO THE FED CANNOT BUY STOCKS
SO THE FED CANNOT BUY STOCKS
JUST YET.
JUST YET.
CONGRESS WOULD HAVE TO APPROVE
CONGRESS WOULD HAVE TO APPROVE
THAT.
THAT.
I KIND OF DON’T THINK THEY WILL
I KIND OF DON’T THINK THEY WILL
GO THERE.
GO THERE.
WE WILL SEE WHAT COMES OUT OF
WE WILL SEE WHAT COMES OUT OF
THIS WEDNESDAY CONFERENCE.
THIS WEDNESDAY CONFERENCE.
MY GUESS IS IT WILL BE A LOT OF
MY GUESS IS IT WILL BE A LOT OF
WE’RE IN GOOD SHAPE, THE
WE’RE IN GOOD SHAPE, THE
PLUMBING OF THE FINANCIAL
PLUMBING OF THE FINANCIAL
MARKETS IS FINE AND THIS IS AN
MARKETS IS FINE AND THIS IS AN
OVERREACTION.
OVERREACTION.
ONE THING I WILL SAY.
ONE THING I WILL SAY.
ROY BLANKFEIN PUT OUT A TWEET
ROY BLANKFEIN PUT OUT A TWEET
TODAY THAT SAID HOW BASICALLY
TODAY THAT SAID HOW BASICALLY
DOWNPLAYED THE WHOLE CORONAVIRUS
DOWNPLAYED THE WHOLE CORONAVIRUS
PANIC AND HE MAY BE RIGHT BUT I
PANIC AND HE MAY BE RIGHT BUT I
WANT YOU TO KNOW ONE OTHER
WANT YOU TO KNOW ONE OTHER
THING.
THING.
DURING THE FINANCIAL CRISIS,
DURING THE FINANCIAL CRISIS,
LLOYD BLANKFEIN CONSISTENTLY
LLOYD BLANKFEIN CONSISTENTLY
WITH OTHERS WAS SAYING WHEN WE
WITH OTHERS WAS SAYING WHEN WE
WERE IN 2007, WAY BEFORE THE BAD
WERE IN 2007, WAY BEFORE THE BAD
PART OF THE CRISIS, THAT WE ARE
PART OF THE CRISIS, THAT WE ARE
IN THE SEVENTH INNING OF THE
IN THE SEVENTH INNING OF THE
CREDIT CRUNCH AND THAT IT WAS
CREDIT CRUNCH AND THAT IT WAS
ALMOST OVER.
ALMOST OVER.
TAKE IT FROM THE SOURCE WHEN
TAKE IT FROM THE SOURCE WHEN
THEY TELL YOU SOMETHING IS
THEY TELL YOU SOMETHING IS
ALMOST OVER, IT MIGHT BE.
ALMOST OVER, IT MIGHT BE.
THEY DON’T NECESSARILY HAVE A
THEY DON’T NECESSARILY HAVE A
GREAT TRACK RECORD.
GREAT TRACK RECORD.
LIZ: EXACTLY.
LIZ: EXACTLY.
AS ALWAYS, WE KNOW BASEBALL
AS ALWAYS, WE KNOW BASEBALL
GAMES GO BEYOND NINE INNINGS.
