The First Look - Michael Regan, Bloomberg News

-- value during the past here how much did it increase or decrease in value 68680 is our text number. Our guest is Michael Regan from Bloomberg News in New York City Michael good morning. Well we're glad to I JPMorgan in the news they're firing of 191000. Workers while that's. That's a pretty big announcement come out yesterday. It is as a pretty shocking announcement a lot of these job losses this year at least will be through attrition and other words as people retired just move on. From the bank you know it it it will. So those issues that are left vacant but yet the rest you know there are our beat a lot of -- -- it's that target 191000 that's you know 191000 jobs between. This year it yours so you know can be done is targeting nap but in the 2014. And -- us in the mortgage and community banking division. Maybe help us out disease you know I read the article on Bloomberg this morning about capital ratios for banks and I'm thinking our audience many of our audience will understand that a lot of our audience doesn't understand what tapper issue is can you explain that audience. Great book it's basically how much you know cash were very highly rated securities like treasury that a bank will hole. As sort of a buffer against potential plot downturns in the economy were you know losses. -- so. In the bank I need to hold -- case you know let you know as we saw a few years ago with its buy up mortgages start defaulting at a very high reader -- -- Yet they're gonna need that that offered it to cover it. And also you know if depositors you know in at least trust -- -- start you know -- money that they need that sort of cushion there to handle that sort of. What about -- don't -- date Jamie Dimon is saying that the -- being forced by Dodd-Frank to have too much cash do you buy that. Well you know the argument he made his you know announced -- Mayo. It brought the very question -- said. But yet is sorted out there are saying -- are -- -- racial about you know 13%. -- that's -- very high capital ratio you know JPMorgan's. Is you know they're the -- less than ten about nine point 5%. So. You know it is question well. He is just a good argument -- bank is is gonna actually you know he did gain in business and gain them depositors to say look we have the height ratio. You know world war state -- -- has now he's saying you know. And we -- -- -- -- you're on a bank that he's putting its money to work. And really investing in and his response may it was that's why -- that you basically -- We willing to take risk willing you know put the -- -- work and so. -- I think. You know. Actually did do what they want and let that let the customers what the depositors and shareholders decide which is that you know that the better we could. We have at the the day of school of thought is like it used to be where the -- actually had to have a capital ratio of what one or 2% -- as they talk congress and to believe in -- -- -- we saw how that went. About that's right yeah now now the -- you know that the pendulum has swung too far the other side. Yes I mean it's separate argument that -- made and the actual you know that the direction that the government wants it. It's pretty much a moving target work in progress you know. The main committee internationally is -- the -- committee on banking supervision. -- recently increased with the error ratio from about 3% 7%. A lot of regulators -- you out the dip yet he had elsewhere want it to be even higher they want something you know like 10% or higher. So where is any unity you're exactly right where that pendulum test. Belong in its natural state is sort of an open question. In you know open for debate certainly featuring the credit boom earlier in the 2000. You know it. The mortgage boom it was it was obviously too low you know we all sorts of problems with you know. Thanks you know going under or were threatening. Don't want to be -- outlook at the united it. And you need to be bailed out yet so you know obviously that ratio was two to slow -- -- question you know is is what to cry you know. Cheney more. Jamie Dimon achieved Morgan says UBS's the potential missed on way too far -- our entry or interest that. Is it about nine point five or spent a lot. From the perspective of the CEO of the biggest bank US you know that carries a lot of weight as far as well -- the industry. -- does pay up Michael thank you very much for your time appreciate it. Michael Reagan Bloomberg News and you know it's the here's what happened. The banks. Back in the knee in the late eighties early 1990s convinced congress. That they were so Smart and so good at doing their job that they didn't need to be regulated and it was -- -- -- late night came on congressman -- our -- for them for -- congress because what they convince congress was it the only needed cash of about one and a half percent and then of course the wheels came off -- the banks. Fail and you had bank failures. That were you know happening we have hundreds and hundreds of banks that fail just ran out of money. So and congress did in their infinite wisdom is okay with your big bank -- cap ratio. -- 9% that just means you have to have that much cash literally cash on hand in the vault to cover a run on the and it would Jamie Dimon and other bankers are arguing is that that is too much cash. And it's curtailing their ability to land and operate on a profitable base so where's where's the happy need. You know that the bankers are gonna try to talk back down one and a half percent we know that doesn't work militant right but conversely. Perhaps one of the reasons our economy is moving slow leaves the banks have been making loans so the result is the use business activity has slowed down and that's what the recovery has been so anemic part of it contributes to the anemic recovery in the United States so you know that's just a fuel for thought in one person's perspective. I'm up next -- take a look at your favorite text messages -- has a couple -- she's -- the Boston Globe is reporting that. Home sales rose six point 8% last year -- your whole increase in -- during the past year how much did it increased our tech's number is 68060.