Lows. And wells fargo shares under pressure. Ceo john stumpf, well take you live to washington for the latest details. Duncan donuts is teaming up with cocacola. Nigel travis is in the house and will be joining us here to talk about the news and what some are calling a restaurant recession. Get his view of the big picture in his industry coming up in a little while. Deutsche bank falling on signs that some of the counter parties are reducing exposure to europes largest investment bank. Joining us now with more on this, cnbc fast money trader brian kelly. We have kate kelly and senior markets commentator mike santoli. It started around mid day when word got out that these hedgefunds were cutting back on their Counter Party relationship. The report just to review was internal document suggesting that a bunch of hedgefunds reduced they are relationship there. And essentially this highlights concerns about Deutsche Banks Overall Health and whether it is the right place for hedgefunds to store capital or anyone to borrow. We have been calling around. It sounds like there is widespread concern. There are conversations going on between hedge funds and the bank about the terms of the relationships perhaps not necessarily pulling capital but the terms under which it is warehoused and used in order for stock purchases. A lot of that is under review. One thing that may be going on is a big price swing in the cost of cvs. Cvs being credit default swaps that you might buy. What may be happening there to put itten context it could be bearish bets on Deutsche Bank but could be hedge funds keeping capital and want to hedge on the off chance that there is a negative credit event. You have what looks like a negative investment position but in fact you are covering yourself because you have capital. Mental models of the world because when you are a hammer everything looks like a nail. The hammer we lived through is the financial crisis. We are eager to treat Deutsche Bank like a nail. I dont think in a direct way not yet. The muscle memory kicks in. We remember about hedgefunds pulling accounts out of Lehman Brothers. Big differences are that the actual assets melting down for fundamental economic reasons. It wasnt just that customers went away. Deutsche bank has an issue with thin capital cushion. Maybe the potential fine or settlement will make it insufficient which would mean a Capital Raise is in order. It seems like the stock is in a panic mode. I would be cautious about drawing direct connection to how it will play out. It sounds glib but back in 2008 we werent saying remember what happened akt years ago . It was the surprise factor that was there which is absent today. Bearing that in mind do you think the markets have overreacted with this news today . The problem you have is thats not to say that Deutsche Bank cant get themselves out of this. If you are sitting on funds you have multiple prime brokers. You have to pull money out. If something happens to go wrong if something happens to go wrong and you are sitting there you will lose your business. That is what is going on here. People shoot first and ask questions later. I dont think the market is wrong because i dont think this is a oneday event. This can become a little selffulfilling. There were mortgage credits going sour. In this case with Deutsche Bank if you have a loss of confidence its kind of like when you have loss of confidence in retail bank. If there is no change in fundamentals no reason why that has to happen. I think mike made a great point. I think the key here is to say they dont have this enormous mortgage portfolio in the midst of cracking and having a historic bubble as we did in the early stages of 2008. There is not that sort of underlying situation or internal situation going on. What we do know is Deutsche Bank has had issues with internal controls. They have had regulatory issues and agreed to a huge fine that they will have to pay. They are part of a weakening europe. We have brexit and low growth issues in europe. They are not playing in a terrifically healthy sand box. At the same time they dont have this kind of cancellous element on their Balance Sheet that we know of. We dont want to overplay the story. As a bank with a massive deposit base its not quite as much like Lehman Brothers who were heavily financed in just the overnight Capital Markets and were much more i think at the mercy of the markets. Doesnt mean you cant have a run at Deutsche Bank. It could happen. Its a slower moving issue. It is much more profitability crisis and longer term capital problem. Reading about the only time i think deutsche had 10 return on equity in the past 15 years was in 2007 when they were massively leveraged. This bank has been struggling for years with profitability and perhaps that is just now coming to a head. They are massively leveraged right now. They have the largest derivatives book in the world. That is on a net basis. We know when crisises happen net becomes gross. They are probably the most Leveraged Bank in the world at this point. They dont have capital. The doj will impose a 14 billion fine. Market cap looks below that. They are incredibly leveraged at this point in time. I want to point out i was talking with a source who sent a text to me saying keep in mind the importance of Deutsche Bank within europe. It is the most systemically Important Institution in the Financial Community in europe. We know the value on divatives is enormous. They also have huge prime brokerage presence. Certainly there will be an interest. Are you going here . In safe guarding it on the part of the German Government how to do that is really a challenge. What can the ecb do, what are they capable of doing . They probably could do a bailout. Said they werent going to bail them out if imposed. Dont want to bail them out on a u. S. Fine. As we know Angela Merkel has her own other issues to worry about. Whether we see some sort of government relief, what happens regionally those are things we need to be focussed on if the pain continues for this stock and business. I was saying they cant do a bailout as according to eu wills. They have to do what is called a bail in which means you wipe out shareholders and bondholders and give them equity and if they owe money then go to uninsured depositors like in greece. They cant do a bailout until they resolve that problem. If they do a bail in or inch that way i can rest assured more hedgefunds will start pulling money. All of which points out why it is a problem for the shareholder but not the banking system. The fine hasnt been leveed yet. I am having de ja vu. We are having the same conversation as early 2008. We will be talking more about this a little later in the program. Thank you all. Important conversation to have there. Now to the other big story of the day. Wells fargo ceo john stumpfs grilling on capitol hill. Williford frost has the latest. Mr. Stumpf started pretty well. He was better prepared and had quite a few details to give the committee. The most notable was the mooted 2 million figure of potential fake accounts. Could be as much as 75 lower based on recent internal investigation. Those early more positive exchanges seem a long time ago because quite quickly the tone turns sour. You, ceo, chairman basically for me we on top of what has been a criminal enterprise. No question we dont do everything right. We have made mistakes. We are upping our game. Who should pay for it . Who is accountable for it . We are going to make it right. Your vp made 125 million bonus package. Who is paying for it . Who is taking availability for it . Dont tell me youre sorry. Some of the other big themes that came out other than those sort of grillings were that the regulator came up as an issue much more than it did in the Senate Hearing whether like good job or bad job. The other one, other banks as well as wells fargo whether they were, indeed, too big and should need to be broken up. Here is an exchange with congressman on those two topics. Everything that were talking about here today including what i just read which i wont read again happened since cfpb and doddfrank. It happened after we supposedly fixed all of this with regulation. You cant fully regulate bad actors. Overall certainly more questions for the other banks than we thought last week and they will certainly be a little bit worried about the issues that wells fargo has brought up. Mr. Stumpf had more to say but hasnt put an end to it yet. Thats not the tone that met with on the streets talking to people down here. I dont know about you but there seems to be this widespread outrage that only spread in the last couple of weeks. I think it comes down to the fact that this isnt a wall street bank. We arent arguing over wrong doing towards world series traders who get smaller bonuses one year. This is consumers of retail bank. That is why there has been such outrage. You feel a little sorry for mr. Stumpf. He has given up way more than before. He is coming to try to answer question at times clearly consumers with huge amounts. Negative cycle continues is not going to get better for the bank. Calls for resignation were much louder this time. All calling for john stumpf to step down. Thanks. See you later. Lets get to closing bell exchange. What a day this has been. Joining us keith bliss is on the floor here and Rick Santelli from chicago. Yesterday we had a rally because opec may have a deal. Today sell off with talk about Deutsche Bank. Very reactionary market. Very typical for a market that is directionalest. It is getting buffeted from all angles with different view points and talking points. I think the big story is Deutsche Bank and the financial sector. I think a lot of people are missing the picture here as it relates to Deutsche Bank. This is not ordinary hedgefund activity. There is hedgefund run going on. As you were pointing out the eu is disallowing any kind of bailout so shareholders will head for the hills and will not be taken down. Deutsche bank is not systemically important inside the European Market but across the globe. This is a big issue when it comes to the financial sector. As it relates to the Broader Market when you are getting buffetted and have a crazy president ial election and Monetary Policy and 15 fed president s, governors and others having speeches. One piece of bad news. Right now thats down. What are you doing here . What do you do with the markets . We have to figure out the mess before sooner or better or do we wait to see what happens with convertible equity. You see a pretty meaningful rally so far and of course profits have been relatively flat. Volatility for most of the summer was pretty much nonexistent. We have an election and now you have headlines bringing into question Systemic Risk of the Financial System overall. I think this volatility is something that is here to stay and investors should brace themselves for more of it between here and year end. I mentioned the de ja vu. We are looking at the cost again and the credit spreads are out there. What are you watching on the floor there . We are watching everything that everybody has discussed. There were particularly zeroing in on the conversation with regard to leverage. By all accounts just to be roughly in the neighborhood the leverage is roughly 30 to 1. Most of the research looks to me like 30 higher at Deutsche Bank somewhere in the neighborhood of 40 to 1 leverage. The Biggest Issue we were discussing that makes this completely different is that central bankers are out of thick wall paper. At the credit crisis they had lots of thick wall paper to cover up the cracks and termites to buy them time. They knew it would buy them time. As a matter of fact it comes at a time when many are trying to tear down the wall paper and criticize the wall paper. This is to me the biggest difference that many are noting and also were discussing notional value. They have trillions of dollars of negotiational derivatives. A face value of a Million Dollars. If that is way out of money might have delta. The real amount that will do the damage is smaller not to dismiss it but we make sure we dont have fire. Brian kelly said net becomes gross in a crisis. Is that an accurate statement . Yes and no. I really do think there is enough there even if you tried to look at the reality of the delta or sensitivity of those trillions of dollars. It is more than enough to cause calamity. It is more the times we live in, how different they are. Lets all face it. The credibility of all the wall papers is in question. You look at wells fargo. Great cnbc coverage. How many years does it take to fix these things . All of these things is how long ago . The central planners have policy that we dont want toadjust. We have litigation and all of the stuff from years ago never gets completed. When it hits the fan everybody is blaming everybody else. This is the slow moving accident that many write about all the time. This is part of it. I dont think you are going to wake up tomorrow and have lehman moments. I think we will have slow moving accidents more and more over time w. Interest rates at ultralow it is difficult for institutions to find ways to recoup, build back the coffers. They have two choices. They can raise money or bail out. Both of those arent going to be very clean and the bond everybody will be looking at those. We have to move on. Thank you for your contributions on this conversation today. We have about 40 minutes into the close to go. Dow off the lows but down 161 m. Nasdaq down 40. New york congressman Caroline Maloney calling out stumpf for what she called very suspicious sales of Company Stock in 2013. Maloney will be here with reaction to john stumpfs testimony and whether she feels he needs to resign. Dunkin ceo shares his had dow was down almost 250. We have inback. Let me tell you about other movers. Trans ocean among best performers on the s p today as we reported late yesterday carl icahn cut his stake to 1. 5 from previous 5. 9 . Last week he reduced stake in Chesapeake Energy we are told for the same reason. Conagra rising, as well. Boost from higher margin products. That helped overshadow revenue which came in slightly below forecasts due to divestitures and currency fluctuations. Sue herrera with details. Speaking to reuters and what Jeff Gundlach said, stay away from trading Deutsche Bank shares and credit because the company is difficult to analyze and he sees a possible government bailout. He also says investors should continue as the market sell off doesnt feel like it is over yet. He thinks there is more coming. Stay away from Deutsche Bank and credit and sees a possible government bailout. Something for you guys to continue to talk about. Thank you. That central question about a bailout or a bail in or what happens with Deutsche Bank will continue to hang over the markets. Larry mcdonald referring to it as a moment saying we will probably see more real market paying to extract political will. They chose to let lehman fail. The question is what is the choice. This is precisely what is going on in 2008 at that time. Well see whether we get a different result this time if government regulators respond differently. Deutsche bank is saying it is nowhere near fundamentally in the kind of situation that it was then. The Market Forces here. Dunkin donuts will be releasing new beverages. The first time dunkin will enter this category. Launch is in partnership with cocacola which will manufacture, distribute and sell the products to local grocery and Convenience Stores and nigel travis will take licensing fees. Here is nigel travis. We welcome you to the new york stock exchange. First i have ever been here. It is a pleasure to be here. A great day. National coffee day. I think a lot of people could use more coffee on a day like today. Everyone tells me they run on dunkin. How big a Growth Engine do you see the ready to drink . We are excited about it because its a fast growing category. It is 2. 3 billion category. It is a segment where we know our customers are drinking other peoples coffee. You can guess brands they are drinking. That is bad news for us. We decided we have to stop it. We looked at is this good for our franchisees . We believe it is because it will help their sales, they will share in profitability 50 50 which is kind of a unique arrangement. Most of all it is aimed at millennials. You are also making this pivot at a telling time. You are going basically into the supermarket aisle as people are talking about a restaurant recession. What do you think about what is happening in terms of the restaurant piece of the business . Is that feeding into the decision to get into the supermarket . This has nothing to do with what is going on in the Restaurant Industry. I think it is fair to say that a number of people are talking about what is happening to other companies, Restaurant Industry does seem to be going through a lull. There is speculation as to whether it is online, health care, the cost of Health Care Going up. Its all kinds of reasons. Are you seeing that . Im not going to talk about the third quarter. I will wait until i speak to you in three weeks time. We believe we are doing very well and better than the industry. We see a completely separate decision. This is a long term decision. We believe that is the way the consumer is going. We believe that our Consumers Want to have this ready to drink coffee to take to work, take home. They will still come to dunkin. This is a way of underlying our leadership in that segment. At least one analyst we talked to pointed out that you are going to get the licensing fees. It is to get the word out there. We are an asset business. We get a fee from cocacola. We are relying on cocacola to distribute and market this product. We have teamed up with the best company in the world to do this. We really think we have scored big time teaming up with cocacola. They do a great job in our stores. You are not going to spend a dime marketing this . This is a very good deal for us. We have been talking a lot about sort of International Expansion with a number of names. You can run into problems in china. You can run into problems in germany, anywhere. What are you seeing in terms of overseas prospect snz. I was in mexico city where we have exciting new stores. International has been difficult. Im the first to say that. We have a team that put shoes together. I think we are building the operational structure. We get into franchisees. That is the way we have to built international. I think International Will Take a year or two but i think we will end up in a very good space. In the meantime im delighted with the progress of bas continkin robins. The new top of the world. Everybody is going there these days. Thanks for stopping by. Well talk to you when earnings come out. Going to the last half hour of trading the dow down 172 points. Well see how we do in the next 30 minutes. New york representative Carolyn Maloney tells us what grade she would give john stumpf. An analyst who has under perform rating on Deutsche Bank gives his thoughts on where we are on this possibility of contagion in the Banking Industry coming up. The fire. Yep. Mmhmm. Drowned it again. Mmhmm. And now just feel if its cold. Ye. Cool. [camera shutter clicks] [whistling a tune] smokey just gave me a bear hug. I know. I already posted it. Financials in focus. Shares of Deutsche Bank falling on reports hedgefunds are reducing exposure to the german bank. Lets talk about this some more. Joining us fred canon. I ask you the same question i asked a trade arlittle while ago. Do you think the markets have overreacted today or is this about what you would expect . I think the debt markets are overreacting. I think the Balance Sheets are okay. Whats behind this crisis is a profitability crisis. Thats very different in 2008. The word derivatives is coming up time and again. Questions about their net exposure, questions about gross exposure and true leverage. What do you say it is . If any measurement and regulatory wise they have risk. Fundamentally the best we can see is the Balance Sheet is okay. The real problem is they cant make money and cant raise equity. I dont mean to put you on the spot. This is a question that is front and Center Concern for a lot of people so we are trying to get clarity. What is Deutsche Banks net derivatives expoekser and leverage. Leverage is the right one about 1 . It is more onerous on derivatives than here. I think the crisis with deutsche is that the market cap leverage a. Courtney reagan is on the scene. Reporter we are here and you can see the terminal behind me. Still a very active investigation. Chris christie saying there is one dead. That is a woman who was on the platform in her 30s. One dead, 108 injured. The engineer is alive. And is cooperating with authorities. New Jersey Governor Chris Christie is calling this a tragic accident and says it is still too early to say what the cause was. We dont know what the cause of the high rate of speed was therefore we cannot answer the question as to whether any other apparatus or systems could have slowed the train down or not. We are not going to speculate on that. Reporter and that is in response to questions about whether or not positive train control which was absent from this situation could have prevented this crash. It is just still too early to know. Ntsb is taking the lead on the investigation. Fbi as well as other local and state Law Enforcement officials are trying to figure it out. This will snarl commuting into tomorrow. Christie says he is not sure when the station is back up and running. The structural damage is pretty severe. Thats going to be a mess for a while. Here slowly coming back a little bit down 144 on the dow a. Leading trader will tell us what he is watching. We have costco expected to report earnings. Well analyze membership numbers. Keep it right here on closing bell. Announcer when they test you, stand firm and move only when youheari that says theyre buckled in for the drive. Never give up till they buckle up. About 20 minutes left with the dow down 121 points just about 100 points off its low for this session. Joining me now, i said what a day today. It has been what a couple of weeks we have had. We were waiting for volatility. It has been individual stocks that have taken us or sectors that have taken us. Yesterday was opec. Oil rallied hard. Today is financials. This is something that shouldnt have been a surprise. Deutsche bank was on the radar. It was either that or president ial debate. Now we know which had more impact. Traders must love this right now. Its interesting. 200 point move off of lows. I dont think you are going to take positions going home tonight. Europe hasnt reacted to this news that we had the opportunity to react to. I think you keep your powder dry and go into the weekend. Not a lot of buying of debts here. Obviously you can make a little bit of money here. There are bounces but i dont think you take it into overnight position. Thanks. Viacom began as cbs films and 45 years ago was spun off. They appear to be headed back under the same roof. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . What it worth to talk to your mom . What the val of a walk in the woods . The value of capital is to crte, not just wealth, but things that matter. Morgan Stanley National amusement chain calling for cbs and viacom to get back together again. The way you said that i know you are thinking he can remember when they were together. I know you can, too. About ten years ago the decision was made seemingly a decision he made over a short amount of time perhaps frustrated by tax price and separated the two. Here we are with the prospect of him getting back together. That Controlling Shareholder which is controlled by mr. Redstone which roles 80 of shares. This morning requested that they talk about getting back together saying that they would favor an all Stock Transaction and making the important point that it is not as though National Amusements is interested. Or having their voting control in any way sullied. So you are now left with the prospect of both Companies Boards of directors which acknowledged receipt of getting together independent committees of their boards to essentially investigate the possibility of getting together and to potentially pursue it. They are going to be forced to do that. There is only so much the Controlling Shareholder can do here. Cbs, for example, as the potential buyer of viacom still has a duty to all shareholders and one would expect they would maintain that. At the same time there may be an opportunity for cbs to buy viacom at a relatively low price doing it in an all Stock Transaction as has been requested. First part viacom saying it is only cbs or no deal. Ceo is leaving november 15. They are doing a bond deal to refinance debt. They are fairly highly leveraged. We all know the problems they have had. Well see where this goes. Again, cbs is not obligate today do a deal but there is an opportunity to do one it does appear that they may want to take it on and see what he wants to run the combination and figure it out from there. This feels inevitable. Does it to you that they get back together and les moonvesruns the whole show . Following this as closely as i do it is happening sooner than some had anticipated. I thought this might be business for 2017. Perhaps the prospect of the interim ceo leaving and any other number of reasons maybe taxrelated reasons. You could see something negotiated fairly quickly. It does have that feeling even though his comments have been like we are happy with the assets that we have here and can imagine the scenario under which mr. Moonves would be just as happy. The markets are about to close and there is all this concern about Deutsche Bank. Wondering since you have been through a number of these crisis what perspective you would add to a lot of talk that is going around . During the financial crisis this was common occurrence that is crisis of confidence perhaps starting. They have a selffulfilling prophecy to them. Even if they are based in something that is not necessarily true they can become true. The only thing i would add is you are talking about a german champion Angela Merkel. It seems hard to imagine that they wouldnt do something to make sure. Not to mention there is private capital that one could imagine coming in if they needed to do it at a certain price. I dont know. These things are very dangerous when they start, these kinds of stories. Even based in fact because they can add the momentum that they create leading to that crisis of confidence. In this one we are not talking about systemic banking crisis around the globe or even in one place as we were, of course, when we were dealing with all of the Financial Institutions being questioned during the financial crisis. The journal was saying that maybe Commerce Bank could be stake in it by the German Government from when it was bailed out or a forced merger there a back door way to recapitalize it. Well see which way it is all going. Laying off 10,000 people today. And cutting dividend, as well. There are some issues. Sure thing. Ten minutes to go. Dow is down 161. S p down 16 and the nasdaq down 42. Well get his take on todays sell off after this. Were good. Ay. What if a Million People download the newpp . Were good. Five million . Good. Wecale on demand. Brid infrasasucture, boom. Ok. What if 30 millionpeople dn . Were not good. Were total heroes. Scale on demand with the number one compy in cloud infrastructure. Hewlett packard enterprise. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already letsou create custom alerts foall the things that are important to you. Shhh. Aler on an not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Onlyt td ameritrade. What would help is simply being able to recognize a fair price. Truecar has pricing data on every make and model, so all youave to do is search for the car you want, ere it is. Now youre an expert in less than a minute. This is truecar. Hello there. Did you want to do this . We have been waiting for you to come back 166 on the dow with eight minutes left here. Michael block is joining us here. What do you make of what is going on right now . Its crazy. We had this crazy volatility and yet lets see who cares about what. We have the big opec move higher. Late august highs. Deutsche bank has 14 billion boj bill. Ceo saying everything is fine. Suddenly clients are pulling money out. When everything is based on leverage and people saying it is trust worthy the theory of money and credit looks out the window and starting to smell like with sterns. Is this going to be the same . Everyone is saying this looks so bad. Is this really not bad . The s p away from the alltime highs. Maybe we will start to see some panic. Its just interesting to draw the comparisons with 2008 in the case of deutsche we had an analyst referring to this as profitability crisis. Any reason why it should cause a systemic one . For me it makes me say i dont want to own the banks. Whether wells fargo is doing nefarious things. Given how the world has changed. Credit destruction has knocked these guys for a loop. For me it comes down to confidence. They need to borrow 15 billion they can. Dont worry about that. The problem is people start pulling that away and they have these things based upon money that is no longer there, the mortgage lenders, American Home mortgage. Everyone walked away from dealing with it. They did have dwindling assets. Its very reflexive. It has to do with who wants to lend them money . Suddenly you have a problem. You avoid the financials but you like the market . I have been avoiding them. If i had reason to say the authorities would say everything is going to be okay, Deutsche Bank is not going to have a problem. I would say great. Im not seeing that yet. Angela merkel of germany not saying i am going to fix this because she is under attack from both sides. There is a refugee crisis. She has her own problems right now. Well take a quick break and come back with the closing count down. Banks in the cross hairs today. Deutsche blamed for todays selloff. Wells fargo back on capitol hill. We will have coverage of both stories. 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Com d get up to six hundred dollar coming up on the final two minutes of trade on what has been another eventful day for the markets dow down about 188 points. Bob pisani is here with me for the closing count down. It was a pretty quiet day for major averages until around mid day when word got out that hedgefunds were reducing exposure and that sparked the sell off starting with Deutsche Bank which were down sharper. Took the rest of the financials with us. Xlf trading pattern looks similar. What did go higher and i will let you talk about Deutsche Bank, wti crude continuing yesterdays gains on word of possibility of an opec production freeze or cut in november so it was up another 1. 25 . Transports were also an outliar in this sell off today. It just turned negative. Never mind. Now we have costco coming out with earnings after the bell. Makes some sense that the european banks were down. Deutsche bank has not been covered. Makes sense that rbs will be on the weak side. A lot of people ask why do u. S. Banks drop about 1. 5 overall . I think the simple answer is we didnt think it correlated back in 2008. If you had problems with one bank might have higher credit costs overall concerns on that. A lot of people say why did Consumer Discretionary stocks and whirlpool drop . There is no relationship. Market participants pull their bids saying i see market dropping and that leads to lower prices. The dow down about 190 as we go out for this day. Ringing closing bell former new york giants coach and one of his Charitable Funds ringing the bell. Stay tuned for hour number two of closing bell with kelly evans and company. See you tomorrow. Thank you, bill. Welcome to closing bell. I am kelly evans. Nearly a 200 point drop on wall street with the dow down 194, a 1 decline and the blue chips are worse performer. Look at how similar the drops were that we saw. S p down 20 points. The nasdaq down about 50 to 5,269 to dropping 0. 93 t. Was a big day for two big banks. Deutsche selling off and hitting fresh alltime low as funds sell shares and wells fargo ceo john stumpf testifying in front of House Financial Services committee. Carolyn maloney questioned and will weigh in coming up on what she is calling that suspicious timing. We have Michael Santoli here along with stephanie lee. For more on todays Market Action and the financials and fast money trader steve brasso will join us. It is great to have everybody here. We closed down about 200. A lot of people are going to wake up tomorrow and see the headlines about the banks. And how would you describe it in a nut shell . The market was already back on its heels after the lateday rally. Already had a little bit of gloom around wells fargoment after the wave of selling hit i do think you just had a very collective stepping back from risk. I think the market absorbed that weight well. You are up off the 2 00 p. M. Lows and i do think it is more about nothing has changed. The Deutsche Bank situation is dicy but not moving all that fast. I think we are still stuck in the trading range. Leading into today you start to see inklings working. You kind of have the process stalled out today. What is your take on this . Do we call it a crisis . Has it gotten to that point . We just dont know. It is a thinly capitalized bank. They have to either raise capital or get a bailout. It doesnt seem like they are going to do either in the near term. There were good things that happened today and the last couple of days and had a nice rally over the last couple of weeks. Year to date, i should say. I would say we are still digesting opec. Energy stocks and reflation stocks, cyclical stocks still outperform relatively today. We had pretty good earnings. There was good there. We had a rumor that quaalcomm is buying for a really big premium. There is some good. Its not all bad. I get why the market sold off. It is concerning, for sure. There are some waves of strength in the market that we have to Pay Attention to. You say focus on those you dont have to worry about the larger question about what is happening with deutsche . Im not aggressively buying into this because we dont know how this is going to play out but im not selling into this just yet. I do agree that its not all bad. Hearing stephanie i think that i should call her when im in a bad mood. Are you always in a bad mood . Im the opposite. Im always in a bad mood. I do think that the market is always knocked on its butt for stuff that we dont see. Deutsche bank we actually have seen for a while coming down. Everyone thought it would not develop into something. Its down 52 year to date or Something Like that. It killed the rest of the market but the market did rally back a little bit off of the worst of it. Why should we buy financials right now . We have wells. We have a host of reasons not to buy financials. The cyclical trade was working but that got blown out a little bit. Our banks are way more better capitalized than european banks. They have to take pain years ago. Wells story puts a lid on it. The wells story is a situation i will give you that. Some point that stock is going to be i think it kills the environment for the financials because people say where have money to put to work. Why do i need the headline risk right now . The banks come in most of the day either when wells was going through that terrible hearing today and banks have rallied. It was Deutsche Bank that pulled them back. Time to buy things people say is when you hate them. So just starting broadly what is your take on it . I want to ask you specifically . What about financials generally speaking . I tend to think that the headline risk is very negative for the stocks in the short run. I think that if i step away from wells and take a look at Companies Like bank of america or citi or regionals. Making so much money. Its almost impossible not to buy them. Let me ask you to contrast their performance with Deutsche Bank and what is happening there. In the case of Deutsche Bank one business is lousy. They are not making loans. Interest rates are too low. They have added 100 billion euros worth of derivatives in the last six months. Therefore, you cant tell what is going to happen. The one thing you can be sure of is that germany is not going to let it fail or get into any serious problem. In the case of wells fargo you have a bank that has done some horrendous things. It will be in trouble for at least the next two years. The stock will drop down to the 38 level which would be on par with j. P. Morgan in terms of valuation. For the rest of these banks the situation is just not bad other than they are going to be attacked like crazy over the next six months. What are you still looking at in terms of s p 500 and are you worried about something sparked pie deutsche as we head into october . You always wonder about something you did not anticipate. You always worry about those events that you dont predict. I agree that the valueuations look pretty compelling. I think that investors have swung in their emotions a great deal. Four weeks ago we were seeing complacent market behavior and worried that we had gone too far. We have a 2,150 target for s p 500. We are not looking for a lot of movement. The one word i think is the word uncertainty that everybody talks about. Uncertainty over elections or whatever y. Have been in this business for 30 years. I think i have had four days of certainty. You think about the probability of success. Near 97 of markets being higher. Over the next year, i take your point. Here is a comment speaking about the issue with Deutsche Bank. He said earlier this year we had glen core teetering. Swift action, clear plan and back from the brink. He said in 30 years of markets he cant think of a single bank. That seems to be what makes the situation different and why people are concerned. You think that might be why he might be skeptical of Deutsche Bank specifically. The stock for its own investors to come back quickly. I agree with that. The solution to Deutsche Bank is probably selling more stock. It is probably some kind of Capital Raise. I think we have to distinguish between that and something that sweeps up the entire market or Financial System into something that is scary. I dont think it is that easy to draw the line. The reason we get knocked back is because we have been trading at a range near the highs. Not like we were ready for a big scare. A couple of events could loom. Anything that could happen triggering the convertible bonds. If and when those things start to happen do they create opportunities or are those moments to step back . I think they will create opportunities and to buy some u. S. Banks like dick was just saying in terms of quality names like bank of america and jp morgan. I wouldnt by a wells fargo. That will be a buy at some point. So i think these companies are very well capitalized. I have to stress that because that is why i have the confidence in the long term and long run that if there is a problem with Deutsche Bank these guys will gain market share so it will benefit. It will take some time. I like that rate. I have been talking about it a long time. It is happening. Energy, industrials. Uri is rallying. All of these energy stocks. It is the cyclical part of the energy that is rallying. The flip side is if and when there is resolution to the concern about Deutsche Bank what form could it come in . Some announcement that has to do with Commerce Bank which is backed by the German Government. Those positive events whips the entire market moves to the upside. We have been talking about valuations for quite some time now. I think they have head winds. Do i think Deutsche Bank will get bailed out . Yes, i believe that. I think it will mess with 15 billion in fines. I think it will have a bit of a game of chicken. We have tomorrow, month end and quarter end. I think it will take a week or so to play out the way it should. On the point about the fine and then there are Analyst Reports and published reports in the press. How much would you say that this u. S. Fine has sparked this entire issue with deutsche . I think it is very critical. I think there is no way that the German Government can let the United States fine this company 14 billion. It is totally out of the question because it would drop the capital of Deutsche Bank by too much. I think ultimately that is where it will end up. Is that a positive resolution . It is out of the way. The company ceo has a plan to deal with it or is it dropping of the hammer even though it is a much smaller figure . I think it is going to be a positive but i think the derivatives issue is a critical issue related to the bank. You dont know what is on the Balance Sheet f. You dont know you are not going to feel confidence buying the stock at this point. Thats for sure. Before we let you go, to the point stephanie was making what other parts of the market are attractive while this issue gets sorted out . We continue to support the energy call. Our firm believes you looking at low 60. Thats hugely important to the way the stocks trade. Valuation looks particularly nice to us, very attractive. Tech hardware and sem asemis. We like media which is an area that has been controversial. Outside of the banks and diversified financials. Im much more worried about these stocks that look expensive. Stay away from those. Thanks for joining us. Everybody here to kick things off. Be sure to catch more. Top of next hour on fast money one of the biggest bulls on wall street, tom lee, will reveal if he is buying the dip. It was a rough day on capitol hill for wells fargo ceo john stumpf. Well have the highlights next and hear from a top Congress Woman on the House Financial Services committee. Costco set to release earnings. We will bring you instant analysis of those results. You are watching cnbc, first in Business World wide. Narrator the best place to find adventure. Kubo come on, this way. Narrator . Is in the forest. Kubo wow. Narrator so grab your loved ones monkey dont even. Narrat and explore a world of possibilities. Kubo its beautiful. Narrator visit discovertheforest. Org to find the closest forest or park to you. Welcome back. Wells fargo ceo john stumpf on capitol hill today on the wake of the banks fake account scandal. Lets start with a few take aways from the content of what mr. Stumpf said. He said the 2 million fake account number could be as much as 75 lower based on their investigations. He said the full board is being investigated internally and that the committee we learned the House Committee does plan to investigate the regulators, also, not just wells fargo on who they through was mixed opinion unlike unanimous view on the company. As with last week the main take away was the tone as opposed to the con tebt despite more detail from mr. Stum this time and clawbacks lawmakers still want to see more. I have come to the conclusion that wells fargo should be broken up. Its too big to manage. Mr. Chairman, im going to be talking with you and the members of this committee who showed their outrage today. Im moving forward to break up wells fargo bank. May i respond to that. We will give the witness an opportunity to respond. As i said before, im sorry that we didnt get this right. I take this very seriously. Im not in denial and we will get this right. We will fix this. A better performance from mr. Stumpf from nine days ago. A long way to go before he and wells fargo can consider the issue behind them. Thank you from washington. Warren buffett was speaking to cnbcs becky quick about the company. Becky joins us by phone with this breaking news. Hi. This is something a lot of people have been clamoring for hoping to get Warren Buffetts take. He has been silent since the beginning of the scandal breaking. There has been speculation about what he has and hasnt said to the Board Members about how he feels about this. He finally is clarifying thoughts today. There was an idea that buffett had spoken to the board of wells fargo and expressed extreme pleasure. He said that is dead wrong the idea that he has spoken to the board directly and says that going to the board would imply that he has gone around stumpf and says that is not the case. Stumpf did say in his testimony that he had spoken with Warren Buffett and buffett is confirming that. He said he was speaking to him as the ceo, the idea that this would go to board. There was no conversation he said that this would be conveyed. Nothing to suggest that this would be conveyed to the board or around this. He said when he first spoke with stumpf about two weeks ago on a friday morning he did it after he watched john stumpf performance on that interview with jim cramer when he sat down with the ceo. He said to john stumpf the following morning that they spoke for about five minutes and he told them that he felt the problem was bigger than stumpf thought. He said this should not be measured by the 180 million fine that that was not a metric to be used in determining the public reaction to this and thought the problem was deeper than that. He said stumpf acknowledged that he under estimated how big this problem was but told buffett at that point he wasnt under estimating it then. This would be the morning after the interview with jim cramer. He did say that in talking to him he did tell him that he thought the problem was bigger than this. He said he didnt think that the interview with jim cramer went well on some issues. A couple of other things floating around the idea that buffett would buy more shares that he is standing by this investment in wells fargo. He said first of all we cant buy more shares that would require Federal Reserve approval. There are limits to how much one company can control and what one shareholder can control. He said as wells fargo has bought back and made more repurchases that did push them just above about three months ago and had to file to let them know. It is not because they were buying more shares but because wells fargo was buying back shares. In terms of whether or not he is standing by this investment in wells fargo he said i had never told anybody whether i would stay in wells fargo or not or any other stock for that matter. People waiting to hear what buffett has thought about these things. He said that he is not condoning any of this behavior and it sounds like he had given stumpf some criticism when he spoke with him. He did not go to the board or trying to stir things up at the board level. Thats what i know for right now. To the point that you just made about his thoughts here on wells i want to make sure that we got this right. So buffett said hes never told anybody whether he would stay in the stock or not. That seems like a pretty bland kind of statement intentionally so, i guess. That is exactly what it is. He doesnt tell people what he is doing with investments. There was this idea that he is standing by his Stock Investment and that had been conveyed to the board or management. He says he never told anybody whether or not he would stay in wells fargo or any other stock for that matter. It doesnt behoove him to say what he would be investing in or what he wouldnt be. He is saying he has never told anybody these issues. Its stephanie. I have a question with regards to if he wanted to buy more stock. Doesnt he have to go to regulators and get approval . This all might be moot. That was his point that we cant buy more shares that would require Federal Reserve approval. They have been pushed above 10 . It wasnt because of purchasers but because wells fargo was buying back shares which increases the ownership stake that berkshire held. Thank you for calling us. Thanks, guys. Becky quick just off the phone with Warren Buffett with updates on thoughts about ceo john stumpf and the fact that he did not have a direct conversation with the board. Nobody in the House Committee. Take a look at this exchange. Did you dump the stock after you found out about the fraudulent accounts because it seems that the timing is very, very spiuspicious and raises serious questions. I did not sell shares at the time. The form says you did sell the shares. Today i hold four times as many shares as im required. Did you sell these shares or not . I sold those shares and sold them with proper approvals. Seems very suspicious that your largest sale was right after your 1. 8 trillion bank was turned into a school for scoundrels. A member of the House Financial Services committee. Are you satisfied with what you heard here today . Pardon me . Are you satisfied with what you heard from the ceo today . I think we have more questions than we have answers. I think that more investigations than anyone ever anticipated. The Justice Department now has investigation going and two u. S. Attorneys have subpoenaed documents. This is really almost unbelievable. During the hearing, literally during the hearing, wells fargo got another fine from the occ for repossessing cars that were financed for many women in the military illegally. This raises the number of Enforcement Actions that they have received since the 2008 down turn in the market to over 21 Enforcement Actions against what used to be a great bank. It was a 1. 8 trillion bank and one of the most respected in the world. But this is a scandal. Its almost unbelievable that a great bank would be instructing and schooling their employees on reaching eight different products that they must sell to one person unknowingly. If you cant sell it open up the accounts and give them credit cards they dont want, debit cards they dont want. Its almost unbelievable and the number of suits coming in from employees that say that they were fired because they would not do illegal activities. Its an unbelievable story and one that really breaks my heart. Congress woman, aside from getting to the bottom of exactly how this behavior came to bow at wells fargo and who might be responsible at the upper levels of the bank, where is this going in terms of what the bank has to do from here . The bank said they stopped this incentives that seems to have led a lot of employees in this direction. In terms of actual management of the bank, business practices, what could change . I got to tell you, im a former teacher. I would give him an absolute f and expel him immediately. He should resign. All of this happened under his watch. It is hard for me to believe that he was not aware particularly when we have suits that one i produced court cases that went back to 2007 all the way back to 2007 alleging that people were fired because they would not do illegal activities. The fact that he dumped his stock after it was about to break in National News about the scandal, the number of Enforcement Actions, my question is how did it happen in the first place . This is a respected bank. You dont take, you dont steal from your customers. You are supposed to value them and help them, not steal from them and open up accounts and ruin Credit Ratings and give them cards and other things that they dont need. Its almost unbelievable to me. It really is almost unbelievable. You brought up how this happened. One concern people have is whether regulators should have been on to this. The cfpb was able to levee the fine after it had been reported a couple of years ago. It wasnt certainly much happening on regulatory side while this was going on, either. Lets talk about the Bank Executives and the people who worked in the bank who knew about this. Thank goodness that the cfpb found this and leveed a fine. If anything it makes a case for the Consumer Financial protection bureau. They kept the data. They had the customer complaints coming in. They acted. They investigated. Their investigation is not public yet so i dont know when they started or i just know that they leveed 100 Million Dollar fine at this point. Most people are giving them my marks. How did a great bank do this . How in the world do you have procedures where you could illegally steal from your customers accounts. I never heard of anything like this. So my question is how did this happen in a major respected bank . Thanks for joining us this afternoon. Thank you. Thank you for having me. Carolyn maloney. We have an Earnings Report on costco. Earnings did beat expectations. Costco reporting earns of 1. 77 higher than consensus of 1. 73. Sales missing forecasts 36. 56 billion. The retailer is going to open nine new warehouses before the end of 2016. We are looking at shares higher by about 2 . Down about 7 year to date. The online competition has been the big story and challenge for costco as of late. If you look at a fiveyear chart you will see that costco while outperforming walmart it is under performing amazon. Kelly, back to you. What do you guys make of it . If you look at details same store sales are better than expected up 2 versus flat expectations. Overall comps better. Gross margins look a touch better. Thats also a help. I think the revenue miss is largely transition from American Express to citi group visa. That should change going forward. And the estimate i think one bank might have been on that. I also think that the chart we showed kind of makes costcos performance look a little flatter. Its actually been going straight down for about five weeks. I think the market was braced for a worse result essentially down 11 or 12 in five weeks. Basically it is catching down to walmart and target which it had outperformed. Still an expensive stock. It doesnt really trade. Relative to target. And the yield is a lot better, too. There is value elsewhere. Costco delivering earnings beat. Shares down by about 1 . We will bring you latest details on new Jersey Transit train crash. Buyer beware. Hedgefund manager is shorting a handful of companies he says use fraudulent accounting. Hell give us those names coming up. Welcome back. With the market dropping 195 points today with the dow dropping it is time for a cnbc news update. Here is what is happening at this hour. One woman was killed and 108 injured when a commuter train crashed into the train station in hoboken new jersey. The woman standing on the platform and killed by flying debris. 74 people were hospitalized. Engineer is in Critical Condition but is cooperating fully with investigators. President obama hosting the u. S. Olympic at the white house. Samsung says it is in active discussions with Consumer ProductSafety Commission to address potential safety issues regarding top loading washing machines. According to complaints the machines can explode during the spin cycle. And this is my pick for the day. He could make a putt that they kept missing. You just saw it low and behold he sunk the putt. The crowd goes wild and he received congratulations from both mcilroy and stenson. Look at that. His first try . It was his first try. We have been reracking the tape like maybe he tried it a few times before. He was on the sideline saying i can hit that putt and he did. A few people saying they can do my job a lot better. Now im really worried. This guys friends will never hear the end of that. You never know. Maybe hell turn pro. That would be a nice twist. He could miss the putts. Thanks for joining us. The Market Selling off and while some people are hunting for buying opportunities one hedgefund manager is seeking out shorts. The three companies he thinks are headed for major drops. Are investors throwing the baby out with the bath water . Chairman weighs in later on closing bell. Where, in all of this, he stuff that matters . The stakes are so high your finances, your future. How do you solve this . You dont. You partner with a firm that advisegovernments and the rtune 500, and, can deliver insight person person, on what matters to you. Morgan stanley. It was a rough session on wall street. 1 decline. S p and nasdaq dropped 0. 93 , declines of 20 points and 49 points respectively. New Industry Data out showing assets of hedge funds drop 132 billion according to a survey coming at a time when active management is under much scrutiny and many funds are closing up shop and slashing fees. Our next guest has launched a stock picking fund. Welcome to post nine. Its good to have you down here. Are you crazy . Youre doing research on the short side. We do Research Activism. Its predicated on getting trust of investors and changing perception. We really do deep fundamental analysis as well as out of the box Research Methods whether it be freedom of information requests, accounting assumptions, stress testing what is being used. We have a couple of companies that are on your list. Acom being one of them. We have a statement from the company there in a second. Caesar stone. How many holdings are in your portfolio at any time . It really depends. It is price dependent. It could be one or many. We are focussed on unique ideas that we think markets under appreciating as a short. Do you have a screen . We do some screens. We look for financial outliars. Typically can be abnormal growth rates and earnings. We do things like that plus track management. We find managements are behind the financial assumptions. When we find individuals that work certain accounting play kaechs we track them and find where they land in the future. One issue as you very well know is even when you isolate the issues and see they are building in the companys financials takes a long time for the market to appreciate that or for the game to run out. How do you account for the fact that you may be waiting a while . We think part of the Research Activism is a catalyst to sort of shine a spot light and force management to deal with issues. We have had a lot of success in doing this. One way we track is looking at corporate actions. Recently in the past year we had five ceos resign. Directors resigning, cfos resigning. By forcing the issue we think it accelrates the change. Acon is Engineering Construction roll up company that acquired and gave them a lot of exposure of oil and gas mining. We noticed a few things that caught our attention. We changed the definition three times and changed the definition of their Free Cash Flow multiple times. We link that back to ceos incentive. He got paid by portraying Free Cash Flow. If you do adjustments we think it actually declines. They call your report inaccurate and misleading saying you have been miscredited by multiple sources and that jamie cook applauded Financial Reporting transparency at a recent interview. This was not an atypical response. It is standard response we get. Within three weeks of putting out report the Company Revised guidance partly because of criticisms we made. They were intending to run through one off capital sales. We argued that this is nonrecurring, noncontinuing earnings per share so they backed it out and adjusted the guidance down. You have to expect you will get embroiled in legal disputes. People accuse you of this and that. That is part of moving from the Research Side and having the fund now being called a vulture are you ready for this in. It is important to point out i have never been sued. Here in america we have freedom of speech protections. We are careful to separate fact from opinion. If you pull out a report you will see hyperlink popious facts. When i make an opinion i state it as opinion and inferences are based on data we collect. Bucking the trend from passive and all of that. Thank you for joining us. Thank you very much. Big banks are under pressure. The smaller ones are selling off in sympathy. The bank index searched about 9 . The chairman joins us to weigh in next. Which is sick, nless youre the css clown. The cloud App Ecosystem got everyo excited about arning again, instead of my hilarious pran and shenigans. [ frog croaking ] anthe new wireless infrastructureets miss smarty pants access her data froanywhere. I might ve to actually len something this year. Dernized learning, thanks to i. T. Orchestration by cdw. Welcome back. We have a news alert on alcoa, the board of directors approved the companys separation into two independently publically traded companies. The separation will be effective on november 1, 2016. It will focus on engineered products and alcoa on aluminum products. The share is right now up fractionally on the day. Every time i hear i i think of the song isnt it arconnick. Interesting to see what it does when it is spun off. Janet yellen addressing minority Bankers Forum declaring the fed is commit today diversity. Senior economics reporter Steve Liesman joins us with a special guest. I am here with rebecca ring thrks chairman and ceo of Sentinel Bank and chair of independent Community Bankers of america. Thanks for joining us. There is a lot of news about big banks today. Im interested in the small bankers view point. When you look at what has happened at wells fargo, the idea that there was a long running process to create false accounts what is your view of that . It is so disheartening and so upsetting to think that customers can be taken advantage of like that. What we do to take care of our customers each and every person is a part of that community. We value the trust that we have with our customers and so to hear that Something Like this could happen that is so systemic within their culture is outrageous. Im sending you essentially the softball you can hit out of the park for Community Bank. Are you saying that kind of thing would not happen . That is the difference. In my Community Bank im an active part of the community. We work hard to build trust and build those relationships. If something were to happen we would be held personally accountable for the culture that we have created in our institution. One of the issues that has come up yesterday the issue of diversity on the board that accepts interest rates. Does the Federal Reserve need more diversity . I appreciated the comments today where she said diversity is a source of strength. Diversity is at all levels. That is why we have been a huge advoca advocate. Someone that brings a source of strength representative of any number of different back grounds that Community Banks represent. Community banks are an endangered species. The number of banks under 100 million falling. Is that a danger to financing and to growth in america . It is a huge danger lenders to the nations Small Businesses, to individuals who have difficulty finding Home Financing in many rural communities. Thats why were actively working to create a system of regulatory actions in the United States that proportionally represent the risk that we represent and regulatory relief. Thank you for joining us. Thank you. Kelly, back to you, from kansas city, the federal rev ba reserve bank. The world cup starts tomorrow and athletes are getting ready to swing for stardom. What brands will they be wearing after some shakeups in the equipment space . Well take a look at leaderboard. Nike has shuttered its business and thats affecting how athletes are sponsored. Minnesota has tomorrows ryder cup kickoff. Adidas announced they signed Justin Johnson to a deal. Hell play taylor made equipment. We know because of the exit of nike, because adidas is maybe trying to sell i say taylor made unit, some golf manufacturers could pick people up, maybe tiger woods goes somewhere else, maybe other players try their hand at equipment. The ceo of the World Golf Foundation says there are reasons to be positive about whats happening in gulf and the equipment side of things right now. Callaway golf is doing very well, stock price is doing well. Its definitely rebounded from the last several years. That would be an example of it. Ping is privately traded, it doesnt release its numbers, but i can tell you theyre doing quite well. So yes, titleist is still very strong. Theyve got a very strong following at the highest level of the game. There are a lot of what i would call green shoots in the industry. So the reason why its important for this is because this ryder cup, people are here in droves. There are estimated to be a quarter of a Million People that be going to come through these gates over the course of the next three days, and all to watch these top players. If this ryder cup is going to be that dramatic, it could really help propel the game into next season and hopefully get more of a toe hold. If youve never watched a ryder cup, guys, tune in this weekend. First of all, golf channel will have coverage all day tomorrow and all weekend. Nbc sports does as well. Kelly, guys on the panel, mike, stephanie, this is something that for golf fans and nongolffans, this is fun to watch. Youre trying to hook everybody into this. Weve talked about a lot of these changes, we know that its not as popular as it was back in the tiger woods heyday. Is the money in terms of sponsorship still as good as it was . I mean, weve heard reports that jason day could get what could be a multiMillion Dollar deal to wear nike apparel. We havent had confirmation of that yet. The ones still left standing in this business are the ones that are going to be going after these athletes and you could see a real arms race. I spoke not long ago to the puma ceo, he says theyre playing offense, guys. All right, thanks for joining us. Check out this putt from a heckler. Dominic chu getting ready for the ryder cup. Biotech stocks, well look at whats behind the selloff. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about secon. Nonning ho music. Whenever you need them. Great, thats what i said. So your buness can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Comcast business. But they demand the best shopping experienc. 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A news alert on a huge fund, ochziff will pay after settling is the sec. Kelly, back to you. Seema, thank you. Were not the only industry to get hit hard today, biotechs under pressure, down about 3 of the session. Whats the sense, why . A combination of general risk, we had a big kind of trial failure last night. There was a move by amgen to lock up exclusivity of rights, maybe it hurt other players. All this stuff was there. Also general support in the public, according to a recent survey of some kind of drug control pricing. I do think thats something thats at least an overhang on the group. We have time for a yes or no. Its politics. Exactly. Thanks for joining us. What a day here on closing bell. Fast money begins right now. Fast money starts right now. Overlooking new york citys times square. Im melissa lee. Tonight on fast, stocks getting hammered today. So is wall streets biggest bull, tom lee, used the occasion to buy the dip. Plus Congress Giving it to wells fargo ceo john stumpf on the hill today, but they had no problem taking his money. Well tell you which representative took the most from the embattled