A few moments. The view that some writers have that some hedge funds are maybe too big to fail will be part of the conversation. We will give you the criteria, and also both sides of the argument on whether Systemic Risk exist or not. Plus, the ceo from cybersecurity powerhouse fire i will be with me. Made a 1y recently billion purchase and we will tell you about the latest technology to thwart hackers. First up, president obama naming five u. S. Promised zones targeted for special federal aid. The motivation is despite income inequality. Julianna goldman joins me now. What is at the center of the president s plan . This is all part of the focus on income inequality that the focus the white house has the tapping leading up to state of these union on state of the union on february 28. The areas are san antonio, philadelphia, los angeles, southeast kentucky, and the choctaw nation of oklahoma. Theseesident announced socalled promised zones in his state of the union last year. Today, he is revealing the areas that have been chosen for this initial phase. The white house wants to use federal funds in the targeted areas, and elsewhere, as this to bolsterws education, access to housing, also Crime Reduction programs. He also wants to offer tax credits for Capital Investments and also tax incentives for people for companies to hire people who are looking for jobs, to hire the unemployed. This is all part of the administrations runup to the state of the union, to promote some of the initiatives from last year. Look for more of these two be dribbled out over the next few weeks, especially in the area of manufacturing. Thank you, julianna goldman. We are going to keep you in d. C. , because senator Elizabeth Warren is turning up the heat on Government Agencies that cut settlement deals with corporate wrongdoers. She is cosponsoring legislation that would require more details on the settlements. Peter cook caught up with the senator earlier today on capitol hill and has more. The issue here is transparency, right . That is the goal of this legislation put forward by senator Elizabeth Warner warren. Her cosponsor is republican tom coburn. This legislation is going to put pressure on legislators to think twice before they enter into settlements with corporate wrongdoers. I spoke with senator warren about this legislation a short time ago. I asked the question last year from some of these banking regulators, when was the last time you took one of the big Financial Institutions to trial, and they hemmed and hot and had trouble coming up with an answer. But they said, hey, the settlements are great. They are a great deal for the american public. My view, along with senator coburn, is if they are a great deal, hang them out there for everyone to see. Make them public, so we can see them and evaluate them. In other words, a little transparency in these settlements, and a little accountability for the agencies that are doing them. Was there one case in particular, one settlement in particular that inspired you to drop draw up this agitation . There are many, but i will give you an example. The Home Mortgage foreclosure scandal, where these companies lately broke the law. Settlement was for 8. 5 billion dollars. That is a big headline. And it turned out, well, 5. 2 billion was for credit that the companies were going to get. How do you earn a credit . It turns out the bank could forgive 10,000, lets say, on a 500,000 mortgage. Guess how much credit they got . 500,000. Click this legislation would make that abundantly clear. This would make that abundantly clear, and i hope, make anyone engaged in this negotiation think twice before they do that. Let me ask you, is your goal here to make the government enter into fewer settlements with corporate lawyers . You want to send them into the courtroom because there is a risk that they could lose. I want to make it clear that the government lawyers work for us, for the public. They do not work for the companies they are supposed to be regulating. This is really and truly about transparency. It is about good governance. Judgment if your best judgment on behalf of the American People is that there should be a settlement in this case, then by golly, make the terms public so we can all evaluated and see if it is such a great deal. And senator warren and senator coburn are and rn in usual combination here on capitol hill. Are an unusual combination here on capitol hill. We will see how the Law Enforcement unity response to this bill. If they fight it, chances of passage could be more difficult. Peter cook, washington correspondent. Senator warren will be a guest with al hunt on Political Capital at 9 00 tomorrow evening. Systemic risk such as insider trading, we ring in blackrock we bring in an analyst that follows blackrock. Kerry, what did they find in blackrocks program . Basically, what the settlement entails is that blackrock had access to nonpublic analyst sediments settlements, which theoretically could be used for trading purposes. That being said, blackrock has ended its survey program to avoid even the appearance of impropriety. And the attorney general said the survey program violated the martin act, which is a 100year old law that allows the ags probe whitecollar crime and financial crimes, a very wide scope. What does blackrock have to do . This is a very interesting to one of the many settlements weve seen in the past 12 months regarding the ag and Financial Institutions. 400,000 tos to pay cover the fees associated with the ags investigation. Admitlso will not have to , nor deny, any of the allegations made in the settlement. As you point out, a little bit unusual. Blackrock is more or less singled out because it is the largest money manager in the world. Thank you very much. Kerry geithner joining us on the keri geiger joining us there. Raising 2 billion to invest in distressed debt. Our expert jason kelly is here. He is editing manager of bloomberg link. Jason with me, as well as a special cohost this hour. First, this is even more money than kkr thought it would raise, right . That is right. Im told it was double what they went down to raise. They went out for a billion dollars and they got 2 billion. It speaks to the importance of this type of fun. The more classic private equity funds are having a little harder time raising money. Who will be running this new funding . Any superstar names that we know . It is an interesting peek inside kkr. Two thirtysomething guys running this group. We hate them for being so cobblers, but they are up and comers at kkr. One in london, one in we hate them for being so accomplished, but they are up and comers at kkr. One is in london and the other in san francisco. They are taking this firm in a different direction. Double the money than they expected, so where will they be investing . What kind of assets . It is a hedge fund largely focused on europe. Area that weessed have talked about for a number of years ago years now. Keep in mind, there has been a lot of talk about distress in europe from the perspective of buying off of Balance Sheet. What this group does a lot is what is known as rescue lending. They will go in where the banks wont. Part of the distress around the bank is not just the Balance Sheet, but it leads to inhabit an inability on their part to loan, so kkr and other people step in and make for the profitable loans. Which have not been that and there have not been to date that many distressed assets available. Managers are paying people to be on the ground in europe. Climate like maybe the is changing. The climate is changing alluded in europe, and also this is a group of two dozen people all around the world the climate is changing a little bit in europe, and also it is a group of two dozen people all around the world that is poised for action. They have been able to use these novel ways of financing that go far beyond the traditional private equity model. We are talking about a wide barn strategy. Absolutely, and it speaks to the larger effort around private equity firms, or what we have known as private equity firms and probably should not call them anymore alternative asset firms like kkr, blackstone. This recent acquisition will go to 29 billion. 30 billion is nothing to sneeze at. It is a significant chunk of change. Jason kelly with me this whole hour as my special cohost. When we come back, jason and i will be focusing on privacy and security. Will bef fire eye with us. In the next hour, the next Generation Mobile payment option. Matt harris will be our guest. He will tell us about the start up that he sees nipping at the heels of a just of jack dorseys square. As soon as next week, president obama will be calling for tighter limits on u. S. Spying on foreign leaders. This is according to an official familiar with proposal. The restrictions are part of an effort to curb nsa surveillance. Snap chat, the data breach on new years eve, more than 4. 5 million users data exposed. Today, snap chat officially apologizing. Cyber attacks are becoming more prevalent. Adobe, facing issues where sensitive user information was stolen. Hacking and buying is big men is big business, and fireeye is of security. David, thanks for joining us. You are knee deep insecurity. You have been for years. Before you were at fireeye you were at mcafee. Funded in part by the u. S. Intelligence community. What do you see at the center of this issue that are either intelligence or government related . Think you for having me. Probably first and foremost is the loss of intellectual property. The second most would probably be the loss of monetary cap assets. And third, Reputational Risk and loss. We have seen that with some of the reagan things you have alluded to, snap chat, target, others. Brand a really big and that is the biggest owner billy these companies have. David, when you work with a company, how strictly you have to be with that company e there will with that company . There were many programmers saying to snap chat, your data is vulnerable and a lot of companies are blaming him for not addressing these issues. One of the biggest budget biggest issues is education and awareness. The attackers are very complex, wellfunded, and they come from all over the world. And in many cases, they are politically or monetarily motivated. Assets that they have to prevent these things from occurring are very low, so many of them are very vulnerable and they dont know it until there is attack. An attack. David, certainly, the snowdon affair, as it were, has played big from a political perspective. But take us through as a business perspective. How are companies talking about it and how are you addressing it when you talk to clients . Jason, you bring up a good point, at least from a Cyber Security point of view. There were two big event this last year. Atp onecalled the report that talked a lot about the chinese espionage issues. And the second was the snowdon imprisonment and revelations. Raised awareness around the world. That is what Companies Like as needed, so they would take a look at their internal measures, risks, and maybe understand that the Security Policy that they have currently is not enough. Boost to our business around the world and an incredible opportunity. Us. Avid, stay with we will stay with this conversation right after this break. David devault, david dewalt, the ceo of fireeye. We continue our conversation now with david dewalt, the ceo of cybersecurity, the Cybersecurity Company fireeye. We have been talking about the cybersecurity issues for companies and government as well. You recently made a billion dollar purchase. I assume that will be your next biggest challenge, aside from helping all your client, basically integrating what you do with what they do. It look like a big challenge on the surface. These two companies have been partnering together for almost two years now. The products are really integrated in the management teams are very wellknown for each other to each other. The businesses are very symbiotic. We feel we hit the ground running very quickly. The future. Ed about david, any acquisitions on the horizon . Clearly, this is a hot area, as you spoke of earlier. Are we expecting to see more on the m a front from you guys . Not in the short term, but certainly over time, this is a huge opportunity for a new company. I think the world needs a very strong nextgeneration Cybersecurity Company. We are growing very fast and see a lot of opportunity around the world. We will roll out opportunities as we continue to grow. The next piece we will be looking for, at most, will be a small talk in type of deal. How ahead of the bag are you . This is how many people describe this generations arms race. It is amazing, just watching the disconnect between offense of activities and the adversaries and the current defensive model. We have had about a 20yearold model right now with an antivirus that has very low detection rates and very low advocacy low efficacy in terms of effectiveness. We have an opportunity to close that gap and have done that with fireeye machines and next generation technologies. We are uncovering a lot of the criminal organizations, a lot of the nationstate organizations. For now, we have really caught up. Stay aheadly, we can of the competition with all of the intelligence that we bring with our recent acquisition. Talking about president obama as soon as this next week he will speak about spying on overseas political leaders, how important is it both politically and for people in your business, that move, that statement . For the most part, cybersecurity and the risks for cybersecurity in the last few years were never really well known by the leaders of the world. To watch president obamas elevation of knowledge and interest in these topics is really important. We are watching cyberspace he a very dangerous space right now. Dangerous space right now. Not just the monitoring, but the dealings and sabotage going on. It is important to focus on how to make cyber peace and create treaties around the world that allow us to operate our businesses without the risk of intrusions or damage that could occur. We saw some photos of angela merkel, the german chancellor, looking particularly annoyed when she learned that her phone was more or less bugged by the u. S. Government. Dollar wise, this is a huge growth area. Benefit. Ell poised to how much of the billions of dollars of available business do you need at fireeye to call it a win . Have a very small percentage of market share right now. We have been growing quickly, but we have big aspirations. I think we have a big opportunity in front of us. This is a 30 billion a year market. And nearly every company is getting breached. So the current model is not working too well. We have a great opportunity to disrupt that model and to serve a good purpose in the world as well. A good combination of opportunities. David, thank you so much for the time. David dewalt, and ceo of fireeye. Right now, at the white house, president obama is preparing to announce the first of his crosses own initiatives. Goldmanear julianna speaking about this earlier, the idea to pick communities that are struggling with income inequality. And to focus on those. We do want to get you out to our newsroom. It is 26 minutes past the hour. Olivia sterns has everything you need to know. Stocks are moving lower right now, but a modest move lower. The s p is down by about three points. The nasdaq is down by about. 4 . Fallen tofor wti has a sevenmonth low. The u. S. Is reducing its fuel consumption and production has risen to a decade high. In the currency market, also a bit of an action in the euro. Level in as deepest month against the dollar. Back with more on the markets in 30 minutes. This is money moves, where we focus on alternative investments. Im deirdre bolton. Here are your top headlines. And mario draghi is strengthening the central bank to keep Interest Rates low as long as necessary. He also said it is too soon to say that the region is out of danger, and he added that banks should continue to deal with bad assets on their Balance Sheet, even if it causes a temporary worsening of credit in the euro area. Claims for jobless benefits in the u. S. Dropped to the lowest level in a month. Fewer temporary workers were dismissed following the holidays. We added more jobs in 2013 than at any point in the last eight years. U. S. Governor new Jersey Governor Chris Christie apologized for a traffic jam that was allegedly triggered by one of his aides as political revenge. An prosecutor has begun investigation. Chris christie spoke earlier. I am embarrassed and humiliated by the conduct of some of the people on my team. There is no doubt in my mind that the conduct that they exhibited is completely unacceptable and showed a lack of respect for the appropriate role of government. Governor christie said he fired his fud chief of staff over the incident. Deputytroversy his chief of staff over the incident. The controversy advertises his possible 2016 president ial run. Possible partnerships with communitiesnd struggling with income inequality is the topic of president obamas speech currently. Im talking about suburban neighborhoods that have been hammered by the housing crisis. Im talking about manufacturing towns that still have not recovered after the local plant shutdown and drugs dried up jobs dried up. In rural areas, jobs were scarce even before the recession hit. Young people feel like if they want to succeed, they have to leave their town, leave their communities. And ive seen this personally even before i got into politics. This is what drove me into politics. You can continue to watch president obama on bloomberg. Com td. Turning back to the business of wall street, Global Regulators are raising the question of whether or not multibillion dollar Investment Funds are, to use a phrase from 2008, too big to fail. Su keenan with me with the story. There is concern that hedge funds could trigger a major meltdown and be part of Systemic Risk. That is what they are looking at, the funds that manage more than 100 billion in assets. The Financial Stability board, fsb, is based in switzerland an