Do we call him dr. Sunshine. He likes to say dr. Realist. Allergan could be buying a it had a market cap of 90 million and theyre buying it for 1. 7 billion. All because the Bio Tech Companys progress in fighting a certain type of Liver Disease. We will look at what other companies could be takeover targets in that space because of this takeover here. We are keeping an eye on markets. The dow is up 50 . S p is up five. Nasdaq trying to participate. Lets get to our top story. Wells fargo ceos testimony on capitol hill you saw live here on cnbc. Testifying in the wake of the banks fake account scandal. Williford frost is in washington. He has been covering hearings all day today. And the hearing was far tougher for john stumpf summed up with this exchange. Have you returned one nickel of the money you earned while the scam was going on . And the board will i will take that as a no, then. Have you fired a single Senior Executive . I dont mean regional manager or branch manager. Im asking about the people who actually led your Community Banking division or your Compliance Division . We have made a change in our regional to lead our regional bank. Im not asking about regional managers or branch managers. Im asking if you have fired senior management, the people who actually Led Community banking division, who oversaw this fraud or the Compliance Division that was in charge of making sure that the bank complied with the law . Did you fire any of those people . No. Okay. So you havent resigned. You havent returned a single nickel of your personal earnings. You havent fired a single Senior Executive. Instead, evidently, your definition of accountable is to push the blame to low level employees who dont have the money for a fancy p. R. Firm to defend themselves. Its gutless leadership. It was very heated. That was really the tone of the q a despite his attempts to apologize to shareholders and politicians at the open. Senator warren concluded by saying that stumpf should be criminally investigated. The share price hit its low of the day during that exchange. It has since rallied, though. Shares up a little less than 2 . Stay with us. Todays hearing has some wondering what may be ahead. Join the conversation terry haines, managing director, head of political analysis. You were a staff member for some of these Committee Hearings in the past. You have seen this come and go these investigations on world com and so forth. What did you make of the hearing today and how do you think john stumpf did . I sure have. I was the lead investigator and worked on sarbanes oxley. Mr. Stumpfs bottom line, saying he is sorry helps but what you clearly have here is a situation where there is a lot more that still needs to go on both within the bank and a lot more that goes on with congressional hearings on both the senate and the house side. That was very clear from today. What is the purpose of the hearings . Is it simply a public forum or is there a process that this begins and is part of for additional specific steps to be taken . It is a little bit of both, kelly. Fundamentally senators and members think their jobs are to make sure the public is informed and that they have all the answers to things like this. Clearly, there is a lot more left to go there. It is also not unprecedented for congressional committees and the Justice Department or sec to cooperate. That certainly happened while we were investigating world com. Some of the things we did helped put executives in jail. So theyre not just public forums, they are designed to get at the truth in their own way. Senator warren was clearly the most outspoken questioner there today. But he didnt get many easy questions from many. I think senator warren was most focussed. I dont think she was the most outspoken. It really was the tone of all of the committee when it came to q a. One senator or senator tester said this was an unprecedented moment because mr. Stumpf united to unite the whole committee with one point of view because the focus of this scandal is the consumers and they continue to felt like mr. Stumpf failed to acknowledge responsibility despite having said those words in the open particularly on aspects of callback. That is why there was such a united tone. Already leveed about 185 million fine on wells fargo. What further fines or consequences do you expect from different parts of the government now . You have the potential for sec investigations. I know director cordray wouldnt answer the question directly about criminal referles and what might come from that. That is also a possibility. Then, of course, you have what wells might be able to do itself. Theyve got more than an image problem here. There is the code of Business Ethics that wells has. And that makes for interesting reading today. Does john stumpf need to resign . Does something have to happen to show that there is a change . They have eliminated the sales incentives that created the culture, but does something else, another shoe have to drop and does it have to be john stumpf . I certainly have no inside information. Let me say that watching the hearing today clearly the board is considering what to do here. And that was clear on both sides. It is certainly clear for mr. Stumpf. We have to go. Terry, thank you for joining us. And, of course, will, thank you. Good job on those hearings today. We will have more next hour. David vitter on the Banking Committee gives us his report card on john stumpfs testimony in the next hour or so of the show. With the dow up 47 points lets get to our closing bell exchange. Ellen zitner with us. Keith list and Rick Santelli getting ready for fed announcement. Keith, at least two primary dealers are predicting the fed will raise rates tomorrow. That is two more than had been predicting this on previous fed eves. I dont think you are expecting it to happen. What do you make of the atmosphere going into this second fed meeting . If you look at where the markets are we are trading back to where we were in the middle of july. If you think back to that period in july not that long ago it was one of the calmest periods that i can remember for several years. There is absolutely a wait and see attitude not only for what we will hear tomorrow but into november and december. This should be a volatile period in the markets. We should be trading a lot more. We have gotten into this really negative feedback loop where two or three days before the fed is coming out with an announcement the market goes silent and no one is willing to take a bet. I think what bill gross was saying he sees better than 50 50 chance of rate hike tomorrow. What is the point of view of Morgan Stanley . I would completely disagree. I think the probability of a rate hike tomorrow is very low. That is certainly not something that the fed communicated going into this meeting. It could have made its intent much more clear so you dont get adverse Market Reaction by surprising the markets. And the data just didnt cut the way in favor of a rate hike going into this meeting. There is really nothing for them to do but deliver a balanced statement. I think there are much more important things that our clients and investors are focussed on and that is what do they say about the future path for rates, not necessarily will they or wont they hike rates in september or december . Rick, what do you guys talk about on the floor there . People on the floor arent looking at probabilities in the hard sense of the term. They are looking at various shadow issues. For example, if you look at futures for 10s and 30s they have taken a lot of volatility out of the december contract for the futures. That is a good sign that nobody in the pit is looking for anything aggressive at this meeting or potentially any meeting this year. In terms of fed fund futures i look at the direction and there have been times where the contracts are much lower in price meaning higher probability of tightening that isnt showing up. I think after listening especially in some quotes by bill gross what i can say is traders in the pit believe that the markets are conditioned to throw a lot of volatility if the fed are hinting they will normalize. Maybe they are just going to do it. That would be my call but i dont think they are going to. I would not take the element of surprise out of the equation considering where the dollar is, where rates are, considering about midnight eastern we will know. I personally think they have a nice window to do it. I dont think they are going to take advantage. I was going to bring up that decision. The bank of japans tonight tomorrow feels almost more critical because they seem to have internal divide on whether to be more or less aggressive. As they go the rest of the Global Markets are trying to follow suit here. Is there coordination between bank of japan and fed to make sure they are not going to give from one hand and take from the other . I follow the line of reasoning that janet yellen follows and that is that it is about conversation among it global Central Banks, not coordination. Coordination is something you get from global Central Banks in emergency situations. The conversation is certainly there. I would agree, though, the focus seems to be more this week on what the boj will deliver rather than the fed because expectations seem to be pretty locked in for the fed and the fed frankly i will never put a zero percent probability on anything. Their appetite with the risks near zero their appetite for surprising markets is extremely low. So i think the markets are right to focus attention on the boj where there is more uncertainty about what kind of outcome they will deliver. I know this is a mugs game to do this, two quick things. The fed raises rates tomorrow. What do you think the market does . The fed does nothing tomorrow, what do you think the market does . I think we see a sharp sell off on the open because it will be totally unexpected is what we are talking about. Eveb though it wont be that damaging to the economy. Fed leaves rates the same we go back to nice even trading striel and probably move side ways into the november meeting. Sliding into november. Thanks, guys. Thank you, everybody. Appreciate it. 45 minutes to go here and the markets are side winding. The dow is up 57 points. The s p 500 is up six and nasdaq up 17. Coming up dr. Doom didnt look like dr. Doom. Hits the Stock Exchange predicted the stock market crash and tells us if he thinks the policy makers will or should raise interest rates. Up next government making voice heard on driverless cars. The National TrafficHighway Safety administration highlights key recommendations he expects to ensure public safety. Keep it here. You are watching cnbc, first in Business World wide. Were drowning in information. Where, in all of this, is the 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 advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Announcer when they test you, stand firm and move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. Enepeople want power. Hallenge. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. Welcome back. Shares of exxon mobil are lower after news it under investigation by securities and exchange commission. Eamon javers has more. The wall street journal reporting that the sec is investigating exxon mobil on the heels of a similar investigation by the new York Attorney general last year. The wall street journal reporting two key issues here at stake for exxon mobil. The first is looking into decision not to write down the value of oil and gas reserves that are on their books. So question of whether that is the appropriate decision or not. And then also they are examining how exxon calculates impacts of climate change. Two separate areas for the probe according to the wall street journal. They are reporting that the sec sought information from exxon and auditor back in august so they have been asking both entities for details. We have talked to the sec today and asked for comments and sec has no comment. Thank you. Eamon javers with the latest in washington. A story out of washington. The federal government announced new guidelines for driverless cars. Until now it has been up to the states to regulate Drivers Behind the wheel. With no driver the feds are stepping in to work with Autonomous Car makers to ensure safety on the road. Joining us now is mark road kind, administrator of National Traffic administration. I see you are an expert on human fatigue. Thank you so much for joining us. My pleasure. These are meant to start to address many of the concerns people have that perhaps the technology has gotten out there before were really ready for it. It is almost like it is in beta testing which is language tesla has used maybe not ready for primetime. Where do you think we stand in terms of being ready for driverless vehicles . The whole reason we are focussed on this is that last year 35,092 people lost their lives on roadways. 94 of crashes are related to the human. So Autonomous Vehicles and new Innovative Technology is a chance for us to save tens of thousands of lives. To your point when people ask when is this going to be ready . It is already on the road. That is when we are producing the very first policy to address this in the most comprehensive package that exists in the whole world. I wonder if Autonomous Cars are ready for primetime. The president of lyft said he was describing the first wave of Autonomous Cars on the road. Said they will avoid certain weather conditions. There will be specific intersections and roads they need to navigate around. Who is going to buy a car that can only do those things at such a low speed . Whats the point . Thats why this policy is so important. We identify a 15point Safety Assessment. What we want is on the front end to make sure that manufacturers and others are basically creating their cars, designing, testing deploying with safety in mind from the beginning. We are creating a safety framework but at the same time supporting innovation to get technology in the most lifesaving way to deliver on the road. Could you get as specific as possible about what exactly the new guidelines or restrictions or rules are . Sure. In fact, in the first element of it we just have 15 safety points basically. Its a check list of 15 items to go through. This includes operational design domain. Where should the car operate . What speed and what kind of weather . We have Cyber Security in there, driver education and training is in there. 15 specific safetyrelated issues that we expect manufacturers to address before they put vehicles on the road. So just to understand this, then, if i am tesla, for example, then starting today do i have to present evidence to you that i have met all of those before i put cars on the road . How does that effect things i might be liable for . So good question. First, as far as timing, we are asking for anybody to provide us their 15point Safety Assessment at least four months before they put something on the road. How do we handle things that are already on the road . They now have four months to provide that 15point Safety Assessment to us in a letter with data telling us how they are addressing that. Right now the timing we are in a transition period moving towards basically making sure these safety issues are addressed before vehicles get on the road. How do you respond to Consumer Reports who has taken issue with regulations saying they are not specific enough . They say it has more bark than bite. What do you say . Well, you know, the first part is that we spent several months putting these together. I thought it was fascinating for us to see how much everybody responded when they werent out there for discussion. Today is the first day they are out there for people to read them. What we are doing is trying to find a balance . Not giving up anything. So we have full authority for defect, recall, anybody watching for the last couple of years knows we will use all authorities and tools at our disposal to make sure we keep people safe on the road. Record recalls, record fines. We will do whatever we can to keep people safe. I know we have to go. Thinking ahead as this technology does unfold i heard two potential issues. One is that each state has different rules of the road. Auto makers would like maybe a more unified set of rules. Maybe we need different classes of licensure for cars being assisted by a machine kind of like you might distinguish between pilots license. Are you thinking through options that would effect drivership Going Forward . That is included in the policy. So the second element we have is a model state policy that defines the federal roles, state roles and identifies specific areas if states choose to regulate we identify areas where policies could help. We are already on that one, as well. Good to see you. Thank you for joining us today. My pleasure. You bet. 37 minutes left in the trading session here on fed eve with the dow up 56 points, the s p up 6. Nasdaq up 16 maybe snapping a twoday losing streak. And boj eve, too. What the Bio Tech Company has that others do not and which could be the next takeover targets. An earni