Were happy youre back. Me, too. If youre a citigroup shareholder, not happy. Theyll take 1. 2 billion to settle claims. The settlement resolves a significant legacy issue left over from the financial crisis error. Citi will take a related charge of 100 million for the First Quarter. Heres where shareholders are getting unhappy. Citigroup warning invests, after the Federal Reserve rejected the capital plan last month. Tthe wall street journal says the rejection makes it unlikely that citigroup can hit its 2015 goal for return on tangible common equity. The measure is a ratio of profittoequity own by shareholders. Citigroup shares, unchanged in after hours, 46. 55 is the number. In related news when it comes to the Federal Reserve, this could impact citi in some way, the Federal Reserve giving banks more time to divest collateralized Loan Obligations that fall under the volcker rule. The fed said banks will have until july 21st, 2017 to shed those funds which pull together risky loans. Clo is a way for banks the volcker rule part of dodd frank, ability to invest in risky funds such as hedge funds or private equity funds. Financial regulators vote on tuesday to finalize tough requirements for u. S. Banks. A lot of news in banking and Federal Reserve land this morning. Joe . Andrew, in ukraine, a lost commentary and things happening. Tensions rising. Russias foreign minister warning kiev, warning kiev, that any use of force against prorussian activists could plunge the country into civil war. Ukrainian officials are accusing russia of instigating the protests. That led to these guys seizing government buildings in three separate cities all in Eastern Ukraine. Ukraines president warned on monday antitrust measures would be taken against protesters who have seized arms. Meanti meantime, secretary of state john kerry is attending a meeting to ease tensions. The flareups are being felt by the oil markets. Th thats when it affects cnbcs news. Take a look at the lead story in the journal. The core, russian citizens, a lot of them look like special forces. Theoretically, putin is able to send these guys in and then on a pretense and on the pretense of protecting them. Brett stevens today, putins moment, if i were Vladimir Putin id invade Eastern Ukraine this week. Strike while the iron is hot. A lot of people think i saw jay carney yesterday. I was quaking in my boots. Hes cautioning. There will be i would not just liked kid. No, no, no. Remember when you tell the kid dont do that, dont do that, then the kid does it and youre like, okay, if you go any further. You know theres no selfies in the white house. Thats another issue. This is going according to a pretty the playbook, weve seen this before. Well see whether it happens. No one would be surprised if they move in at this point. Not at all. It was interesting that said we had Larry Lindsay on. I dont think hell wait for any of that stuff. I think hes looking and willing to take it by force. Do you have i dont have my risk game anymore. The board game. I know it was the ukraine then and camp chatka. It was a region of the ussr. This was pretty good territory. Id be moving do you have risk for ipad now . I wonder. As an application. I dont think we have so many board games at home anymore. We have connect four. I love that game. You know whats weird, the market had nothing to do with this, the markets threeday selloff. Well talk about that in a second. I have some i dont know how closely youre watching at home. Did you see the tenyear yesterday. I didnt see where it wound up. It was below 2. 7 for a while. They say its a death cross, saying yields could drop sharply. At this point i think weve come full circle. Where now higher rates, people want high rates for the stock market. Its all about an economy good news is good news. Its good news is good news at this point. Theres two schools of thought. I dont know which to think about. Did the tenyear go up first and that hit the stock market or did the stock market defsh a break and people put it into bonds . I think it was the stock market first. You better hope so. I do, too. That doesnt explain whats happening in europe where yields are down. Theyre rushing into possible qe. Theyre worried. What do you think it is . You know, as a conspiracy theorist, im worried that you know, we assume we cant have another slowdown in the economy. Certainly not a recession. Its been a fiveyear recovery which was already pretty long. Right. If Interest Rates were to start dropping and if unemployment were to go back above 7 , it puts the fed in such a box. If the Unemployment Rate is rising right now, its because the Participation Rate is rising. If we dont hit 3 , if theres no see if we dont hit 3 . People say were going to 3 because theres no fiscal drag. What if were stuck because of the regulations and taxes and policies. I think were going to 3 , too. Why would we . We volcano in the five years. And so im just saying, that would put this nice, neat way the fed exits and everythings fine and we all live happily ever after after they saved us, a lot of times life isnts asimple. What would yellen do if it looked like unemployment was going back up . What can you do . Were still 55 billion shes locked and loaded. Were still 55 billion a month. She can go back up. She can go back up. She feels every pain, the death of a thousand. She feels every person who is out of work. I agree. The fed has for years. You dont believe that unemployment could start creeping back up. If the fed were to start going back up, i think it would get congress more involved with taking a look at the Federal Reserves powers. Thats died down. They wanted to audit the fed. They wanted to do a lot more with it. What can they do to help the economy . I dont know, because it depends on your perspective what you think they could or should be doing. Congress is not going to do anything, i think, to change its trajectory. If the fed were to get more involved theres a chance they could do a stronger job. This may all be were three points below where we close. Were going to 3 . You think the gdp will be 3 . By the end of the year. Why do we get 3 with these guys in charge. I think the American Economy is a dynamic one. I think its been held up for too long. Its fighting an uphill battle, when the private sector doesnt have to argue for its relevance. 3 isnt the type of growth youd be writing home about. Now it would. Were at 2. 25. I think were going back to 3 . Im not at 3 but im not a 2. 25 either. Somewhere in the middle. How close do you come to saying that the citigroup shareholders were not happy campers. I thought youd use that word. I think you were going to say campers. They took away my story. Can you get the tape . You didnt believe me. Anything you say about sports or basketball is irrelevant . Totally. At 9 00 a. M. Eastern time this morning since when . You havent been interested in march madness. You asked me the other day. I told you who was going to win, you looked at me like i lost my mind and look, uconn win. You had a 50 50 chance. Whats their name, the uconn huskies. What are you talking about . Just wondered. Seeing how much you actually im not a total idiot. Economic counselor who led the team . And director of research one name. Hell be on squawk on the street following the briefing. Can you name anybody on the team . How about the coach . The Global Markets report. Julia chatterley has been standing by. Julia has a better chance of saying shahbaz than you. Shes been standing by across the pond. I called him kemba wood yesterday. Ill be really quick. I can see youre running out of time. Reds to greens, 91. Taking the stock down by 0. 4 . We backed a ninesession winning streak yesterday with losses of 1. 2 . A bit of tension concern, concerns over the tensions in the ukraine. Weve had another ecb official saying conventional policy tools are available. Push back again on qe, not helping, i think in the european markets. Were down 0. 7 across the board. The frank markets outperforming chie. Still watching the tech sector, not making my board in terms of gainers or losers. Its down by around 1 . We have the gainers of the basic resources. Were focusing on the tech sector here, in particular, nokia shares trading higher around 2. 3 after chinese regulators gave the green light for firms to agree, that tieup with microsoft was a 4. 7 billion dollar. Chinese regulators giving it a green light. They have regulators on board, including the u. S. And europe. Good news for nokia. Back to you, guys. All right. Thank you. She said shahbaz under her breath. Under her breath. We now have a new National Champion, the uconn huskies beat the kentucky wildcats 6054. I didnt even see a minute of the pregame. Thank you for starting at 9 10, after 9 00. This is uconns second championship in the last four years. Last year, louisville won. Senior Shahbaz Napier was named the tournaments most outstanding player, having 22 points last night. Both teams didnt make the tournament last year. I dont remember an eight and a seven being in the final. Why this song . Why do they play this song . I hate this song. You do . Uconn lost 8148 like two months ago to louisville. 8148. Not many teams its weird, the culture that gets you to this point. Not that many teams have won a National Championship. Ucla has won like 11 and kentucky won 8 and then i think its uconn after that. Dukes done well. Theyve won three or four. I think three. University of cincinnati won two but you know why, the big o, oscar robinson. What was that song from . One shining moment . I dont know. Its lame. It was the glee . No, no, no. Youd know if it was glee. Show from the 70s. It was the theme song. Who was the guy with the puppet . He had a puppet. San francisco. Come on. Alf. It was written about the ncaa, if they used it somewhere else no, no, no. A guy with a puppet . I dont remember the guy with the puppet. A show in the 70s, guy with a puppet. Mr. Rogers. Comedy show. Another guy lived above them but in the same house of the apartment i believe. No . Theres market news to get to. I was in college in the 70s. I missed a lot of i missed knight rider. If you were in colorado back when it was illegal. I was in the world. College kids dont sit around watching that. We were out every note ight. The s p suffered its worst threeday losing streak. Joining us now from ft. Lauderdale is richard steinberg, president and chief Investment Officer of Steinberg Global Asset Management in florida. We see some rotation, rich, out of these momentum and tech stocks and the utilities. We start wondering whether theres more to it, even some of the cyclicals didnt do so well. Do you think this is indicating anything about the overall economy or its a refreshing pause here . I think the economy is pretty decent, joe. I think earnings are going to be okay going into early reporting, starting this week. This is where kind of investors need a gut check. And when you had the momentum names in biotech and the real high flyers in nasdaq, kind of parabolically moving, its healthy to see a pull back in a rotation to what i would call more borg stocks in the dividend names and utilities. Im perplexed by the major rally weve had in the bond market. I think the utilities may be short lived. This is a healthy pull back. We probably have more work to do on the outside. Maybe the 1800 on the s p. And cash thats on the sideline could be put back to work. What does that say, steinberg . Is that the way you say it, sssteinberg . He cant see the screen. Thats a way to set yourself apart. I thought David Steinberg sometimes i have trouble spelling my name. Thats good. David steinberg, was he funny . I saw him. He was in town. Can i interrupt for one second. Sure. Wikipedia has been upgrading this. This is for the National Championships. Ucla has 11. Kentucky has 8. I said that. North carolina has 5, indiana has 5. Indiana, thats right. Connecticut and duke are tied for 4. Theyve updated from last night with the uconn win. I dont know why i forgot indiana. Thats what i call the john wooden award. In all sports, with 11 they had walton and kareem abdul or cinder was his name. I was thinking about too close for comfort. If you remember the program. Who was in it . Ted knight was in that. Youll get nothing, spalding. He lived in San Francisco. With the puppet. Anyway, i didnt know quick thank you to chad bray who sent me a note. Thank you for that. Youre perplexed by the bond market. My question, its hard to know whether money comes out of the stock market or gets parked in bonds, thats why yields go down or whether Something Else is going on globally. Look at the yields in europe. Why are rates going down . Why is there a deflation fear around the world again right now if no one is worried about a slowdown . I think in europe, the issue is they need to continue to export their growth. And the qe that may be coming in is going to push money back to equities. I think in the u. S. , the beginning part of the year might have been pension, endowment rebalancing. If you started at a 60 40 blend in 2013 you ended probably around 75 25. Now, you know, we think that the tenyear could end up back at the 325 to 350 level and were hovering around 270. I am perplexed. Its not cooperating with that call at all right now. At all, no. Were still doing 55. I feel like were in a row boat and the water is coming in and were going as fast as we can to get it out. The 55 billion is still a lot of money. It isnt even doing it for us anymore. Its not keeping us level. We have three Straight Days now. We certainly havent raised shortterm rates. Were still involved with qe. 55 billion a month is still a lot. The economy is not Strong Enough to warn the that, it seems like right now. Thats why i called this market the investor, know thyself market, know. Well be up 4 or 5 on a rally, pulling it back. You have to really know what sectors you want to be in and what market caps you want to be in. Midcap is completely valued right now. Theres probably about 3 upside to small cap. Were actually starting to see more value in the large value space than we are in the growth space. That space with the 15 multiple has 6 upside without dividends. The Energy Sector and the Banking Sector may be the next rotation. Okay. All right, rich, michigan state, two . Kansas must have three, dont they . Kansas has three. Michigan state has two. Just two . Yes. Its hard. Its not easy. It really isnt. Its weird how i dont know whether its the recruiting a coach does. Theres only 14 teams that have more than one. Theres only 30 teams total or 35 teams total that have ever won. Its not easy to do. Did the women already play . I dont know. Did they already play . Tonight. Uconn could win both again. Theyre both undefeated. Theyve done it before, won both. To win the men and the womens would be unbelievable. Whats in the water up there . I hope notre dame wins. You want notre dame. Yes, i do. Theyre both undefeated. A new service from uber. Should fedex and u. P. S. Start to worry . Thats coming up first here on cnbc. Check out shares of yum brands. Theyre trying out a new restaurant. Thats all coming up next when we return. Experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Mfs. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Welcome back to squawk box. Youre looking at new york city where we have lingering rain showers across parts of the northeast. As we take a look at the radar, this is the last bit of it. Boston morning rain showers over the next few showers. Bangor, maine will deal with the wind and the rain today. Heres a look at the timing as we watch the rain showers lift off towards the north and east. We see peeks of sunshine as we head through the afternoon. Across the south, still dealing with heavy rain and thunderstorms. Charleston to savannah to jacksonville, it has been a tough morning commute for a lot of those spots. The early birds are getting wet roads. Jacksonville, rumbles of thunder in the area. Those showers and storms push southward for the day. We could see rain showers with thunderstorms, those storms could produce small hail, also some gusty winds, both today and tonight. Tonight well be watching a lot of the same areas, including birmingham, jackson, close to the new orleans area. I think theyll be clearing out and quieting down. Some other big stories, warmth. Tomorrow were back in the 70s in minneapolis for the First Time Since last year. Alex, thank you very much. Sure. In our executive edge today happens to be equal pay y payday. President obama is expected to make an announcement of new initiatives today in honor of equal payday. Hell be signing an executive order. Obama will also be signing a president ial memorandum requiring federal contractors to submit compensation data, including sex and race for their employees to the labor department. I dont know if you saw the other study. Theres a Study Released that shows female white house staff memb members make on average 88 cents for every dollar a male staff member earns. Now we should note, most salaries for white house staff are set by a pay schedule but because more women occupy lower posts, the median salary for female employees is 65,000, nearly 9,000 less than the median for men. Its not a job for job, same job is being paid less they dont break it out. You dont know that for sure. They explain