Citi was not one of them. Well tell you what went wrong. Shares of lululemon on a rollercoaster ride. Rallying higher and then slipping lower in the premarket. Well tell you whats going open. And heres satya, the new microsoft ceo will make his first public appearance since taking the top job and hes getting ready to make a big announ announcement. Taco bell rolling out its new waffle taco and new breakfast items today. Well tell you exactly what, if anything, that means for the company and the competition. In the meantime, though, 25 of 30 banks have had their plans for increased dividends and stock buybacks approved by the fed. The most notable exception, of course, with citi, with the fed expressing concern about the banks risk planning. In a statement the ceo said the company is deeply disappointed by the feds decision but will continue to work closely with the central bank to alleviate its concerns. They do have 30 days to resubmit five years after the crisis. Still unable to satisfy some of these basic requirements. This was really bad. And let me explain why. Because its kind of interesting. There was a lot of chatter when vikram was fired and he was fired, lets get that off the table. He was fired. Why . Because they failed. So, the idea was the actual entity that was reviewing didnt like vikram, didnt like the job he did. Well, do you know what, today this says they dont like this guys job either or the bank is irredeemable. And i found this to be devastating. We also i did not like the way the bank was claiming dont worry about the mexican issue. Mexico is their biggest emerging market. The controls arent there at this bank. They dont have control. They always tell you, hey, its good. What this says is the fault was not with vikram. The fault was at the bank. I talked to one shareholder this morning said, well, the very least they cant seem to do any paperwork over there or run their models appropriately. As you point out this is not the first time. No. And, again, Vikram Pandit lost his job as a result of the last time and some other things and yet i dont have the answer. I dont know, im not sure that their shareholders understand and they were caught unaware of, they werent expecting this as i understand. Im saying the idea was that vikram was sacrificed upon the altar of sicar. We got to throw that out. This is about citi being too big to fail. Is there any blame on the regulator . You know, to the extent that this entire process is supposed to be a learning exercise or an educational exercise for the institution in question, because everybody wants them to be as healthy as possible. Yes. Is there blame perhaps on the other side, i dont know, not enough messaging signaling, not enough back and forth. To help them understand exactly what was needed of them. That is a great point. I mean, if you had a heads up, why not issue 50 million shares . Say, listen, guys, it aint going that well. Were looking at this. This is not meant to be about a major test that you could fail. Its meant to be heres what you need to do. If you came in early, 7 00 its a test. We want everybody to be although you run into the question of the legitimacy of the test and if everybody passes is it strong enough. Its sort of, like, well give you extra tutoring on the side to try to make sure youre at the level of everybody else. A financial coach guy comes in and said, listen, you need a safety school. I think that david is right. They needed to do equity. They were very cocky. I think they were cocky. Kbw today, monday morning quarterbacking takes it down to a market perform. Yeah. But polini on our air said hed be buying the heck out of it a few percent. You . No. I thought they do, do the equity offering, if you want to buy the heck, do an equity offering. I think they have to raise equity. I think thats the purpose of this. They have to raise equity. No one by the way has ever said including ali financial. Thats, of course, the government thats the treasury selling 90 plus million shares. Everyone will always deny they ever have to issue equity or saying we dont need to do that, we can solve it. Like a jcpenney. Well, yeah, like the jcpenney. But citi, how about i say this . The smart thing for them to do is to issue a huge number of shares right now at 45. Get this passed. Thats the smart thing. Instead of battling, instead of complaining, just do it. Get it over with. Move on. Should point out some other banking news, of course, bank of america we will report news on in the last 24 hours. A big settlement there with fannie mae and freddie mac on the longstanding issue of putbacks and the quality of mortgages and representations of warranties. And for kennel lewis personally. How do you like that . And meryl lynn of whirill ly fascinating. Ten years without being a public officer. Many would say the merrill deal there were perhaps things that should have been told to shareholders about what was going on, programs they didnerh have the full amount of information due them and we wondered about the big price when merrill might have been out of business a day later. But countrywide is the one where you cant ever excuse mr. Lewis. Countrywide is what destroyed that company. Hey, by the way, i think merrill is having part of the resurgence of bank of america is merrill doing quite well. And country wide is where the latest settlement with fannie and freddie comes from 5. 3 billion or more. Is this really it . My trust owns it and i read it and i said this is it. Every time you say this is it, bp, they go into the government and the government says this is it. The government may be done but you have private putback litigation that is still being still moving along that could result in some numbers. Although at this stage they say they resolved almost 90 of the outstanding litigation, right . Resolved the bonds subject to some litigation. There had been a lot of talk that bank of america, the liabilities were going up, up, up, the subrosa text was the legal fees arent done. This takes a chunk of legal fees out. Right. And theres a large repurchase by them as well. Its 5. 83 billion in terms of their settlement and then the additional purchases. Things have gotten better in housing and it is repurchases, loans, that were any good . Its a good question. I think maybe some of them have gotten better, yeah. But i dont know. I dont know. Lets talk about lululemon here. Shares of that company volatile in the premarket. The yoga wear retailer posting betterthanexpected quarterly results, but lulus guidance for the Current Quarter and the full year were below what the street was forecasting for the company. I was in my lululemon for the first time a couple of weeks ago. Hello, mr. Shopper now. Interesting. Gifts that i was returning. Okay. But i did theyll do free hemming for you. Did you know that . Will they . Free. Yes. Hem up your workout pants. In the meantime theyve cut numbers so much, the reset, it finally looks like its bottoming. I dont have a case for it. Really . I dont have a case against it anymore, because they guided down, guided down. People want this stock to go higher. Why . Its an interesting thing. People like to shop there, they figured, hey, its got to come back, but be careful, its still interesting. Interesting story on dow jones the store Development Starting to run into areas where a nike is closer than it had been in the past or an athletica store is closer in terms of their new development, new stores. Yogas competitive. Yoga ware is competitive and they are feeling the effects. Gap has been forward on this. Theres still a cult with lulu. When i go to lulu i feel like im joining some sort of, you know, kind of an interest group. Its an interest group. Do you ever do the yoga there on saturday mornings . No, i havent. I often find im the only guy there. Which isnt that bad, you know . Now, lulu was higher for a while in the premarket. There had been a sense that the comps werent as bad as they might have been given the warning or maybe the guidance wasnt as bad as some thought but that turned around before the open. We miss that old ceo. She was terrific. And i think that, you know, lulu people dont like high multiple stocks right here. They dont like anything expensive, right . They dont. And i think thats part of the problem. I think lulu would more likely go higher than lower. But the high multiple thing has been thats the subtext of this whole market and you got to buy it cheap or else it dont work. 62 russell components are down more than 10 for the month. Wow. And were talking toll, celgene, salesforce, tesla, horton, workday, netflix, you name it. Geez, those many of those are times sales not times earnings. To be fair many were up sharply even in the first month of the year and so there are still some of them sporting gains. Facebook also has not been faring particularly well. But there are big winners. The question is with yellens commentary and the whole idea what will happen to rates is this something well be living with for quite some time or is this beating up of the high multiple stocks and the Growth Stocks momentum names over . I dont want to pronounce it over until the ipo window closes. Which may have yesterday. That was not pretty. Were the top. You know, i was thinking that cole porter song. Youre the top, youre the colosseum. That was a brutal day for the museum. I just saw the colosseum, by the way. Yes, you did. That was built, what . Eight days. You know, you are on top of though many things. 2,000 built in 8 days. Do you know how long its taken us to get one World Trade Center up . The dancing candies if you were down here, oh, god, no, please. No, please. You personally are creating a top. But the ipos they have to stop for the software as a service. They have to stop for biotech. Only then will these institutions stop selling their good but lock in the gains and start buying top bstop buyins stuff. You buy half on the deal and then they give you half on the aftermarket. You get a good basis and you are immediately up on the position. Versus, like, riding gilead down to a loss. Yeah. And an important dynamic to watch. Yes. Final story for the ablock, a big day for microsoft ceo satya nar della who will make his first public appearance since taking the job and hell speak at an event in San Francisco and among other things hes expected to announce a version of microsofts Popular Software suite for apples ipad, were talking xcel and word and power point and something people have been clamoring for for years. I got a take on this, i got to go for it despite the fact that i sound like froggy master. Heres the deal. I think that windows is where you at branding has gone for years for microsoft. I think thats changing right now. I think theyre going to deemphasize windows, why . Because our kids hate windows. You made the point yesterday. What can happen is you can repudiate windows if you are this fella because its a gates balmer thing. I think the emphasis will be on xbox brought to by microsoft. This is the beginning of the deepsixing of the name windows, thats what this is about. All right. They still sell a lot of windows. Never going to hurt that. Sure. Im just saying that microsoft has within itself, with mark penn, the image consultant yes. Has within itself a problem. Its regarded as being old. But xbox is regarded as being new and i think they have to deemphasize windows and how do you deemphasize it . Say, listen, we now make a new product for ipad. They dont call it windows. This is all happening under the watch so to speak of both gates and ballmer even to some degree, right . Theyre not out of the building necessarily. They are leaning over his shoulder, saying, hey, whats going on there. I think this man has courage. I think he can make something happen i think even gates and balmer say to nar deldella, mak happen. We were two trick ponies. One thing my advice to steve, stay put. I have the same problem. Jut stay put and get rid of the yellow shirt. These are two things. He looks like a banana, he should have been dancing with the bananas singing youre the top. What do Ronald Mcdonald and the Breakfast Menu have in common . A new twist in the morning food wars. Its getting spicy. Later on a lot more futures going mildly negative here. A lot more street signs from post nine at the nyse when we return. Yum brands up been the anteant ante in the fast food wars, 15 new products including chicken sand whiffs and rice dishes and taco bell rolling out new breakfast offerings including waffle tacos and weaking its competitor in a new commercial. To show you how much people are loving taco bells brand new breakfast, we asked special people. My name is Ronald Mcdonald. Im Ronald Mcdonald jr. And this is Ronald Mcdonald iii. My name is Ronald Mcdonald. What do you think . Its really good. I loved the new wrap. Ronald mcdonald. Im Ronald Mcdonald and i love taco bells new breakfast. A delicious new breakfast everyone can love even Ronald Mcdonald. All right, so clearly the gloves are off, right . What subtly, right . Starbucks making breakfast sandwiches and now this. David novak is maybe the most aggressive guy in the industry. Dont forget chipotle was taking a shot at the value food of mcdonalds just to be clear i will not be serving a waffle taco at bar san miguel. I wont follow suit. Pancake taco. Maybe . No. Dont go there either. Keep the tequila rolling. I have to tell you that i love david novak and hes just a killer. I think this could work. But, remember, its all kfc. Howard schultz was telling me they need to put up as many starbucks as kfc has. 900 cities and more than 3,000 units. 4,600 units and china. Its all kfc and china. Thats what the stock moves on. No mas, it could help them in the u. S. If they do this. Yeah. Yeah. But they need look, theyre always moving people hate mcdonalds its incredible. Im saying the competitors. Oh, yes. Still worried no lost lost on either side and we all know what a high margin, high repeat business breakfast is. Got claims down to almost a two handle today if you are on your way to work theres good chance youre stopping somewhere to get something to eat. Thats been part of the thesis. Kfc is a fighter. The stock has been stalled at 73 for ages because of chinese tv saying their stuff isnt up to snuff. I bet with novak. Never bet against david novak. He had the same address i had. His car. In his car. You bet against a guy who lived in his car, not going to happen. Maybe you try and find a portfolio of companies who ceos lived in their cars. Ill google it ceo live in car. Theyll have it. Yeah. Keep an eye on yum and mcdonalds and starbucks today. When we come back, cramers mad dash as we count down to the opening bell and one more look at the premarket. Well get the opening bell in just over ten minutes. Dont go away. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. My mom works at ge. Humans we are beautifully imperfect creatures, living in an imperfect world. 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Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Eight minutes before the opening bell. Time for mad dash on this thursday. All right, baxter . Yes. Okay. Thinking to grow. Thought this was funny, in get rich carefully my number one idea that baxter should poli split into two companies, and they mutt have read the book because they did it this morning. Not kidding. My number one idea baxter should split up. Can easily split into slow growing medical Images Company and a biotech company. Im not asking for any fees from baxter because they bought the book. They should come to the april 1 signings in white plains. Stock is up sharply. Its going higher. I dont know what maybe it was ukraine, i dont know, but suddenly that train seems to have slowed again in terms of deals at least announced deals in the last couple of weeks. But splitting companies. They listened to me. Breaking up is easy to do. Thank you, baxter. Now, david, all day yesterday, directv, dish, other news organizations made it sound like this weekend. Yeah, no way. Not this weekend. Listen, you know, ive been ive been making calls as you might expect on my other job trying to cover m a and media and know a lot of these players, theres been a lot of chatter after comcast, time warner, a lot of chatter, what will they do in terms of the spectrum they bought and would they sell . Would a dtv dish deal be something regulators could look at positively. Would you now timingwise want to try to get something before them at the same time comcast and time warner is before the doj and the fcc because it would either be yes to both or no to both. But mike white and that board my sense has been for some time, looked askance at a potential transaction and believe the regulatory hurdles would be very difficult and that the problems or the management focus would perhaps be moved to other places during that time that they were seeking approval. So, well see. Also, i dont believe there are any full engagements going on between both sides at all. Did charlie erogan said lets do it. Thats absolutely the case. You raise a good point. They are very good ceos and it sounds like mike white is saying dont distract us, were putting together great numbers here. Latin america very important for dtv in particular, but, yeah, you cant rule it out. Timingwise would be interesting. The other factor i would introduce here is the idea of at t and dish. Yes. Thats been out there for a long time. If there is a sense on at ts part that there is something really significant under way here, would at t choose to perhaps make a move. Something you cant dismiss. In the meantime the compan