Clear focus on financials. Deutsche, the euro, spreads after the worst day for stocks in two weeks, europe lower on pressure from the banks, euro under the same fate. Oil taking a backseat for now largely unchanged. Road map will begin with what else, deutsche and capital concerns rattling markets around the world. The ceo attempting to calm the waters, will that work today . Its not just overseas, of course here in the u. S. Wells fargo is back under fire yesterday after ceo john stumpf faced angry lawmakers in the house of representatives. And the last day of the quarter, tech leading the rally. What does q4 portend . But first up, deutsche shares slumping to alltime lows in frankfurt trading taking the european Banking Sector with it, thats on concerns about deutsches Capital Position and reports that hedge funds are reducing their exposure to the bank. The Ceo John Cryan defending his company in a letter to employees saying due to ongoing rumors, talks about their liquidity reserve saying there are forces in the market trying to rattle trust in that institution. Well, i think thats true. I think that were in an asymmetrical world as commentators. I think if i said this is going to be like Lehman Brothers and in the end its like Lehman Brothers i look like a smart guy, but if it isnt, then no one cares. In other words the tenor of the rep portage is really very negative because its safer to be negative. Its safer for me to say that bank has issues than for me to say it doesnt. But i will actually give you a scenario some people are talking to me about that is a more positive scenario. The problem here aostensibly, Justice Department reports to the president of the United States. Im not saying president obama is nixon and we can have a massacre at the Justice Department. Thats something nixon did, he fired the people investigating. Im saying at a certain point obama and merkel are friends. This is a whats known as a national champion, Deutsche Bank. They are not going to wipe out a company with 100,000 employees when president obama is in Good Relationship with merkel on the way out it is not going to be his game, set, match to wipe out this company. So what im saying is the 14 billion now from what i understand is going to be reduced dramatically. And youre not going to find this company in as much trouble. Of course they cant talk about a backstop because then the shorts take it to one and the backstop kicks in. I think this is more like a potential bank of america situation in 2011 where youre able to get a preferred that has a very high rate, which is very good considering the negative Interest Rates in germany, say 700 million warrant at a certain price to have 700 million shares, a short squeeze ensues not unlike the 5, 7 that happened in 2011, and the shorts have to scramble. But this all has to unfold in a negative environment where we hear a lot about how theyre in trouble before you get that exquisite moment where Deutsche Bank might be saved. So your point is doj doesnt want blood on their hands. Obama doesnt. In the end the doj. The doj does 17 billion for bank of america because you can do bank of america. All right. Theyve got the reserves. They can do it. They had the reserves. Even though they had very good attorney. J. P. Morgan could afford 13 billion. Citi could afford seven. This is do you take one of the largest employers in germany and wipe them out while youre finishing your career as president of the United States and Angela Merkel is your number one ally . I think the number one words taken out mean Different Things. I dont like to anybody here i look to the credit markets and the credit itself is not being priced in any way for liquidity event. So when you talk about wiping out, jim, first of all, that doesnt mean this bank is going away if that were to even happen. Second of all, theyve got 43. 5 billion of core equity tier one excuse me, 43. 5 euros. 220 billion in cash on hand. And their credit mean the two and three quarters of 23 are trading up 46 basis points. This is not showing itself in their credit. So let me just continue, the point is yeah, im going to, i think people are more concerned about equity delusion than anything else. Thats what and theres virtually no one who really believes that the German Government would let this go down with the derivative book it has, with its importance to the german economy. And so the road seems to much more likely be that you get equity delusion hence why the stock is going down but not really playing out in the bonds. I am agreeing with you. Im saying if you were a commentator and you came out and said that this could go and it went, youd look like a genius. But that perhaps what we ought to do is separate the reportage, so to speak, as a matter of fact it might be an opportunity not to buy the stock. No, an opportunity for saudi arabia, an opportunity for Warren Buffett, an opportunity for someone deep pocketed who goes in and makes a sweetheart deal to get that preferred, i mentioned, and the warrant. I am in complete agreement. Im just saying its very hard to Say Something positive and then have it on youtube. Did you see cramer said Deutsche Bank was good . Did you see that . Its already being written as youre speaking. Right. Cramers a clown. Did you hear he said Deutsche Bank survives . We should mention stocks up from yesterdays lows. Yes. Davids point on the bond is important. For more on deutsche we want to go live in frankfurt talking about this cryan letter and more. Annette, good morning. Good morning to you as well. Of course the focus also is on relief. We are seeing shares trading not that badly down as they were in the opening. But of course the other focus is the letter john cryan is writing to his own staff, trying to increase the morale inside the big two towers behind me where the headquarter of Deutsche Bank is. And of course that is also reflected in a way it wasnt the biggest story in the markets here today. If you look at the biggest daily handle they are leading on china. If you look at like the most read daily newspaper like the general one, theyre leading on charlie roads. And the tabloids are leading on how much actors are paid, so its very dear to our hearts, isnt it . So by in general id say the heat is not over for Deutsche Bank. Over the weekend, i guess the media will take its time to digest what happened to the lender, the share price for the First Time Since 1983 at that level below ten euros. And i guess the bad press will only start over the weekend. Back to you. Annette wiesbach, thank you. Lowest here since they were listed at the nyse in 2001. Why would you want to own it going into the weekend given the vacuum in news we may have here . I think that, again, going back to david. This lehman analogy everyone remembers they were trying to find the korean bank, this weekend, that was like the first weekend of september and korean bank did not come to and stock got spanked on that monday. I still think that 11 is too high. But i do think that if you were this is a very clubby country, if you were a large investor and you were in touch with the government and you were able to do a substantial cash infusion for a preferred, then i think that you wish you were not short the stock. Right. You might want to take a look at the bond. So your point about lehman, if there is a run on this bank, which seems unlikely, and they have a great deal of liquidity, by the way, even over 30 days if they get no funding, but then if that were to happen and then if they werent bailed out as we didnt bailout lehman, wed have a different conversation. That was also time when there was tremendous stress yeah, the entire system was in trouble. Germanys got the best Balance Sheet in the world. They do. Theyre better than china, i think. Theyre certainly strong. And you could actually envision a world where germans might actually start spendi ini some money to build their country back up, little fiscal. Not just monetary. From the eu. But i think that theyre six down and five up from say from here. Sure. But that at a certain point the six down youre going to have to cover because i do believe there could be an investor, not like the koreans that didnt want to be with fold and lehman, but i just think that the German Government. If you knew the Justice Department was not going to pursue them at this pace because perhaps maybe theres a little bit of politics involved with the Justice Department, you will wish that you have covered. You will witch you have covered. How is that . If thats true, why did deutsche appear to be so stubborn in their willingness to negotiate an amount . And, two, how can merkel even appear to be helping them when shes been the tough cop against the greeks, the tough cop for the ecb . 100,000 people work there. Remember what this fellow cryans been saying. Hes been saying we think the Justice Department is fair. Saying, listen, we think theyre fair. Which is a negotiating ploy in itself. You didnt really hear a lot of our banks say, oh, theyre fair. Right. But i do think at a certain point, you know, you get a little bit of politics involved there. Is it so odd that, look, everyone will deny the scenario im about to lay out, but maybe its someone in the Obama White House that said, you know, Angela Merkel is kind of our friend and that 14 billion, is that fungible . The Justice Department talks to the president. Its not like the Justice Department in narcos. Which you just finished season 2. I didnt want to give anything away. But theres a separation of powers between the Supreme Court and the president. But the Justice Department, they are allowed to talk. Remember when Bobby Kennedy talked to president kennedy and said get hoffa . Well, i mean, they talk. And Angela Merkel is a very valued ally. And they dont want to destroy their ally because of 14 billion when it could be fungible. You agree with any of this . Yeah. Yeah. I think theres a possibility that it wont be 14 billion certainly. How about 4 billion . All right. All right. 4 billion. Two to five is in the range people talk about. Yeah, i think maybe 3 billion. Maybe, hey, we get together and figure it out over some we it is oktoberfest. You know, how about you want to know how poor at one point we were . How about some there are germans out there who know it, thats horse hoof, its not as bad as you think. Hey, mcdonalds used to put it in. Oh, man no, the old days. I had buffett on saw you tweeting with easterbrook. I think easterbrook is king. Dividend boost, mcmuffin, anniversary yesterday, stock goes higher. When we come back, it was tough enough for john stumpf on capitol hill. Stick around to find out what buffett had to say about the wells fargo ceo. Also ahead, the biggest vc backed u. S. Ipo of the year. Nutanix going public today. Worst day for stocks since the 13th. Financials and health care now negative for the year. Were back in a minute. 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 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business 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. Our mission at clover is to highest Quality Dairy products. Clover has relationships with 27 different family farms. The environment is who clover is. Without it, were nothing. Pg es been a great partner. Theyre the energy experts, were the milk guys. Pg e worked with clover on a number of Energy Efficiency projects to save energy every month. If youre part of the fabric of the community, youve got to ensure that you do things right, environment included. Learn how you can save at pge. Com save together, were building a better california. It was another rough day on capitol hill for john stumpf, the wells fargo ceo grilled on thursday by the House Financial Services committee about the banks unauthorized account scandal. Check out this exchange between stumpf and congressman Gregory Meeks of new york. Your bank, you, ceo, chairman, violate basically for me was on top of whats basically been a criminal enterprise. Theres no question we dont do everything right. And weve made mistakes. Were upping our game so who should pay for it . If youre not doing everything right, whos accountable for it . Were going to make it right for every one of our customers. Youre v. P. Made 100 million bonus package. Who is paying for it . Whos taking responsibility for it . Dont come tell me youre sorry. That bite made all the evening newscasts. Now our becky quick reporting. Buffetts take on his interview, stumpfs interview with you on mad and how that could have gone better, he says. Yeah. Always great that Warren Buffett watches. Ill take that. He didnt give it great reviews from mr. Stumpfs perspective. Yeah. I dont know. I mean, becky spoke with him. But its what he didnt tell becky as opposed to did tell. And this based purely on having read the transcript from beckys reporting. Right. That seems interesting, i guess. He department really give an endorsement of stumpf, did he . I think the phone call must have been a tough one. I said some people say you should resign, he said no. I talked about how his hero is Vince Lombardi and Vince Lombardi would never blame the offensive line coach. You have to take the heat. And i dont think Warren Buffett liked the way it went. I dont want to put words into the oracles mouth. It was a tough interview. I wasnt mike wallace and essence, but it was a tough one. Listen, you know, when you speak to people who are expert in these kinds of things, the majority believe stumpf will have to step down. Yes. Certainly prior to the end of his term two years from now but more likely in the nearterm. Thats a board decision. Unclear what conversations if any are really taking place, guys, in terms of that or how theyre thinking about it. But youve got to believe theyre thinking about succession to some extent right now, whether they go outside or can look inside and what they have to do. Right. This is also for beckys reporting yesterday just in terms of whether or not buffett had spoken to the board, which some people had suggested had taken place. Well, look, having been in some situations counsel comes in and heres what counsel says. Its a standard speech. The institution must be preserved. If anyone thinks theyre bigger than the institution or anyone tarnishes the institution, they must leave. It really doesnt matter whos tarnishing it, even the founder. Doesnt matter. In this case its not a founder. So you can tell thats what they say. I mean, ive been there, you know, when the firm comes in and says, hey, guys, let me tell you our advice, the institution must be preserved. So then the Board Members say i guess what hes saying is we have to separate ourselves from once you become a distraction more so than a help. Yeah. You know. Yeah. And then they say get your own counsel, my friend. Well see. You dont want to predetermine anything. No, you know, look, i had talked to him many times. I think he is a great i like john stumpf. With that i guess theyll lynch me. Congressman lynch will lynch me for saying i like john stumpf, but john stumpf under this period is tarnishing the bank at this point. And when Warren Buffett says he didnt like the way it went on that, what does he think it went like in front of congress . Its a time when banks throw over people. They do that. Companies throw over people, people we respect and like and they think the institutions not going to be preserved. Its the standard speech and its a frightening speech when youre giving it to the board. Ive given it myself. Its not a great speech. Next week is the eighth anniversary of the wakovia purchase, believe it or not, time flies. 2008. Wow. Anyway, well watch that and well watch for a price action on wfc today. Well get cramers mad dash, well countdown to the opening bell on this friday, the final day of the quarter. More squawk on the street from the nyse is straight ahead. Its peyton on sunday mornings you like football . Its directv nfl sunday ticket. I can watch every sunday ticket game live on any device. Well im retired now. So i just sit here watch nothing. If i were you, id work as long as you can, son. Get nfl sunday ticket only on directv. And watch Live Football anywhere. Switch today and get 100 reward card. Youre at the top of your game. Youre unstoppable. Nothing can throw you off track. Wait, is that your car . Uh oh yeah, i saw that coming. That will throw you off track. Youre looking at around ten grand in fines, legal fees, and increased insurance rates. Lets try this again. Smart move. Because buzzed driving is drunk driving. All right. We got about seven minutes before we get the opening bell for this final trading day of the week. When i saw your tie this morning, i immediately said i like that tie. And what did i say . You turned it around. Its a kirkland tie. Who is