That could include a 2. 5 billion settlement, a substantial amount of money for Credit Suisse, as well as a guilty plea from the Parent Company. This would be a sea change in the way the Justice Department has dealt with big banks. One of the conversations we have don having is what will this to the bank, and how will that affect the bank, hurt future business, impact revenue . This is unchartered territory, right, if they were to agree to criminal charges . It is. If they go for the parent whatny, it is a turn from the Justice Department has done where they could charge the subsidiary, which typically shields the Broader Company from collateral damage. What is next once they saw this . We have a lot of people to go. We will see what happens to a bank if a Parent Company plead guilty and is find, and if the Justice Department will go after other banks and similar cases. Much, keriu so geiger. Fcc chairman tom wheelers proposal to regulate internet traffic has cleared its first pozo, and the lobbying fight begins. Peter cook has more on the fallout from wednesdays decision. We talked right after the announcement was made, he eked out approval for this, but there will be more fire from all sides, right . There is someone in tom wheelers plan for everyone to issue a and it will titanic battle. The future of the internet is at stake. We have protesters complaining about the plan before it was approved. A lot of the more it it would mean fast lanes for some internet traffic, slower lanes for others. Wheeler pushed back, trying to satisfy critics saying the plan is trying to maintain an open internet, and he talked about a hypothetical what might happen under circumstances. Take a listen. If the Network Operator slowed the speed below that which the consumer bought, it would be commercially unreasonable, and therefore prohibited. If a Network Operator block access to lawful content, it would violate our noblocking rule and be commercially unreasonable, and therefore doubly prohibited. But the wheeler plan right now does not necessarily prevent some sort of paid privatization Going Forward and that has activist, Public Interest groups, upset. Convinced it remains insufficient to guarantee a truly open and neutral internet. This will be the summer of net neutrality. This is a taste of what is to come. For the broadband providers, they are not actually celebrating either. That is right because within the plan is a separate proposal, an alternative pathway, that would reclassify as telecom services. We heard from at t, verizon, comcast, similar statements, and top is the statement from a at t official. They are worried about the alternative. They want to make sure wheeler and his colleagues at the ftc do not choose that route fcc do not choose that route. Thank you, peter cook. A have had lots of m activity, and darden Just Announced they will be selling red lobster to Golden Gate Capital for 2. 1 billion. They are signed the red lobster chain. And other fastcasual chains have been struggling as fewer customers going to their restaurants. They are selling this to a private equity firm for 2. 1 billion, just announcing that woman to go. Announcing that moments ago. Unveiled its new fall lineup including the final season of two and a half men. Last lesspoke to moonves. They are really excited about thursday night football. He felt it was worth it. We did get a chance to clear up some rumors that were out there, such as who might be taking over late show echo show. One of the names that had come up was joel mchale, and part of d was that it surfaces nves wifen, les moo tweeted out a photo of the three of them. Neil Patrick Harris is another name that had surfaced. He said something about this. He did. Risk, when he told howard stern that he then offered the neil Patrick Harris, when he told howard stern that he had been offered the job, that was not the truth. We asked him what were the possibilities do you want to come to a new series, we knew letterman might be open, 12 30 might be open, latenight. It was a general topic. Per se. Ot offered it we would love to have him back in the family in any way he wants to do it. Let me ask about the late late show. There are no conversations underway. Joel mchale is a wonderful talent. We would love to have him in some way but there was no discussion about 12 30 a. M. Areo. Also talked about here is what he had to say. We obviously think areo aereo is illegal. Like we say, it costs a lot for the nfl, to produce the big bang theory, and they are basically taking our signal and selling it to consumers. When they do this with comcast or time warner cable, they pay us. Is also pursuing putting Network Online putting his Network Online. Trish regan, thank you so much. Any time, betty trish regan, thank you. Ceoking, ubers travis lakalnick. It has been rolled out in 115 cities around the world. Such as red cap i thanthan 10 are less 10 million. Someone who has billions in his pocket is billionaire Warren Buffett, adding big betting big on verizon growth. A 530 million stake. The company trimmed its stake in General Motors. I want to bring in noah brier. Do we know who made this decision . We do not know, and that is always the mystery when berkshire puts out these filings we get a list of the stocks, the size of the state, and not much more. Why would this make sense . There are a couple of things. We spoke with some analysts and they pleaded a deal with vodafone. They are now the sole owner of verizon wireless. For of it is there is room growth in the u. S. For mobile phones even though most people here, or a lot of people here already have smartphones. You cannot imagine that Warren Buffett will be making a like this. It is out of his purview. The telltale sign is the size of the position, 530 million. What Warren Buffett has been saying is he really focuses on the largest investments, the multibilliondollar deals, whereas his deputies have smaller portfolios. For them, it is more reasonable to be taking a 500 million position. One of their big bats paid off with big bats paid off ts paid off with directv para it has certainly done quite well for them. . What about General Motors they trimmed it by about 25 . Obviously, everyone is aware of the recall issues gm is having. Well have to see what happens with that position. Noah, thank you for joining us. Ng up, and media like print media, like the New York Times could use some buzz. We will look at how they can compete. Eliot spitzer is back in the news. This time there is not even a hint of scandal. Stay in the loop stay in the loop. Were just Getting Started on this friday. All, the irony yesterday, buzz feet obtained an internal buzz feed obtained an internal report on the New York Times outlining how the company likeing beat by companies buzz feed. How do digital shards that were sites that were once shunned becomes all the hottest companies around . Guest hostring in a for the hour, and Angel Investor nowelf, jay samit, who is leading a crowd Funding Company involved in real estate. Great to see you. Good morning. Great to see you again. We will get to all of your other jobs in a moment, but on Digital Content being so hot, how did the New York Times miss the boat . I think it happened one year ago. They were in newspapers, radio came along, they did not go into radio. Television camera along, they did not go into television. Theyis the big mistake are making money, why move forward. It is the kodak examples. They had digital cameras, all on film. Was made has doneyork times the same thing, get the last dollar in the market that you own. Is it too late to build a Solid Digital strategy . Not at all. Any start up in the world wishes they had the brand equity that the New York Times as. They could go into many different areas but they have to go into a different commitment area that has not been seen. Look how bloomberg went from a little boxed into every medium. You are sharing information where the consumer was. That is right, a shameless plug for bloomberg. Hy doesnt the New York Times or one of these Big Companies go ahead and buy one of these sites . They should have, and they should have done it early on. This is the music industry. Too many said they were selling around things that shipped on trucks rather than entertainment. Feed,panies like buzz the intent post, huffington post, you could not make money. A tough thing is when the market catches up. Look at jeff bezos. Its a 1 billion of investment before amazon became a global dominant source. Luckily we live in a society where there is access to the risk capital and the rewards are astronomical. What you think has changed, what changed so that now that it is profitable . This here is the first time that Online Advertising beat television advertising. That is a huge shift. Where did all of that growth in Online Advertising conference, print. Print has eviscerated. Essentially given that up. Exactly. Speaking of lofty valuations, we just have the story on uber. I just add a column in the wall street journal. There is always an imbalance and you are making a bet on how it will end up. People bet a lot of money that napster was going to change the world, and they were wiped out because they were wrong. Here, it is a different era in t is an employee, except subcontractor, the workforce, and the crowd the idea of a data and the cloud is changing every model. Uber, every time i leave i say it is too easy. There has to be a catch. The catch is the pricing model. It is not the same price every time. . Isnt there a regulation at this point, it is roulette, you are having no idea what you will be charged. 3 billion. S you are in the music business. Hats offto jimmy to jimmy. He did a magnificent job. Ats figured out how to get into cars. Nobody else figured out how to get into cars the way they did. Now you have a way to bring services into that hardware that already has relationship with carmakers. This is an exciting, dynamic space, especially five years out with selfdriven cars. What will you be doing when you do not have any have to drive . You will be listening. Does it make sense for apple . It was a smart move, the type of move that says we are not the only cool brand anymore. Stay with me. Jay samit, my guest host, executive chairman of reality mogul. Jcpenney soaring. Finally, the retailer has good news to report. Plus, l. A. Clippers owner Donald Sterling fights back, wont shut up, and the nba could be in a legal battle with him. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Good morning. I am betty liu. Here are our top headlines. Jcpenney is reporting its first Quarterly Sales gain in three years. They are still losing money, but reported a narrower an estimated loss in the First Quarter and bolstered finances with a larger credit line. Chesapeake energy announced this morning they are pushing ahead with a spinoff of its Oil Fields Services business as a part of the plan to repair its Balance Sheet and cut high spending programs put in place by the cofounder and former ceo. Darden restaurants is selling its read lots their brands to Golden Gate Capital for 2. 1 billion. It will do a new share about 700program of million, trying to shore up its Balance Sheet, and sell off some underperforming assets. Now, it is 26 minutes past the hour. Bloomberg tv is on the markets. A littletures are just bit lower. We are awaiting more Economic Data this morning, including Housing Starts and you lean permits, Building Permits, always key indicators of where the Property Market is going. We are on the markets again in 30 minutes. As we await the housing data, i want to bring back our guest host, jay samit, who is now turning his attention to real estate as chairman of the property crowd Founding Company reality mogul. I bumped into you at milken. He said i started this new company. You are a serial entrepreneur. What is this company about . Commercial real estate is an 11 trillion asset class that has no liquidity, and the average investors never had access to the deals that the big boys in wall street do, so why not crowd people who want to buy a building . We have 20,000 investors that have signed up, all accredited. On which side . Realtymogul. Com. They say i want to put x amount of money in . Or they pick a particular property. We recently funded the Hard Rock Hotel in palm springs. It makes Real Estate Investing actually fun. So, how do you qualify to become an investor . Under sec rules and the jobs act, you either have to have 1 million in assets other than your home or make 200,000 a year. So, you pick the properties that you want they are already out there. Somebody elses trying to buy a property and they need capital, a Large Real Estate Company trying to buy another store, housing, senior housing, and say they needed 3. 5 million. We do the underwriting, check out the deal, who the sponsor was, put it on the platform, and six hours later, they have the money. Who does the Due Diligence on it . We have an underwriting department. We are about diligence and transparency. You can see the transactions, attended webinar, take control, just the way e trade changed the way you were able to buy stocks from their homes. How is this different than buying a reit . Reit, you do not get the appreciation, one of the huge advantages of buying real estate and then you have costs that are not transparent. Our investors are paying less than it was two percent for assets under management, so theres not a lot of load, and more return to the individual investor. Is it liquid . Can they pull their money out at any time . Under fcc guidelines, you have to keep your money in for a year sec guidelines, you have to keep your money in for a year, but in the future, imagine a secondary market where it is no different than the new york stock exchange. Did you put your money, or out of this, now . Two onto turnovers came to me, and it was the best idea i have heard in 10 years. They set up they said we want to crowd fun real estate . They said why is real estate done the same way for 1000 years with no transparency. You could go to the biggest real estate family in new york and find out the cost of equity, and they could not tell you, but you could go on ebay and see the price of the 1988 tickle me elm o. Some of these developers that are looking for funding, why would they go to a crowd funding mechanism if they could just get the money from a bank . Banks take longer, often charge more, and they often do not play in tertiary and secondary markets. So, for the small real estate guy, the guy that only has 100 million in assets under management, as is probably the easiest, and quickest way. We are an outsourced Capital Markets arm with no overhead cost to them. A very interesting concept, but hang on. We are news on the Property Markets. Housing starts much better than expected 1. 1 million, essentially. That is again about 13 . Building permits rising by about 8 . Mike, should we be pleased by these numbers . Well, we should be pleased when you consider what the expectation was. We thought Housing Starts would be up 3. 6 amid a big rebound from where we have been, and instead you still get a 13 rise year a lot of this probably has to do with the weather, builders that could not build during the winter months, now putting stuff into the ground, but it shows Something Interesting. The others have more confidence than they were expressing the other day in their own survey. This is apartment construction. Apartment construction is very volatile, up 39. 6 , after being down 11 the prior month. Upglefamily starts are 8. 3 . This is really a multifamily apartment story, but on the other hand we have seen more people move into that area, fewer people buying houses. It is good in the sense that it puts more people to work, daddy. It certainly does, thank you, it to work, betty. It certainly does, thank you, mike. Will you expand into that . It is one of our Asset Classes. It is a huge category. People are delaying marriage, family, and that means longer years in apartments, and there is a shortage, and apartment values are going up. Would you ever go into Something Like singlefamily homes, for instance . We are trying to be as conservative as possible. Centers haveopping to have 13 or 10 and apartment buildings have to be greater than 50 units. Mike, i know