In a german newspaper interview. Durables just ahead of estimates and still looking for definitive headlines out of opec. Inventories at 10 30. Yellen back on the hill answering lawmakers questions about the banks, what shes expected to say about the troubled sector. And speaking of banks, wells fargo ceo john stumpf is forfeiting 41 million ahead of his next appearance on capitol hill tomorrow. And what should you expect as an investor . Shares of nike falling in the premarket on yesterdays earnings numbers. Whats dragging that dow component down . But first, a lot of news involving the banks today. Wells fargos john stumpf to forfeit 41 million in equity awards while the companys board investigates the banks sales practices. Deutsches john crion saying the bank did not need increase or capital interest. About an hour from now fed chair yellen will testify on Bank Supervision and regulation before a house panel on capitol hill. Of course when she starts making headlines, well try to take some of that live. I guess lets take wells first here, jim. Boards looking into retail practices, Labor Departments now in, tollstead is going to give some money back. Yeah. Ive been waiting for somebody on the board who has some level of gravitas. By the way, its very interesting there was an overlap. When he was on the board of target, john stumpf was on the target for three years, nice overlap there. Theyre both minnesotan, familiar with each other. But when you look at that makeup of that board, you realize its difficult for some politicians in there. Its a very community bang. Looks like as wells fargo has advertised itself. But sanger can stand up. Sanger doesnt play for dinner. And i think what hes saying is, look, weve got to get ahead of this thing because of the house. To get ahead of the thing would have meant to go bigger. Go bigger. What do you mean bigger . What do you mean . I mean 2016 this wasnt even the year were talking about. Talking about a very long right. I mean, they clearly didnt get ahead of it. Not at all. Now, the independent directors are leading the show here, to your point sanger is leading the independent directors hired going to look back at past practices. Expected by the way according to people familiar with its potential workings, lets call it at least two months they would love to wrap this up if possible by the end of this year. So prior to the beginning of next year. Looking also at the systemic breakdown in the culture and a lot of wide ranging issues. So sherman and sterling will be doing that. Theyll be reporting in to these independent directors as you said led by mr. Sanger. And the board now has taken control. Yes. But one does have to question what took them so long. And i am told they didnt know about this really. I mean, they watched that testimony last week the way a lot of us did, and some of it may have been new to them even then. Obviously they dont read the Los Angeles Times over the last few years. 2013, goodness. Reporting on it that started all of this off. So it didnt bubble up to the board level at all. No. And now youve got this full change. By the way were going to call it its not a club act, this is unvested interest hes forfeited also not getting his salary during the period this investigation takes place. Thats what i meant. If you want a clawback, you clawback what you have, not what thats what you meant by bigger. Yes. Thats exactly what i meant. David, the key thing you dont ever hear here, subpoenas. Who will issue a subpoena to carrie tollstead to find out why she really retired in july. Find out what she knew, when she knew it and why is she so silent. Because thats not what the congress is going to allow. Theyve seized on this in a way they didnt even seize on the mortgage issues. To some degree because they kind of feel like that this one was represented a level of arrogance. I think frankly when you hear what you just said about the board, the board was unengaged. Well, you know, when youre a board member and you are a board member in a public company. Sure am. Sometimes you are unless you are really aggressive, you are beholden to the information you are given to a certain extent. Thats why ive liked the separation. You look at the package beforehand, look through everything and if its not presented to you, its going to make it less likely youre going to know about it. Thats very true. Again, this board is not this board has been through a different kind of test. They were tested about whether the oil valuations are right, because wells bought high. But remember, this was not a company that had a whale in london. By the way, missing figure in this is dick , and also the previous cfo. Like to hear from theres also another gentleman id like to hear from. His name is mr. Buffett. I urged twice i asked john stumpf. He is yet to be heard from. Carl, they are continuing to be of course the questions certainly is whether mr. Stumpf can survive this or whether in fact he should choose to set a retirement date sooner than the two years he has left. He bright bring us more headlines when he goes before House Financial Services tomorrow. John chen, who has news of his own today, on the board. Frederico pena. Its an odd board. The last time sanger was in the news was an absolutely brutal piece in New York Times about how he put an end to the notion of studying obesity as a linkage to cereal. When you google him, youre not going to get a bunch of Great Stories though he was a good executive at general mills. I only bring this up because this company dr we were waiting for someone to step up. Sanger stepped up. Sanger has stepped up. But sanger has close ties too. Theyre going to look very closely. Congress is in the mood. Theyre in the mood. And Elizabeth Warren likes this storm. She does. If youre mr. Stumpf, its hard for me to imagine given your distraction to a certain extent. It will be interesting to see how he survives. He did say on mad money he felt he was in a position to really address the situation. He did. Has that changed since that appearance though, jim . Im not going to disagree with that. I had said to him, once you get up to capitol hill, theyre not there to hear about the Great Service that wells gives. Im not being facetious. That had been wells rap. Once you open an account you find the pan plea of things they do. This notion of cross selling somehow has become obviously strucken for boden but it will be interesting to see what the investigation reveals, particularly not just customer complaints as being a key issue that clearly went on. But also employee complaints. Thats where i would be focused. How many employee complaints bubbled up and were ignored or pushed back down . Right. Labor department is looking on behalf of the employees who didnt meet the quotas and were fired. So theyre in a way getting squeezed on two fronts. Well, they have a board. They have a Corporate Responsibility committee. But again, its what david said. I have been in important situations where relevant data would have been welcome. Put that. Boy, am i trying to be a diplomat on this very difficult issue. And difficult because it is more politicized, as it should be. Because the company viewed the, i think, viewed the small size of the fine versus the fines that the big banks paid as indicative of how small the violation really was. And you theres a lot of people who think this was a multiyear fraud. And that is Something Congress is not going to let go. Yeah. On the deutsche front, john cryan and this german newspaper talking about no bailout needed, no capital raise. Meanwhile, government officials making anonymous comments of their own. Wheres your head on d. B. . Okay, now, if i didnt know better, i would say this is going to come out so harsh. And i dont even give a this man is almost chemetic. He hopes the department of justice will treat Deutsche Bank with the same fairness American Banks Center already agreed on compromise. 13 billion . 17 billion . Is he kidding . Once again Deutsche Bank shows you how clueless they are. Go speak to jamie dimon. Dont speak on the record. Do you remember what those discussions were like . How did you get 13 billion . Say another thing its 15 billion. Wheres the due process . Can you show me the breakdown for 17 billion by the Justice Department . We dont need a breakdown. We dont need no stinking breakdown. So this gentleman may be as clueless as the last person, so my advice is speak with nothing. Where do they fit in distinguished bankers . Just in terms of characters. Understood. The department of justice who does he think hes talking to . Theres a lot of potential scenarios being bandied about, all of them are rumors and speculation right now. They should stop talking. We want to get to wilfred frost who i think has breaking news on wells. Wilfred, good morning to you. Carl, thanks very much. Yes, indeed, we have received from a credible source the prepared testimony of john stumpf due to be given to the House Finance committee tomorrow. Let me just sum up some Key Takeaways from reading through it. Firstly, he starts, again, with sincere tones of apology saying im deeply sorry that we have failed to fulfill our responsibility to customers, our team and the american public. Almost exactly the same words as last week. So thats not a new development, but again, a tone he wants to reecho this time in front of the house. He also said a new line in here, weve never directed nor wanted our employees whom we refer to as team members to provide products and services to customers they did not want or need. This probably a response to two developing lawsuits and a Labor Department investigation as to whether employees were wronged in terms of the pressure put on them. Another new development compared to the last week or so. Very clear and detailed specific dates when certain parts of the bank were made aware about what was going on and what they did in response to it. That was a criticism of his appearance last week that there wasnt enough specificity around when individuals became aware. Conclusion remarks, similar to last week. He says today im making personal commitment to rebuild our customers and investors trust. Very clearly saying he is there to say despite of course the fact that weve had those big clawbacks overnight sorry, in spite of that. Those clawbacks hes hoping of course will be enough to placate the pressure on him and that he can still remain in charge despite various calls for him to step down both internally and externally, guys. All right. Wilfred, well be sure to watch. The tone of questioning might be different as well as its the house this time and not the senate. Well watch the definition of clawback this morning as well. Yeah, not to put its not quite a clawback because that would be vested equity. But this is i also am reading an email he sent out to all the employees, jim. Mr. Stumpf talking about as ceo i should have acted sooner and more aggressively to correct weaknesses in our operations. For that im accountable and im deeply sorry. Well, yeah, thats about the you go there and you dont say you dont defend. You apologize. This was to employees. But you apologize to American People too. Yes. Even though one of the things when i deal with these Bank Executives and many of them started their career when i started say this guy should apologize to the American People, what did we do to the American People . What does that have to do with . Truth . Truth is an abstraction here. Honestly, why do i have to apologize . Because its america. Justice department. Theyre going to treat me fairly like they did j. P. Morgan. Can anyone your bottom line is hes being naive . Naive as the previous ceo. What you need to recognize is if you would just have a private conversation with jamie dimon, he would say, you know, there really wasnt a lot of due process involved with the department of justice. Theres not a lot of due process involved in these situations. Because this is not its not a station house. You know, theres no you dont theres no miranda warning. Elizabeth warren does not issue a miranda warning before she starts questioning you. Its a lot more free flowing than that. Yeah. When we come back, nike down despite that earnings beat. Were going to talk about that in a downgrade today. Later on this morning sarah eisens exclusive with Christine Lagarde of the imf on everything from brexit to the Global Economy. Look at the premarket, three triple digit moves in a row. Repeat today would be the first fourday streak since brexit. Back after a break. My name is jamir dixon and im a locate and Mark Fieldman for pg e. Most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Nikes down in the premarket. Quarterly results beat expectations, but growth and Global Future orders short of consensus, up 7 as nike faces heightened competition from under armour and adidas, trying to get out of golf equipment, the second worse dow stock of the year surpassed only by disney. There was an unrealistic nature on the Conference Call. I happened to be in mark parker and hes done for the company, you didnt get there falling off the turnip truck. But i thought as a matter of fact, they actually threw little cold water i thought about the notion of how important futures are. Forget it, were trading to look at futures same way were trained to look at same store sales. Very little discussion about adidas, no discussion about competition. I refer to j. P. Morgans piece by matthew boss which was brilliant saying play with foot locker. But this is one where they really have to start explaining themselves better because, yes, its true china was great. Yes, its absolutely true europe was great. This notion the total adjustable market is 7 million athletes and performance and innovation will somehow always triumph did not work this quarter. Target 52, they call it an innovation reset. That products are getting less technical and more lifestyle oriented. Yeah, well, i mean, this is athleisure debate. Remember stan smith is hardly technology. They did address the notion of flex, which is a Great Company thats doing a lot of technology. They talk about hp inc. And 3d technology. Again, whats happened is technology this quarter, unlike what they talk about in shoe dog which really was about talk about technology, technology did not play nearly a role. Theres a lot of questions about what people are wearing right now. This is the debate about lulu. When you ask lulu why are people wearing, i still say mindfulness. You laugh at mindfulness, but theres an article in New York Times about the importance of mindfulness and what it means. Theres a generation were starting to think of are they into nike other than basketball shoes . And basketball shoes may not be as important. Now, we know that michael jordan, its an amazing franchise, all i wanted was an explanation of why we thought they were doing so well beyond just golf going down, beyond just onetime items, beyond just maybe some inventory issues. But they didnt give it to you. In either one of two things, the next quarter is going to be fabulous and youre not seeing it for the futures orders or mark parker has to go back to the drawing board and say maybe we need to do more. Parker is so good. You cant bet against parker, but wall street is. You seem uncertain. In either direction. I didnt like the call. I just didnt like the call. I mean, they were like when Howard Schultz delivered he didnt do plus five domestically. He was apologetic and abject not to worry. These guys acted like they did a great number domestically and k. D. And lebron so was that downgrade yesterday . We talked about on mad dash . Yeah. And growth of adidas and everything . Nike loss lee holman, he went to lulu. Hes making it into more of a men not just womens brand and talk about tim cook and the notion of the apple plus watch. But im saying i found we upon part of the analyst about the notion that this technology is going to get them where they have to go. That there has to be more. And maybe some questions here about the validity away from basketball shoe. Whether it still has it. By the way, everyone wanted to say its under armour. It would be adidas, not under armour. Because adidas one of the great you got there if you were nike by total abdication by adidas. And adidas is back. Yep. And theyre back with very retro almost like converse should be the function. Yeah, chuck taylors. Yes. Chuck taylors. Look, theyre not arrogant, but i did feel they were out of touch. And they run a great Conference Call, they always have terrific plays on Conference Call. A netflix like production and felt to me this time like a broadcast show as opposed to a serial cable show, which you know is damning. Yes, it is. Cramers mad dash, countdown to the opening bell, one more look at the premarket. Squawk on the street from the nyse continues in a moment. The pursuit of healthier. It begins from the second were born. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier