CONNELL: SO WE TALKED ABOUT THIS
WALL STREET JOURNAL STORY ON THE
GOLDMAN SACHS CEO GETTING SET TO
GET OUT BY THE END OF THE YEAR
AT GOLDMAN.
HE'S BEEN THERE 36 YEARS, CEO
SINCE 2006, SO, WITH THAT, TO
OUR BITTER BOOMERS ON THAT AND
MORE, LIZ MACDONALD, CHARLIE
BRADY AND CHARLIE GASPARINO AND
I SAID IT I WOULD FILL IN FOR
NEIL ALL WEEK LONG, THE ONLY --
CHARLIE: THIS IS THE CAVEAT.
LIZ: [LAUGHTER]
CONNELL: I HAD TO BE ABLE TO
RESIDE OVER --
CHARLIE: CAVEAT IS I'LL DO IT AS
LONG AS I DON'T HAVE TO HANG OUT
WITH THOSE OLD LUNA EVERS.
LIZ: [LAUGHTER]
CONNELL: ONCE YOU START YOU'LL
BE ON FOR AN HOUR AND A HALF.
THE STOCK PRICE UNDER MR. BLANK
FIND, SOMEHOW THAT'S
HOW WE MEASURE THAT.
>> 84% SINCE HE TOOK OVER IN
JUNE OF 2006.
TOTAL RETURN IF YOU INCLUDE
DIVIDENDS 112% TOTAL RETURN.
CONNELL: AND THAT COMPARES?
>> WELL JUST LIKE 15% RETURN FOR
THE FINANCIAL SECTOR SHOWS YOU
HOW HE SHEPHERDED THE STOCK.
CHARLIE: HERE IS WHAT I'D SAY
AND LET'S, THE FLOOR IS YOURS,
ABOUT TWO MONTHS AGO I REPORTED
THAT HE WAS THINKING ABOUT
ANNOUNCING HIS RETIREMENT.
>> YOU'VE GOT THE SCOOP, CHARLIE
CHARLIE: BUT I NEVER THOUGHT IT
WAS THAT BIG OF A DEAL BECAUSE
EVERYBODY KNOWS THIS IS THE YEAR
HE MIGHT GO.
NOW WHY MIGHT HE GO?
GOLDMAN SACHS PARTICULARLY AFTER
I WOULD SAY 2013, HAS BEEN UNDER
PERFORMING THE FINANCIAL
SECTOR.
WAY UNDERPERFORMING.
THERE'S REAL QUESTIONS ABOUT ITS
BUSINESS MODEL.
HE NEVER ADAPTED THE BUSINESS
MODEL TO THE SORT OF ANTI-RISK
DODD-FRANK FRAMEWORK THAT SAY
MORGAN STANLEY DID AND WHAT
HAPPENED WITH LLOYD IS THAT HE
SURVIVED A HEALTH ISSUE.
IT'S CANCER, AND THANK GOD
THAT'S GREAT.
HE'S MUCH BETTER FROM WHAT I
UNDERSTAND.
IT'S COMPLETELY IN REMISSION BUT
THE PROBLEM HE HAD WITH HIS
BOARD IS THAT THEY ARE
QUESTIONING HIS ABILITY TO
SHEPHERD GOLDMAN SACHS TO THE
FUTURE.
GOLDMAN SACHS DID VERY WELL
AFTER THE FINANCIAL CRISIS FOR A
MAJOR REASON.
THEY WERE BAILED OUT BECAUSE OF
THE AIG BAILOUT.
THEY GOT SOME MONEY FROM BUFFET.
THEY WERE ESSENTIALLY THE ONLY
GAME STANDING WHO COULD SIT
THERE AND TRADE TREASURIES AND
MORTGAGE BACKED SECURITIES AS
THE FED WAS BASICALLY INFLATING
ITS BALANCE SHEET WITH THOSE AND
BY THE WAY, THE FIRST QUARTER
AFTER THE FINANCIAL CRISIS,
GOLDMAN SACHS MADE $4 BILLION.
LIKE A RECORD.
>> [LAUGHTER]
CHARLIE: PRETTY AMAZING SO HE
BENEFITED FROM THAT GOVERNMENT
BAILOUT, BUT LATELY THE LAST FEW
YEARS, HE HASN'T AND I THINK
WHAT YOU'RE SEEING NOW IS
GOLDMAN SAYING WE NEED A CHANGE
IN BUSINESS MODEL.
WE DON'T THINK LLOYD IS THE GUY,
AND THE REAL QUESTION DOES GARY
COHN COME BACK.
CONNELL: THE JOURNAL SAYS IT
WILL BE ONE OF THE TWO
PRESIDENTS.
>> NOT DAVID COHN.
LIZ: [LAUGHTER]
>> BUT THE INTERESTING THING
JUST FOLLOWING UP ON WHAT YOU'RE
SAYING, CHARLIE, IS THAT HE DID
TERRIBLE IN A MARKET THAT HAD NO
VOLATILITY.
>> ABSOLUTELY.
>> NOW HE'S GETTING OUT WHEN
THERE'S VOLATILITY COMING BACK
THAT'S THE CONTRARY.
>> TO YOUR POINT.
CHARLIE: HERE IS WHAT I'M GOING
TO SAY THE NEXT QUARTER FOR
GOLDMAN SACHS A LOT OF PEOPLE
ARE SAYING IS GOING TO BE VERY
GOOD BECAUSE OF THE VOLATILITY
AND IF YOU LOOK AT THE TRADING
OF THE STOCK PEOPLE PREDICT THAT
GOLDMAN'S TRADING WILL DO
AMAZING.
CONNELL: WOULD YOU GIVE HIM A
HAND WITH HIS EARPIECE?
CHARLIE: [LAUGHTER]
I DON'T GET IT.
>> MY BROTHER FROM ANOTHER
MOTHER.
CONNELL: WE'RE UP 335 ON THE DOW
RIGHT NOW, SO, E-MAC?
I GUESS WE WERE TALKING ABOUT
THIS EARLIER WHETHER THE
QUESTION IS HUGE STORY OF THE
WEEK IS THE JOBS REPORT THAT WE
GOT THIS MORNING OR ALL THIS
TALK ABOUT TARIFFS THAT MIGHT
UPSET THE ECONOMY DOWN THE ROAD
WHICH ONE DO YOU TAKE?
LIZ: I THINK THE MARKETS GOING
TO DO WHAT IT'S GOING TO DO.
JUST WATCHING IT THIS MORNING
WATCHING THE ACTION ON THE DOW,
I, THE BIG WHOPPER WAS WHAT WERE
THE TARIFFS GOING TO BE, FILL IN
THE BLANKS FOR A FEW DAYS, WE
STILL DON'T REALLY KNOW, I THINK
IT'S GOING TO PICK AND CHOOSE
ITS FIGHTS WHERE IT WANTS THEM
WHERE CAN WE GET OUR STEEL
SUPPLY FROM OTHER COUNTRIES,
WILL IT BE AS BAD AS PEOPLE
THOUGHT?
IT WAS SORT OF, YOU KNOW, READY,
FIRE, AIM THE THINKING FROM THE
WHITE HOUSE AND SO, YOU KNOW, I
THINK PEOPLE NOW ARE SAYING LOOK
HE'S GOING TO BE FLEXIBLE.
IT MAY HAVE AN IMPACT.
CONNELL: WELL THIS JOBS REPORT
CHARLIE IS ABOUT PERFECT IF
YOU'RE INVESTING IN THE STOCK
MARKET.
>> YOU'VE GOT STRONG GROWTH AND
WAGE INFLATION PULLING BACK FROM
A MULTI-YEAR HIGH.
LIZ: THAT'S WHY THE 10 YEAR
YIELD IS THERE.
CHARLIE: IF YOU LOOK AT IT, IN
RHETORIC WHO KNOWS BUT IT LOOKS
LIKE HE BACKED AWAY FROM A LOT
OF THE WORST THINGS ABOUT THE
TARIFFS AT LEAST THREATENING,
MAYBE THIS IS AN ENVIRONMENT
THAT GARY COHN OR MAYBE AN
ENVIRONMENT NOW THAT HE'S LESS
PROTECTIONIST, WHO KNOWS BECAUSE
TRUMP I DON'T THINK KNOWS.
>> THERE'S SO MANY THINGS WE
COULD WORRY ABOUT.
CHARLIE: WHAT'S THAT?
CONNELL: I DON'T EVEN KNOW IF WE
CAN GET INTO WHETHER GARY COHN
WILL BE BACK.
CHARLIE: I'M USING THAT AS A
SEGWAY INTO SAYING MAYBE HE'S
LESS PROTECTIONIST ON TRADE.
CONNELL: OH, TRUMP IS.
CHARLIE: I WAS JUST THROWING
THAT OUT THERE BUT MAYBE A LARRY
KUDLOW WOULD BE A VERY DECENT --
LIZ: OR PHIL GRAHAM.
CONNELL: WELL THE MARKET WOULD
RATHER SEE THAT THAN PETER
NAVARRO.
CHARLIE: HOW ABOUT SEBASTIAN
GORKA?
>> YEAH, HE WOULD BE GREAT.
I MEAN, YOU KNOW?
CONNELL: NAVARRO WAS NAMED AS
THE REPLACEMENT.
CHARLIE: I THINK THEY SHOULD GET
SEBASTIAN GORKA.
>> THAT'S JUST TOTAL INSANITY.
I MEAN NAVARRO IS A DEMOCRAT.
CONNELL: GARY COHN IS A DEMOCRAT
>> BUT SO IS NAVARRO.
CHARLIE: WE NEED A MILLENNIAL IN
THERE.
>> ANYONE IS BETTER THAN --
LIZ: CAN I JUST ASK A QUESTION.
DIDN'T GARY COHN WALK OUT THE
DOOR WITH 250 MILLION PLUS IN
COMPENSATION?
I THINK IT WAS 287 MILLION.
CHARLIE: WELL HE'S SET FOR 20
YEARS.
LIZ: I'M SAYING HE CAN DO
WHATEVER HE WANTS.
CHARLIE: WELL THAT'S THE WHOLE
THING.
GARY COHN REALLY DIDN'T WANT TO
LEAVE BUT TRUMP PUT THE GUN TO
HIS HEAD AND SAID LISTEN PAL,
SUPPORT MY TARIFFS OR NOT.
CONNELL: ONE FINAL QUESTION.
NORTH KOREA, GOOD IDEA, BAD IDEA
>> I THINK IT'S PROBABLY A BAD
IDEA.
TRUMP IS NOT A SEASONED
NEGOTIATOR, AND HE'S MEETING
WITH ONE OF THE --
CONNELL: YOU HAVE THE DEAL.
THIS IS ONE OF THOSE THAT WHAT
COULD GO WRONG.
>> YOU HAVE TO LEAD AS FAR AS
TARIFFS GO THE ELEPHANT IN THE
ROOM, THE ONE PULLING THE
STRINGS IS CHINA, AND CHINA IF
THEY WANT TO --
>> CHINA!
>> THEY CAN CRIPPLE OUR DEFENSE.
WE NEAR THEIR COBALT, WE NEED
THEIR GRAPHITE.
THERE ARE A MILLION CRITICAL
MATERIALS THAT WE COULD ONLY GET
FROM HOW DO YOU SAY IT?
>> CHINA!
CONNELL: WE KNEW THAT WAS COMING
LIZ: WORDS ESCAPED ME.
CONNELL: GOOD IDEA OR BAD IDEA?
LIZ: WORDS ESCAPE ME RIGHT NOW.
CONNELL: ON THE MEETING GOOD OR
BAD IDEA?
WOULD YOU DO IT IF YOU WERE
TRUMP?
LIZ: EVERYBODY IS QUOTING CHURCH
HILL.
I THINK IT'S FINE.
YOU KNOW?
I DON'T PLACE A LOT OF STOCK
THAT TRUMP IS GOING TO GO IN
THERE AND MAKE MISTAKES.
I THINK HE'S GOING TO GO IN WITH
DIPLOMATS.
>> BUT LOOK AT THE FIRST MEETING
WITH XI.
BASICALLY --
LIZ: THAT WAS A DISASTER.
WHY?
>> BECAUSE HE JUST GAVE INTO HIM
LIZ: HOW?
HE'S GOING AFTER HIM NOW WITH
TARIFFS.
>> HE SAID NO CURRENCY
MANIPULATION.
HE'S NOT GOING AFTER HIM WITH
TARIFFS.
I DON'T THINK HE WILL.
LIZ: WHY?
AND HE'S ALSO GOING TO GO AFTER
HIM --
>> WAIT A MINUTE.
HE GOES AFTER CHINA ON
INTELLECTUAL PROPERTY BIG TIME.
>> BUT LISTEN WHAT HAPPENS IF
CHINA SAYS NO MORE COBALT?
THEN WHAT HAPPENS TO OUR
ELECTRIC POWER?
LIZ: I THINK CHINA IS GOING TO
SHUT EVERYTHING DOWN.
>> FIRST OF ALL CHINA IS MUCH
LESS DEPENDENT ON THE U.S. TODAY
THAN IT WAS FIVE YEARS AGO.
RIGHT NOW, THEY'RE FOCUSED ON
THE EAST AND THEY'RE TAKING
CONTROL.
THEY WILL BE STARTING THIS MONTH
TRADING OIL.
CHARLIE: I THINK IT'S GOING TO
BE GREAT THOUGH WHEN YOU SEE
TRUMP AND WHAT'S HIS NAME?
>> THE KOREAN GUY THERE?
CHARLIE: WHO HAS BETTER HAIR.
>> OH, THAT IS A TOSS-UP.
AT LEAST THE KOREAN GUY IS TRUE
TO HIMSELF.
I DON'T KNOW IF TRUMP IS.
>> [LAUGHTER]
>> COULD BE.
CONNELL: TODAY IS FRIDAY.
DID YOU WEAR THAT?
FRIDAY DURING LENT.
>> JOBS FRIDAY.
LIZ: IT'S ALSO MEATBALL DAY.
CONNELL: YOU TOOK MY QUESTION
AWAY.
I WAS GOING TO HAVE GASPARINO
THAT.
IT'S THE ONE THING BOTHERING ME
ALL DAY LONG MAYBE THIS IS ONLY
A CATHOLIC THING BUT A FRIDAY
DURING LENT AND TODAY IS
NATIONAL MEATBALL DAY.
LIZ: WHY!
>> MAYBE WE CAN GET A DISCOUNT.
>> HIGHLY EXPENSIVE STEREOTYPE
QUESTION, ANTI-ITALIAN QUESTION.
CONNELL: WHY?
HOW COULD IT BE ANTI-ITALIAN?
CHARLIE: I'M REPORTING TO HR FOR
PICKING ON ME BECAUSE I'M
ITALIAN.
LIZ: WE'LL BE HEARING FROM YOU,
CHARLIE GASPARINO.
CHARLIE: ON NATIONAL MEATBALL
DAY YOU ASK A MEATBALL.