GE Splitting Into Three Units, Ending Conglomerate for Good

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio, or watch us on YouTube search Bloomberg, Clovel News so Bloomberg. Sarah McBride writing today that early last year, at the outset of the coronavirus pandemic, there was a small genetics startup. Call company was called Color Genomics. It's set up a COVID nineteen testing lab. It was the company's really first step towards what we've become a full transformation of its business. Well

today the company continuing that transformation. It's now known as Color. It completed another round of funding today that gives it a four point six billion dollar valuation triple Katie. What it was just like a love and months ago. So that's been quite a bump up. Let's get more. Let's bring in our guests. Utman Laura Key. He's co founder and CEO of color Ink, and he joins us on the phone in San Francisco. I'm nice to have you here with Katie and myself. How are you good? Thanks

for having me. Well, tell us a little bit about what you guys are doing right now and how it fits into what's going on more broadly, of course when it comes to COVID, Sure, maybe I can give you a little bit of context about colors. So fundamentally, what we do is we make public health happen where public

life also happens. And what I mean by that is that, for example, today we're running about seven thousand sites across the country between testing and vaccination sites UM, where we deliver essential services in context where that are like directly connected to where people's lives actually happen. So for example,

thousands of schools, workplaces, um, churches, other community centers. And what we found is that when you take essential health services directly into people's community and so that they're immediately accessible in the context of where their lives actually happened. You're able to make these basic services dramatically more accessible than if people have to jump through hoops in order to to to access to access them like they normally do.

And you know thet what we think of a standard healthcare And let's talk about your latest financing round, a hundred million dollars Series E that has your valuation of four point six billion dollars. What do you plan to do with that money? YEA. So, our our overall approach on this is that we believe that UM, in part through the pandemic or due to the effects of the pandemic, we have been decidedly forced i thing, to really change

gears and how we deliver basic care UM. And we view this as kind of this pretty durable transformation in that expectation and how basic health care will work. And so our our goal and our plan for the over the next years is to keep building services in these kind of access points that are uh immediately part of the community. So I'll give you a few examples, if

that's helpful. So, for example, we work with UM large employer basis so essential care essential workers, whether they're UM farm workers or tech workers and so on, and one of the biggest things that's happened over the pandemic in addition obviously to dealing with the effects of the COVID pandemic, has been that people have been falling behind on their basic preventative care, so literally your annual checkups, basic medications

and so on. UM. So we've been asked by a number of our partners started developing solutions that are similar to our approach to managing COVID testing and vaccinations, but to make basic care accessible to these road distributed workforces and going from like farm workers all the way to white collar workers. UM. That's one example, but there are

many other examples in other contexts. For example, if you look at schools again being a UM one of the places where a very big part of our society lives as in like all this all the school children, UM, and thinking of the school systems as themselves being a place where you can deliver basic health care services such as vaccines and so right now we started working with initially with testing, but we're rolling out vaccinations within schools,

initially for COVID, but then broadening that to other types of organizations. Well, that's what I'm interesting. Will you stay kind of the immunization route. Is that enough of a sustainable business long term or do you then build out the types of services that you might provide, almost like bringing urgent care, whether it's to rural communities or to churches or to workplaces. And so we've do this suff something that UM will likely end up applying to abroad

surface area of how we think of healthcare. Like I'll give you another example that we're working right now in public health, which is around managing HIV and other sexually

transmitted diseases. Similar to challenges that we're faced with COVID, there is the challenge of immediacy and access UM and using that same model, for example, for creating fully integrated HIV management programs within communities UM that go from initial screening to counseling all the way to medications and management for people but in a context that is much more part of their lives as opposed to requiring them to go out of their lives to seek basic care UM.

And so this overall approach we viewed as applying to infectual diseases, to metabolic and other kind of UM CHRONICCT disease management that you know, whether it's psych cholesterol and

so on. Women's health is another very large area. I think when we step back ten years from now, I think, well, we're likely to to look back and it'll feel very much how our lives have shifted with e commerce and retail, where initially it felt like, you know, only a few things would be interesting to buy online, but it turns out over time that convenience and immediacy is one of the biggest features and drivers of people being able to access any form of service. And I think healthcare is

going to be no difference. No, I think you're you're totally onto something. Um one quick question, just got about twenty five seconds left here. Can you find the labor force that you need to be able to continue to build out as you hope just quickly? I believe. So. I think what happens here is that there's much more leverage on technology, especially through I think public health has

been incredibly innovative through through this phase. So we're seeing all of our partners in big departments of public health like California, Masters and so on, I think themselves also being very innovative and how they think about this. So I think it actually going to create a lot more leverage on the on the labor force. We're gonna leave

it there. Hey, um, hopefully you'll come back and give us updates as you continue into the new year, uh and rolling out what you're doing in terms of services up in Laraki. He is chief executive officer, co founder of Color Incorporated. Joining us on the phone in San Francisco. You listen to Bloomberg Business Week. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic from Bloomberg Radio. So we've been hinting at it a

change in leadership at the Fed. How likely is it? As news of Fed Governor Lal Branard being interviewed by President Binden, a Bloomberg scoop, by the way, interviewed last week for the top spot at the US Central Bank, leaked out. We've seen it playing out in the financial markets today. So let's get to it. Joining us with a look at it is Peggy Collins, Bloomberg News Washington Bureau chief, a friend of our show, a favorite person to talk with. She is in her Bloomberg not anyone

studio in the nation's cappele. Peggy is so good to have you here with Katie and myself. So, first of all, congratulations, great Bloomberg scoop by the Washington team. What do we know about the President sitting down with Leo Branard? Yes, Carol, and great to be with you and Katie today. As you said, we had a great scoop out by my colleagues Craig Tourist, Jennifer Jacobs and Slamson. Basically what it could what it tells us is that the White House

has interviewed up Brainerd for the chair spots. So people were know know that Brainard was in consideration for for one of the open seats at the FED um. But what we didn't know was that when she was at the White House last week that the interview was specifically for the FED chair slot as opposed to one of

the other open seats. She has been talked about as a top contender for the vice chair of Supervision slot, which Randall Quarrels was in until October and just yesterday said he was going to be exiting the FED at the end of the year. And that vice chair slot of Supervision is really the FEDS top regulator of Wall Street. So Brainard is still considered in the running potentially for one of those open seats, and particularly that one as well.

But it's clear that she now she and Powell are the two top contenders for the FED chair slot, and powell seat is open in February of this year for that and so, Peggy, something I've been thinking about is the saying that, you know, a wartime president always gets re elected, and if we look at the US economy, there's a light at the end of the tunnel, but

obviously still in a pretty tense place. So I mean, one are the odds that pal actually gets replaced at this juncture with the FED, you know, starting to actually taper and enter this really interesting period of normalization. Well,

it's great question, Katie. I do think, you know, the pandemic economy is something that really is in Powell's pro column in the sense that a lot of people credit him for having handled the crisis, particularly in March and April, when the FED really stepped in not only on a US level but a global level to try to inject tons of support into the economy and markets and for businesses kind of opening up the floodgates to make sure that interest rates were as low as they could go

and that business has had access to funding. So there's that, But I also do think the markets, um, you know, no brainerd well as as well. She's on been on the FED board since um she's certainly seen as one of the most accomplished people like in the business she's

worked at Treasury. She definitely has been like a key architect alongside her FED colleagues of the feds new framework that they created in August, which really put more of the focus on full employment being broad and inclusive, which is very much so in line with the Biden administration's goals. So I think, you know, I think there's certainly an argument, and I think markets and economists up until now had

really waited their expectations in the column of Powell. But the longer that this has gone on, the more question marks have arisen in terms of whether the Biden administration would take this moment to shake things up. All right, but well, the Fed's not supposed to be political. We know that politics will be at play. Um lyle Brennard is what the only Democrats serving on the FED board, I mean, how might politics play in her favor or

against her? And just got about thirty seconds pack. I think it's a question market, did you say, Carol, The tradition in the past, up until the Trump administration had been to keep with the FED chair of the incoming president. So that will be something that the Biden administration has to pest it away in terms of independence of the FED and politics and how that may be seen in light of past tradition. Alright, TikTok. We'll have to wait and see what happens. And there are a lot of

FED positions. We have a lot of FED officials leaving and I know or are up for you know, is it Clarata, Rich Clarata Right, his term as governor expires at the end of January. There's a lot of potential movements for open spots of accounted correctly, and you think about what that impact those changes could mean in terms of FED policy longer term. Um, Peggy Collins, she's our Washington burea chief of Bloomberg News, joining us from our

not anyone studio in the nation's capital. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, first came this estimate then z prices, then I buying, and then of course there was the damage in the fallout. So tracking it all,

we're talking about the story that is Zillo. That stock, by the way, it is down about sixty seven percent from its February sixteenth high this year, so tracking it all is Bloomberg News real estate reporter Patrick Clark reports on Zillow's trajectory that changes for the upcoming issue of Bloomberg business Week, which is due out later this week online at Bloomberg dot com, on business Week dot com, and on the Bloomberg pat joining us on the phone

in New York City. This is just an amazing story. And I think back when it was I believe a cover story Business Week magazine just a few years ago about Zillo wanting to flip your house. Um what ultimately went wrong? They did it poorly? Well said, it's you're

exactly right. We did a long Business Week story on Zillo, which is, uh, you know, best known for one publishing homeless ins what you can then go in Browns and too publishing what they called estimates, which is, you know, an attempt to approximate the value of just about every home or I don't know, I think it's more than

a hundred million homes in America for first sport. Basically, Uh, at some point, I guess in two thousand eighteen, they decided to take all the people and technology that they used for those first two things and apply them to flipping houses, which is a you know, I would say, a notoriously sort of risky business. It's it's it's it's not the first time that a company or you know, offen an individual has gotten the business of buying and selling and had home prices move on them in the

interim period and gotten burned. And so about you write that this is a five hundred sixty million dollar cautionary tail. I'm curious what are the takeaways that Zillo is going to take from this. I mean, obviously they've paused the home flipping experiment. Do you expect this to bleed into some of the other ways that they operate. I think

that their old business should be fine. Um, people are still going to go to Zillow's websites and apps and look at houses, and that's still going to be a great place for a real estate agent to getting on a you know, house centers. Basically, Uh, they shouldn't have trouble making money that way. The question is, you know, number one, how are they going to sail the sort of pull in their strategic purpose that that ending this

Dellow Offers program creates? And then too, you know, I mean I think there is a big push not just Dillow. It wasn't just Billow doing this. There there are other companies in the same I buying sort of tech power flipping business as they are. And then there are other companies that are are buying off different pieces of the housing transaction. Uh it seems fairly likely to me that some of them will succeed in some form, and we won't, you know, we're not tied to this sort of hundred

year old method of buying or selling house. So not only did Zilo you know, sort of plush some money down the drain, but they also they also wasted time that they could have been using to, you know, figure out what the big opportunity is. Well, and I feel like until Weber come on in of course the editor Bloomberg Business Week, I felt like, algorithms, can't we trust them? Like don't they know? All right? Yeah? Totally? Um, And now that that was sort of I think, Um, you

know what what sort of inticated Pat wanting? I wanted Pat to write this story for the for the magazine was like, look, as a society, like we've come to put a lot of faith in algorithms and entire business models will rest on it. And in this case, the sort of the future of Zillo is sort of intrinsically tied to this al go. And Pat, you know, just curious, like, what do we know changed? Did they? Did they juice it? Did they did they try and get more than than

might have they might have wanted? In hindsight, my best understanding is, uh, this was more human failure that a technology failure. I mean they you know, on the individual um, on the level of an individual home. Uh, it's you know, it's a computer program telling Zello, here's how much we think it's worth. But number one, when they first started doing this, they had human eyeballs every offer and multiple touch points where a person was saying that this makes sense.

And and you know, as they did it more, they got more confident in their ability to get pricing right. And uh so that's that's number one. Um, if they sort of took away all of the the human touch ones. But the other thing is they were sort of flagging their competition. And you know, there there's open door technologies, which is the biggest of these eye buyers were playing way more homes and billows or very ambitious plans to

catch up. And uh, you know, they they was very clear to them that if they made more aggressive offers, they would be able to buy more homes. And and and they believed they had to buy an awful lot of homes, you know, in order to make the business work, and and and so they basically just started feeding, uh, you know, to the best of my knowledge, started just feeding the algorithms more aggressive assumptions of home price appreciation.

You know, so if if, if instance, like they had been assuming that home prices were going to grow twelve per said year over yere, you know what they said, Well, let's let's let's see what happens to pcent. I'm sure enough they bought a lot of homes. Um, you know, the home prices appreciation. It's home prices are still growing, but at a slightly slower pace than they were earlier in the year. And what those executives have said is the the sort of slow down was outside the sort

of range of outcomes they thought more likely. But you know that's why when people when they got into this business, people say said, well, you're exposing yourself to a lot of market risks. So you've got a lot of houses that are suddenly on the market, um that that Zelo would bought. Do we have any since yet? Who's gonna buy these? Um? Yeah, we'll see. I mean they've they've sent you know, information on you know, something like seven

thousand homes the large single family landlords um. And that I mean so much money that has gone in to this from an institutional standpoint, right there's been an enormous amount of money that's come into that business. Um during the pandemic in particular, very appealing way to invest behind like millennial household formation, you know, migration to the south and southwest, and also just like you gotta put you know, if you're if you're a pensive, but you gotta put

your money somewhere and rental houses. Uh is a hot idea right now. I think that you know, there's so much demand and if it's not clear yet, you know, the agree to which Zilo wants to transact you know at a at a bulk scale. But you know, people have been telling me that if if you could buy um, if you could buy two thousand homes, and you know, the snap of the fingers, and it's not a snap of the fingers, right if there's a lot of due diligence in time, but you would you might not have

to pay, you might not get a discount. Right, There's like a there's a premium you get for being able to deliver bulk to an investor. Right now you a little be able to tap into that. Well, it's an interesting story. Uh. The CEO is still in place, the co founder still in place. Uh, and you get into why because he certainly owns a certain type of stock that enables him to still be there. But it's a great uh right through of what's been going on at Zillo and how it got there. Um, thank you so much,

really appreciated. Bloomberg News real estate reporter Pat Clark, along with Bloomberg Business Editor Jill Webber. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic

on Bloomberg Radio three. Maybe better than one, at least that's how General Electric investors seem to be voting today by bidding up shares of GE as the couple announces it will split into three units, ending a remarkable and long run as an industrial behemoth that was revered a market and economic bell weather, once the world's most valuable company until it wasn't well. David Weston caught up with the current GE CEO, Larry Colp, earlier on Bloomberg TV,

talking about the breakup. These businesses will be more focused, will be a higher, greater level of accountability. We should have sharper capital allocation, more strategic flexibility, and frankly, I think it's gonna be good for the team as well. I think we'll end up with investor bases focused on these pure plays, investors that are probably under invested in GE today. You put all that together, it's clear this is the best path for us to unlock and create value.

G e CEO Larry Colp speaking to Bloomberg's David Weston earlier about that stunning breakup of G. Let's get more on the slaying of the gebs that Jack Welch built. Brooks Sutherland Bloomberg Opinion, Deals and Industrials columnists in our Interactive Broker studio here in New York City. It is stunning. Like when you saw the news, you have followed this company, you follow the industrial sector, but you've all this company for a long time. Were you just kind of speechless?

Or I always thought that this was the way that the saga was going to end. But I do have to say, I don't think anybody saw it coming this week, UM this year even in so I think in that way it shocking, but I think that this is sort

of the way that g E had to go. It had to adapt to the modern times, and it's um combination of businesses has never really made a lot of sense, but particularly in recent years, just with UM, you know, all of the breakups that we've seen across the industrial sector, I think that the logic tying these businesses together had had really been tested. And then, of course, just with all of the challenges that g E had, a lot

of that can be traced back to its complexity. It just was too complex for investors, for customers, and ultimately for its own good. And so Brooke, you had a great column out today and you write that you know this will be messy, but breaking up is the right thing to do. What kind of messy. Are we talking about what should we be keeping an eye on the next few months in a year? Sure? So, like I said, I mean, there's not really a strategic logic to keep

these businesses together. But they are different in that the healthcare business tends to be shorter cycle and it's casual

tends to be much steadier, much more reliable. And so you know, the aviation in power businesses outside of the recent periods of crisis have tended to benefit from that steady supply of cash flow because those are businesses where you need sort of longer term investments that tend to be very expensive drag out over a number of years, and the healthcare businesses we've seen has been sort of a reliable backstop when those businesses do run into tough times,

whether those are of g zone making or more recently with the pandemic. And so I think there is a question of what will these businesses look like when they're on their own, what will that capital structure look need to be um in order that yet, right, that's the thing that's tricky, and I know, uh, in David's interview with Larry Hope, I think he was trying to get to a little bit more of the specifics. We didn't

get it. We don't have very many specifics at all. UM, they've sort of left that is that will be clarified at a later date. But what specifically do we want to know about that? I think we want to know what kind of debt is going to be allocated to these companies. Another big question is what will they be called? The g E brand, for all of the company's struggle, still has a lot of value, So who gets to keep that brand? UM? What do the leadership structures look

like once you get past the CEO level. We do know sort of the the key CEO leaders of these three divisions, but what what else? What goes into that UM? And so I think those are the big question marks, and also just the plan for these businesses and a little bit more clarity on what they're going to look like. It is this was sort of a big picture idea, and I think it's it's a huge moment for g even to be going down this path. This is something

that passed. CEO has certainly gotten a lot of questions about, but none of them have been willing to sort of make this break. And so I don't want to take away from the fact that it's a key step, but there's still a huge amount of information that we need to know to understand what exactly this is going to look like once it's all done. And it's interesting. I mean you said that a lot of CEOs have been

sort of badgered about this step. Talk a little bit about Larry Colt, because I mean, he didn't come up through the ranks. He's an outsider to this company. How

much did that play a factor in your view? I think it helps and that you know, it gives him more of a dispassionate look at how all of these businesses fit together versus if you you know, had really come up through the ranks working in healthcare, working with aviation, I mean, really had a culture where they moved their executives around, and I think that sort of naturally breeds attachment.

But I did, you know, talk to Larry today and I think he would be the first to admit that this wasn't necessarily his game plan when he first started. And if you look back in there was so much to do just to get ge and sort of a steady state and make sure that it could pay its debts. UM and was financially sound, and so I think a lot of work had to be done to get to this point. And that's to Larry Colpe's credit, whether it was asset sales or just helping GE clean up its

act a little bit. I mean a lot of this you really can't see from the outside looking in, but it's sort of basic stuff of how do we make sure that customers get their orders, how do we manage um you know, our side of the business, to make sure that we're doing everything productively and efficiently and all it helps. Just just got that twenty five seconds. So conglomerates, are we done? It feels like this or is it

just this is the EBB? I mean, I feel like G represented sort of the worst of the conglomerate genre. And I think there are companies out there where the structure still does make sense. But it's a different kind of conglomerate from what you think of from like the nineteen sixties and fifties and all of that. And there is a future if you can really tell a narrative and if the businesses actually put it together. Who's next?

Three AM? Just quickly? I think three M is a hard one to break up because because they have so much overlap on the technology side, they shared a lot of research. You're always a Mustary brook Sutherland. She's deals in industrials columnist at Bloomberg Opinion. Thank you, thank you, this is Bloomberg. Yeah, I'll bet you. Let me drive. Oh no, no, no no, this is not a twin home O night Please, I want to drive. It's good question,

drive Drive to the clothes down radio. All right, just about Timmy's left in today's trading session, getting ready to wrap up that Tuesday trade, and definitely a different tone than what we've seen, certainly yesterday and what we've seen in the last what was it, Katie eight, It would have been nine days, That would have been nine days. No longer. Cheez, come on markets, Come on, bulls. No, I embrace you all bulls and bears alike. All right, let's get to it, the Drive to the close. Jessica

Biemer is with us. She's portfolio manager at the asset management company Easterly Investment Partners. She's on the phone in Pennsylvania. So good to have you here, Jessica. Today's tone definitely a different one. We have all talked about the different reasons. Maybe it's a different FED chief looking at just some different reasons inflation concerned. What do you make of the trade? Are we just taking a breather? How do you see

it or how do you interpret it? Yeah, Hi, Carol and Katie, it's so nice to be with you today. It feels less like a Tuesday and more like a Friday. We've had a really long WEEKO that we wish. I mean, lots of news flow today and we're three quarters of the way through earning season. Um, we have a lot of news. We're still processing it. And then we get news from GE. I mean they reported two weeks ago

and then just today decided to split up the company. Um, you know, six thirty am up early with an eight fifteen am call. I think, uh, so very busy and UM, I think some of that is related to the fact that companies are acting less defensively for the first time in a really long time. They're going on the offensive and they're really starting to shift their strategies. UM. I think some of that's just the recovery from COVID, but

they're also looking across landscape and and seeing the macro economy. UM. But you know, we're also looking at the upcoming holiday season. We're sixteen days away from Thanksgiving, and I gotta tell you, and Kate's made me very nervous a little earlier in your show with that statistic that turkey supplies are down six I mean that's a big number. Um, we're looking at that kind it's time. But you know the other thing that's interesting about her stats with air travels up

eighty percent. So we're all going to celebrate Thanksgiving one way or another, right, Um, we may be eating a different type of turkey this year, but we're all going to be celebrating. We heard it from Dr Kathy Faucci talking to her David Western earlier on blueber TV. I mean, Katie, they were talking about thought. She said, you know, we're going to be together as a family, which was not really how it was last year. I know, I mean

think back twelve months ago, totally different landscape. But we are headed into the holiday season expected to be a kind of fraud one. And just I was looking through some of your stock pick picks. I see Hasbro, Carter's, Cole's retail. I find that really interesting because you know, with all these supply chain issues, a lot of people have warned that it's gonna be really hard to actually shop for the holidays. I'm curious what you see as

the bowl case for some of these names. Yeah, so we're going to find out a lot more next week from retailers in general. Although we had a lot of the majority of SMP companies have reported, only about half of retailers have reported, So we're going to get a lot more news there. But from what we've heard so far, UM, there are a couple issues that I think are going to affect the near term but but probably work themselves

out over the next few quarters. We're talking about things like freight and shipping costs, which has clearly weighed on results at various companies UM. But we're also seeing tremendous consumer demand and I think that we're seeing that across the board as the delta variant really peaked in September. UM banks during earning season talked about higher purchase volumes UM and increased use of credit cards. So people are

going out and shopping. The demand is certainly there, UM, but I expect there to be a rocky conversation from a lot of companies about certainly their ability to get inventory into the country. We started hearing about that this summer. UM. This conversation is going to continue and then we'll certainly have a very detailed conversation on earning. It is called

about labor and to the extent that UM. A lot of these companies typically hire UM people seasonally bring them in and my guess is that this year that will be a lot more challenging. And that's one of the reasons why I think we've been hearing so much about supply chain issues in the news and in headlines. I think companies themselves want us to come in early, and UM, I think that will start to do that. Hey, one thing I wanted to ask you, Jessica, you Overwright Consumer Discretionaire,

which is getting beat up today. It's done about one point five percent. If I look at the eleven major industry groups in the S and P five hundred, you like industrial as you mentioned, companies kind of rethinking and the big news at a g E today. Do you like General Electric more has someone who follows the industrial sector as a broken up company, three separate companies? Does that make is it more attractive to you as an investor? You know, I have to say, it's more interesting today

or it will be when they break up. I think part of the challenge in being an analyst on G is that it's such a large company. I mean, they have thirty p m L statements and many of their business models are are just so different and hard to follow as an analyst, And so it may be the case that UM as they split up, will have more granular detail by by business line and by segment, so

that it's more easy to compare it to the direct peers. UM. Also, at the same time, it will be harder for them to hide problems in different you know, in different parts of the business as they become smaller, and so I think it'll just be an interesting transition. The big question for me UM with G, and one of the reasons why we're not currently investing there, is their legacy liabilities and what that long term care book looks like. Where is going to be once the company splits up, and

who's really responsible over the long term. So I think there is going to be a process by which all of the sell side analysts to really understand the different individual spun off business models and and we'll really begin to understand if there's an investment case there and just go. I want to do your your thoughts on the financials a little bit more because you are bullish on some of the big banks Wells, Fargo, Bank of America, JP,

Morgan Chase, And it feels like those names. I mean, they've posted blowout after blowout quarter when it comes to trading, but it seems like they follow the trajectory of treasury yields more than anything else. Curious about how you consider those names. And we have about thirty seconds left. Yeah, that's that's true. I mean, we we are focused on, um, a few things with the banks. I think one of them is loan growth, and it's something that we've all

been waiting for. We really haven't been able to see the full power of earnings with loan growth and with a normalized credit cycle, so we're looking for some upside there. Um. These are very stable balance sheets, they're very shareholder friendly, and I think there's a lot more to come in terms of what they're able to earn for investors. All Right, we're gonna leave on that note. He thank you so much. Jessica Beamer. She is portfolio manager at Easterly Investment Partners,

joining us on the phone from Pennsylvania. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube. Search to Bloomberg Global News.