wexner also gives, again, leslie wexner, one of the most powerful ceos on the planet, a founder himself, gives power of attorney to jeffrey epstein. last night after your story broke, i called ten ceos. >> executives, and bankers, who said there is absolutely no scenario where someone this wealthy and powerful unless they are on their death bed would cede this kind of control to someone. what did you learn? >> really the big question as reporters at the time we had. we had a whole team of reporters asking questions about this story. why did leslie wexner place so much trust in this man who was a college drop out, had worked as a math teacher, a stint at bear stearns, but beyond that why would you hand over so much? >> no history of managing money. >> and that power of attorney document is so powerful. we've talked to legal experts who essentially said this is like giving somebody else the power to sign away anything on your behalf on your name. >> danny, we do not see this happen. why wouldn't wexner's own attorneys say, stop? his bankers, his close associates. it makes no sense. >> it'

it was not just leslie wexner and the money. leslie wexner and jeffrey epstein were longtime confidants. epstein was at one point his power of attorney. in addition, epstein would help recruit models for victoria's secret fashion shows, one of their big things to do. there is that connection between the models and the business. when we looked at is what does it mean for victoria's secret to be aligned with epstein at one point, and what does it mean moving forward? vonnie: before we go to the future, who is john the brunel and who is mc2? >> they are a modeling agency in miami. he would allegedly recruit young girls to then be models with other retailers, not just victoria's secret. in 2014, a lot of retailers were showing concerns, macy's, nordstrom's, i don't want to be associated with it. one of the companies not named was reported secret. models dide of these walk in the runway for the fashion show. >> correct. we saw with the models were doing, they were out in front for victoria's secret. so that goes back to the ties with

leslie wexner's friendship with jeffrey epstein is under scrutiny. lisa: joining us now is so knowledge asset -- is sonali basak. i want to talk about the overhaul in wall street research. new rules have gone into effect that force investors to pay for the research. how much does it cost? sonali: the biggest banks presumably could charge the least. for jp morgan and citigroup, that is about $10,000. for morgan stanley, $25,000. it is not cheap, but still cheaper than what the smaller firms can offer. there's a bit of a debate going on on whether the biggest banks can subsidize research costs through other parts of the bank. david: at the same time, there is a chart that showed the headcount in research, which has really gone down. lisa: the 12th top investment banks -- the 12 top investment banks are down 14% from five years earlier, so people have lost their jobs. based on what some people were saying, this would have been a bloodbath. is it less than people thought it would be? sonali: we are trying to be optimistic on a monday morning. [laughter]

epstei epstein's original client was leslie wexner, founder of victoria secret and others. he was a multibillionaire. as far as most people in the press and new york know, he was the only single large sort of investor in epstein's funds. he had $100 million in real estate and supported the lifestyle without any clear indications of how he was raising his money. that's interesting because it's a similar issue that donald trump has. where do the mystery millions flow into the trump organization and where where do they fall into the funds? that's another thing that will be interesting as the investigation progresses. >> listen to the attorney outlining the specifics of the allegations in the crimes against epstein. >> the beginning of at least 2002 and continuing until 2005, epstein is alleged to have abused dozens of victims by causing them to engage in sex acts with him at his mansion in new york and at his estate in palm beach, florida. the victims all underage girls at the time of the alleged conduct were given hundreds of dollars in cash after each encounter either by eps

epstein's original client was leslie wexner, founder of victoria secret and others. he was a multibillionaire. as far as most people in the press and new york know, he was the only single large sort of investor in epstein's funds. he had $100 million in real estate and supported the lifestyle without any clear indications of how he was raising his money. that's interesting because it's a similar issue that donald trump has. where do the mystery millions flow into the trump organization and where do they fall into the funds? that's another thing that will be interesting as the investigation progresses. >> listen to the attorney outlining the specifics of the allegations in the crimes against epstein. >> the beginning of at least 2002 and continuing until 2005, epstein is alleged to have abused dozens of victims by causing them to engage in sex acts with him at his mansion in new york and at his estate in palm beach, florida. the victims all underage girls at the time of the alleged conduct were given hundreds of dollars in cash after each encounter either by epstein o

for decades epstein handled michlts for former high-profile clients like leslie wexner who owns victoria's soorkt. his rolodex also includes britain's prince andrew, former president bill clinton and president donald trump, who in 2002 told "new york" magazine this about jeff epstein, "i've known jeff for 15 years. terrific guy. he's a lot of fun to be with. it's even been said he likes beautiful women as much as i do and many of them are on the younger side." and that's not epstein's only connection with the current white house. he evaded federal sex charges more than a decade ago similar to the ones he faces now. the u.s. attorney of florida back then was alexander acosta, trump's current labor secretary. with high-profile attorneys ken starr and alan dershowitz representing epstein back then, acosta cut him a plea deal on lesser state charges which sent epstein to county jail for little more than a year and required he register as a sex offender. the sentencing so lax, though, epstein was allowed to continue working while serving time. >> i really don't know too much about it. i know he

wexner the parent company of victor's jet. a week ago, wexner put out a statement saying i had nothing to do with these terrible actions i haven't been in touch with him for more than 12 years but he also know his residence in new york, wexner basically gifted to epstein. now the board is getting involved? >> yeah, there's a development here that's interesting. it's cryptic to a certain degree because they say they have opened up an investigation connected to jeffrey epstein. not a lot of details what that means they did come out with a statement that jeffrey epstein worked as wexner's personal money manager for a period of time, not for l brands specifically. and that they are looking into it. so it raises a number of questions. >> the question to me, how do you end up les wexner's personal money manager, when you have no track record of managing anyone else's money? you get one of the richest guys in america. a lot of question. stephanie, thank you. >>> coming up, the democrats are at a cross roads impeach president trump or

leslie wexner, the ceo of "l" brands the well known parent company of victoria's secret, limited, express, other retail names had a very long relationship with jeff re-epstein who for years handled his money. they severed that relationship years ago after jeffrey epstein acquired les wexner's mansion, now valued at $77 million, a residence that wexner gifted to epstein. now the company is investigating their relationship? >> yes, stephanie. you raised some of the key points there with respect to wexner and epstein. basically, there's ban lot een f questions over the years how jeffrey epstein was able to get the money and manage the money that he has. we've talked about it privately. a lot of people tried to dig into this. there's been some initial reporting so far and i don't think we're done hearing about that. it's always been talked about that les wexner was one of the key people to really give epstein a significant amount of cash to manage. there are obviously the connections with properties and in addition there have been allegations and i think this is why we're looking at an intern

he managed leslie wexner's fortune, founder of l brands, a billionaire decades ago at a time when there were less billionaires and had a far reaching all encompassing role managing his investment money, his philanthropy, doing family office type duties. i don't think we even know the full extent yet but it was wide ranging. he was known for that and he got wealth eight least largely in part because of that. people knew that. he also had a reputation for being savvy when it came to tax strategies and estate planning. now, where he got that reputation beyond wexner i'm not sure but it was enough that leon black hired him over a course of 15 or so years on and off to do this work for him. >> so leon black who runs apollo, has dozens of tax specialists who work for him. >> right. >> he needs jeffrey epstein former math teacher from dalton? >> apparently. who does not have a bachelor's degree. whatever happened there to establish that relationship, black trusted him enough that he kept him on and off for more than a decade and he also added him as a director, which is well known at this poin

leslie wexner saying he was never aware of any illegal activity -- of any illegal activity. the financier has been accused of sex trafficking of minors. that is your bloomberg business flash. david: jp morgan reported second-quarter earnings a half-hour ago, and beat on earnings-per-share and revenue. their stock is down slightly, perhaps in part because trading was a bit disappointing. we welcome now alison williams, bloomberg's senior bank analyst. -- howilar to this similar is this to citi? alison: pretty similar. the net interest margin, which is our focus in this quarter, coming in light. jp morgan guiding down. citi kept their guidance. jp morgan versus all the other bigger banks that we follow had not yet taken that down, so taking that down a bit. i don't think that should be surprising. that the last quarter yield curve can shift, and they weren't going to just lower guidance at that point based on one quick move, but things have gotten worse since then. they are basically taking it down 4% versus a prior 5% consensus. it looks like it is going to move down because

wexners assets, that can bring in sizable fees. we don't know if that was what he was doing. >> we commonly referred to him as a hedge fund manager, obviously, given him the billion fair title none of it seems to fit. not a lot of a foot print in terms of trading activities or pilings. >> it shows his real estate is 2 million zone he has an island in the caribbean and a fabulous townhouse. >> not one of the best islands, i don't think. on the lower end, not in the best neighborhood. >> right >> so anyway, he has a huge ranch in new mexico. he has a number of properties clearly worth real money in terms of his assets and cash, we don't know. he was a private banking client of deutsche bank we talk about that and the fact that he was actively currency trading until earlier this year when deutsche bank parted ways with him as a client >> for reputational bizarre. >> reputational issues >> as opposed to 12 years ago when the charges were first brought. >> that's the other odd thing, in 2008 as reported, there was a similar set of charg