the internal stress tests that brian moynihan faces that she spoke to cory johnson and olivia sterns -- he spoke to cory johnson and olivia sterns earlier. moynihan --brian they screwed up three times. the investors are getting impatient. >> this is the do over for the third round of stress tests. mike at citigroup said if we can get this right, i should not be here. they got rid of their cfo. they said it was amicable. this is coming at a special time for brian moynihan. >> he did not take the summer off. >> he's at risk of losing his chairman title. >> we are talking about feeling stress tests. that suggests perhaps a lack of oversight. isn't that an argument to have an independent chairman? >> that's what a lot of people have said. it comes at a bad time for brian moynihan. voteare holding a special eight days before the stress test is due. people will be upset and talking about this. >> the vote before is better than the vote after. >> exactly. these guys have until may 2016 told about. best to hold a vote. >> it makes you wonder if that suggests that they will not pass again. an

i don't think brian moynihan is taking the summer off.ou have people voting on whether or not he should be chairman. scarlet: for a while, he was the only ceo of a big bank that was not also chairman. that changed in 2014. year,in october of last the board elected him chairman and ceo. back in 2009, it was a contentious time, they separated those roles. -- decided to overrule that bank of america decided to overrule that. scarlet: they are still upset about that. -- he has a lot riding on what happens come september. this jamie dimon get involved in the weekly meetings? q: they have to if it is a risk. he said if i don't pass this, maybe i should not be running this place. brian moynihan has never said that. the cfo left recently. that's an indication they are taking this to heart. matt: the cfo did not leave. wasn't he forced out? scarlet: semantics. matt: as punishment for failing previous stress tests or an assurance to brian moynihan that he did not have someone to take his job. they say thompson wanted to run his own company and that

>> this is beyond just brian moynihan. let's assume brian moynihan is a superhero, as implied. the superhero they have a major governance issue. that means either changing the governance committee -- >> an important point that i want to emphasize to her your issue is not with moynahan, necessarily. he is same guy taking the stock almostrom six dollars to $18 today. he is restructured a balance sheet and gotten rid of tens of thousands of employees. it is with the board. this is a governance problem. >> bank of america has the worst performance of any other bank citigroup. how they fix that evidence issue is up to them to fire the orbit governance committee, make we do not the top, care. but this needs to be fixed. --hink this new electorate director, we have this new lead director. they say he has got regulatory experience could what they do have saidhich they elsewhere, is that the regulatory experience comes from running hospitals. not banks. what are you going to take, the head of the subway system and make him a director and say he has regulatory. that iser thing offensive

but this is beyond brian moynihan.n is the superheroes they imply they have a major governance issue. you need better oversight at the company. that means either changing the governance committee -- erik: your issue isn't with brian moynihan necessarily, he is taken the stock price to almost $18 today. he has gotten rid of tens of thousands of employees. it is with the board, right? mike: it is the worst corporate governance since citigroup. how they fixed the governance issue is up to them. make changes at the top, have an independent chairman that this needs to be fixed. i think the new lead director, they are saying they don't need to have a separate chairman from the ceo. but this new lead director -- stephanie: who is this guy? mike: they say he has -- experience. regulatory experience. it comes from running hospitals not banks. it is very misleading. the other thing that is offensive to shareholders, the new lead independent director in the 14 a says that bank of america conducted a thorough process when they rec

vote -- it is a special shareholder meeting and their holding it just so people can decide if brian moynihanhairman. >> they have to submit the stress test. brendan: coming up we turn to donald trump. we used to think it was entertainment but now it is politics. tom: the headlines are quiet markets finally. have some top headlines here is a vonnie quinn. vonnie: police in thailand are issuing an arrest ward for a suspected bomber. 20 people and injured more than 120 but police are not limiting their search to him. and officials say he probably had accomplices. the federal reserve is releasing the last -- the minutes from last month's policy meeting. those minutes are due out this afternoon at 2 p.m. eastern will have them for you here on bloomberg. the first prescription drug to boost sexual desire and women is headed for the market. the controversial pill one approval. the treatment comes from with an array of warning sent doctors will not be able to prescribe it until they have taken an online certification program and they have to cancel site -- side effects like nausea and dizziness. rea

now let's go to brian moynihan.hole different challenge then jamie dimon. >> yes, he does. he still has a powerful capital markets is missed. the issue is that he is not as being cost of capital. we are seeing a shift in the business models. fixed income is still in trouble. the trading businesses are not generating. it is a business in transition. trade volumes are dropping. they are becoming liquid. risk isdel taking less appearing. we don't know how the model is going to make money. tom: what about retail? vonnie: that's where i was going to go. tom: when was the last time we saw anybody in a retail branch? vonnie: do you concentrate as much on the wall street banks or are there just different boutiques that you focus on. >> we talk about the universal banks and where they are going, but think of the boutiques. in terms of the hedge fund world , they are not market makers yet. is it an equivalent balance to what was in banking? >> they don't have the obligation to be market makers. seeing is this a new business?

warned about possible consequences of a yes vote that would combine the chairman and ceo roles for brian moynihanote would be what he calls a reputational risk for the industry especially at a time bank of america already has poor oversight practices. mayo will make the case tomorrow morning at 7:30 a.m. eastern time. it will be interesting to see the contrast between what he is saying, what the bank is saying was just simply something that they thought was the right thing to do. in retrospect they have decided to give this vote to shareholders. we'll see, carl, what he has to say. >> when mayo wants to be heard, he generally gets heard. 7 1/2 minutes to the european close. >> it is negative as the session has been here so far today. one of the big themes is the verbal intervention and talk about the possibility of extending qe or increasing the pace today. by the way, closed today for the public holiday. today we got inflation figures for the eurozone up 0.2% at the headline level and the main reason for that is because energy prices continue to fall away. the core is still about 1%. that's a de

people like brian moynihan, the ceo of bank of america who says we believe doing the best interest for our customers is absolutely the right thing to do. jack vogel founder of vanguard very strong supporter of this rule. we'll hear from a witness shortly who plays in this space every day as a fiduciary working with small investors who tells you when you put your customers' interests first it's great your fo your customers and it's great for business in addition. and a transcript from the house shows there is an interesting thing happening right now. the conversation is shifting from whether to have a best-interest standard to ensuring that a best interest standard can be effectively implemented. i'm heartened by that shift and we welcome any and all suggestions on how to improve le proposed rule to ensure it can be effectively implemented. we've heard and understand concerns that have been raised about issues such as point of sale disclosure, date of retention and mechanics of implementing the best interest standard. and as far as we don't lose sight of our north star we are very flexi

you know i'm not asking you to second guess brian moynihan by any means. but there is talk out there that maybe the two divisions are just not get ago long. b of a and merrill lynch s that a business mod that will is still valid today? do you think merrill will be worth more if it were to be spun off and a stand alone company once again? what do you think about all that right now? >> i sold merrill lynch to bank of america because i had no choice. ly to protect the merrill lynch employees and shareholders pt we did that. >> and so that's my point. now it's a very different time though. >> that's true. i think the wholesale bank that's do everything offer every product to every, i don't think it's clear that there are synergies that people expected are really there. >> so what does that mean now? should they go their separate ways? >> the pieces have been integrated. the investment banking pieces i don't think it's viable for them to split it off at this point. >> all right. fair enough. we know these things are hugely costly in both directions. you ran thi