stephanie: we are talking about a 1980's redhead. >> bank of america chief financial officer bruce thompson as part of a management shakeup. mike mayo says while it is no surprise, the problems do not just lie with thompson. >> look at the issues that bank of america has had. they have had issues with the stress level. they have had inconsistent financial metrics. there is lack of connection from compensation to metrics. that falls on the cfo. it falls on the cfo but it also follows to the ceo and board. it seems like one more person is being shot while those above are being protected. matt: tom wagner still with us. will not ask you about specific people or banks involvement you interface with banks every day. what do you make of this shakeup? we were talking about the fact that he goes sometimes play a part. tom: that never happens. you see it in every corporation, change in leadership. in the financial world, it happens for a variety of reasons perhaps more frequently than in other industries. we work with a lot of very hard-working professionals on the sales and trading side that are fa

bruce thompson is out. he is leaving the firm. y: thompson was once considered a successor to brian monahan. -- the problems at bank of america don't only lie with thompson. >> i think the oversight issues at bank of america have been the worst at a bank since citigroup. donewas this issue today by the board? issues with the fed two of the last three years. they had a $4 billion regulatory capital misstatement. in 105 pages of the proxy this year, the board needs to be held marketable. tom: gerard cassidy has enthusiasm about bank of america as a value that could become more like diamond, more like stump? >> i disagree vehemently because i don't believe they have proper oversight at the board level and at the top of the firm. there is not the right town set at the top. there is inconsistent financial metrics. there is not one forward-looking financial target. as investors, we need something to hold management a cannibal to. there are not enough financial metrics to say this is what they are trying to achieve in this specific time f

bank of america shaking up it's management replacing cfo bruce thompson a week after the bank reportedbiggest quarterly profit in nearly four years. thompson will be replaced in august by the cfo of b of a's consumer bank and wealth management business. the cfo tapped thompson to be cfo shortly after he took over and he had been seen as a potential successor. during his tenure he paid $70 billion in legal expenses and fines. it's one of the bright spots in germany up about 1%. the new york stock exkangchange and nasdaq agreed to back up each other's closing auctions. it's key for mutual funds and institutional investors as it sets benchmark prices for stocks. it's also the best time to pull off big orders without having a major effect on share prices. very interesting. all right. still to come on worldwide exchange merger announcements aren't just reserved for monday anymore with another big deal possibly coming today. details after the break. here's a hint, it may be in health care. >> welcome back. there were rumors this week that pearson was exploring the sale of the financial times

bruce thompson has been a job for a long time. it is also about the stress test right now. you saw a number of the changes being made around the stress test process. that has become the most important day for the banks. tom: bank of america -- did they flunk the stress test? michael: they got a conditional pass this year. tom: that describes my whole schooling. brendan: what it does is put it in buyback suspension, right? michael: yes, they could do them for now, but they have to resubmit its make sure that they get the full approval. last year, they got the approval and said they made a mistake. brendan: that is not buyback suspension, that is buyback detention. michael: right. tom: what does mr. moynihan have to do? if he needs "growthiness," where does he get it? michael: they have and try to get it through cost cuts. michael mayo put out a note that their core earnings power has stayed flat over the last year but i think, you know, they will need revenue growth, they will need help, but the cost cutting has to show some fruit here. tom: michael moore, thank you so much

alix: bank of america second in command ceo bruce thompson out of a job following a management shakeup. he will be replaced by paul than donofrio. paul think analyst mike mayo said the shakeup is no surprise but the problems at the bank do not lie only with thompson. i think the oversight issues at bank of america are the worst they have been at a big banks in citigroup. tom: was this action initiated by the board or was this mr. moynahan acting alone? >> i am not sure, but there are many chefs in the kitchen at bank of america when it comes to their problems. they have had issues with the stress test to of the past three years. a $4 billion regulatory capital misstatement. in the one to five pages of the proxy this year. the board meets to be held more accountable. has enthusiasmdy about bank of america has a value that could become more like diamonds. do you agree with your colleague? >> i disagree against i do not believe they have proper oversight at the board level and the top of the firm. there is not the right tone set at the top. inconsistent financial metric. not one forward-l

bruce thompson is out of the and of the month.e will be replaced by the head of the strategic s merrillnit of bma' lynch unit, paul did offer you. the relationship between moynahan and thompson had deteriorated. the two battled over where to make investments to boost revenue. bank of america shares about 1.25%. scarlet: aftervers many resigned x-ray to text messages has a new job in public relations. anthony weiner has been hired to create -- work for crisis pr firm. nadia eckley a big surprise because his wife is one of hillary clinton's top advisers. using his connections maybe. those are your top stories at this hour. coming up, dow chemical which you know is the largest u.s. chemical coming by sales posted sales that beat analyst estimates. we will be hearing from the ceo. mark: if you have a next of $1 billion on hand you can buy an island in the mall dives but there is a catch. scarlet: southwest airlines is flying high after it recorded earnings that beast it analyst estimates. all that and much more coming up on "bloomberg

paul denofrio will be taking over for bruce thompson.management group. b of a also going to replace the wealth management chief. we should tell you new york city's uber fight is over today. at least for now. mayor de blasio dropping his proposal to cap growth of the ride sharing company. the city will conduct a four-month study of congestion traffic, and pollution. the mayor could revisit the cap in the future. one comment on this. it is possible that de blasio succeeded in some odd degree to force ooub tore hand over some of the data. that's an issue in terms of what that study was going to look like. >> in any normal environment or time period i think people should justifiably just be flabbergasted at the words putting a cap on uber's expansion. that it's normal in today's world and environment. >> and it's not just new york city. >> right. but you can see it happens where there's entrenched -- just like it always happens. in france. remember how the guy there that have the taxis, the unions that are already entrenched and for whatever

. >>> the shake-up at bank of america, cfo bruce thompson leaving the company being replaced by the ceo units. >> stock getting hit on the news. is this a reason to bail on the stock? >> marty, you are the bear here. a lot of people are concerned this is systematic of a power structure. increasing hold on the power position but underlying of concern of what the direction of the bank is or should be. >> we believe moynihan has outlined his vision and direction. you look at these movements. i was cfo at a bank before. after four years, especially in this environment with so much compliance and regulatory headaches, you want to do something positive. bruce is looking for other opportunities to get out and start building business and not just putting out fires. i wouldn't read too much in this announcement we got last night. >> they are coming off a pretty good quarter. they actually saw some signs of loan growth and some signs that the legal issues and all of the headaches from the financial crisis are finally behind them. as a shareholder, are you pleased with management and do you have c

. >> melissa, surprise news last night that it the long-time cfo of bank of america bruce thompson isk officer for the bank for the last 5 1/2 years will be replaced on august 1 praised thompson for his grit and success of the architect of the bank's balance sheet. the loss of an executive seen as a future banking and market's head or perhaps ceo candidate left some at the bank scratching their heads. there were other moves. david darnell is retiring later this year to be succeeded by moynihan allied terry laughlin who worked recently on 0 the stress test submission to the federal reserve which failed in various ways multiple times in recent years. human resources chief andrea smith is promoted to chief administrative officer. the slight down turn has mostly been in line with other financial stocks the departure is maybe indicative of lingering cultural and management issues of purchases of smaller banks, including merrill lynch during the financial crisis. the fact that the banks never fully integrated those cultures. the mid quarter timing reminded me of jpmorgan house cleaning afte

. >> ada bruce whittaker received the blood report showing thompson didn't commit the carjacking.n a deposition, michael asked him if the prosecutors were obliged to disclose evidence. >> the understanding was, if you disclosed -- >> exculpatory evidence? >> exculpatory meaning what? >> that's a good question, i don't know if that's -- that's the kind of stuff that was never, perhaps, clarified to the extent it should have been clarified. >> was there training for prosecutors on what that obligation meant? >> i don't recall there ever being training on that. i don't recall there being training, period. >> jim williams who prosecuted thompson was asked who decided what evidence would be shared. >> it was up to the attorney trying the case. we were expected to follow the rules. >> were there any other guidelines that you can recall as to how you were to make that determination? >> no. >> when we asked the prosecutors about their knowledge of the law that requires that favorable evidence be produced they got it all wrong. the district attorney's office had a handbook, it was flat out

bruce. >> dawn the folks who live around thompson and indiana knew they would be without their beloved playground at least part of the summer, but they expected the grand reopening to have come around the middle of july. now, it looks like they may miss the entire summer season. the stokely playground is padlocked these days. not there would be much for kids to do even if they could get in. maybe climb on the piles of gravel. perhaps play hurdles with the beaten up saw horses. it's an incomplete mess. >> and then they had the little sprinkler system down there before. >> reporter: long-time residents like barbara staley are saddened by what their neighborhood has lost. >> it means a lot. all the children that i've grown up with have been playing in this playground for over 50 years. >> reporter: neighbors say a complete redo of the historic playground began in may. but aside from the public bathroom, nothing much has been completed. little work seems to have been done over the past month. >> we're concerned because they have done a lot but all of a sudden it has stopped. >> reporter: all over thi