by daniel patrick moynihan, u.s.tor, before he was a senator. he was a academic and a bureaucrat. and he wrote this famous study of the black family that in some ways i think has been misinterpreted or misread, perhaps intentionally so. you do a kind of re-excavation of it. what do you think we've missed about the now infamous moynihan report? >> i think, you know -- i hate to do the both sides thing. usually, i oppose it. but i think there have been misreadings on both fronts from a conservative perspective and from a liberal perspective. i think from the liberal perspective the notion that moynihan was in any way blaming the victim is just completely off. i think anybody who reads the report, moynihan is very, very clear about where the blame should be. not only, that but if you listen to the speech that lyndon johnson gave that was inspired by the moynihan report, he literally says that even as he talks about family breakdown, that blame must be laid at the feet of white society, a statement that no sitting presid

brian moynihan gets to remain chairman.lution concerning the board of his freedom to appoint a non-independent chairmen to run the board. previously in 2009, bank of america was forced to name an independent chairman and after let years, chad were tiled -- retired last year. the way that they handled it, that he, gets to the crux of your question. ask for forgiveness, do not ask for permission kind of scenario. today, they changed the company bylaws but only 63% supported versus 30%, not exactly an overwhelming majority. betty: indeed. according to the bloomberg sources, it would have been much better if brian moynihan got 7% or more. the higher the number, the better it is. given that it was only 63% so far. need tothe story they put out to shareholders? it remains to be seen whether the board will see fit on a 6% approval. in that briefing i just came out of with brian moynihan, the lead notpendent director, i was able to get a clear sign p are on the one hand, there is a dismissal of 37%. some of the senior managers in t

but why begin with the moynihan report?ow we should construct this kind of intersection between race and criminality? >> that was one of the last moments where somebodyyriad pro african-american community and suggested a broad swath of investments to deal with them. that was a political calculation made by moynihan himself. he decided not to -- it wasn't like he didn't know. he knew very much what to do. one of the things he talked about doing was unequality. reparations to make up for past unequal treatment. he had a suite of solutions. increased access to birth control. really wild ideas like saturday postal service to increase employment for black men. but i think the reason it s why country did not adopt that kind of investment. actually are within the korea of moynihan himself and the report unfortunately. >> i want to push on to choice to use mine hand to think about incourse ration, especially around black men's bodies. part of what you don't spend a long time doing is teasing out the extraordinary influence of this

moynihan. people talk about politics and the politization of his speech, you were in d.c., do you think it was a markedly political speech or the kind of speech a pope should be giving? >> for a man speaking to people who are not catholics and not in a religious setting, i think it was perfectly pitched. he spoke to congress and called on them to go deep and think deeply about what the common good would be. i think it was appropriate for him to say that. liz: can i say i called it? he went to the other side. i'm liking this pope more than ever. he did not ignore the children to the right. he first went left and then right, yes he's holding up his schedule. they should know this. this is the man who does this, right, father? >> this is what's going to happen. this is the people he reaches out to. fortunate enough to be there at the front lines and they've been waiting there, and i think just his presence, just that touch rewards them for the good hard work. liz: i'm just soaking this in. >> when

isn't this a referendum on brian moynihan and his tenure.at the bank stocks from the day he took over, january 1st, 2010, bank of america stock is up 12%. citi is up 63% and jpmorgan chase is up 75%. why do you like bank of america and broin moynihan so much begin his performance? >> if you go back to the numbers, some of the numbers that i just mentioned to you but i will throw you some more -- >> but as a shareholder doesn't it boil down to the returns? why is jpmorgan giving me 75% and brian moynihan 12% during his tenure? >> because they didn't own country wide credit. if they did they wouldn't have shown 75% return while bank of america showed a lower number. you have to stake a look at hoe deep the hole was that bank of america was in that they had to get out of which was not the situation at all at jpmorgan. this company has made over $70 billion in litigation penalties in the last few years. this company was priegt at 45 to $47 billion a year to run the company because of the fines it was paying. this company will now cost less -- $4

why is it so important moynihan to do the jobs?ckhink it is a to colonial times where there is the sort of this macho role. it is precisely checks and balances that gives you good management. tom: i want to link back to stock performance. forget about the emotion of it, the soap opera. just simply put, not picking on jamie dimon or mr. moynihan -- i know them, i like them both -- but i'm sorry, chris, that is a grand canyon divide between the two. chris: if the performance of bank of america were better, we would not be hearing about this. you have this media frenzy around this contest between the board and moynahan and the shareholders, but the reality is, even if the shareholders voted unanimously to separate the roles, the board can do as they like. flawed board process, inflated analysis, timelines are all wrong with this analysis. but give me one in our -- but give me one argument for this because there seems like there could not possibly be one. chris: it is a matter of convenience for the board. , if you have a strong outsid

moynihan, i am stating reality.coming from -- the faith coming from for those who do have faith in bank of america? chris: there is always hope, but if you are on the board, forget about with moynihan, how do you justify the lack of performance and change. the beef starts with the board, you have to talk to the chairman and outside directors and ask how do you accept this. tom: i have to go to radio. vonnie: you have great guest coming up and you will keep an eye on the mario draghi press conference. we asked today how much wage growth will we see in tomorrow's jobs report? first answer, nothing of significance, lower costs, which is good for u.s. corporate profits and the u.s. world consumer. brendan: what is the consumer deed, does he need wage growth? chris: i think so, the lack of credit availability constraints put on that, i have -- i had one bank ceo said to me, he said, the concern is toxic, we cannot touch the consumer. most banks we work with are shifting to a business loan formulation, multifamily real es

moynihan, she did break the law, and thank you very much for coming on to talk about it. robert moynihan, the founder and editor of inside the vatican magazine, he broke the story, thank you very much. >>> still ahead, the death penalty and pleas for mercy from the pope. a loo look at long-standing opposition to capital punishment in the u.s. >>> and plus, russian strikes in syria, and what it could mean to the region and with the u.s. >> russian war planes carried out strikes between syria. and they seem to be aimed at propping up syrian president, assad. >> the fact that russia has to take these noteworthy steps to afternoon up their support for assad is an under case of how concerned they are about losing influence in the one-client state they have in the middle east. >> russia said that the operation will be limited to airstrikes, and peter sharp has more from moscow. >> it's to be said that the russian airstrikes were expected. they have been steadily building up their military arsenal in syria for the last 30 days, and they have 60 aircraft on the tarmac at the air

well, immediately following the approval of brian moynihan as both ceo and chairman at a top bank ofmerica, he as well as the company's lead independent director spoke to reporters on the record, and i want to share a few of their comments with you. first, brian moynihan said it was good to have the support of shareholders and that he and the board learned a lot in the process of making this change to the bilaw bz a year ago, conversing with shareholders over the last year, and then putting this issue to a volt and realizing exactly what it was that shareholders wanted. he called the board in its current state strong, experienced, and diverse and when asked whether there would be changes forthcoming to the board before the annual meeting next spring, he said the bank is always looking to refresh they will make sure they're on the same page and in sync. when asked, though, why they weren't in sync on this very issue last year when he made the change, both said if this issue was put in play by the fact that chad holiday, the chairman last year, said he wanted to be chairman of royal du

pension funds, including the largest employee retirement system, -- brian moynihan earlier this year was made eeo atn in addition to's bank of america. they are two of bank of america's's largest shareholders that say, this is bad governance. matt: it is a better way from their perspective to run the bank. it will be an internal struggle. if you are jamie dimon and your bank is jpmorgan, it is more likely to happen. it has been a couple of years since that kerfuffle at j.p. morgan, michael. what does that say to you that once again the focus is turning to corporate governance. mike: it is amazing these guys can hold the job so long with all the noise made about it. people have been talking about splitting up those rules for a long time. i do not know what their stake is in bank of america offhand? 1%. it is still obviously a big bully pulpit with a lot of money being managed in those funds. it will be interesting to watch. get to number three, apple. tois teaming up with cisco allow easier capability for its products to work with cisco. on the tv front, the company is in talks about

moynihan took over as bank of america ceo. it will have to name a new chairman. >> sources say the justice department to open a criminal investigation into the alleged cheating in the house panel plans to hold the hearing in next few weeks. shares of the german automaker plunging in europe yesterday and today as well after vw admitted to breaking half a million cars to defeat u.s. smog and volkswagen has halted the sale of some vehicles in the u.s. and is cooperating with the inquiry which could lead to billions of dollars in fines and according to analysis done, the federal government paid out $51 million in green car subsidies for vw diesel vehicles based on falsified solution test results. lauren: clearly this is an just a u.s. problem. korea will investigate its cars. this company will get hit really hard. especially $18 billion in fines. how do you survive that? nicole: you just can't cheat. lauren: you could be driving an apple car as early as 2019. the tech giant has designated the car as a committed project and product

. >> you start the piece and the title a sort of callback to the famous moynihan report.enator, he was a academic and bureaucrat and wrote this famous study of the black family. that in some ways has been misinterpreted or misread. you do a kind of reexcavation of it. what do you think we've missed in the report sf? >> well, i hate to do the both sides thing. and usually i oppose that. but there have been misreadings on two fronts. the notion that he was in in way blaming the victim, it was completely off. anyone that reads the report. he's very, very clear about where the blame should be. and not only that, if you listen to the speech that lyndon johnson gave inspired by the moynihan report, he literally says that, you know, for even as he talks about family breakdown, that blame must be laid at the feet of white society. on the other hand, i think that conservatives who like to, you know, make these illusions to the report and his focus on family are not so quick to make allusions to the fact he was very much calling for government action, money to be spent on behalf of

moynihan thanks? >> he wants to have both jobs. he is loving with the shareholders to get support.nvestors, is this going to be a tough fight for them? >> thing that i thought was interesting, is in the run-up to the vote we had a lot of people were saying that this is an abomination and they should separate these roles, look at the performance of the stock. however, when you look at the big institutional holders, they are actually ok combined ceo chairman. isk: is corporate america there is this human cry for people to say one job at a time? focus on one thing and let someone else take the reins? >> this is something that has increasingly been an issue, but it probably is mostly in the pensions, corporate governance types. it is not the core of what people consider in terms of the structured movement. mark: how is the usa's performance going to factor into this? >> bad time to hold a vote. another reason why they should be sweating a little bit. they are down 10% this year alone. wouldn't the day that he took over, and the stock today, and in almost six years the stock is only mov

he's very favorable towards moynihan, do you?if you think the board is incompetent on this thing, sell it. i think -- most of these banks are -- he's a survivor money and i'm not going to nail him and tell him he has to split it. and the former ceo of wells fargo said this shouldn't necessarily be voted on by the public. >> i don't know what the stats would tell us about companies that were separated as opposed together. i can think of citi group where the is a separate ceo and chairman. i'm sure there are those who tried. >> in the end, the stock -- and they're been buying it just because it's way behind the rest of the market. i don't care. >> been a lot of management changes in the circles outside of the ceo's office and we remember the high profile calculation errors when dealing with the fed. have they demonstrated to you that he deserves to have this additional roll? >> i think -- well, no, wells fargo did not commit these errors. he's righted the ship and i think this is rear guard action. look, i'm pro corporate governmen

moynihan will maintain his role as chairman and ceo of the company.y are in favor allowing him to keep both executive posts despite a push from pension funds and other activist investors to separate the roles. shares of bank of america, let's have a look, they're up 1%. >> now the world's biggest endowment fund has warned that maybe some markets are looking a bit frothy in their view. the harvard management company is proceeding with caution in several areas of its portfolio. the elite university has posted a 5.8% return so far in 2015 after hitting a record amount in close to $38 billion. however the growth rate is still well below the return of several rivals including princeton and yale universities which have yet to release their returns this year but some say it's in double digits close to 10%. mit, 13% already in 2015 so maybe a bit of underperformance. let's talk about the markets and ban banks. we have the vice president of equity research. and also an alumni at harvard as well so you put some of that $38 billion into that fund. >> some of it.

seems to be two issues herement one is whether moynihan should have the two roles, and the other askof hard, in some cases, to separate them. how do you think about it? >> the process was not handled well, that is for sure. ask anyone, no one would argue th that. there's an important issue here. that is, when you outsource, they say the investors are upset, but when you outsource your decisions to proxy firms, you are -- the investor's not making the decision. i will bet you that 80% of the no-votes are votes that have been outsourced to iss and they have been religious about this, about splitting. i mean, it makes no difference what company it is, how well it's going, how well the ceo -- >> just check the box. >> just check the box. >> yep. >> if we don't change this system, i go back to this. how many stocks did you own where you do not have confidence in the management? very small number i would say. so what you should do, and the reason they outsource because they don't want to take the time to lack at every issue. well, in my opinion, what you should do, because these are asset

but i, myself, like moynihan and what do you think of the stock moving forward? >> i think joey is a survivor. my charitable trust owns it. i think he has the banks trading down. i think he's ready to go higher. i think people that don't like these kind of things, sell the stock. let the board decide like the former ceo of wells fargo, he said, look, it's an important decision. if you don't like the stock, sell it. i liket for earnings. i like it, it's cheap. >> that trumps all this, roy in utah, roy. roy? >> caller: yeah, boo-yah, mr. cramer. >> boo-yah. >> caller: calling from orlando the greatest place on earth. the question is, is alcoa, is it a game changer? >> yes, i think this is a game changer. i think the technology looks a lot like nucor. mr. iverson created that great, great method of creating steel. i think this is a game changer for alcoa, but let me be very clear, roy. i think i'm the only person other than clause klein, the ceo, feels that way. that's okay. sometimes it's better to be alone. larry in massachusetts, larry. >> caller: boo-yah to you

owners was say, oh, we've changed our mind, we're going to recombine these roles and give brian moynihanwo jobs. one is a supervisory role of himself. that's a conflict of interest we're not comfortable with. we want an independent chair. shareholders in the majority agreed when it was put to the vote in 2009. also it was a binding vote. it wasn't a "would you please kindly do this?" we insisted it be done. so in good faith, the could be should be coming down saying an up-or-down vote, independent chairman? and they're playing fast and loose with the rules. that's not sporting. >> of course, this is all leading us to a vote on september 22nd. it's been viewed largely by shareholders as the bank's asking for forgiveness rather than permission for the situation that you just described. i'm wondering since putting your letter out yesterday, have you heard from any shareholders who share your view? >> well, we've been talking with our fellow owners. the letter that we've written was jointly signed with calsters which of course is the second biggest fund in the country. it's the largest educa

robert moynihan, the founder of the magazine inside the vatican.thor of pray for me, the life and spiritual vision of pope francis. robert, thank you for joining us. this is an exciting moment, what's going through your heart and mind right now? >> well, i do think it's an important moment for the pope, the first trip to america. america, many ways the leading country in the world, the leading capitalist country, though some of our capitalism subsided under recent governments, but he's a pope who comes from the southern part of the continent of latin america, speaks spanish, became the first pope from latin america and now he's coming to america, i think it's an important, historical moment. liz: absolutely, as we witness a pretty exciting greeting here, america is really waiting on tenterhooks to hear what he has to say. there is a belief he will give this anti-capitalist message. almost a preconceived notion about the pope, but when he touches down and takes the microphone tomorrow in washington, d.c., and friday in new york, what do you think he

if brian moynihan lose this is vote, then we should have a new, independent chairman.hecking the box here. we're talking about an independent chairman who knows his or her stuff that will have strong, independent oversight. how about someone like dick, ex-ceo of wells fargo? why don't you bring him along as the new chairman of bank of america. >> he comes on "squawk box" a lot, so i'm sure we could put that question to him. mike, we appreciate your time. three weeks away from that vote. we should mention we reached out to bank of america. the company sent us the following statement saying, quote, the board believes that having the same flexibility on board leadership that 97% of the s&p 500 now has while still providing strong independent oversight is in the best interest of stockholders. no company has dug out deeper since the financial crisis, turned back health with solid earnings and also to the benefit of our shareholders. the board respectfully recognizes that stockholders hold varying views on the matter which is why the board committed to putting it to a vote.

on bank of america, buffett reiterated his support for the ceo, brian moynihan, saying he opposes the split of the title. >> today the world bank said they should not raise interest rates until the global economy stabilizes. the chief economist said the fed risks triggering, quote, panic and turmoil, end quote, in emerging markets if it opts to hike interest rates at its next meeting next week. with today's move higher, is it possible that most of the selling is behind us? joining us, good friend and author, ron insana. good to see you, ron. thanks for coming in. >> thanks for having me. >> you make the point that this market is oversold for several reasons. mr. buffett talked a little bit about the fed and you talked about the fed as well in your article. >> yeah. so i think the fed may very well delay height rake beyond september because of what we've seen in china and even in europe. having said that, you know, i still think what happened in the last several weeks in the stock market here in the u.s. is a correction and nothing more. it's usually every 18 months. it's been 46 month

shareholders will vote on whether or not to strip bank of america ceo brian moynihan of his title ashairman. the ceos of anthem and aetna will testify on capitol hill about the proposed mergers. and the chinese president arrives in the u.s. for a state visit. and that is what to watch tuesday. >>> greeks gave alexis tsipras a second chance, voting to re-elect him as the country's prime minister in the snap elections on sunday. but the country's dire economic issues remain the same. julia chatterly reports from athens. >> reporter: thunder and lightning here in athens greet the new greek government led by alexis tsipras, who once again gets a chance to lead this country. it's almost like the last 7 months never happened, as long as you forget the capital controls and the fact that a third bailout deal was signed. alexis tsipras of the syriza party deciding to join in a coalition once again with the independent greek party, destroying any hopes of him choosing more centrist, more reasonable parties to form a government with. i went out in athens earlier today and spoke to a number of g

more than 60% of the investors voted not to the separate brian about moynihan's two titles.ast year the board elevated him to chairman without consulting shareholders. shares fell a fraction today to $15.57. groupon cutting about 10% of its workforce or about 1100 jobs. the move comes as the daily deals site restructures outside of north america anschutz down some of its overseas operation. shares were off today by 2% to $4.08. shares of office depot and staples slipping today on reports that its merger may get blocked. the "new york post" reported that the head of the federal trade commission may oppose the $11 billion combination. commissioners are expected to rule on it by october. office depot off 4% to $7.06. staples is slipped to $128.75, almost 6%. mixed results from general mills. the foodmaker's adjusted earnings beat sfimts but it's revenue slightly below forecast. restructuring and cost controls are helping the bottom line. shares up slightly, $57.13 was the close. >> darden restaurants managing to top consensus on the top and bottom lines. same restaurant sales r

be grateful towards each other and merciful towards each other. >> brian moynihan, when you think about has been that way. there's been a lot of smiles, a lot of kissing of babies. so the pope gave the message of a -- as father jonathan said, as a father, as a person who wants fathers in their families and mothers in their families to take care of their children and all of us to take care of our world. so i think it's a message of hope and i think the message got across. >> wow. father morris, what do you think? did the message hit home and did people hear it? and, if so, what do you think they heard? >> maybe this is very subjective but i was struck by when pope francis said that holiness is intimately tied to or intrinsically tied to small gestures, he said that in the homily. and then he went offscript, as you mentioned, and said, do you yell at each other in the house? do you speak with tenderness? you think of the type of things that he did while he was here in philadelphia and washington, d.c., and cuba, it was full of small gestures. and that, for me, means, okay, now i have to g

shareholders vote today whether to strip brian moynihan of his role as chairman and ceo.ard agreed to give him the chairman of the board position without consulting with shareholders. of the bank loses today's vote it will name a new chairman. meet spot, the latest version of all walking quadruple robot from boston dynamics which was tested by the u.s. marines last week, spot operates with electricity, walks on four hydraulic legs and is controlled by an operator who can be up to 500 meters away, electricity, not fried's but still that would be spot. back to you. sandra: these robots scare me. the battlefield dogs that hunt for aideed thes would save a lot of k-9 lives and keep savings soldiers' lives. those robots. looking at the markets futures are sinking, huge global market sell-off, dow futures up 230 points, isn't the down 29. the sell-off continues. federal reserve made the right call on keeping rates unchanged? when will officials raise rates? is that causing a sell-off? more on that. sandra: checking these markets a lot of action to report, dow futures of 230 poi

this after brian moynihan admitted to trimming expenses. we had tesla shares in the spotlight that were originally awesome. ending the day with a loss and that was a heavy electric carmaker handing over big excitement tonight. angie: people have been waiting a long time for that one. what about this big bounce back we saw for glen care -- glencore? su: it rallied the most ever. the stock was hammered some 25% yesterday. the commodity route having it jumped levels they had to put meetings together on that. thatreassured investors the company has positive cash flow and that certainly helped shore up the share price. helped that ceo regain a little bit of its welfare. what will all of this mean for asian markets today? let's get over to juliet who has been monitoring the market action for us and investors still on edge? >> they certainly do. it hasn't been a great day at all. we saw investors in this is the picket we saw on the asia-pacific region. you can see there was nowhere for investors to hide. down by about 4% but things are looking bri

mark: a big victory for brian moynihan. we will look at why most shareholders decided to ignore critics and let moynahan remain ceo. ♪ mark: good day from bloomberg world headquarters in new york. i'm mark crumpton, here with matt miller. matt: let's take a look quickly at the markets. just two hours to go until the close of trading. we are witnessing a selloff a littleay, after recovery and a brief respite from the red arrows yesterday. down 255. the nasdaq off more than 2% right now, 4726. take a look at treasuries. we can see people seeking safe haven, investors seeking safe haven there. or at least they are buying treasuries across the curve. the two year yield is down to 6.7 -- .67%. mark: oil crude declining to dell, iran advancing in a deal today with nymex crude down, trading at 45.57 per barrel. scandal isgen spreading worldwide. the company said today that as many as 11 million of its diesel cars around the globe were programmed to cheat on engine emissions tests. the ceo offered a public apology. end thatorry wit

we did hear bank of america's brian moynihan saying that recorded trading of and it will be down about%. .itigroup sees a similar drops if that happens for jpmorgan, not good news for the banking industry. it is not just the banks. it's other types of financials falling along in the wake of the fed. charles schwab down sharply. oil stocksancial -- a big part of the down drop today. the big cap oil falling. oil itself is also falling. down more than 3%. matt: thank you for that. concern inhe fear or markets. general motors agrees to settle a criminal probe by the u.s. justice department for $900 million. doj investing -- investigating the copies faulty ignition switches. what is next for gm and the ceo? joining me now to discuss is bloomberg's auto editor from detroit. the company held a press conference yesterday precisely as everyone was paying attention to the fed decision and meeting. was that a coincidence? >> it may have been. it was around when the prosecutors held their press conference. it was an employee meeting. mary barra and the head of product the velvet spoke to the emplo

alix: the two biggest pension funds will vote again to let ceo ryan moynahan -- brian moynihan keep the title. banking analyst mike mayo agrees that moynahan should not have both roles and he spoke earlier today. if you were to have a mayo acxiom, it would be banks with oversights and poor should have the roles separated. banks with good returns and good oversight can have the roles combined. bank of america has some of the worst oversight and returns in the industry. therefore, bank of america board will take actions to reduce the degree of oversight. alix: the vote is at present temperature a second. shares of dollar tree taking a hit after forecasting sales that missed estimates. the second-largest dollar retailer is drained of absorb family dollar, which it acquired in july. its major competitor is dollar general. and boomerang employees are on the rise. boomerang employees are workers that return to a former employer. in the past managers might have written off an employee who decided to leave for another company, but now hr managers are more acceptable hiring campaign -- ex-employ

he hired as his chief to mystic adviser daniel patrick moynihan aide kennedy democrat who came up with a radical idea for reforming welfare. he was about 20 years at. didn't pass but nixon took it ready for. he was guaranteed minimum income. it would get rid of all the bureaucrats and nixon hated bureaucrats but it was a radical idea and i was actually a pretty good idea. nixon was very engaged with it. nixon's record makes him look like what we today would call a liberal. he created the epa. why did he create the epa? parter was political expediency. senator muskie, ed muskie of maine was a big environment list and it looked like muskie was going to be the democratic candidate in 1972 so nixon who loved to -- outflank them messed with muskie by proposing and adopting governmental protection agency. it worked. was nixon sincere about that? kind of. you know he did care about conservation. he gave mixed signals on it but he said if i could choose between business and the environment i'm going to choose business. he would say those kinds of things that he would tell his young aide who is

brian moynihan of bank of america and many others gave a lot of money for this, i think it was $170 million renovation. there they are, lined up, frank bisignano and ken langone. a lot wanted preferential seating and they're not going to get it. >> who is making that decision? >> the archdiocese of new york. when we called the archdiocese i said these are the benefactors. from what i understand they would like to be a little closer to the pontiff. >> one way to put it. >> just -- and, you know, they didn't have to give money to redo st. patrick's and it is a beautiful renovation by the way. >> bright white again. >> just gorgeous and it is expensive and ken had onto twist a lot of arms to raise money. he raises money and he and i butted heads over a lot of things but one thing you can't -- one thing you have to say about ken, one of the greatest businessmen and benefactors this city has ever seen. rango medical center. and from what i understand he's not getting great seats and i asked the archdiocese and i was told they will be given good seats. >> not great. >> not great. >> here's the bi

moynihan has won the shareholder vote and can remain chairman of the board.ote results are preliminary and were announced at a special meeting. it was upheld with 53% shareholder support. inwill have more details charlotte, north carolina but for now, ryan moynahan -- brian moynahan has one and can remain ceo. we were remain tuned. let's look to the markets, so much of that strong start to the week. the s&p 500 gained but it looks like we're getting it back and more. senior market correspondent julie joins me. julie: it looks like we have a perfect storm of various group driven news. you see averages are down more than 1%. what are these industries? look at the map on my terminal. you have various actors down. broad-based selloff but materials are taking the biggest hit, technology, industrials, discretionary, financials. those are the top or bottom groups. let's look at materials. and look at mosaic. that is the producer of potash fertilizer. it will reduce output and we don't normally see a pullback in commodities. we usually see them in crop prices as well

moynihan became chairman in 2010.ilton is hailing ridesharing to help guests reach hotels and explore cities. guess will be able to sit up -- set up automatic notification to request rides to and from the chains worldwide. the partnership launches later this month in 20 u.s. cities. betty: a judge will call the final plate in the deflate gate. yesterday's session settled nothing. the judge says he will rule this week, perhaps as early as today. england between the new patriots quarterback in the nfl over football tempering has lasted seven months. mark: football season starts next week. betty: i know. i'm looking forward to it. mark: those are top stories at this hour. as we have been reporting, the story of the day -- the financial market selloff in the is china.of concern stocks tumbled around the globe as china reported manufacturing an activity fell to activities lasting since 2012. see the polls that this has taken. the u.s. has erased all games that has seen for the event oil is losing ground as well. betty: a l

for broader changes to the companies shareholder vote approaches on whether chairman and ceo brian moynihanld continue to serve in both roles. chairman and ceo with the vote only one week away. investors call for the longest directors on the board while others would like to see more financial experts on the governance committee and has been a big topic whether or not to separate the chairman and ceo roles. lauren: massive flooding in japan forcing it with 3 million people to evacuate. august 27 injured since floods inundated eastern japan following a topic storm which dumped more than two feet of rain since last monday. in some areas residents report to their rooftops awaiting rescue by military helicopters more than 1800 officials are involved in the ongoing rescue effort. really tragic. lauren: that looks like open water just flowing. nicole: before you head out, a book right outside your door. your monday morning forecast. fox meteorologist maria molina. nicole: i want to talk about whether across the nation. behind the system it is much cooler out there across parts of the northeast. we

new york city's 165 billion pension fund will vote to strip brian moynihan of his chairman title, ander 22nd, next tuesday, and changes gave him the additional job that moved on data by shareholders back in 2009 acquiring independent chair, and ken langone holds both bank of america stocks and supporter of moynihan in both titles, why? >> look, back to basics, performance numbers by pension funds and money managers is driven by the right bet. now, if they are short, they want them to go down. if you own stock long, you want them to go up, and those are the numbers used in determining who should manage money. i think brian moynihan took on a very challenging situation, and i think because the person, his humility, his focus, his leadership qualities, people in that bank love that man. he's done a great job of restoring a culture that was badly bruised, great job. and guess what? he deserves both jobs, but this is not who defers the job, but iss and in league with theupon controlled pension funds. who controls the new york city pension funds? the union. who controls calpers? the union.

he hired as his chief to mystic adviser daniel patrick moynihan aide kennedy democrat who came up with a radical idea for reforming welfare. he was about 20 years at. didn't pass but nixon took it ready for. he was guaranteed minimum income. it would get rid of all the bureaucrats and nixon hated bureaucrats but it was a radical idea and i was actually a pretty good idea. nixon was very engaged with it. nixon's record makes him look like what we today would call a liberal. he created the epa. why did he create the epa? parter was political expediency. senator muskie, ed muskie of maine was a big environment list and it looked like muskie was going to be the democratic candidate in 1972 so nixon who loved to -- outflank them messed with muskie by proposing and adopting governmental protection agency. it worked. was nixon sincere about that? kind of. you know he did care about conservation. he gave mixed signals on it but he said if i could choose between business and the environment i'm going to choose business. he would say those kinds of things that he would tell his young aide who is

also coming up on the program, shareholders are backing brian moynihan. find out how bank of america's chief held on to both of his titles. and a victory for hillary clinton. a pharma firm says it will drop prices but by how much? and we find out how social media giants are waging the battle for users. we have the composite at 53.9. manufacturing was 52.0. that was just in line and services 54.0 just below the expectation of 54.2. so that follows german data that was mixed just below expectations and french that was just above expectations. the euro is flat on the day. it's been up and down either side of when the french and german data came out but none of this data too far from consensus. overall it's just below expectations and the euro is flat. >> a lot of volatility in shares of vw. currently we're higher by 1.4% but over the last week the stock has lost 36% in the last two trading days alone it's lost some 15% in market cap or 26 billion euros. i also want to show you what the dax is doing. that's shown you a turn around as well. it's down over 6%.

that's not a referendum on a leadership of brian moynihan or of the lead independent director.law that shareholders put in place in 2009 to keep the jobs separate. and it'll out last either of them. they want to keep that in place or the rights of the shareholders in place, acknowledging that b of a is different in 2009, it has made a lot of positive steps. that this is one specific company whose specific shareholder base has a right to keep this bylaw in place. >> carol? >> yeah, and i'll disclose i do have a client relationship with bank of america. but i think in general, there is this key man risk. we've seen it in a lot of different companies. when you have too much power concentrated in one potential executive that something happens to them. not necessarily because of a leadership issue. that does really create a major issue in a company with the size of bank of america, i can understand why a shareholder wouldn't want that process to be lightly taken. and i think that's probably one of the key reasons. >> yes, the bank has made progress, they have to resubmit this year o

tom moynihan, founder of domino's pizza created a lot of jobs. when you read the pope and listen to the pope about everything he says rather than be an eclectic, you really see he does have a balanced view. >> we should mention, you know how the media is. they like to spend things the way they see it and already "the new york times" a famous speech to congress tilted to the last focused only on those aspects that would please the left-wing audience and not necessarily conservatives. it is being spun that way. do you think the vatican is aware of that? >> they are aware of that and aware of the top entrepreneurs, top capitalists in the country who are devout christians and catholics. they are going well beyond what the holy father is her many people as giving to the poor. seven give 99% of their total wealth. they are not threatened by this. they are encouraged by the word vocation. this is the american dream. >> along this vein of what we are discussing as he is coming to new york city. this is the home of wall street, home of the banking industr

i assume since one of your top picks you like the status quo with brian moynihan?> i'm confused by the focus on structure over process because it's much more important that a board of a company like bank of america be actively involved in key areas like setting strategy and looking at succession, but if we took next week if we took the ceo title away from brian moynihan and just made him chairman would all these people feel much better about corporate governance? i don't think so. what's really important is they have a strong lead director and then they have healthy involvement by the rest of the board members. i will guarantee you that is the case at bank of america today. it has to be. none of the four largest banks can have boards that aren't actively involved in their management today. >> that's for sure. great point, tom. thank you. thank you, naomi both for being here this afternoon. >>> will the feds in action give a boost to emerging markets in the meantime. >>> later, does the fed know something the market does not or is it just having a communication brea

ceo brian moynihan will keep his ceo and chairman positions following a vote today by shareholders.a huge victory. he had a third of shareholders vote against the dual role. >>> amazon cutting price of amazon prime membership, $67. to celebrate the original series, "transparent" happening this weekend. we'll have more on markets and political arena and the pope right after this. trish: here we are, everyone, 21 minutes before the close of trading, no, the final hour. we still have a little bit of ways to go. joining me chad morganlander and liz claman. market has a lot of concerns about the fed and whether or not the fed has any bullets in its arsenal. i would argue no think point. just 20 minutes from now hillary clinton will talk what she wants to do regarding big pharma. chad, she wants to come out to basically set prices. this will have big effect on entire sector. biotech stocks getting slammed. nasdaq await the news here. what would be effect of overall for the industry if this would happen? >> health care, if we take a step back, is 16% of the u.s. economist. any talk of chan

lot of harvard guys including the two top aides henry kissinger was a professor and daniel patrick moynihans a harvard professor. so, he would give these crazy workers, you know, cut the cia. the staff knew to ignore a lot of those orders. but he was just venting and blowing off steam. but not always. pentagon papers leaked. you remember this it's not even mentioned in the pentagon papers it's about the kennedy johnson administration that he gets himself all wound up partly for legitimate reasons he doesn't like this one because they are conducting secret diplomacy and nixon is afraid it's going to leak out that he gets himself all wound up and he wants the fbi to come in and spying on ellsberg. they want the fbi to dig some dirt on ellsberg. she editor hoover partly because of this shrewd politician that he is can see the wind is changing they are starting to be lawsuits about the illegal tapping and the court, the supreme court, the law is starting to change. hoover has been running this whole empire all these years. i think i'm going to get out of this business because we are all going t

of america shareholders rejected calls to separate the chairman and ceo currently held by brian moynihan. the analyst there. joins us live. i can't say you're surprised by the outcome. does it change your sell rating on bac? >> shareholders spoke up today in charlotte. 37% no vote sends a message to bank america's board that it's no longer business as usual, so while the ceo also has a title of chairman, it's a wake up call to bank of america's board to go ahead and upgrade the caliber of the board. i would be shocked if bank of america doesn't make changes to its board before the annual meeting next may. >> in other words, you're not changing your sell rating, right? you think it's a mistake, the shareholders vote was a mistake today, the outcome? sdmrooits a lost opportunity for shareholders, and shareholders lose out. we maintain a sell rating on bank america. our issue isn't recommending an unperforming bank that might get better. our issue is the lack of accountability. the board's lack of accountability to the management team. they publish no time frame for any key financial target