he declined to wear a mask during a visit to the mayo clinic in minnesota. that's where things stand for the moment. joining me from new york's once bustling grand central terminal, and we're hoping not have too many echoes -- echoes here, is my co-anchor for the next two hours, katy tur. what aren't you seeing? >> i'm not seeing people. yesterday we were in times square. look at grand central terminal. that's where all the tourists would go. this is where all the people commuting into new york to work come through. it's one of the major arteries of new york city. this is midday. it's not rush hour, but there's really no such thing as rush hour here in new york city. and there's no one here. the only people that are here beyond us are people who are looking for shelter or new york city's front line and essential workers. they are the ones still using mass transit. 750,000 people come through here every day. now you're just seeing a handful. the frontline workers, the mass transit workers have taken a big hit in this crisis. dozens of mta employees have died

mike mayo, thank you again for being here big day for the dow. up 281 that does it for us. "power lunch" starts now >>> i'm sarah eisen. well, that didn't last long, the pan over italy's political and debt crisis subsiding. was the fear overblown the trillion dollar race, microsoft hitting a new all-time high that stock up 15% this year, overtaking alphabet in terms of market cap for the first time in three years. what is fuelling the forgotten name. >>> and president trump weighing in on the controversial debate over experimental drugs. also tweeting about roseanne getting the ax for the first time, firing back at disney ceo bob iger all the details straight ahead "power lunch" starts now >>> welcome back to punch. >> i'm melissa lee your money making a comeback from yesterday's big losses. the dow and s&p 500 up for the first time in four days. all three major afternoons on track for their best monthly gain since january take a check on small cap stocks this rallying. russel 2000 hitting a new intraday high. banks boci back. all up about 1% right now. oil rebounding from

mike mayo, thank you again for being here big day for the dow. up 281 that does it for us. "power lunch" starts now >>> i'm sarah eisen. well, that didn't last long, the pan over italy's political and debt crisis subsiding. was the fear overblown the trillion dollar race, microsoft hitting a new all-time high that stock up 15% this year, overtaking alphabet in terms of market cap for the first time in three years. what is fuelling the forgotten name. >>> and president trump weighing in on the controversial debate over experimental drugs. also tweeting about roseanne getting the ax for the first time, firing back at disney ceo bob iger all the details straight ahead "power lunch" starts

mike mayo on the banks. and the news we have had so far this morning, we have breaking news from goldman sachs. still had on this program, a closer look at the european economy from former fed chair alan greenspan. thus you think the euro concert -- does he think the euro can survive? this is bloomberg. ♪ emma: this is "bloomberg daybreak." i emma chandra here in the hewlett-packard enterprise greater. coming up in the next half hour, global strategic it fires are -- ribas.r for pair o david: this is bloomberg and i'm david weston. the issues faced by the eurozone have certainly not gone away. chairmanderal reserve alan greenspan told us how concerned he is about the stability of the euro given the rage the pressures that it faces . alan: there's an irreconcilable issue that we do not pick is going to get resolved. i'm very much concerned but not at a euro crisis because there institution that can backup the euro if it ever gets into trouble. david: even as we speak right now, the yield difference between

comerica, a lot of pressure from mike mayo, clsa, and others, big institutional shareholders. let's get it going. vengeance yesterday, comerica said 9% of bodies out the door. they sugarcoated it, but it is about cost reduction. is that the canary in the bank mind? ifd: what choice do you have you are the ceo of the major bank. you interest rates that are lower longer. you are seeing a rolloff of your higher return investments that you put on earlier. so new is under pressure. you can make up for it by increasing your loan portfolio more rapidly. that only goes for so long. in an economy that is not moving, and uncertain going forward, what choice? tom: you have been out front of this for years. another person has as well -- meredith whitney got beat up like a piÑata about where headcounts are going at banks. can you extrapolate comerica to all the banks? the too big to fail banks? the super regionals down to regionals? brad: that is a depressing thought. tom: you were way out front of this and meredith was, too. mike mayo is leading the charge about let's get going with the

mike mayo, thank you very much. >> by the way actually we're just getting this headline. the uk government is set to put the sale of rbs lloyd stakes on hold. this according to roeuters. that's the headline right now. mike, what's your reaction? does that change anything at all? >> my reaction to that is the relative strength of the u.s. banks versus the european banks is even stronger. that's something to look out for over the next several years. >> we're not going to let you go just yet. a lot of raw nerves, mike, in britain following that brexit vote. we caught this exchange on the banks -- these are not the same banks, the banks of the river tem -- [ bleep ]. >> hey, come on. [ bleep ]. >> tinfoil on your head. tinfoil on your head. [ bleep ]. >> just say on the forms -- >> it doesn't say it on the voting forms. it says it in the polls. it says it on the polls. >> great for england, america out next -- >> america out next what? america's not in the european union. [ bleep ] disgusting man. >> he's gone. >> i didn't really understand much of what they said. they were s

mayo,nking analyst mike managing director of cms a americas. jon: what a guess lineup we have. let's get to work. stocks down across the board.

we were speaking with mike mayo, a big banking analysts, earlier this morning on bloomberg . he had a couple of things to say about hsbc. hsbc, like all of the global banks, they faced pressure from the three r's, rates, revenues, and regulation. they have not seen revenue growth of the past year or for new year's. you need a plan b. if you are hsbc, and you do not have a plan b, a restructuring plan, you're going to hit a wall. betty: it looks like they are foul lines setting -- they are outlining some of their plan land. how do shareholders feel? >> hsbc has been performing some some of the european banks this year. but that is only 9% compared to an average of about 15% u.k. banks. a flight to to be quality safety, one of the largest institutions that investors are showing. but it is undeniable that the negative side of it -- sentiment and emerging markets hit the banking sector this year. mark: thank you for joining us. betty: from one bank to another, reporting margins are shrinking at the firm despite involving assets under management. bloombergt down with talking about

i agree with my colleague mike mayo. bank of america is probably the least reconstructed of the large banks. they still reflect the old ken lewis regime, because that is where brian moynihan came from. i think the bank, given his ,erformance and other issues really should have fought long and hard about picking this fight. if i were brian moynihan, i would have accepted a chairman. tom: what will we see today? chris: i think he wins. tom: chris whalen, thank you very much. we hope to get mr. mayo here in the next couple of days. coming up, russia's reserves are on the rise. maybe they have been in decline over the last couple of months. it is the subject of our "single best chart," the mystery of vladimir putin's piggyback. stay with us. from new york city, "bloomberg surveillance." ♪ good morning, everyone. vonnie quinn and tom keene. time for the single best chart. this is a way cool single best chart on russia. chris van -- chris granville is with us. a numeral for real to the u.s. dollar anytime today. the actual c

mike mayo will join us in the next hour. he opposes the dual role. >> apple wants to begin the service next year and has held preliminary talks with hollywood executives. it would put apple in competition with other streaming services such as netflix and amazon. in other news, the company is teaming up to improve the performance of its iphone and ipad devices on the corporate network. tim cook is making the announcement. >> we want to transform the way people work and we know that we can't do that alone. we can't do that alone. if you think about what's key in the enterprise space, the device is very important, the apps are very important. the network is very important but in reality none of those -- each of those can be great by itself or each can be great in total but it's do they work together seem lesliamlessly and what this is about. i couldn't be more excited about it. i really believe this is going to have a profound effect on the way people work. >> apple is expanding it's foothold in the enterprise. it was loaded wi

the stock slipping after analyst mike mayo warned about possible consequences of a yes vote that would combine the chairman and ceo roles for brian moynihan. such a vote 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 price

mike mayo of clsa sounding off on banc of america. in a new note, bac he noted should separate the chairman and ceo roles. mayo says a yuck vote coming in late september would consolidate board power but increase the industry's reptational rafk taking the poor oversight and making it worse in a hurried vote and at a time of increased political sensitivities, in short, it could have the effect of putting a larger regulatory target on the industry's back. we are now seeing some thoughts for shareholders and analysts coming out ahead of this vote, which takes place in late september as i mentioned, for some background on this, in october, 2014, b of a amended the bylaws to lallow the shareholders to put this to a vote. it has become a very vocal issue. the labor group put out a note saying that it viewed this consolidation of power as a shocking sign of lack of self awareness on behalf of b of a. so we could see moves proxy advisory firms, show, more shareholders coming out with their views. >> didn't they separate it? and put it back to

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 faced with this every day. i don't notice any significant changes that cause me concern for bank of america or anywhere else. we have a pheno

how do they catch mike mayo by surprise? mike: it looks to me like the cfo got fired at the same time the ceo is the same, no change at the board. actually, over the last eight years, you have had now changes of four chief financers and changes of the growth, the wealth business. it is good to be the boss. tom: michael moore of bloomberg news was talking about this being linked to the stress tests and the pastor for bankamerica to move from her medial issues to being a better bank. is mr. moynihan this morning weeding bankamerica to being a better-run bank? mike: i think the oversight issues at bank of america are the worst they have been at a big bank since citigroup before the financial crisis. brendan: wow . tom: was this action initiated by the board, or was this mr. moynihan acting alone? mike: i am not sure, but there were many chefs in the kitchen when it comes to their problems. remember last year they had a $4 billion regulatory capital misstatement. in the 500 pages of the proxy the board needs to be held more acco

let's bring in mike mayo with clsa. mike, you look at lot of the names, they're soaring, the small and mid cap ones. everyone's rushing to that side of the boat as the rates are expected to rise. is it a bad move or a smart one? >> i think it's a smart move to own bank stocks. as simple as abc and the a is for asset quality, which remains very strong the b is for balance sheets which is stronger than they've been in a couple of decades. and the c is for consistency. banks are to have much more consistency, and their earnings results. but i will add to the a, b, c, the letter "v" for volatility. there will be volatility ahead, especially with earnings greece capital markets and regulations. it's not a straight move higher but we do think there is a structural change that's being underappreciated by the markets. and we'd be buyers of citigroup and morgan stanley into their post crisis highs. >> citigroup and morgan stanley are your favorite picks, mike. are these banks, and you talked about the "b," the balance sheets and

i like mike mayo's acronym acb. mine is levi la liquidity, earnings, valuation, interest rates, and sentiment. what is driving china at the moment is liquidity, interest rates and sentiment. liquidity is coming from a boom in margin financing coming from a huge domestic pool of savings looking for a home. interest rates are falling. and sentiment is sky high. it's feeding on itself. it's being egged on by the chinese government. and i would say in the short run, as well, sentiment is getting a huge boom within china from the talk about the inclusion of chinese shares in the msci index potentially next week. what clihina doesn't have is the earnings and valuation. as i said before earnings are simply not coming through for the listed companies which is why we're look at a stock market which in many cases trading many times earnings. the market is discounting earnings recovery that i simply don't see there. so this is a very difficult time to be a fundamental investor in china. >> are you just closing your eyes and bu

jamie dimon under the now famous line to mike mayo, "that's why i'm richer than you." jamie dimon is currently worth $1.1 billion. this, of course, thanks to a stake in his own bank and the proceeds from his stake in citigroup we he worked in the 1980's and 1990's. betty: it is unusual for a bank chief to accumulate this amount of wealth. as i was reading through the story, which is a great story, how confident are you in these numbers? >> party confident. the first bucket is just jpm stock. the other is a little more mysterious and requires a little bit of our special bloomberg sauce, which is to take a valuation, say all the stock he sold, he was lucky he got fired because he did not sell when it was 90% down. to take that stock and compounded over the years, on top of the salary he has received, on top of his board memberships, and to do that over worthrs, that stake is $550 million. we are pretty confident that at $1.1 billion, he has crossed the threshold. jpmorganyou are a shareholder, should this be of any concern to you? bill: no, not really. as i have pointed

mike mayo was on the show yesterday saying this trend has showed. is a combined chairman/ceo not a good idea? tom: it depends on the company. it needs to be performance driven. that is why you do not have a single rule. if there is a company that has been successful with a good leader that has been able to deliver for shareholders, i think that person -- tom: how can you affect chairman duties at the same time on a given wednesday that you are doing ceo duties? tom: i think it is bored by board dependent. it is hard to say that wells fargo would have done better if they have done better if they had had a separate chairman and cdo. olivia: according to mike mayo only 44 of the 100 biggest banks in the country actually have separate roles. tom, earlier this week was a big deal. it looked like the bank bowed to shareholders and said they would put the combined role up to a vote. does that mean that -- his job at all? tom: i think it is more of a statement of how the board elected to make changes. i read the proxy statement before the reversal. and basi

mayo is this a victory lap for you? mike: i do not take it personally. we try to be independent. but i am not sure this is enough. i think they are operating under the premise it is easier to ask for forgiveness than it is to ask for permission. i am not sure that is the right way to go. tom: does brian moynihan get out of front of this and relinquish the chairman duties? mike: that was one possible scenario because he will be chairman for perhaps as long as a year and a half against the spirit of the shareholder vote from 2009 so i think their plan is that brian moynihan is going to stay chairman's ceo until they actually have a vote. they will have a vote including the next scheduled meeting. tom: mike a pair and contrast as moynihan and jon stump of wells fargo, wells fargo trading at a substantial premium. is wells fargo overpriced, or does brian moynihan have a lot to of catching up to do? mike: they have a lot of catching up to do. john stumpf does not try to be a diplomat, he does not go to davos for example. brian moynihan -- what is the plan for the next five years? it i

. >> if mike mayo finds out about this. he's already on the war path. >> this is where they make bets and the public and, you know elizabeth warren mantra. >>> check out shares of container store after earnings in revenue missed the mark. retailers blaming the stronger dollar and lower customer traffic exacerbated by winter storms during a key annual sale. >>> when we return a west coast wakeup call with jim cramer at the new york stock exchange. he's still out there in that beautiful, join us from our san francisco bureau. a look at futures. sometimes the present looked bright. sometimes romantic. there were tears in my eyes. and tears in my eyes. and so many little things that we learned were really the biggest things. through it all, we saved and had a retirement plan. and someone who listened and helped us along the way. because we always knew that someday the future would be the present. every someday needs a plan. talk with us about your retirement today. >>> it's a busy morning in the auto sector. ford and honda both

erik: mike mayo. cars of the future. you may not need that drivers license. ♪ erik: imagine a car that drops you off and then goes to pick some but he else up nearby and it does not park and has no driver. larry burns' driverless cars -- larry burns says driver was cars are the future. i just gave everyone a sketch of the future. fill in some of the gaps. larry: we have been working hard for the last 10 years on a technology that lets the car drive itself. no human at all. that sets up a world where you can design the car under the assumption that you do not need a driver. that takes us to a point where you take a lot of parts off the car, put some parts on to drive it. it puts us in a world where we get the crash out of the automobile transportation system. erik: you believe that? larry: i do. the technology has progressed dramatically since 2007 timeframe. stephanie: once these cars are allowed on the road what is it going to be like when driverless cars are interfacing with cars being driven by humans? larry: much l

top analyst mike mayo on earnings and whether the sector is about to surge. we begin with a loo a

mike mayo, thank you. you know he will be asking a question or two, or as many as they let him tomorrow jpmorgan's investor day. bill cohanand bill cohan weighing in. why is tim cook racking up they are miles tomorrow? you think he's flying commercial? guess again. we will tell you why, stay with us. ♪ >> welcome back to "market makers," i'm stephanie ruhle. this hour, a big deal and big pharma. valiant pharmaceutical has agreed to buy felix pharmaceutical for about $10.1 billion in cash. they make drugs for stomach illnesses, last year, valiant's was rewarded in a long time attempt to buy the maker of botox. they are known as a serial acquirer great uses advantageous tax structure to get mine companies and cut r&d costs to boost projects. falling profits at a british bank in a tax evasion scandal, a full year earnings fell 17%. that's a big number. costs rose an investment bank and profit fell. meanwhile, the bank is still dealing with the fallout from a report on how it handled swiss accounts for tax i

there was a quote that i found interesting from mike mayo. he says regulatory fatigue is setting in. it does happen that a decade ago, you would be concerned about clients leaving changes to business practices, and structure in the company. >> i think it raises a broader issue if you pull the lens back. what do we all want, wall street and regulators? a market that operate efficiently with clear rules, where market actors act fairly and not violating the rules, and those that are doing their business more efficiently, better, and abiding by the rules should be the ones that succeed. that rate is a larger question of how you determine that conduct in the future. at the end of the day, if there is that conduct at an individual firm, some individuals inside the firm have to have engaged in that conduct. the question we have to ask ourselves is whenever we are doing as regulators or law enforcement, are we determining bad conduct and are we holding the individuals that took those actions accountable? >> versus the firm itself. >> yes, that is a b

. >> the idea picking up traction according to analyst mike mayo who argued for bank break-ups over a few years and will join us on this one when we come back. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ the evolution of luxury continues. the next generation 2015 escalade. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. >>> a day of zigs and zags big time for this market. now down

bank analyst mike mayo talks morgan stanley, bank of america and which banks are best positioned for low interest rates and a bear case for stocks, the manager of the active bear etf. we're going to debate top short picks. that and much more. noon eastern in about 15, 20 minutes, kayla see you then. >>> back at the markets now near session highs. up currently 278. the nasdaq sharply into the green as well. and we're seeing just a broad based rallycross the boa across. driven by housing and better than expected consumer sentiment earlier this morning. >> tech stocks up more than 3% this morning. workday, adobe, palo alto networks. even king candy crush a nice literally. >> i feel like your home page is king. i know you watch them closely. meanwhile here's rick santelli, where he is focused on the good part of the market. a lot to work with today, rick. >> i'm not necessarily thinking about the bottoms in stocks. being on a trading floor whether stocks go up or stocks go down it isn't really one is good or one's bad. it depends on the position that makes it good or bad. i know the publ

full forecast and tell you what is happening for cinco de mayo. right now, let's check your drive and say good morning to mike inouye. >> folks celebrating the evening. be careful out there. looking over here towards fremont where traffic flows smoothly on 880 itself. look at the system map, for the transit delays. we're talking about the b.a.r.t. system through fremont into and out of the area and up to a 30-minute delay reported right now. that was right out of the gate and went to 30 minutes and some sort of equipment problem reported. if you need to, get on that bus and plan your route later on, it's how you're going to get home and b.a.r.t. system will recover after the morning commute. right now affect the rest of your drive there. hoping to look at the map and i can't look at the map. there we go, the map is moving now. traffic flow through 880 and fremont and i'll fix that computer, trust me, folks. northbound 101 little bit of a slow through san jose and build out of the altamont pass and 580 your slow down starts and looking at a live lo

coming up, the always outspoken and always insightful mike mayo is joining me. he is coining a new term. loss greece gets back in the debt game -- plus. the cofounders of investment firm thurlow wondered called out the behavior of activists and the day described as a group of bullies who not only tolerate a fight but relish it. that may provide amusement to them. it can leave a company distracted and vulnerable. they say -- one man who has never been silent and is always outspoken, analyst mike mayo, has been a frequent critic of mismanagement of some of the big banks. he is here with me to call out board members that he calls lazy boys. welcome, mike, always good to see you. are you talking about these corporate boards that go along with management, said by, say anything goes, just to keep the peace? rubberstamp bank boards, i have seen it for 25 years. butgement teams come and go these boards don't take enough responsibility for overseeing this management team. i brought up some of these examples before but look at the big bank mergers. been -- it six s as has

i told mike and his granddaughters he should run for mayor. she has the right character for the job but she does love me and that. home is very popular with tourists from germany and austria. not everyone is crazy about history is typical called red wine soup but most are thrilled by the town's medieval charm. these new michelin the whole thing these piles of snow men make up the home are still authentic. and that's what's so fascinating. we don't have anything like it magical don't get it over. home is taking croatia's eu accession in stride. in the last century the town first belong to italy then yugoslavia and some people here have bad memories of the communist era now the worries are a big difference in the senate is afraid home could lose its unique character. to be in the process of attracting more people more money to build structures that are mature enough to. in harmony in brief thursday situation he says in the first place a truck and people. so the new destroyed the favourites there is this true and living room. the tourists would n

so does it get inked, mike mayo? >> i think this is probably far enough along that this becomes a done deal. and i think both sides' gripes are about equal in weight. i mean, department of justice you could say they only two two quarters worth of earnings away from jp morgan, and jpmorgan can say we're paying this fine for entities that we bought, the products aren't still there, the entities aren't still there, so on balance the stock is flat, and that's probably the goal of both sides in working up the deal. liz: should shareholders worry that the part about dropping criminal investigations is not in there, that they will still be able to chase after jpmorgan for criminal behavior? >> well, that's certainly something to pay attention to, because to the extent that there's criminal indictments against jpmorgan, the firm, the entity, that could lead to additional private litigations. the devil's in the details here, we need to see the settlement agreement and see what type of carveouts there are and which agencies st

mike mayo of clsa has lowered his rating on goldman to buy from outperform saying even if his estimates and target price aren't enough to justify the upside needed for a boy rating, down about 1.7%. sue, back to you. >> david, would you get against goldman sachs at this point? >> i wouldn't. >> i think they like the financial sector in the united states and don't see the valuations of banks being particularly expensive, and we think they will have the opportunity to raise dividends and do increased buybacks over time. >> david, things a million. good to see you again. see you again next month. >> you bet. >> michelle, down to you. >> almost five years on from the financial crisis, be a the culture of greed on wall street still persists. i'm ed shock. alarming new data you need to see. plus, mexican police capturing an alleged major drug lord. what it means for america's war on drugs? former u.s. drug czar barry mccaffrey joins us next. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you t

. >> sounds like mike mayo is having a bit of a field day with that one, too. mary, thanks. >> i'm sure he is. >> mary thompson. let's get to josh lipton for a market flash. >> check out the health care providers this morning. tga n-- hga forecasting better than expected earnings. >>> tenet health care, community health, and lifepoint hospitals also higher. >> some of the biggest names in business speaking exclusively at cnbc's delivering alpha conference tomorrow. we'll hear from pete bharara, jack lew, and more. paulson, the hedge fund billionaire is getting bullish on a new sector. we'll tell you which one after the break. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. >> some of the

pass the mayo. mike mayo gets bullish on morgan stanley. and after the bell tonight,

mayo. mary? >> hi there, david. the meeting just completed and just to give our viewers an idea of what happened, all of the directors were re-elected and the proposals put forth by the company were passed, as well. during the meeting mr. gorman did take questions. he promised to get it to 10% by 2014 and he also talked about the fixed income commodities and currencies business which has struggled lately calling it a work in progress and one that is undergoing what he classified as a long-term turnaround. >> as you mentioned, david, i'm joined by mike mayo. thanks for joining us. you had the chance to add the lead director bob kidder about how they were approaching return on equity. did you hear what you wanted to hear from him? >> first, i was very encouraged and this was the first annual meeting that i know of among the banks where you had not only the chairman and ceo talk, but you also had the lead director bob kidder speak and the head of the governance and management committee erskine

saturday into sunday we'll start to drop you off especially on sunday which is cinco de mayo. if you're heading out, you want to stay hydrated drinking lots of agua. stray shower quite possible. 5:18, let's see what mike is tracking. >> since you're talking about cinco my i don't, come to livermore where we're celebrating cinco dem maui. i didn't make it up. we've been seeing heavy traffic for the last week. this is 84. dumbarton bridge, and the san mateo bridge both moving smoothly, 101, 280 also moving very smoothly at the limit. see the volume of traffic starting to shape upcoming off 880 westbound with the taillights, volume moving steadily over the span. we'll also look at the eastshore freeway approaching the bay bridge. here is the nice slow move through berkeley. we'll look at the map. the carcinas and benicia bridges move smoothly. still slow towards highway 12. the earlier stalled supposedly cleared from the roadway. wind as well as a brush fire and a tree down 128 at scott. that's just north of calistoga for the north bay. >>> community groups in berkeley making it

mayo said this in his book if you had just taken one like city and put it through a bankruptcy type resolution that would have had a bigger impact than all these hundreds of pages of rules we're doing now yeah and then you know sheila bair maybe the reason some of the things you're saying resonate with people so much that they're asking sheila bair should be treasury secretary we have a we have a i have a line reading just that if we can bring it up but i mean what do you think what would be your first order of business yes i do think the fiscal the fiscal problems we have now are absolutely have got to be the top priority for the treasury's. i like erskine bowles i've been talking him up i don't know what the president is going to do but i think someone who can deal with their fiscal problems is really the person that that the president needs a treasury of stature on the hill who can get bipartisan agreement and has proven that he can do so that would be my choice i actually think the treasury department is too involved in financial regulation right now if i was going to change any

we'll ask mike mayo in just a moment. for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. osteoposis-related bone fractur and w magnesium levels have bn seenith nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. >>> financials are among the leading sectors on the s&p. mike mayor is a bank analyst for clsa and an affiliate of agricoal and just named most powerful people in finance and the only analyst to have made it on that list. good to have you on post 9. >> thanks. >> sounds like a large part of your argument is it's been long enough to have these laws not tied down, and not pinned down and not written, write? that's the problem. >> i say no more excuses. let's get on with it. it's been two years for dodd-frank and if you're regulators and let's get the laws written and eliminate some of the uncertainy and if you're the banks no more excuses also. at some point you have to play the

mike mayo, bank analyst. he's also the author of "exile on wall street." our friend rob cox, the america's editor at reuters breaking views. michael, what do you make of the breathtaking events over the last 24 hours? >> i think the ceo transition is ludicrous. to have the ceo and c.o.o. step down at the same time with zero transition and to have this change one day after they report earnings. just yesterday i was asking vikram pandit questions. we were all asking him questions about the long-term strategy. one day later, he's out the door. something's not right. i think this poor transition of the ceo is a microcosm of the poor corporate governance at citigroup under the vikram pandit reign. >> mike, i want to ask you what you think is going on here, but let me get anton in first. you're a shareholder of citi? >> i am, indeed. >> what's your next move? how do you see it? >> i'm going continue to hold. i think michael o'neil has a long history of creating valued companies he's been with. i think the transition here is important. michael corbat is very well

. >> i think of mike mayo or something and how he set out -- he was closed out of citigroup meetings. at least he gets push back from certain banking institutions that he would write negatively about. so he can be great, but probably wouldn't be in the top three. >> well, he can still do well. he wouldn't necessarily do well in terms of providing corporate access. corporate access is just one of many things that investors are looking for from their analysts. >> i guess investors aren't necessarily taking the, i don't know, the -- >> they're make their own decisions. >> in their systems like one, two, three, i remember there were like four things that they would measure near term, long term, whether it outperforms the segment, how safe the dividend was, all that. you don't look back to see if they're dead wrong on everything. >> no, for what we do, we're in the doing that at all, we're not analyzing the quality of the stock opinions. >> so it means nothing? >> it does mean something. it means analysts, their industry knowledge, their expert tease, the relationship they have with compan

the ceo of jersey mike's is here to talk jobs and expansion. hold the mayo or at least make it low fat as the second hour of "squawk box" starts right now. >> good morning. welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen. becky's on vacation. >> i don't know the name of that band. >> japan roid. >> you're like so much coomer than you look when it comes to music. >> i'm what? cooler than i look? >> when if comes to music. if i saw you on the street, i would not think that you knew all these -- go ahead and read. you've hurt me. so i'm old is that what you're saying? >> just read the futures, sorkin. >> i love you. i just want you to know. >> i've got a walkman on my walker. >> take a look at the futures this morning. we should get a squawker moment as we're doing this. the dow looks like it would open down about 27 points, the s&p would be off, as would the nasdaq. on the headlines this morning, a dispute between new york state and federal regulators over money laundering. officials are upset with the state's d

mike mayo is a banking analyst at c.l.s.a., a hong-kong based investment firm. he's also author of "exile on wall street: one analyst's fight to save the big banks from themselves." the threat pose bid spapish banks and the likelihood of a bailout in the next couple weeks to u.s. banks. >> well, when spain sneezes or when europe sneezes, the u.s. can catch cold. it's not the direct exposure of u.s. banks, but it's the indirect, unknown, posher, the domino effect so to speak. so we're all on watch on what's taking place in europe. >> tom: we did have one kind of unknown get some clarity late yesterday. the credit downgrades on the part of moody's to a half dozen u.s. banks. what's the threat to shareholders? we didn't see much of a stock reaction today. >> no, not at all. it's been five years since the crisis and five months since moody's said they were looking at the banks. so this was mostly anticipated. but isn't it a sign of the times when the large banks can be downgraded not one notch but two notches and everybody breathes a sigh of relief. >> tom: talk abo