Dominic is a London-based columnist covering investment banking. Prior to Breakingviews, he spent two years at moneydealer ICAP, where he brokered equity derivatives trades between investment banks, high-frequency trading firms and hedge funds. He has more than five years of financial journalism experience, including stints as news editor and investment banking editor at Financial News. He has also written for The Wall Street Journal Europe. Dominic holds an MA in Classics from Oxford University and an MSc in Development Management from the London School of Economics. Follow Dominic on Twitter @DominicElliott
- Tel: +44 (0)20 7542 1923
- E-mail: firstname.lastname@example.org
Banks have hawked big slugs of EU stock in overnight placings, with 5 bln euros worth offered in three days. For now, underwriters have support from QE-powered strong markets, so they’ll risk losses for the sake of league table kudos. But complacency seems to be creeping in.
Botched trades have left Credit Suisse, Deutsche Bank and others holding blocks of securities or forced to sell at deep discounts. With quantitative easing lifting prices to uncomfortable highs and sparking a glut of transactions, the risk of dealing for third parties has risen.
The German lender’s co-CEOs Anshu Jain and Juergen Fitschen have cut investment bank assets by a fifth. They should chop at least that much again, faster, while exiting Postbank and marginal countries. Without radical action, Deutsche will struggle to make decent returns.
- Commerz's $1.5 bln fine brings state sale closer
- Spain may give UK banking the challenger it needs
- BPI twist makes breakup an option
- EU bonus policy becomes a comedy of errors
- Caixabank faces bigger price tag to secure BPI
- Barclays' trading woes offset pay restraint
- RBS turnaround enters critical period