BPI board line-up disappoints 17 Jan 2006 New boss Divo Gronchi has proposed a new board. But two of the candidates are relics of the old Fiorani era. This bodes ill for the bank s chances of a radical cleanup.
Morgan Stanley exodus continues 12 Jan 2006 Not only that, its capital markets chief is joining Perella s crew while a group of traders head for the firm Havens and Pandit are opening. But as much as these departures highlight further brain drain from the bank, they also underscore the increased allure of the boutique.
BBVA shouldn’t be too generous with BNL 11 Jan 2006 Now that Unipol, has been blocked amidst the Italian banking scandal, the Spanish are in the best position to secure BNL. BBVA will probably have to offer a slight premium. But it shouldn t go overboard.
Unipol should ditch BNL bid 10 Jan 2006 The insurer's new chairman says he's sticking by his predecessor's plans to acquire Banca Nazionale del Lavoro. He should change his mind. Otherwise he will squander a chance to abandon an expensive deal with financial and execution risks aplenty.
HSBC loses its halo 9 Jan 2006 The global bank used to trade at a 40% premium to UK peers. But this has vanished as costs have risen and acquisition prices have rocketed. There's no quick fix. HSBC needs to increase its growth rate and wait for targets to get cheaper. When these happen the stock will rebound.
Crosby’s exit from HBOS is praiseworthy 5 Jan 2006 The resignation of the UK bank s boss is good for everyone. After all, Crosby has always been more of a fund manager than a banker. By leaving early, he has prevented his worthy successor retail banking maestro Andy Hornby becoming CEO elsewhere.
Sovereign denies last right to shareholders 5 Jan 2006 The US bank's decision to delay its AGM until it sells a near 20% stake to Santander strips investors of their last way to vote on the deal. It s the latest in a string of decisions taken by chief executive Jay Sidhu to defy his shareholders.
BASF fails to justify $5bn hostile Engelhard bid 4 Jan 2006 The German company has excess capital from the oil boom. But the cash acquisition of the US chemical group will give returns of roughly 5%. That's less than the 9% BASF could have earned simply by buying back its own shares.
Consob makes BNL a bigger mouthful for Unipol 28 Dec 2005 The Italian insurer s bid for BNL was already a big stretch financially. Now some undisclosed share deals have forced it to raise the offer. True, the increase isn t massive. But it gives the Bank of Italy another reason to think hard before giving Unipol the green light.
Wanted: Italian hotshot for boring job 22 Dec 2005 Italy's central bank needs a strong new governor to restore its credibility. But if done properly, running the BoI is a pretty dull job. Breakingviews imagines what the advertisement for Fazio s replacement might say.
Ackermann caught in Mannesmann nightmare 21 Dec 2005 He had been expected to tough a retrial out; but with Deutsche's chairman openly speculating about his successor, that looks less certain. The Deutsche Bank chief faces a retrial over the controversial bonus case which will prompt more negative publicity in Germany.
Fazio’s exit gives Italian banks a boost 20 Dec 2005 Departed central bank governor Fazio was famous for the restraints he placed on bank mergers. Now he's gone, things may lighten up. Hopefully there will be more consolidation. The question is whether the new governor will be able to meddle like Fazio did.
Morgan Stanley’s Q4 gives Mack a break 20 Dec 2005 The first full quarter under chief executive John Mack was a good one. Slowing fixedincome trading was offset by gains elsewhere. This doesn t vindicate Mack s metoo banking strategy or his plans to keep Discover. But it does show the underlying franchise is intact.
Fazio’s resignation must not be a false dawn 19 Dec 2005 The departure of Italy's central bank governor is a chance for the country to clean up its murky financial system. But it has had too many false dawns for one to be confident it really will grasp this opportunity.
Deutsche tries to limit hit from fund closure 16 Dec 2005 The German bank's decision to freeze trading in its E6bn property fund has provoked investor protests and criticism from its regulator. Deutsche's promise of compensation will reduce the flak. But the PR damage probably can't be undone. There may be a financial hit too.
Goldman Sachs outperforms hedge funds 15 Dec 2005 Given the volatility and opacity of the investment bank s earnings, perhaps this is the correct comparison investors should make. The firm has managed to grow its book value better than the average hedge fund has performed for its limited partners.
Italian bank protectionism backfires 14 Dec 2005 The ringleaders, who tried to stop foreigners buying Italian banks, are on the back foot. Fiorani, the former boss of BPI, is in jail. Fazio, Italy's central bank governor, is besieged by legal actions. Even if he clings onto his job, he looks impotent to block foreigners.
Lehman copes with fixed-income slowdown 13 Dec 2005 The US investment bank's earnings fell only slightly in the final quarter, despite a significant fall in fixed income. Its diversification into advisory, equities and asset management is paying off.
BPI could be a tasty takeover morsel 13 Dec 2005 That may seem odd given the scandalridden E3.5bn Italian bank, which lost out in the battle to buy Antonveneta, is such a can of worms. But if BPI cleans up its act, it could be attractive. The bank that tried to keep foreigners out of Italy may even fall into foreign hands.
Meet Britain’s unknown billionaire 11 Dec 2005 James Ratcliffe, a chemicals entrepreneur, has just bought BP s petrochemicals and refining business for $9bn. He has built an empire through a series of megaacquisitions entirely funded by debt. That way, he has kept control of his company.