EU steps up the pressure on Italian banks 9 Feb 2005 The European Commission is putting pressure on the Bank of Italy to drop its resistance to foreign takeovers of domestic banks. About time too. The fragmented Italian market is overdue consolidation. Foreign banks should be allowed to lead the way.
UBS cheery on investment banking outlook 8 Feb 2005 The Swiss bank's record Q4 result shows it's still reaping the rewards of investments made in the bear market when rivals were cutting back. That means UBS can enjoy the benefits of continued buoyancy in the markets without having to throw its cheque book around to hire new staff.
ABN does a Deutsche 7 Feb 2005 To focus investors minds, the Dutch bank is setting itself a return on equity goal mimicking its German rival s share price booster plan. But it s also reiterated its idea to tackle sluggish revenues by making acquisitions. That will be a counteracting pressure on the stock.
Goldman merges M&A and financing arms 7 Feb 2005 This is going back to the old ways. Financing and banking were separated out during the boom but that's too costly in today's world. It's not just about rationalisation. It's about using M&A to drive the financing business. Goldman 's rivals will be watching closely.
Deutsche Bank job cuts to total 6,400 3 Feb 2005 While the move will reduce the costbase by 7%, Deutsche s key 25% ROE target for this year still looks like a challenge. Revenues grew only 3% in 2004, and any aggressive restructuring always comes with risks.
Citi bond trade brings back eerie memories 1 Feb 2005 A memo from just before last year's controversial trade spoke about turning the European market into something more like the US bond market. This has echoes of the 1991 cornering of the US Treasury note market. The guilty party then was Salomon Brothers now part of Citi.
Will foreign banks finally invade Italy? 1 Feb 2005 Investors are betting ABN and BBVA are sufficiently desperate that they might bid for Antonveneta and BNL. But flying in the face of the Bank of Italy looks easier said than done. And without a bid, shares in both banks could fall.
Investment banks beat back universal banks 27 Jan 2005 When credit was scarce three years ago, the likes of Citigroup and JP Morgan grabbed juicy business from Goldman, Morgan Stanley and others. At the time, many thought this was a secular change. But it now looks like a temporary shift driven by the credit cycle.
Spanish government renews assault on BBVA chairman 27 Jan 2005 The Spanish bank has already come under attack from construction company Sacyr, and seen off an investigation by the securities regulator. Now the Spanish attorney general has opened a probe. This politicallyinspired witch hunt does Spain no credit.
Allianz issues pioneering E1.2bn equity derivative 26 Jan 2005 Derivatives are a common way for insurers to cut their equity exposure. But this one will be sold publicly. It's part of a E4bn fundraising, in which Allianz hopes to exploit investors' current appetites rather than dumping shares on the market.
Merrill Lynch pays for excessive cost cuts 25 Jan 2005 The firm's Q4 results illustrate the difficulty of playing catchup. Costs are rising faster than underlying revenues. Rebuilding a business is not easy. But Merrill does not appear to have learned this lesson after its brutal bond market cull of 1998.
Goldman Sachs to raise $7bn buyout fund 21 Jan 2005 It's the latest firm to cash in on institutional enthusiasm for buyouts and increasing discrimination in favour of industry leaders. The funding frenzy must depress returns in the long run. But with public securities markets yielding such low returns, no one seems to care.
Citigroup looks like a bargain 20 Jan 2005 There are a few "ifs" to this conclusion. Interest rates must not spike, and the bank s regulatory woes must be a thing of the past. The group s portfolio is better balanced geographically and by product than its rivals, which trade at a premium.
Goldman sets high hurdle for bonus round 19 Jan 2005 Its payouts were apparently 1520% above the other banks that have announced bonuses so far. As first to announce, Goldman was firing in the dark. It also had to please juniors who lost out last year. Rivals may not be so generous.
JP Morgan falls short in Q4 19 Jan 2005 The US bank's merger with Bank One is not yet bearing much fruit. Revenues were flat while costs actually rose. Two quarters after the completion of the merger, the integration looks messier than expected.
ABN chief invites bid at a premium 18 Jan 2005 That s the clear message from comments in a newspaper interview that the Dutch bank s destiny may be as "junior partner" with a larger bank. This is not how the national champions of European banking normally talk.
Baer family and staff cede control for no premium 18 Jan 2005 But they re getting some compensation: in swapping their supervoting stock for listed shares, they ll find it easier to sell out. Still, they seem ambivalent about losing control. They may be confident Baer will keep its independence. But it will have to earn it.
Placings even M&A battles 16 Jan 2005 Cash buyers are supposed to have an edge in a bid situation over companies that have to raise equity. That s because their bids are certain. But placings, especially if they are underwritten, can even the battle. Look at Standard Chartered s bid for Korea First Bank last week.
Capital Group seeks cut in commissions – report 14 Jan 2005 The leading US fund manager can afford to dictate terms to Wall Street. It might be less easy for other firms to follow its lead. But it s clear that longonly funds are fed up with being forced to pay for research they don t need, or that is more suited to hedge funds.
Analysts’ pay halves since boom 11 Jan 2005 It s no surprise that average pay rates have fallen. After all, the investment bankers no longer subsidise research as they did preSpitzer. But not all analysts are as badly off. Investment banks are desperate to find the stars of the future and pay scales reflect that.