Banks use 80:20 rule to set bonuses 12 Dec 2004 Banks believe the top fifth of their staff bring in most of the profits. So increasingly the lion's share of the bonus pool goes to them. It all means less in the pocket for runofthemill bankers.
Cazenove shares rise after JP Morgan deal 10 Dec 2004 They ve risen by 14% since the last trade before the deal, and now value the firm at £870m. That s certainly a vote of confidence in the JPM deal, but not yet a ringing one.
Credit Suisse to trust CSFB with risk once again 7 Dec 2004 The investment bank s new strategy is to expand its proprietary trading desk and be more selective about its products and clients. The goal is for CSFB to earn SFr3bn in 2007. But the challenge will be to manage the inevitable conflicts of interest.
Corporate broking becomes new City battleground 6 Dec 2004 Broking used to be a stable relationship business with a few players. Now egged on by changes at Cazenove everyone is chasing them. In doing so, investment banks may destroy the stable business model that attracted them in first place.
Bankers set for bumper bonuses 30 Nov 2004 Most Wall Street firms have done well this year. What s more, bankers have generally outperformed traders. So the spoils should be more equally distributed this year except at Goldman and Lehman, where traders have also done exceptionally well.
Dexia’s retreat gives shareholder power a boost 29 Nov 2004 The FrancoBelgian bank has capitulated to major shareholders and ended merger talks with Italy s SanPaolo. It's a good thing that continental investors are getting more activist, so long as they're driven by value creation, not petty nationalism.
Wall Street entertainment under fire 24 Nov 2004 Regulators are probing whether brokers offered lavish gifts and other diversions to mutual fund managers in violation of rules. Of course they did. But as in the case of spinning IPOs to CEOs, those who accepted the handouts committed the greater sin.
Dexia puts SanPaolo deal on hold 23 Nov 2004 A meddlesome leak that the FrancoBelgian bank was pursuing a crossborder merger infuriated key shareholders. Now they have all but killed the plan. Dexia may still do a deal but only once it has resolved these conflicts.
Allianz should find a partner for DKW 22 Nov 2004 The German bank isn t wild about investment banking, but it needs DKW unless it s prepared to dismember Dresdner. The best option would be to find a partner who could bring business to DKW and had an appetite for risk.
SanPaolo in talks with Dexia 18 Nov 2004 It s not obvious why the Italian bank would want to merge or do a joint venture with Dexia, its Belgian counterpart. But Dexia is in a strategic bind and is vulnerable to a French takeover. A deal with the Italians may be a tiny bit more appealing.
ORA may be key to breaking Lazard deadlock 16 Nov 2004 This peculiarly French form of quasiequity could be a way of buying out the capitalists without loading the bank with too much debt. As such, it might just resolve the dispute between DavidWeill and Wasserstein which threatens to tear Lazard apart.
BNL to launch E1.1bn rights issue 15 Nov 2004 The new cash, amounting to over 25% of the bank's current market value, will be used to fill a hole exposed by upcoming accounting rules. The issue will also achieve a secondary objective: forcing BNL's rebel shareholders to stump up more money or get diluted.
Unicredito deputy jumps ship to SanPaolo 11 Nov 2004 The departure of Pietro Modiano is the latest and most serious highlevel defection from the Milanese bank. For SanPaolo, hiring a strong director may be good news but only if Modiano has the necessary authority to implement change.
Cazenove must modernise 7 Nov 2004 True, the UK broker also needs to keep its tradition of providing independent advice rather than stuffing products down clients' throats. Making the right changes is a tricky balancing act. Whether Caz does so deftly will determine the success of its venture with JP Morgan.
Cazenove doesn’t get up-front premium 5 Nov 2004 The investment bank s deal with JP Morgan produces a basevalue of nearly £800m, roughly its value before speculation started about a deal. That means there s no quick buck for employees. They will have to earn the premium by making the venture a success.
Cazenove gets most top jobs in jv 5 Nov 2004 Two senior JP Morgan rainmakers don't do too well: Ian Hannam misses out on a star role; and Bernard Taylor isn't joining at all. But the structure looks workable and looks like it has avoided most, if not all, of the turf wars.
Bloomer should leave the Pru 5 Nov 2004 The UK insurer's CEO has lost the confidence of key investors. They have good reason. Bloomer has proved a bad strategist and has oversold his strategy and had to reverse it. A decisive break is needed.
Better news from CSFB at last 4 Nov 2004 Credit Suisse s investment bank enjoyed a rebound in fixed income profits in Q3, taking the edge off bad results from its private bank. The impressive trading result may be dismissed as a oneoff. But M&A was okay too. CSFB s turnaround may be credible after all.
UBS rubs salt in its wounds in Q3 2 Nov 2004 Weak markets hit the Swiss bank s Q3 investment banking result. But UBS exacerbated this with illjudged proprietary trading positions. That is embarrassing. But it also underscores the need for UBS's continuing investment in its clientdriven investment banking activities.
ABN’s US business suffers sharp decline 1 Nov 2004 Yet again, ABN is having to fall back on a fresh costcutting drive in the face of disappointing revenues. The Dutch bank has cut guidance for annual preprovision profits after its US mortgage business declined faster than expected in Q3.