Equities business crosses fingers for Q4 6 Oct 2004 Despite a burst of activity earlier in the year, 2004 is shaping up to be a dissapointment for the equities business. Things may pick up after the US election. But this is only one among several factors that could keep activity muted for some time. Despite a burst of activity earlier in the year, 2004 is shaping up to be a disappointment for the equities business.
Is it time for Italian bank M&A? 5 Oct 2004 The sector has to consolidate before crossborder M&A kicks off. Moreover, Italian banks are done restructuring and shares have recovered. But as ever in Italy the evidence points two ways. Sorting out the bank puzzle remains a pretty hard task.
BASF doubles E500m share buyback 4 Oct 2004 The German chemical group is doing the right thing by returning capital. But the group is merely making the best of a bad lot. BASF cannot singlehandedly revive its sluggish markets.
First year proves tough for Citigroup boss 1 Oct 2004 Charles Prince was slightly dropped in it by Sandy Weill, who left a legacy of regulatory problems. These are hurting the stock and complicating Prince s next obvious move buying a big deposit gatherer in the US.
Commerzbank securities boss quits for hedge fund 29 Sep 2004 The German bank wanted its investment banking arm to focus on its German Mittelstand clients; Mehmet Dalman didn t. Commerz is now likely to retreat to Germany, taking more capacity out of the equities business.
Fideuram loses second boss in one month 28 Sep 2004 Fideuram now has a vacuum at the top and risks significant outflows in its assets under management. The asset manager's top executives seem to have trouble getting along with with SanPaolo, its major shareholder.
Lazard prepares to buy out capitalists 26 Sep 2004 On paper the plan makes sense. The merger firm s nonworking partners represent a governance stumbling block to an IPO. Moreover, using IPO proceeds to restructure the group would be preferable to cashing out working partners, who have more work to do yet.
Barclays in bid talks with South Africa’s Absa 23 Sep 2004 With Absa trading on a low earnings multiple, and presenting scope for synergies, Barclays should be able to make a £2bn approach stack up. So why is Barclays stock being punished? Perhaps investors had convinced themselves it was going to be acquired not an acquirer.
Gardening leave crosses the Atlantic 23 Sep 2004 Merrill Lynch is importing the practice, de rigueur in the City, of forcing sixmonth notice periods on its top USbased executives. Short term, this move may help Merrill protect the franchise. Longer term, it could jack up costs for the investment banking industry.
Ackermann reasserts grip on Deutsche 23 Sep 2004 First he changed the executive team; now he s eased out Ulrich Cartellieri, one of his big critics on the supervisory board. Recent negative publicity has strengthened Ackermann's hand. But it will take more than a few high profile changes to get unity on strategy.
Morgan Stanley cracks in 3Q 22 Sep 2004 The investment bank missed estimates by a mile as trading income plunged without other businesses picking up the slack. This is the slipup investors have long feared from Wall Street s addiction to proprietary trading.
BBVA makes a break from Santander 21 Sep 2004 With its $850m purchase of Texan bank Laredo, BBVA is further differentiating itself from its Spanish rival. Santander may be bolder. And BBVA s piecemeal approach to acquisitions may require patience. But at least it doesn t look too risky.
Goldman, Lehman beat estimates 21 Sep 2004 The investment banks aren t going down without a fight. Markets in the 3Q may have been crummy, but these results are not. Still, they are coming at a cost. Goldman turned up the risk and Lehman ratcheted up the costs. And returns on equity are generally lower. The investment banks are putting up a fight. Markets in Q3 may have been crummy, but these results are not.
Citi would struggle to justify £1.1bn Caz bid 20 Sep 2004 True, it may have successfully integrated Schroders. But Caz would be harder to swallow not least because of the conflicts it would bring. If Citi was really serious about paying up, Caz might find it hard to reject. But its staff are unlikely to relish absorption into Citi.
Investment banks tussle with cost-creep 17 Sep 2004 Costs have risen in the last year and revenues are declining. Trading income is falling and corporate finance businesses are treading water. Thirdquarter results from Goldman and Morgan Stanley next week may showcase how Wall Street is coping with this dynamic.
HBOS passes on Abbey 15 Sep 2004 It may have been right to have a serious look at Abbey. But why did it have to make such a song and dance about it? After all the speculation, the UK bank has finally concluded it couldn't afford to get into a competitive auction with Santander.
Citigroup eats humble pie 14 Sep 2004 The world s largest bank has said it regrets its controversial trade in government bonds. The proprietary trade may have made money. But it irritated clients who could in theory withhold more more valuable business from the bank.
Unicredito best of big Italian banks 14 Sep 2004 The group has finally turned the corner, growing both assets and interest income in the quarter. With banking restructuring stories running out of juice, it is hard to see why Unicredito should still trade at a discount to rivals.
EU tries to unblock cross-border bank deals 13 Sep 2004 The investigation of the protectionist practices used by national bank regulators to stop foreign bids is welcome. But the Commission isn't going to have an easy time tearing down the barriers.
Deutsche Bank board readies new strategy 13 Sep 2004 CEO Josef Ackermann is looking to tighten reporting lines and kickstart the business, partly with a view to beefing up returns in Germany. Ackermann may have survived the Mannesmann trial, but it seems to have made him take Germany more seriously.