Investors slam Royal Bank’s US deal 5 May 2004 They wiped nearly half the $10.5bn it is paying for Charter One off the shares on Wednesday. That s not surprising, given what RBS has bought.
UBS makes hay in the first quarter 4 May 2004 Market conditions were ideal but UBS also made the most of the situation. A calculated decision to take more risk has paid off. But trading wasn't the sole driver of the result. The US wealth management business has turned the corner too.
Frank Quattrone faces jail time 4 May 2004 It s hard to know for sure which he was guiltier of being a top investment banker during a speculative frenzy or obstructing justice. By dissecting the business of Wall Street, prosecutors gave jurors another chance after Martha Stewart to win one for the little guy.
New SanPaolo governance a missed opportunity 3 May 2004 The Turinbased bank has taken a step forward by getting rid of two of its three chief executives. But the bank remains politicised and unwieldy. Creating value either through a merger or on its own doesn't look much easier.
Santander made approach to Abbey – FT 30 Apr 2004 The Spanish bank s tentative expression of interest highlights the UK mortgage bank s vulnerability. But don t expect a stampede of suitors.
HVB delivers ghastly first-quarter figures 29 Apr 2004 To miss forecasts massively would be bad enough at any time; two months after a rights issue it's disastrous. It isn't only analysts' forecasts HVB is missing. Its own internal targets now look in jeopardy.
Rhodia refinancing will only keep wolves from door 23 Apr 2004 The rights issue and high yield bond may not get the company in a position from which it is able to start paying down debt. Rhodia remains a highly speculative investment.
German mortgage banks need to consolidate 21 Apr 2004 But they aren t. Instead they are expanding internationally, hoping to dilute their domestic bad debt problems. This looks like a recipe for future difficulties.
JP Morgan caps off Wall Street revival 21 Apr 2004 With this, the last investment bank to report Q1 results, the picture looks unanimously glorious for the industry. It is hard to see how Wall Street can do better than it has in the past two quarters given the challenges ahead.
MG Technologies explodes with Dynamit sale 19 Apr 2004 The German conglomerate s E2.3bn sale of its four chemicals units effectively breaks up the underperforming group. MG s shares have bounced 24% since the plans were revealed last September. This sets a good example for other lagging German conglomerates.
Citigroup breaks Q1 expectations 15 Apr 2004 It's ironic that the firm that acquired Salomon Brothers has benefited least from the proprietary trading business. While that puts it in a good position to weather rising rates, it still might contend with rising consumer loan delinquencies.
Morgan Stanley muscles in on UK corporate broking 15 Apr 2004 By poaching a top team from Merrill, Morgan is signalling that the peculiar British practice of corporate broking is far from dead. But the interesting question is whether it can leverage what is essentially low margin relationships into juicy transactions.
Citigroup in corporate governance flap 14 Apr 2004 Plans by funds to withhold a vote for CEO Prince partly over a potential conflict with his wife is like using a sledgehammer to crack a nut. The risk with this protest, like others, is that it will dilute what little power a withheld vote offers to improve corporate governance.
Merrill turns in solid first quarter 13 Apr 2004 The firm managed to build revenues though half of these came from principal trading while holding costs steady. The challenge will be improving the investment bank's prospects. If it can do this, Merrill might just be the industry's best stock pick.
Capitalia launches E1.1bn bond into Generali stock 7 Apr 2004 This can be interpreted in two ways. One is that Capitalia has chosen a method of exit that could potentially create most value. The other is chief executive Matteo Arpe may not want to sell the shares at all.
Rhodia plans E1bn rights and bond issue 31 Mar 2004 The troubled French chemicals company will put to rest liquidity concerns if it raises this amount. But massive share dilution and extremely attractive terms on the bonds will be necessary to tempt investors to subscribe.
Goldman shareholders vote for change 31 Mar 2004 A majority of Goldman s investors voted against its staggered board. The firm will likely comply with their wishes. Others should too. It's not just a boxticking issue. If directors are not annually reelected, new SEC shareholder access rules will be futile.
Intesa secures Turkish bank with control discount 30 Mar 2004 Normally acquirers have to pay a control premium. But the Italian bank is getting control of Garanti Bank for a near 40% discount. This will assuage concerns about Intesa's expansion so soon after its previous foreign follies. But why are the Turks selling on the cheap?
Credit Suisse says it has up to 7 partners 29 Mar 2004 Perhaps it does but a deal would be messy and hard to pull off. And with the bank performing weakly, now may not be the best time.
Credit Suisse restates 2003 profits 26 Mar 2004 The bank miscalculated profits at its insurance unit after accounting policy changed. This looks like a cockup, not anything sinister. But for a bank, the miscalculation is hugely embarrassing. Moreover, it will add to concerns over the incoming finance director.