Morgan Stanley in private equity roundabout 11 Mar 2004 While the firm s asset management unit is spinning off its private equity business, the investment bank is simultaneously plotting a return. This may seem inconsistent. But the new model may make better sense. It has certainly worked well for Goldman, CSFB and others.
Credit Agricole plods on with Lyonnais merger 10 Mar 2004 Not only has the French bank not raised the bar on undemanding synergy targets but delivery dates have slipped. Does this really matter so much, though? The real purpose of the deal, to create a dominant market leader, remains intact.
Investment banks tear after revenues 9 Mar 2004 A year ago all eyes were fixed on costs. Now nobody on Wall Street talks of anything but boosting the top line. But not every firm is equally placed to go after growth, precipitating lots of changes in the top echelons of investment banks.
Lloyds TSB holds the payout 8 Mar 2004 The bank can afford to do so, having sold a foreign subsidiary and cut its risk weighted assets. But the debates about dividends and strategy aren't likely to go away.
Deutsche Bank boosted by bid rumours 4 Mar 2004 Josef Ackermann likes transformational deals. The assumption is that this means he is ready to sell Deutsche to Citigroup for a big premium. But transformational doesn't necessarily mean one big deal. It could be several smaller deals and asset swaps.
Lloyds TSB appoints Helen Weir as finance director 4 Mar 2004 She steps into the shoes of Philip Hampton who left after falling out with chief executive Eric Daniels. Weir will need to allay any concerns that she got the job because she is more malleable.
Investment bankers play musical chairs 3 Mar 2004 Like clockwork, the game has begun. Bonuses are mostly paid off and guarantees expired, so bankers and traders are defecting to rivals. And unlike the recent lean years, which kept defections to a minimum, the prospects for the industry look rosy. Expect a lot of movement.
Recruitment dramas contain familiar characters 1 Mar 2004 The headhunter linked to the Prosser affair is courting controversy again at Lloyds TSB. And one corporate broker is linked to both dramas. The buck for nominations may stop with companies, but surely their advisors should be retained for their market savvy?
Lloyds TSB faces shareholder revolt – report 29 Feb 2004 First the UK bank lost wellregarded finance director Philip Hampton. Now its preferred replacement Helen Weir has shareholders grumbling. The dilemma for chief executive Eric Daniels: push Weir through and enhance a reputation for autocracy; or retreat and appear weakened.
Greenspan loses popularity contest 26 Feb 2004 The Fed chairman s latest audience with Congress will go down as one of his least upbeat for lawmakers, the White House and workforce. But during an election year, that only proves the value of his judgments. His warnings about risks to the US economy are right on.
Abbey dashes hopes of bumper turnaround 26 Feb 2004 The bank is unlikely to be able to afford to do a big share buyback funded by its restructuring. The core business is still declining too. The shares have dived on the news. But Abbey was always downbeat. The market wanted to believe in a quick recovery story.
HVB grabs E3bn while it can 26 Feb 2004 The German bank has shrewdly taken advantage of prevailing investor optimism to refinance itself. Now it should focus on its main remaining problem: stagnant growth.
HBOS struggles to convince 25 Feb 2004 The UK bank hit its targets in 2003 yet investors seem to have become more sceptical that CEO James Crosby can deliver. After all, Crosby is pulling back a bit from the mortgage market even though his strategy has been all about aggressively piling on loans.
Bank of Italy’s Antonio Fazio under investigation 25 Feb 2004 The governor is being investigated over the alleged fraud at Banca 121, which sold risky products. The direct threat to Fazio looks weak. But this attack will add to the general undermining of his position.
Clariant plans SFr920m rights issue 24 Feb 2004 The Swiss chemicals company needs the money badly to pay for cost cuts. But investors should be cautious. Clariant's promises of efficiency gains have in the past proven illusory.
Parmalat bondholders face stitch-up 23 Feb 2004 The Italian government only wants to give them one or two seats on the credit committee. The banks are set to get eight. Yet bondholders are owed over half of Parmalat's total debt. And some of the banks are under investigation for their support of the group.
European banks frustrated in US 23 Feb 2004 Last week was a bruiser for European banks with US ambitions, raising questions about their acquisition strategies. US bank prices have rallied, wiping out the competitive advantages of the dollar s decline and growing piles of surplus capital.
Standard Chartered deal talk has logic 23 Feb 2004 The death of the bank's major shareholder has raised the possibility of a strategic stake in the business coming up for sale. Standard Chartered may be expensive, but that needn't hinder a deal especially with a rival that shares its investors.
RBS should hand back some cash 19 Feb 2004 The Scottish bank s latest results have beaten forecasts, but still suggest momentum is set to slow this year. Meanwhile, the group is awash with capital. With a big deal apparently elusive, RBS should give some more cash to shareholders.
Italian banks are worryingly close to clients 19 Feb 2004 Big loans to boards and investors are common practice. Think of Parmalat, where the boss was on the board of Capitalia, one of its lenders. Revealing the size and terms of each individual loan to directors and big shareholders would allow other investors to ask tough questions.