Wells Fargo relief is one piece of bailout jigsaw 8 Apr 2020 The Fed is easing its cap on the bank’s growth so it can funnel more rescue loans to small U.S. businesses. It will help a few of the up to 30 million firms in dire Covid-19 straits, but there are plenty of other glitches to fix in the $350 billion-plus federal guarantee program.
Centerview picks risky moment for Parisian push 8 Apr 2020 The U.S. advisory firm hired Matthieu Pigasse to open its French office. Luring the ex-Lazard star is a coup, though he and 14 other bankers won’t have come cheap. With the coronavirus dampening corporate spirits, Centerview needs a V-shaped recovery for its bet to pay off.
Investors can live without U.S. bank dividends 7 Apr 2020 Only a months-long severe crisis would make JPMorgan consider cutting quarterly payouts. It’s similar for many U.S. lenders, which are well padded and don’t pay big dividends. Yet that makes turning off the tap a fairly painless way to wean investors off an illogical fixation.
Wall Street stuck with Luckin Coffee dregs 7 Apr 2020 Morgan Stanley, Credit Suisse and others face big losses after the founder of Starbucks' Chinese rival defaulted on $518 mln of loans amid fraud charges. The lenders are stuck offloading a huge stack of share collateral in a falling market. It’s the price of blindly chasing fees.
Jamie Dimon sets virus playbook benchmark 6 Apr 2020 Covid-19 has prompted JPMorgan’s boss to pen his most useful letter to shareholders in 14 years atop the $275 bln bank. He is talking his book, especially on regulation, but Dimon has laid out what customers, investors, employees, and even voters, have a right to expect.
Money-market funds feel stimulus ripple effect 3 Apr 2020 Some Fidelity funds turned away investors for fear that yields on the products could turn negative. It’s not the same as a dreaded breaking-the-buck moment, but is still a headache. Massive issuance of new Treasuries should help, but it’s another case of unintended consequences.
Corona Capital: Uncle Sam’s penchant for boutiques 2 Apr 2020 Concise views on the pandemic’s corporate and financial fallout. The U.S. government has given a boost to independent investment banks by hiring Moelis. Perella Weinberg and PJT are its bailout advisers. Megabanks like JPMorgan and Goldman Sachs, meanwhile, are left on the shelf.
Couchbound M&A bankers have a few straws to clutch 31 Mar 2020 The value of global deals fell 28% in the first quarter to $698 bln. Defensive all-stock mergers and distressed sales offer some hope for M&A bankers, who are also learning to schmooze from home rather than in person. Yet hopes of a quick snapback look forlorn.
Beijing hands Wall Street rusty keys to kingdom 30 Mar 2020 After tortuous journeys, Goldman Sachs and Morgan Stanley finally joined JPMorgan with approvals to take majority stakes in their Chinese JVs. It’s a token concession at a precarious time after locals have spent a decade getting stronger. Patience, however, could yet pay off.
HSBC’s now-permanent CEO gets a hospital pass 17 Mar 2020 Interim boss Noel Quinn has finally been confirmed in the job after seven months. The fact that others, like UniCredit’s Jean Pierre Mustier, turned it down may dent his authority. The virus crisis, meanwhile, means his new strategy to boost returns is already out of date.
Wall Street has $1.4 trln chance to amend for 2008 17 Mar 2020 That’s what big U.S. banks could lend using their excess capital. Tapping into what they’ve set aside to help in a crisis would yield more. Financial returns might not be great, but using their strength to bail out taxpayers in need would be an apt reversal of the last meltdown.
Big banks owe thanks to Dodd and Frank 12 Mar 2020 The U.S. president and Wall Street CEOs like Citi’s Michael Corbat are right to say the U.S. financial system is in decent shape to cope with Covid-19. That’s down not to them, but to lawmakers who devised 2010’s reforms – which both Trump and the banks argued were too tough.
Wells Fargo stuck on hidden route to recovery 10 Mar 2020 New boss Charlie Scharf won’t say when he thinks the U.S. bank will have fixed the “broken culture” that led to fines, or even if it will hit an important Fed deadline. It can be sensible not to chase milestones too doggedly. But the opacity leaves investors in valuation limbo.
Jamie Dimon gives succession plan a scary test run 6 Mar 2020 JPMorgan’s CEO is recovering after emergency heart surgery. Deputies Daniel Pinto and Gordon Smith are in charge for now. Others have been waiting in the wings too. How well they get along and manage the virus crisis will provide investors with a glimpse of the bank’s future.
Exclusive: UBS CEO tips Swiss to better governance 2 Mar 2020 Sergio Ermotti will become chairman of Swiss Re after his 9-year term ends. It would have been tempting to hold out for the chance to chair Switzerland’s largest bank. But this allows him to embark on a new chapter without complicating life for his successor Ralph Hamers.
Investment banks have fickle friend in coronavirus 2 Mar 2020 Market volatility has surged alongside the disease’s global spread. Such moves help lenders with big trading desks, whose clients are more likely to need their services. Yet lower IPO and M&A fees may cancel out the gains, and force banks into another painful round of cost cuts.
Lebanon gives Lazard bankers a brainteaser 28 Feb 2020 The debt-strapped nation has selected the firm to advise on a restructuring. But principal haircuts could imperil local banks, austerity would upset ordinary Lebanese, and Hezbollah’s growing power complicates everything. Lazard will be worth its fees if it can solve the puzzle.
Barclays 2008 gamble has nuanced investor legacy 28 Feb 2020 A jury acquitted three ex-employees of fraud over a Qatari crisis cash call. The money forestalled a state bailout, allowing Barclays’ shares to beat RBS and Lloyds’. But the government may also have hacked back an investment bank which now drags down the lender’s valuation.
Jamie Dimon plays it too cool on global warming 25 Feb 2020 It’s encouraging that JPMorgan’s boss wants to finance more green projects. But he’s only turning the fossil-fuel lending spigot off where it or the sector is a bit-part player. And JPMorgan is now the only big U.S. bank that has yet to commit to measuring its carbon footprint.
Cox: Anyone on Wall Street want a Swiss bank? 24 Feb 2020 UBS and Credit Suisse have attractive wealth and asset management businesses, but their investment banks suck up capital and weigh on valuations. Goldman Sachs, Morgan Stanley and others could unpick some of that value. They’ll be closely watching the Zurich pair’s new bosses.