Goldman turns big strategy splash into damp squib 29 Jan 2020 CEO David Solomon used the firm’s first-ever investor day to unveil ambitious plans to grow everything from alternative investments to retail and transaction banking. But they’ll take years to bear fruit. Until then Goldman is relying on cost cuts to generate so-so returns.
Goldman Sachs fades memory of the spank from Hank 28 Jan 2020 As boss David Solomon unveils his growth strategy, he’s likely to shine a light on Goldman’s inner Blackstone. But the direct investing business has in the past caused conflict with clients and angst from regulators. Solomon will need to explain why this time it’s different.
Wells Fargo fine is one half of a double deterrent 23 Jan 2020 Former boss John Stumpf will pay $17.5 mln for overseeing pervasive misbehavior at the U.S. bank. It may dissuade other executives from wrongdoing, but pales next to the $75 bln or so foregone by investors. That seems just, too: In some ways they were also asleep at the wheel.
How Jamie Dimon can grab Larry Fink’s green halo 21 Jan 2020 Now that the BlackRock boss has got serious about climate change, the focus is on his JPMorgan peer. As CEO of the biggest U.S. bank, Dimon’s sway over corporate debt gives him more power than any equity activist. Deploying it would turn his bank from laggard to leader.
Morgan Stanley puts decent cap on forgettable year 16 Jan 2020 The Wall Street firm’s 2019 revenue hit $41 bln, partly thanks to lumpy private equity gains. Overall, strong wealth management was offset by relatively weak trading. More worryingly for 2020, costs outpaced revenue. At least James Gorman isn’t the only CEO with room to improve.
Wannabe bank Goldman should take its own advice 15 Jan 2020 Its vaunted consumer bank still makes less than $1 bln, and building it is a grind. If it were a client, Goldman would be preparing a pitchbook of acquisition targets by now. America has plenty of bite-sized banks, and the political environment may be as friendly as it gets.
BofA’s Moynihan is a survivor if not a winner 15 Jan 2020 The $318 bln lender’s boss oversaw shrinking revenue last quarter as rivals’ grew. The bank routinely reports middling returns on equity and as an investment has been just okay. But given the hand he was dealt, Brian Moynihan’s 10-year stint looks like a financial success story.
Wells Fargo is finance’s big opportunity 14 Jan 2020 The troubled bank’s dismal earnings show how much work lies ahead for new boss Charlie Scharf, especially with expenses at least $10 bln too high. Slashing those and smartly growing its tiny credit-card unit while dealing with a deposits price war could put Wells in decent shape.
Trading swings keep Wall Street cozy – for now 14 Jan 2020 JPMorgan and Citi’s big boost in trading revenue sets the tone for rivals reporting earnings this week. Yet for all the volatility, the pecking order among the big five U.S. banks has barely changed in the past decade. The next may look similar, unless Goldman Sachs breaks away.
Goldman Sachs reorg brings new target into view 7 Jan 2020 Investors can now see how much revenue the Wall Street firm’s fledgling consumer bank and credit-card venture with Apple bring in. Spoiler alert: the revenue is small, and profitability meager as Goldman invests. Still, improving these modest numbers gives something to shoot for.
Direct listings will move nearer IPOs – and Europe 27 Dec 2019 After Spotify and Slack’s non-standard floats in 2018 and 2019, respectively, expect more direct listings in the United States in the year ahead. The method could start borrowing more features from traditional IPOs, and the whole notion may jump across the Atlantic too.
BlackRock is Wall Street’s object of fantasy M&A 23 Dec 2019 Investment banks are paid to be creative by concocting deals that help clients meet their strategic imperatives. But financiers like Goldman Sachs and Blackstone, too, could use some of their own advice. The $76 bln investment behemoth might one day play into their pitchbooks.
Viewsroom: Jack Dorsey’s heroic year ahead 19 Dec 2019 From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.
Goldman set for show of guilt without tears 19 Dec 2019 The Wall Street firm may pay $2 bln for its role in the 1MDB bribery scandal and offer a rare admission of wrongdoing. Neither fine nor mea culpa would carry much sting. As often happens in the cat-and-mouse game of enforcement, the end result looks half-baked.
M&A bankers will turn climate risk into clients 19 Dec 2019 The financial impact of global warming is one of the biggest strategic issues CEOs face, yet it plays a small role in dealmaking. That might change in 2020 as shifting regulation and consumer habits start to affect the bottom line, giving climate-conscious advisers an edge.
Goldman shows world leaders live in wrong climate 16 Dec 2019 The Wall Street firm is targeting $750 bln of sustainable finance over the next decade, even as politicians dither. It’s a fluffy goal. Yet it shows the hard-nosed Goldman sees money to be made from sustainable investment. Its long-term-greedy mantra fits climate change neatly.
Nomura aims for more sustainable Wall Street role 11 Dec 2019 Japan’s biggest brokerage has tried for decades to build an enduring U.S. investment bank. Its latest attempt involves buying renewable-energy boutique Greentech Capital. It’s a small but focused deal in a growing market. That should increase the odds of Nomura making it work.
Brazil’s $15 bln brokerage IPO is so retro 11 Dec 2019 Upstart XP is the year’s fourth-largest U.S. listing. It can still charge real fees in its cozy market, just like U.S. brokers in the good old days. Falling rates should keep new customers coming. And Brazil looks less prone to the competitive havoc that beset American peers.
Nomura takes the easiest road with new CEO 2 Dec 2019 Koji Nagai performed poorly as boss and will now become chairman, a shareholder-unfriendly tradition in corporate Japan. Successor Kentaro Okuda’s time running the Americas unit supports the bank’s global goals. But a veteran pick is unlikely to bring fast fixes to bigger issues.
Natixis does more of the wrong type of innovation 27 Nov 2019 The Paris-based lender has taken a lead in lowering risk-weights to spur green lending. That’s diverted attention from past trading goofs. The suspension of a senior trader on procedural grounds will not help the regulator see it as a solver rather than a creator of problems.