Some Aramco IPO banks look more equal than others 12 Sep 2019 The Saudi oil giant has picked nine banks as global coordinators for its revived listing. They all get bragging rights. Yet despite the implied equality, they won't all do the same job. Banks that led the first stab at the IPO, like JPMorgan, will still probably call the shots.
Holding: Insider-trading law fix is within reach 11 Sep 2019 The U.S. Congress seems closer than ever to clarifying rules that have perplexed investors, watchdogs and judges for decades. With prosecutors pushing legal limits and dodgy traders slipping through loopholes, reform is overdue. Bipartisan support suggests it may finally happen.
UK government door still revolves at Goldman Sachs 10 Sep 2019 The investment bank will hire Britain’s former chief Brexit negotiator. Departed officials usually help clients navigate corridors of power, but Olly Robbins is hardly popular with Prime Minister Boris Johnson’s team. His negotiating skills and European contacts may compensate.
HSBC can use some lobbying flair in China 12 Aug 2019 The bank’s Greater China head has left, days after the abrupt exit of group CEO John Flint. Shake-ups happen. This one, though, comes as the lender faces heat in Beijing over its cooperation in U.S. probes into Huawei. New bosses will need diplomatic nous for a tricky task ahead.
Barclays takes out insurance policy to meet target 1 Aug 2019 Lower revenue and higher costs led to a 15% first-half drop in underlying pre-tax profit. The bank’s UK division faces tough times and will be less likely to offset dour performances in trading. CEO Jes Staley is pledging more cost cuts to hit a 9% annual return target.
European trader laggards’ energy boost has legs 31 Jul 2019 Higher investment banking results drove year-on-year rises in Credit Suisse and BNP Paribas’s quarterly earnings. Euro-denominated debt issuance hikes and the scope to pick up business from ailing Deutsche Bank are tailwinds. They could help erode the banks’ valuation discounts.
Nomura feels the happy effect of a low base 31 Jul 2019 The ailing Japanese brokerage turned in a strong performance in its markets division, which is in the middle of a restructuring. What’s encouraging is that it happened as big U.S. rivals said business was limp. Boss Koji Nagai’s efforts to turn Nomura around may be bearing fruit.
Blackstone’s quick data flip is a paper two bagger 27 Jul 2019 Less than 12 months after buying Thomson Reuters’ financial data unit, the buyout firm is in talks to sell Refinitiv to London Stock Exchange in a $27 bln deal. There are risks, notably what Brexit could do to LSE shares, but an implied money doubling provides plenty of cushion.
UBS’s high-court loss puts rivals in crosshairs 26 Jul 2019 Swiss judges are letting French authorities have details on thousands of the bank’s clients. How much it helps Paris secure a 4.5 bln euro fine in its current UBS fraud case is unclear. But it opens the door for overseas agencies to target the entire Swiss banking industry.
Misfiring UBS traders are only part of the problem 23 Jul 2019 The $46 bln Swiss bank reported another tepid performance from its investment bank in the three months to June. A decline in wealth management profit poses a bigger problem for CEO Sergio Ermotti. With revenue subdued, he needs to cut more group costs if he's to hit 2021 targets.
Wall Street bonuses hit by misplaced optimism 19 Jul 2019 All the major U.S. banks posted a drop in trading and corporate finance revenue this year, with Morgan Stanley suffering most. That's already putting a dent in employees' generous pay packages. A poorly timed hiring spree is exacerbating it, especially at JPMorgan and Jefferies.
BlackRock margin pinch is chilling sign for peers 19 Jul 2019 Earnings fell 7% at the world’s largest fund manager even as it pulled in a massive $151 bln of new money. Investors shifting to bonds, cheap index funds and ETFs are to blame. Larry Fink’s firm has the breadth and size to cope; others like T. Rowe Price may not be so fortunate.
Banks send investors on Tradeweb treasure hunt 18 Jul 2019 The IPO of the $11 bln trading-tech firm created small windfalls for backers including Morgan Stanley, Citi and Goldman Sachs, but they reported the sums differently and with mixed levels of clarity. It’s the latest example of how shareholders are forced to be accounting sleuths.
Blackstone’s redesign takes quick shape 18 Jul 2019 Even as quarterly investment income fell, the buyout shop grew assets by $45 bln and fee-based earnings jumped 24%. More fund managers can now buy into Blackstone, and they seem to prize this steadier income. There will be ebbs, but early signs bode well for the new structure.
Morgan Stanley’s Gorman marks a middling decade 18 Jul 2019 Since being named CEO in 2009, James Gorman has made Morgan Stanley a big name in wealth management. That mutes the impact of trading, which a weak second-quarter performance shows is a good thing. Shareholder returns are only so-so – but at least beat rival Goldman Sachs.
American depositors do the heavy lifting 17 Jul 2019 Bank of America followed JPMorgan and other peers with solid consumer banking results that propped up weak trading and investment banking. Falling rates and rising competition are risks, but it helps that Main Street customers generally can’t or don’t push hard for better deals.
Wells Fargo waves carrot at wavering CEO wannabes 16 Jul 2019 The U.S. lender’s second-quarter earnings could aid its search for a new boss. One-off gains helped, but cost cuts kicked in too. Getting expenses to JPMorgan’s level and mending regulatory relations could boost Wells Fargo’s value by a third. That’s hard to replicate elsewhere.
Goldman enlivened by condition it wants to cure 16 Jul 2019 The $77 bln Wall Street firm’s decent second quarter relied on gains from private-equity investments and equities traders who performed much better than some rivals. Boss David Solomon wants over time to downplay those volatile businesses. For now he’s probably glad he didn’t.
Deutsche Bank accidentally boosts boutique model 10 Jul 2019 The lender’s enforced decision to shut its cash equities business raises the question of whether investment banks need armies of traders and analysts to back up stock offerings. A leaner platform could show they don’t. That would be a shot in the arm for smaller rivals.
Wall Street minnows pitch merger nirvana 9 Jul 2019 Piper Jaffray’s CEO reckons a $485 mln purchase of Sandler O’Neill will double his margins, without cost cuts or new revenue. The target’s capital-lite business is one factor; the buyer’s subpar performance is another. In relative terms the tie-up’s returns will just be middling.