Year: 2009

US banks losing argument over consumer protection

25 Jun 2009

President Obama wants to establish a new financial regulator to look after the interests of consumers. Banks say this will be a costly and ineffectual bureaucracy. But supporters are cleverly positioning it as a marketenhancing measure, and their argument may carry the day.

King puts early warning of UK crisis on the record

25 Jun 2009

The Bank of England governor has openly criticised the government s fiscal deficit. That s bold, but King was goaded by Treasury dissatisfaction with him and the central bank. He may also want history to show his warning that government policy risked provoking a crisis.

KKR gets closer to reality on valuation, too

25 Jun 2009

The buyout firm s latest step towards a public listing looks more practical than last year s overambitious plan. And the implied value the deal puts on KKR this time is more in tune with real life. A tough year seems to have brought the buyout barons down to earth.

Are banks now in write-up territory?

25 Jun 2009

With most markets rallying this quarter, it s tempting to think so. And some should benefit. But a few have little toxic waste left. Others hadn t marked it all to market beforehand. And accounting rules may let them fudge valuations. That makes quantifying any gains difficult.

Apple shouldn’t behave like Pyongyang

25 Jun 2009

The way it handled speculation about dear leader Steve Jobs health risks big problems down the road. Apple s selective silence creates unrealistic expectations for its ailing founder s ability to govern and muddies the firm s succession planning.

Bernanke witch-hunt fails to exonerate Ken Lewis

25 Jun 2009

The Federal Reserve chief held his own under Congressional lawmakers grilling over Bank of America s acquisition of Merrill Lynch. Bernanke isn t to blame for the problems that ensued they remain the responsibility of the BofA boss.

UK doesn’t need weaker code on governance

25 Jun 2009

Some big companies are upset with the comply or explain approach to rules on the composition of boards. They want something softer. But tense relations between boards and shareholders help keep standards up. If anything, investors need more not less board accountability.

BP’s leftfield choice of chairman looks good

25 Jun 2009

The oil group s choice of Ericsson boss CarlHenric Svanberg as chairman is a nice surprise. Svanberg comes with no baggage. He has emergingmarket and turnround experience. And as an exice hockey player, he may have the toughguy credentials to represent BP on the world stage.

Anglo white knights may fancy Xstrata more

25 Jun 2009

Brazil s Vale or a Chinese group are possible alternative suitors for Anglo American if the South African miner opts for a whiteknight defence against Xstrata s unsolicited approach. The snag is that they might be more interested in Xstrata's collection of commodities.

Telenor row shows all that’s wrong with Russia

25 Jun 2009

The Norwegian telecoms group has been ordered by a Russian judge to surrender its 29% stake in mobile operator Vimpelcom in settlement of a $1.7bn fine by an obscure Siberian court. If president Medvedev wants to know why Russia's image is so poor, he should look no further.

Fed leaves punchbowl but signals last call nears

24 Jun 2009

The US central bank left its target rate unchanged. But it signalled that the economy may be nearing a bottom. Its comments hint that it may change its bias toward tightening sooner rather than later. If it wants to avoid a damaging runup in commodities, it can t wait too long.

Xstrata letter won’t be enough to bag Anglo

24 Jun 2009

The miner has published its merger of equals approach to Anglo, detailing annual synergies of at least $1bn. The industrial case is reasonably attractive. But unless Xstrata dangles some sort of premium, it s hard to see how it can entice Anglo into talks.

KKR straightens road to public listing

24 Jun 2009

Last year, the LBO firm tried a complex deal to combine a buyout of its European listed fund with a new listing in New York. The credit crunch intervened, but the deal may have been too clever anyway. This time, KKR has settled for one step at a time and greater certainty.

M&S should get moving with Rose successor search

24 Jun 2009

Stuart Rose s authority as the UK retailer s executive chairman is diminishing fast. Investors have forced him to forgo part of his bonus. Divisions with his ambitious deputy chairman have become public. M&S s plan to look for a successor in 2010 is too slow. It must start now.

Is it time for Wall Street to become Tarp Street?

24 Jun 2009

In theory, it could be if the Treasury wanted to showcase its bailout bona fides. With Barclays paying $200,000 a year to tack its name on two NY subway stops, there are 400 remaining stations up for grabs. We suggest several potential sponsorships.

Anglo suitors face rocky ride in South Africa

24 Jun 2009

Xstrata s proposed merger with its mining rival would face limited formal regulatory barriers. But South Africa s government has levers to frustrate any proposal it dislikes. Recent foreign moves on national icons may only encourage politicians to demand a pound of flesh.

Independence missing element in BoE/FSA spat

24 Jun 2009

Both the Bank of England and the Financial services authority want more power to fight future bubbles. But neither covered itself in glory fighting the last one. The new regime should include independent voices.

Hedge funds need to keep old investors sweet

24 Jun 2009

With managers desperate for capital after a torrid 2008, new investors have more clout than ever to negotiate fees and terms. But as TCI s Chris Hohn could find out, some fund bosses may have to do even more to stop existing investors from pulling out when they can.

Vodafone moves to media mecca London

24 Jun 2009

The mobile giant is moving its HQ from the English provinces to the capital. CEO Vittorio Colao wants to be nearer big clients and shareholders. But moving to buzzy London also reflects a vision of Vodafone as a trendy new media company, and not just a pure telecoms operator.

Venezuela may be running out of suckers

24 Jun 2009

Japan s mercantilist approach to international trade lending money to secure contracts made it especially vulnerable to ripoffs by Hugo Chavez s Venezuela. With few remaining trusting sugar daddies to loot, Venezuela may now find it increasingly difficult to pay the bills.

ECB balance sheet exceeds Fed’s as it pumps away

24 Jun 2009

Europe s central bank has provided banks some E442bn of cheap, oneyear funds. The liquidity creation exceeds the US Fed s more visible efforts. But troubled banks are likely to hoard the cash. Their survival, and avoidance of worse recession, will be the ECB s main achievement.

What Juan can teach John about staying rich

24 Jun 2009

Millionaires in the US, Europe and Asia lost more than a fifth of their wealth last year. But the Latin American rich are only down 6%. That s because they take their risks when earning money, not investing it. It s a lesson on greed worthy of export.

Kodachrome, architect behind iconic photos, dead at 74

23 Jun 2009

The popular film star played host to some of history s greatest images. But even he couldn t keep up with the changing times. Although his parents pulled the plug on him late Monday, his legacy will live on through his digital offspring.

EU must take firm lead in Ukraine-Russia gas row

23 Jun 2009

The European Union is reportedly talking to the IMF about lending money to Ukraine to buy gas from Russia. It seems Europe has finally woken up to its responsibility to intervene in the longstanding row between the two countries. But a resolution must involve more than money.

Viacom may get another bite at MySpace cherry

23 Jun 2009

As its ad deal with Google winds up, the News Corp unit increasingly looks like an alsoran social network. More value may lie with its musical roots, giving Viacom a chance to fulfill its ambition of marrying MTV with MySpace.

China’s IPO investors unlikely to change spots

23 Jun 2009

The end of a 10month IPO hiatus will test new rules designed to curb speculation. Tonnes of excess liquidity, investors thirst for yield, and hotticket investment themes say they won t work. But at least stimulus money is finding its way onto corporate balance sheets.

Sarkozy’s deficit neglect will hamper French growth

23 Jun 2009

The French president used a landmark speech to assert that he won t implement austerity policies . It shows little concern for France s rocketing budget deficits. This will not help the French economy. Moreover, his bizarre idea of a national bond will only lift debt even more.

Two heads not always better than one

23 Jun 2009

Morgan Stanley, Credit Suisse and UBS have replaced top bankers with doubleacts in Asia. Goldman did the opposite. Having coheads can exploit complementary skills, prevent departures and make it easier to do face time with clients. But the circumstances have to be right.

Reuters delisting pays off for patient arbs

23 Jun 2009

When Thomson and Reuters merged last year, the curious pricing gap between the publisher s Canadian and British shares failed to close. It will now as the London shares disappear, delivering a return for canny traders. But anachronistic borderdriven investment theses live on.

Banks may have suffered inadequate pain

23 Jun 2009

With green shoots sprouting around the world and megabonuses on their way back, there s a risk that the banking sector may be returning to normality too quickly. Even a chance that governments won t be radical enough about reforming the system, the FSA s Lord Turner has warned.