Banks

UBS faces conflict charge in US

7 Aug 2003

Dana is suing the bank for using sensitive information gained from an unspecified project to abet ArvinMeritor in a $4.4bn hostile bid. Combined with its links to HealthSouth, the Dana affair raises questions about the costs of the Swiss bank's fastpaced US expansion.

Heads roll at Merrill Lynch

7 Aug 2003

Why would a leaner, successful firm expel the managers who ran its costcutting drive and its burgeoning markets arm? Chief executive Stan O'Neal has demonstrated that stamping his authority on Merrill is his number one priority.

Commerzbank predicts full-year profit

6 Aug 2003

Continued pressure on costs in the second quarter has given the German bank the confidence to predict a return to the black. But revenues, flattered by trading, look unpredictable. Commerzbank may have to renew the assault on overheads to meet its forecast.

CSFB cuts back on option awards

5 Aug 2003

The investment bank is giving staff the chance to swap share options for stock, or stock and new options. Employees will choose options if they think the shares are a surefire winner. If only investors could discover what they decide.

HSBC profits calm nerves over Household deal

4 Aug 2003

It has also upped the synergy targets for the deal. Increased exposure to the US looks like a benefit, not a hazard, for HSBC. The world s secondlargest bank has shown that its US acquisition earns a decent crust for the relatively higherrisk loans it provides.

Lloyds TSB adopts ad-hoc dividend policy

1 Aug 2003

The UK bank s new CEO has not thrown in the kitchen sink at his first results. He has held the dividend without committing to maintain it. Yet if he really believes Lloyds is a growth stock, he will have to come off the fence and cut the payout before long.

Deutsche Bank profits double in second quarter

31 Jul 2003

The results were pretty good. But then they ought to be. Debt is still going gangbusters. And there were no huge provisions. Even so, Deutsche missed earnings forecasts. Some parts of the bank, other than investment banking, are underperforming.

Abbey National rallies on half-year loss

30 Jul 2003

The UK mortgage bank says its core businesses performed less badly in the first half than it predicted only six weeks ago. Partly that's due to overconservative forecasting, and partly to Abbey jacking up market share by cutting prices.

Spanish banks are on a roll

29 Jul 2003

The latest crop of results shows the Spanish banking sector is in rude health, with lending growing at an average 15% clip. There are only two problems. The first is that margins on these loans are wafer thin. The second is that competition is intense.

Unicredito, Capitalia could do with Mediobanca’s cash

28 Jul 2003

The two banks are under pressure to show that their investment in Generali has paid off. Trouble is, some of Mediobanca s other shareholders might not feel the same way. Meanwhile, the bank is busily spending its cash pile.

Goldman Sachs dips toe into India

25 Jul 2003

The Wall Street bank's Indian ambitions are not thought to be terribly radical. It will locate just 1% of global headcount there. Goldman should be moving more. After all, the bank's boss has said that most of its profits are currently made by only 20% of staff.

CSFB buys Deutsche private equity portfolio

25 Jul 2003

Deutsche is selling up after taking a bath on private equity. That's because it punted its own capital at the top of the market. CSFB didn't make the same mistake. But it did buy its private equity business from DLJ for a thumping price.

German M&A falls deeper in the mire

24 Jul 2003

The longawaited German M&A boom is as distant as ever. Deals fizzled out in the firsthalf, but picked up in the rest of Europe. Yet investment banks are still gambling on an upturn. When it comes, they will have to work hard for their money.

Allianz dumps Deutsche Boerse stake

23 Jul 2003

The German insurance group has raised E263m from selling its shares in Deutsche Boerse at a 13month high. Achieving the same success will be more challenging for the other quoted investments that Allianz has on the slab.

Lehman pays $2.6bn for Neuberger Berman

22 Jul 2003

The New York fund manager's partners must reckon there s more upside from investment banking than fund management in a market recovery. Neuberger Berman s top brass are swapping their stock in the asset manager for shares in the US investment bank.

Abbey National valuation looks punchy

21 Jul 2003

There is no doubting that the UK retail bank is making headway with its restructuring. But on the information available, it requires an awful lot of faith to justify the current share price.

Don’t get excited about credit ratings upgrades

16 Jul 2003

A surge in upgrades provides some comfort for the bulls in the credit market. But credit quality is simply worsening less quickly than before. And the economy remains a big risk.

Sandy Weill gives up CEO role at Citigroup

16 Jul 2003

He is ceding the role to Charles Prince a lawyer whose main strength is a lilywhite reputation with regulators. But it is not clear how much freedom Prince will have to run Citi. Weill is staying on as a very visible chairman.

Merrill Lynch turns in storming second quarter

15 Jul 2003

The investment bank benefited from the socalled Baghdad bounce in both debt and equities. It is still keeping a lid on costs. That may prove to be wise.

It’s Zaoui vs. Zaoui on Pechiney

14 Jul 2003

Morgan Stanley's Michael Zaoui is advising Alcan on its hostile bid for Penchiney; Goldman's Yoel Zaoui is leading the defence. Both are masters of M&A. Like the Williams sisters in tennis or the Schumacher brothers in racing, the battle could prove epic. Morgan Stanley's Michael Zaoui is advising Alcan on its hostile bid for Pechiney; Goldman's Yoel Zaoui is leading the defence.