Banks

German banks strike securitisation pact

23 Apr 2003

Assetbacked issuance is set to soar in Germany when the state passes laws to help banks offload assets. Six Frankfurt banks are ganging together to keep the majority of that business for themselves.

Credit research struggles to find post-Spitzer model

17 Apr 2003

There is less secondary trading in bonds than equities, so it s harder to wean credit research off investment banking cash. UBS has come up with a solution: split research into two bits, with one reporting to investment banking.

HSBC lures top talent to investment bank

16 Apr 2003

John Studzinski s appointment as cohead signals a renewed push into this business area by the international banking group. Spitzer and the bear market have knocked the stuffing out of many investment banks. Perhaps HSBC hopes to profit from the disarray.

Agricole/Lyonnais: The missing condition

15 Apr 2003

Rulings on competition issues have messed up the carefully planned Credit Agricole takeover of Credit Lyonnais. How odd, then, that Agricole did not make the deal conditional on antitrust clearance.

Citigroup lifts revenues 4% in the first quarter

14 Apr 2003

The world's largest financial services group has posted a strong rise in Q1 net income largely thanks to a helpful comparative in 2002. But the top line result is mixed and there are few signs that the much lauded consumer business is gathering real momentum.

Banks take fees on both sides of M&A deals

11 Apr 2003

In auctions of companies to private equity bidders, some banks are both advising the seller and financing the buyer. This can help the seller when financing markets are difficult. But it creates a conflict.

Equity desks go from resizing to reshaping

8 Apr 2003

Investment banks response to the fall in equities revenues has been to focus on absolute costs. But before long they must start from scratch and ask whether equities staff in particular equity salespeople are doing the right job.

Iraq triggers debate on odious debt

4 Apr 2003

Some say Iraq shouldn t have to repay debts it ran up under Saddam because his regime was illegitimate. This idea has a certain appeal, and would certainly reduce the cost of rebuilding Iraq. But it is very problematic.

ICI should break itself up

3 Apr 2003

Following the chemical group's profit warning, investor rage has been focussed on management's poor performance. But ICI's botched transformation has turned it into a messy conglomerate and that needs to change.

Danske bid shames Nordic bank merger

3 Apr 2003

It s taken a Dane to highlight the Norwegian quiddities not to mention stinginess of DnB s offer for Union Bank. But Danske will have to go openly hostile with its higher bid if it really wants to unpick this Norwegian stitchup.

Retiring bankers abandon Mammon for good works

3 Apr 2003

It is easy to see why bankers with strong personal balance sheets are quitting. But why for pro bono work? Top bankers did better than many of their clients and investors over the past decade. Perhaps this is their way of putting something back.

Norway’s DnB increases bid for Union Bank

2 Apr 2003

The extra cash on hand still doesn t make the bid that generous. But the chances of an interloper remain slim. Norway is only now beginning to think about relaxing the restrictions that foreign banks face when buying stakes in local banks.

Mediobanca shareholders reach truce

1 Apr 2003

Unicredito and Capitalia have seen their Generali gamble pay off. They thwarted Bollore s advances on the insurer. Moreover, they no longer need to tie up capital in Generali and Mediobanca. But will they escape unscathed?

Investment banks wait on war to cut more

31 Mar 2003

Bankers are waiting to see what the situation is like after the war ends before deciding what to do. But it will take a big postwar recovery in the markets if there aren't to be more big cuts.

Bidders circle Spain’s Banco Zaragozano

28 Mar 2003

That may be so. But such denials may simply reflect a weakening hand its two biggest shareholders have been sentenced for fraud. The midsized bank continues to deny that it is on the brink of a tieup, with Barclays or ING or any one else.

HVB to sell Bank of Austria stake

27 Mar 2003

The capitalstrapped German bank is biting the bullet sort of with plans to float up to 25% of its Austrian subsidiary. Problem 1: HVB s regional strategy is now in a hole. Problem 2: the sale probably won t raise enough to meet HVB s needs.

ICI savaged by profit warning

25 Mar 2003

The beleaguered group says its firstquarter profit before tax will be almost a quarter below last year. The stock is now only a quarter of the level it stood before last year's £800m rights issue.

Goldman bids adieu to Thornton

25 Mar 2003

History repeats itself. During the last major downturn in 1994 Goldman suffered a similar drain of top talent. Then partners went limited. Today expartners like Thornton are walking away with the firm. This will have an impact.

Bankgesellschaft privatisation falters

24 Mar 2003

The Berlin local parliament is about to decide whether to sell its sick state bank to US investor Chris Flowers. It will probably say no. The Bankgesellschaft saga could have given German bank investors great hope. In the event, it will have the opposite effect.

Bank of America shuts European equities operation

19 Mar 2003

The secondtier investment banks have long been expected to stage a retreat. Bank of America s capitulation will make it easier for others to follow suit.