Banks

Mediobanca should be broken up

19 Mar 2003

That would stop it from getting into any more mischief. Its allies and its enemies could then get back to business. But sadly a radical overhaul isn't on the cards.

Allianz dumps Bernd Fahrholz

19 Mar 2003

After Henning SchulteNoelle s resignation, it isn t surprising the group is ejecting the other man behind the illfated Dresdner purchase. His departure and replacement by Herbert Walter may lead to the further deemphasisation of the corporate and investment banking unit.

Death of the salesman

17 Mar 2003

Having trimmed back their research departments, securities firms are now wielding the axe on equity sales desks. And why not? Fund managers are rewarding best execution, not best party invitation.

Why has Ackermann called for a bad bank again?

17 Mar 2003

It may be because Deutsche Bank s chief executive is genuinely worried that the sector might drift into crisis. The government has not done much to inspire confidence. While showing polite interest, it has largely stuck its head in the sand.

Norwegian banks in $2.3bn huddle

13 Mar 2003

The merger of DnB and Union Bank makes economic sense and could generate massive value through cost cuts. But there's a sneaking suspicion Union Bank would fetch a real premium from a foreign bidder if given the chance.

SCH under fire for secret, monster pay-offs

13 Mar 2003

It has come to light that Spain's biggest bank has shelled out E154m to two former directors. Not only are these extraordinary amounts, but shareholders weren't even told. This points to a corporate culture crying out for reform.

What’s Capitalia doing investing in Generali?

13 Mar 2003

The Romebased bank can ill afford to spend precious capital on ousting Mediobanca s boss. The Bank of Italy should discourage it from getting involved in this bun fight.

France’s banking regulator goes soft

12 Mar 2003

It sounds as if the regulator is going to approve Credit Agricole s bid for Credit Lyonnais, subject to some pretty feeble conditions. Why has the regulator buckled? Possibly because it fears there would be another hostile bid battle if it didn't.

Unicredito’s share price fall overdone

11 Mar 2003

Whatever one thinks of the Italian bank's move on Generali, it doesn't justify a E3.5bn collapse in market cap. The bizarre move is probably a necessary evil. But Profumo, Unicredito's boss, must explain clearly why this is so.

Did CSFB stand by Quattrone too long?

10 Mar 2003

That s one interpretation of events, but another is that CSFB would have been worse off if it had cut Quattrone loose earlier.

Investment bankers aren’t ideal bank CEOs

6 Mar 2003

Although they have some suitable qualities, they often aren t good at operational management. Too often that leads to frantic dealmaking with decidedly mixed results.

HSBC ups dividend 10% as bad debt provisions fall

3 Mar 2003

HSBC appears to have a better chance of driving earnings through costcutting than revenue growth. But the bank's latest numbers suggest new chief executive Stephen Green is not a man to wield the axe in a hurry.

Do German banks need a safety net?

28 Feb 2003

They may not be at that stage yet. But the government should make contingency plans. If push comes to shove, it is much better to have a "bad bank" solution than a long drawnout Japanstyle fudge.

HVB rocked by E4bn mandatory rumours

27 Feb 2003

The troubled bank said it didn t need to raise funds last month. Hence the panic reaction. Hopefully HVB hasn t changed its view. Because it looks as if it would have a tough time wringing money from investors.

Abbey halves dividend

26 Feb 2003

The UK bank has also quantified the bill for previous management's decision to play the wholesale markets: £2.7bn. Now Abbey is returning to its retail roots. The idea is this will cut risk. Maybe, but it won't eliminate it.

Umberto Agnelli returns to Fiat

26 Feb 2003

His arrival, and Fresco's departure, are a step in the right direction. But Fiat still needs to take drastic action. Reluctance to auction Toro and launch a rights issue raise questions about the group's resolve.

BCP does first big banks rights issue of 2003

25 Feb 2003

Food for thought for other capitalstrapped banks that are dithering about raising equity. As the insurance sector showed last year, the window may not stay open for long.

Credit Suisse 2002 loss tops European banks

25 Feb 2003

Although war clouds the outlook, Credit Suisse reckons it has turned the corner at last. However, the group s troubles are now hurting its private bank. Fund inflows there have slumped.

ING 2002 profits dented by hefty banking provisions

21 Feb 2003

The hit to the Dutch insurer s banking unit is more severe than expected. Despite big provisions, it is unclear if the worst is over. No wonder management declines to give a forecast for this year.

S&P junks ThyssenKrupp on pension liabilities

21 Feb 2003

The German steelmaker is the first European company to be hit by changes to the rating agency s approach. But it won t be the last.