Banks

Cazenove delays its IPO

28 Jan 2003

This has been on the cards for ages. The broker s reputation for market savvy would have been shredded had it proceeded. But Caz probably won t mind the delay. Most of the reasons that drove it to seek a listing have evaporated.

German shareholder activism stirs

24 Jan 2003

Two top German fund managers have named a dozen companies at whose shareholder meetings they intend to kick up a fuss. So few? Public rows are a real last resort for these investors. German shareholders still prefer a softlysoftly approach.

Regulator shouldn’t nod through Agricole’s bid

24 Jan 2003

If it did, its credibility would be exploded. Together, Agricole and Lyonnais would dwarf other French banks. The regulator may not want to block the deal outright. But tough conditions should be imposed.

Merrill posts a profit, JP Morgan takes a loss

22 Jan 2003

Revenues and compensation costs are still coming down through the industry. Two of the few line items rising are legal fees and provisions to cover potential lawsuits.

Citigroup promises industry leading returns in 2003

21 Jan 2003

After a turbulent 2002, it is not surprising that Citigroup is hyping its prospects for all it s worth. But it will take more than one year of market leading performance to prove that Citi s structure is the right one.

Credit Suisse clears decks for a return to profit

21 Jan 2003

A SFr3.4bn annual loss is nothing to be proud of, but it is partly due to what looks like kitchen sink provisioning. More importantly, the group is signalling that the underlying business may finally have stabilized.

Debt capital markets evades the job cuts

21 Jan 2003

The business performed well relative to equities and mergers last year. However, in absolute terms it was less impressive. While DCM remains a longterm growth area in Europe, it does face cyclical headwinds. That leaves the smaller players exposed.

Goldman invests $1.3bn in Sumitomo

15 Jan 2003

In return, the investment bank will get a big role in restructuring Sumitomo's loan portfolio and access to its balance sheet. That will help reduce the handicap Goldman faces visavis investment banks with rich commercial bank parents.

BBVA sells Brazilian unit for $800m in cash and shares

13 Jan 2003

This is a neat deal, reducing the Spanish bank s exposure to risky Latin America and allowing it to repatriate $600m in cash. By retaining a 4.5% stake in Brazil s largest bank, it retains a presence in the country and some upside when markets there recover.

The latest Latin problem for Spanish banks: Venezuela

10 Jan 2003

Angry protestors, nationalisation threats, and "voluntary" debt swaps Venezuela is starting to look like Argentina. If anything, the situation is even uglier. Thankfully, it s also smaller. SCH and BBVA can easily ride out the storm.

Credit Suisse sells Pershing unit for $2.5bn

8 Jan 2003

This is just the latest move by the Swiss bank to repair its tattered balance sheet. Whether it makes any real difference to Credit Suisse s capital position is another matter, however.

No reason this year won’t be bad for stocks

3 Jan 2003

The US stock market is still expensive. Based on Tobin s Q it needs to fall a third to reach fair value. UK and European stocks are more fairly valued. They are also supported by higher dividend yields but for how long?

Banking conflicts saga turns to credit derivatives

27 Dec 2002

This market is ripe for the abuse of privileged information. And on that the banks have form. The size of the creditderivatives market is increasingly at odds with its unregulated, opaque nature.

Strong banks worry about weak banks in 2003

24 Dec 2002

No listed European bank failed in 2002, although rising bad loans ravaged several balance sheets. But if the economy deteriorates, or there is a sharp shock, it s not impossible to imagine a bank needing to be rescued in 2003.

Lazard chain faces fresh challenge

22 Dec 2002

The timing is fortuitous given an apparent rift between Lazard and Credit Agricole over the Lyonnais battle. UBS will inform regulators it has more than 10% of Eurazeo, putting pressure on DavidWeill s cascade.

Bulge bracket banks expert at managing decline

19 Dec 2002

After a 3rd year of shrinking revenues, Goldman Sachs and Morgan Stanley are still earning near 15% returns on equity. Expenses are being kept under control. This bodes well if we are finally at the bottom.

Bulge bracket banks expert at managing decline

19 Dec 2002

HVB should sell Bank Austria

18 Dec 2002

The bank is considering spinning off its real estate arm to strengthen its capital ratios. But this won t work. Selling Bank Austia even at a low price would significantly bolster HVB s balance sheet.

HVB should sell Bank Austria

18 Dec 2002

Italian bank mergers back on the agenda

17 Dec 2002

Italian central bank governor Fazio seems keen for deals to happen but its only between the small guys. The merger of two mutual banks this weekend has turned the spotlight back on the fragmented banks sector.