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’The game of investment banking
For Thanksgiving, or just to cheer you up after the latest market gloom, we’ve made a game out of Tricumen’s report on investment banking.
Here’s how it goes: the below chart shows the average quarterly revenue derived from different investment banking silos segments,
An investment banking horror, from UBS
“Pretty horrific.”
That’s the reaction of one City analyst to Tuesday’s third-quarter results from UBS.
And it’s hard to disagree.
We all know the third quarter has been a tough one for investment banks but this set of figures really does put things in perspective.
JP Morgan Q3 EPS beats expectations at $1.01
JP Morgan kicked off the third-quarter bank earnings season on Wednesday with a better-than-expected set of results.
Earnings per share came in at $1.01 versus a market consensus of $0.90, largely down to lower loan losses in its retail and credit card units.
UBS analysts see a $1 trillion headwind for Europe’s banks
Risk-weighted assets are cropping up all over the place this week.
We’ve had Barclays Capital and Credit Suisse unveiling their own estimates for RWAs under the new Basel III rules. Meanwhile, JP Morgan published a note lamenting the the shift of banks’ securitisation exposures from a capital deduction to risk-weighting.
JP Morgan ponders the death of securitisation
For your digestion on Wednesday — 15 pages of Basel III brooding.
JP Morgan banking analysts led by Kian Abouhossein have meditated in their latest note on the potential effects of forthcoming Basel III regulations on investment banks,
The trouble with assets, within assets, within assets
Correlation swaps. Next big thing or next big risk factor?
Theo Casey, a MoneyWeek managing editor, has looked at the fledgling asset class in more detail this week. In an article for Futures and Options Intelligence he concludes that for many investors .
Macquarie Bank: desperately seeking swagger
That old affluent sparkle seems rapidly to be wearing off Australia’s once seemingly teflon-coated Macquarie Bank – especially after the unthinkable happened and MacBank, once dubbed the “millionaires’ factory”
UK banks, sucking on the blood of depositors
Here’s a brilliant report from Bruce Packard at Seymour Pierce on Thursday, which expands in great detail on the rather hypocritical trend of banks scorning unsecured lending while simultaneously fighting over customer deposits — the cheapest form of unsecured borrowing for them.
The Goldman variations, annotated
After a statement of the aria at the beginning of the piece, there are thirty variations. The variations do not follow the melody of the aria, but rather use its bass line and chord progression. Because of this the work is often said to be a chaconne.
From CDOs to EMs – what could go wrong?
File this under ‘looking bubblicious’: according to a Reuters report on Monday, “displaced credit experts” have shifted their focus away from CDOs and other structured products to emerging markets in South America and Asia.
Should the world’s biggest investment banks (re)capitalise their UK units?
Over the weekend, the UK’s Sunday Times trumpeted: “world’s biggest investment banks ordered to inject billions”.
The story suggested the Financial Services Authority (FSA) wants global banks “to ensure that their British businesses hold enough capital to be able to stand on their own two feet if their parent companies suddenly stop trading.”
Repo 105: the fun starts all over again
Securities and Exchange Commission head Mary Schapiro is on the case of Lehman-esque Repo 105-style shenanigans – where ever they may be.
As Reuters reported on Monday:
RTRS-SEC’S SCHAPIRO SAYS AGENCY
The Obama-Volcker remarks in full
REMARKS BY PRESIDENT BARACK OBAMA
SUBJECT: ADDITIONAL REFORMS TO THE FINANCIAL SYSTEM
THE DIPLOMATIC RECEPTION ROOM, THE WHITE HOUSE, WASHINGTON, D.C.
11:39 A.M. EST, THURSDAY, JANUARY 21, 2010
PRESIDENT OBAMA:
Goldman Sachs abandons kittens (really)
A fresh PR disaster for Goldman Sachs.
The investment bank stands accused of abandoning kittens. Really.
Kittens, we might add, that could look like this:
The Villager, a New York newspaper,
The IBs of March
Last month:
After a meeting with President Barack Obama, JPMorgan Chase & Co’s (NYSE:JPM – News) Chief Executive Jamie Dimon said that March was “a little tough” in comments to CNBC. The bank’s shares fell nearly 5 percent.
That’s a strange statement considering equity markets rallied in March,
R.I.P., investment banking superprofits
R.I.P. IB super-profits
2002-2007
Gone away
They needed more
Then you could pay
So says JP Morgan (well, minus the epitaph) in a prescient 72-page tome on European investment banks out today.
In it,
How will investment banking revenues fare in Q3?
If the forecasts by BernsteinResearch analyst Brad Hintz are correct, investment banking revenues will decline precipitously in the third quarter.
Hintz expects revenues from investment banking to decline by between 45 and 48 per cent when banks report next month,