Not long ago Dubai was one of the few places on the planet where investment banks were gearing up. Not anymore.
Morgan Stanley has become the latest investment bank to wield the job axe in Dubai, as the property sector contracts and deals dry up. According to The Wall Street Journal, Morgan Stanley is said to have cut up to 15 in its 110-person Dubai office. Firms like Credit Suisse have also let bankers go, and HSBC has been culling bankers in the region.
The Financial Times reports that Barclays Capital is rebuilding its equities operation, 10 years after selling off stockbroking arm BZW. The newspaper quotes Dixit Joshi, the head of the firm's Europe and Asian equities businesses, who said: 'We've been looking for the right opportunity to enter the cash equity space in an efficient way for many years. The acquisition of Lehman's US business has given it to us in one fell swoop. We're looking to extend the US platform and the franchise we've acquired into Europe and Asia'.
The Daily Telegraph points out that Bank of America's stock price has suffered compared to its peers since the firm announced in September that it was to acquire rival Merrill Lynch. BofA's stock has fallen a massive 54% since the day the deal was announced, compared to falls at rivals Wells Fargo (16%), US Bancorp (22%) and JPMorgan Chase (26%).
Bloomberg reports that, according to an unnamed 'person familiar with the situation', Tudor Investment Corp. is temporarily suspending redemptions from its $10bn BVI Global Fund, as it splits off the funds hard-to-value assets into a new fund called Legacy.
Finally, The Financial Times reports that Standard Bank is to raise funds over the next 2 / 3 years from investors for its nascent emerging market private equity activities.
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