Reuters reports that HSBC Investment Bank has said that it should generate some $6bn profits in a 'normal' year, and that it has benefited as it has 'grabbed business from rivals during the financial crisis'.
In the meantime, The Financial Times reports that Manchester United owners, the Glazer family, are said to be considering severing their ties with Goldman Sachs 'because of the role of Jim O'Neill, the bank's chief economist, in efforts to take the club off their hands'. Goldman was one of the firms involved in helping to syndicate the club's recent $753m bond issue.
And MarketWatch reports that, according to a regulatory filing, Morgan Stanley made trading losses on just 38 days last year. On its worst day, however, the firm took a hit of just over $200m.
The Guardian reports that Lord Turner, the Chairman of UK market regulator The Financial Services Authority, told the UK Treasury Select Committee this week that there may be a need to consider tightening regulation of the use of credit default swaps. Turner said: 'We have probably not been paying enough attention to the CDS market, and not thinking aggressively. I certainly think it's something we should be open about. I do think there are major questions about the CDS market'.
The Financial Times also reports that Goldman and JPMorgan are now in the metal warehousing business, after both recently acquiring businesses that operate in this profitable area.
Finally, Reuters reports that Merrill Lynch believes that Asia is likely to capture up to 20% of global hedge fund inflows in 2010, as investors become attracted to the region's performance.