The Financial Times reports that US and European regulators are concerned about whether investment banks are obtaining adequate collateral from hedge funds when lending cash or securities. Fears are growing that proper margins may not in place and firms may be at taking big risks in the event of large hedge fund trading losses.
Dresdner Kleinwort has hired Mark Barrow from Close Brothers into its Financial Buyers Group. The hire comes hot on the heels of the appointment of John McIntyre, who joined as UK Head of M&A. Together the two new recruits boost Dresdner's 'bench' of senior bankers with UK experience and are yet another signal of the firm's positive momentum in M&A in the UK. Selective hires are now being made to keep pace with business and help further grow the pipeline.
The New York Times reports that Citigroup executives are preparing to rebrand the business. The new name of the company is likely simply to be 'Citi'. The red umbrella logo is also thought to be on the way out, and will be replaced by an upside down smile (apt for a company which has had so many regulatory problems in the recent past).
The Sunday Times 'Prufrock' column has reported that Goldman boss Lloyd Blankfein made a flying visit to pick up a 'Bank of the Year' accolade for his firm at the IFR awards last week. Being a busy man, his presence had to be keenly timed...........
Financial News reports that ABN Amro has strengthened its Asian and Spanish leveraged finance businesses. Inigo Heredia comes aboard in Spain from Societe Generale, whilst Chi Chi Chain moves across internally to beef up Asia.
The Times reports that David Walton, a member of the Bank of England's Monetary Policy Committee and a former economist at Goldman Sachs, died just 24 hours after contracting necrotising fasciitis, an infection known as the 'flesh-eating' bug.
Here's a little funny something for a Friday - will take our minds off of 'flesh-eating bugs' and severed heads.
Here are the Top 5 in a number of categories for mid-market M&A in 2006:
Although the jury is still out on whether the job market in investment banking and other areas of finance will be as hot as it was in 2006, the early signs are that there's to be no let up in 2007. Despite many firms putting in financial and other incentives to retain key staff, many employees, it seems, are determined to look for another position once their bonus cheque clears.
The Wall Street Journal reports that Societe Generale and Calyon Financial have entered into exclusive talks to merge their brokerage activities. According to the newspaper, the new entity will be jointly controlled and may seek a separate listing. Although the deal, which will see the merger of Fimat and Calyon Financial, has been agreed in broad terms, it will take at least another 3 months before the due diligence is completed and the green light is given.
ING Groep NV, the biggest Dutch financial-services company, will cut 2,350 jobs in its banking and insurance units after reporting a 64% drop in third- quarter profit.
Commerzbank has won the chance to appeal a U.K. court ruling forcing it to pay about $64m in bonuses to 104 Dresdner Kleinwort bankers.
Barack Obama, the post-partisan candidate of hope who became the first black U.S. president, won re-election today by overcoming four years of economic discontent with a mix of political populism and electoral math.