Antony's Feed
Jan 20, 2012
via Breakingviews

Latest U.S. bank stock surge could prove fickle

Photo

By Antony Currie

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The latest bull run in U.S. bank stocks may prove fickle. The big six, including Goldman Sachs and Bank of America, have added $100 billion of market value since mid-December, a 23 percent jump, despite meager fourth-quarter earnings. Receding fears over Europe have helped better align bank valuations with balance sheet and income realities. But no further rally is warranted with more ugly surprises likely.

Jan 18, 2012
via Breakingviews

Goldman bankers rank ahead of shareholders again

Photo

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Bankers at Goldman Sachs rank ahead of its shareholders again. The firm is paying less in 2011 for compensation and benefits than it did the previous year. But the chop falls short of the decline in most other metrics investors use to judge investment banks. Deeper compensation cuts would show some respect for its public shareholders while keeping Goldman from wearing a dubious league-table crown.

Jan 13, 2012
via Breakingviews

JPMorgan deserves a little more investor love

Photo

By Antony Currie

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

JPMorgan deserves a little more love from its shareholders. Granted, its fourth-quarter earnings weren’t great. But overall, JPMorgan is in a solid position. And yet its stock languishes at around three-quarters of book value. It’s time for investors to overcome their fear.

Dec 27, 2011
via Breakingviews

Investors may find Citi’s the joke on them in 2012

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.


Investors may soon find that the joke’s on them about Citigroup. The bank has managed to step into every financial mess of the last few decades. In the boom, its business model lagged behind rivals in profitability before it lost tens of billions of dollars on mortgages in the bust, leading to a double government bailout. Any hint of financial distress anywhere seems to send the stock lower; it trades at just over 40 percent of book value. But 2012 may be the year when investors believe this time it’s different at Citi.

Nov 30, 2011
via Breakingviews

Governments are now world’s financial engineers

By Antony Currie and Agnes T. Crane
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The last financial crisis was supposed to have killed off financial engineering. It certainly seems to have for the most part turned excess leverage and overly complex borrowing structures into a pariah. But Western authorities have embraced them with gusto.

Nov 28, 2011
via Breakingviews

Fed’s stress-test revamp brings good and bad news

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

There’s good and bad news in the U.S. Federal Reserve’s decision to expand the scope of its annual stress tests of the nation’s top banks. Given the deteriorating economic picture, submitting the 31 largest lenders to even more awful scenarios than in the previous two years makes sense. So does putting the European exposures of the top six banks under the microscope. But the Fed’s latest move will leave many on both sides of the Atlantic unhappy.

Nov 8, 2011
via Breakingviews

Crisis anniversary marked with much dead wood

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

How long does it take to recover from a crisis? It has been five years to the day since the first signs of the great credit crunch hit. That’s when Meritage Mortgage became the first notable subprime mortgage lender to fail, presaging a far broader collapse that exacted a heavy toll on individuals, banks, investors and governments worldwide. While there are some signs of progress, the U.S. financial system still hasn’t fully recovered.

Nov 4, 2011
via Breakingviews

Jon Corzine becomes poster child of the times

Photo

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Antony Currie and Jeffrey Goldfarb

The crisis may finally have its fall guy. Jon Corzine, the boss of bankrupt MF Global, embodies all that Occupy Wall Street opposes – the elite 1 percent, failed high finance and compromised politics. Meanwhile, Corzine’s liberal agenda is part of what catalyzed the Tea Party movement. His fate could even unite a fractious America, if only against him.

Oct 31, 2011
via Breakingviews

MF Global’s failure vindicates Volcker Rule

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The failure of MF Global leaves egg on many faces. Paul Volcker and Barack Obama are among those to escape the mess. When the president added the complex proposal bearing the former Federal Reserve chairman’s name to new sweeping financial regulation last year, it looked like overkill. But the bankruptcy of the brokerage and wannabe investment bank run by Jon Corzine reinforces the idea that the ability to bet a firm’s own capital belongs only where its damage to the system can be limited.

Oct 19, 2011
via Breakingviews

Citi’s CDO payout is ripe for the Rakoff treatment

By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Citigroup’s $285 million settlement with the Securities and Exchange Commission looks ripe for the Rakoff treatment. Judge Jed already has established a reputation for taking the regulator to task for sometimes being too soft. Two years ago, for example, he upbraided it for having too light a touch on Bank of America’s lax disclosures related to its takeover of Merrill Lynch. This Citi case warrants a similar hearing.

    • About Antony

      "Antony Currie has more than a decade of experience as a financial journalist, having worked with Euromoney since 1996, most recently as a U.S. editor. He has worked on assignments in the major financial centers of Europe and the U.S. and written stories on capital markets, global economies and the investment banking industry. He holds a bachelor's degree in German language and literature and a master's degree in politics and international relations from the University of Bristol."
    • Follow Antony