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from Breakingviews:

More is less for Credit Suisse’s three co-heads

By Dominic Elliott

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

Three looks a crowd at the top of Credit Suisse’s investment bank. The Swiss firm has promoted Jim Amine and Tim O’Hara alongside existing co-chief Gael de Boissard, adding a new twist to the turf wars typical when big sections of lenders are run by co-heads. But the moves could prefigure a more significant succession – that of Chief Executive Brady Dougan.

Triumvirates during the Roman Empire tended to end in civil war. There are no precedents in investment banking, although Bank of America Merrill Lynch briefly had three executives running a division that included corporate banking three years ago. But even two co-heads can be too much: witness the fallout between Morgan Stanley co-heads Paul Taubman and Colm Kelleher, where the latter eventually took over. Having three separate managers for the three distinct areas of investment banking – equities, fixed income and advisory – could cause bigger rifts.

The key question is whether any of the trio is now more likely to take over from Dougan, who has been in the post for seven years and who should have stepped down after Credit Suisse was fined $2.6 billion by U.S. regulators in May. The most likely is De Boissard, who has already co-led the investment bank for a year with Eric Varvel, who is departing to Asia. O’Hara runs equities and previously headed up fixed income in North America, so could potentially run both trading businesses if De Boissard moves upstairs.

from Breakingviews:

Hong Kong weathers Occupy’s financial disruption

By Robyn Mak

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

Hong Kong’s economy is coping with pro-democracy protests, now heading into their third week. Some retailers and other businesses have suffered and traffic is bad, but the city’s financial system is undisturbed. A prolonged standoff between protesters and the government matters less to investors than the slowdown in consumption and spending in mainland China. Warnings that the movement would threaten Hong Kong’s financial health look misplaced.

from Edward Hadas:

Call that money-printing?

By Edward Hadas

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

Finance doesn’t get the disrespect it deserves. Nothing about money and credit is sacred – certainly not quantity of currency outstanding. The political and monetary authorities should feel free to add and subtract money as needed to help the economy function better.

from Global Markets Forum Dashboard:

GMF @HedgeWorld West, World Bank/IMF and Financial & Risk Summit Toronto 2014

(Updates with guest photos and new links).

Join our special coverage Oct. 6-10 in the Global Markets Forum as we hit the road, from the West Coast to Washington to the Great White North.

GMF will be live next week from the HedgeWorld West conference in Half Moon Bay, California, where we’ll be blogging insight from speakers including Peter Thiel, former San Francisco 49ers great Steve Young and other panelists' viewpoints on the most important investment themes, allocation strategies, reputation risk management ideas and more.

from Breakingviews:

BofA delivers good governance a kick in the teeth

By Antony Currie

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

Bank of America has just delivered good governance a solid kick in the teeth. The mega-bank announced late Wednesday that its directors have voted to add the chairmanship to Brian Moynihan’s duties as chief executive. The move not only puts too much power in one person’s hands, it also reduces the position to little more than a perk to be granted or taken away, depending on performance.

from Breakingviews:

Ushering Eric Cantor to revolving door

By Rob Cox

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

The following is a fictional letter that could be circulated in the corridors of K Street, the canyons of Wall Street and the hedgerows of the Hamptons this summer:

from Edward Hadas:

Not all banks are alike

By Edward Hadas

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

Competition is fierce for the Bankers’ Bad Behaviour Award. Rate-rigging, client-fleecing, dishonest documentation, reckless trading and exorbitant pay were all widespread before the 2008 financial crisis, and faulty practices have proven remarkably persistent. It sounds like there is something wrong with all banks. The ethical problem, though, is not universal.

from Breakingviews:

Argentine opportunity cost is reason to cut deal

By Martin Hutchinson

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

Argentina’s debt negotiators need to think about opportunity cost. A failure to reach agreement with holdout creditors by Wednesday might not make things immediately worse. But it would set back recent efforts to curry favor with international financiers – efforts that could pay off richly for the Argentine economy.

from Alison Frankel:

How a lone New York judge squeezed billions from banks in MBS cases

Asking a federal appeals court to step into the fray of an ongoing case to reverse a decision by a trial judge is extraordinary. Petitions for a writ of mandamus, as such requests are known, assert that trial judges have committed such egregious errors that their appellate overseers must undo the damage immediately, before the case gets to a final judgment. Mandamus petitions are a desperation move, a last resort when you've got nothing to lose from alienating a trial judge who's already ruled against you.

Last Thursday, RBS filed not one but three mandamus petitions at the 2nd, 9th and 10th circuits -- an apparently unprecedented response to what the bank claims is an unprecedented abdication of responsibility by trial judges presiding over cases brought by the National Credit Union Administration (NCUA).

from Breakingviews:

Goldman chums return John Thain to semi-importance

By Antony Currie

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

John Thain is returning to significance with a little help from some former Goldman Sachs colleagues. Thain has been doing penance running lending minnow CIT for the past four years after serving as Merrill Lynch’s last boss. Now he’s spending $3.4 billion to buy OneWest Bank, which is owned by, among others, a gaggle of Goldman alums. The deal manages to bring CIT, and Thain, back into the club of systemically important financial institutions, if just barely.

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