Jan 8, 2013 12:30 UTC

Rights issue rethink could ease sting for Deutsche

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By Dominic Elliott

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

A rights issue U-turn would be a bitter bill for Anshu Jain and Juergen Fitschen to swallow. Deutsche Bank’s co-chief executives vowed in September to strengthen the bank’s finances without tapping shareholders. But U.S. capital rules, non-core losses and a looming Libor settlement have upped the ante.

Jan 7, 2013 15:02 UTC

Liquidity U-turn is sell signal for bank shares

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By George Hay

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

Global regulators’ great liquidity U-turn is a sell signal for banks. That’s not the way investors chose to look at it on Jan. 7, as the share prices of global lenders rallied. Admittedly, the watering down of rules intended to protect banks against deposit-runs will mean higher short-term profit. But the economic slowdown that has caused formerly macho regulators to roll over is a more enduring negative force.

Jan 7, 2013 08:57 UTC

India’s corporate governance cleanup is welcome

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By Andy Mukherjee

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

India’s corporate culture is about to witness a shakeup. A new law will make it mandatory for most Indian companies to separate the role of the chief executive and the chairman of the board. The shift, already the norm in the United Kingdom but long resisted elsewhere, should help to narrow India’s governance discount.

Jan 4, 2013 14:12 UTC

Bank liquidity reform better delayed than diluted

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By George Hay

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

Delay is better than dilution for bank liquidity reform. Global regulators who make up the Basel Committee on Banking Supervision are set to allow lenders more time to comply with one of the cornerstones of the critically important “Basel III” reforms to stop taxpayers having to bail out the financial sector. In this case, massaging the deadline is the lesser of two evils.

COMMENT

The main objective of Basel iii is to restore investor confidence. They have developed the framework, they have explained it, and now they start finding excuses to weaken it.

Although it is true that Basel iii is an overreaction to the market crisis, it is way too late to give the impression to the depositors and investors that banks can not comply.

George Lekatis
Basel iii Compliance Professionals Association (BiiiCPA)

Posted by George_Lekatis | Report as abusive
Dec 31, 2012 16:44 UTC

Latam can rely on masses for next phase of growth

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By Raul Gallegos

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

Latin America can count on the masses for the next phase of growth. Though epitomized by a handful of people like the world’s richest man, Carlos Slim, and showy political leaders spearheading the region’s commodity-led export economies, a burgeoning middle class will make its mark in 2013 powering Latin America’s future.

Dec 28, 2012 11:27 UTC

Bank CEO survivors’ club may shrink again in 2013

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By Dominic Elliott and Antony Currie

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

At least one of the three big bank chief executives to survive the financial crisis could be without a job by the end of 2013. Goldman Sachs’s  Lloyd Blankfein, JPMorgan’s Jamie Dimon and Brady Dougan at Credit Suisse have each suffered setbacks in the past year or more. The two U.S.-based bosses have done a better job of shrugging those off. But Dougan looks vulnerable.

Dec 27, 2012 12:58 UTC

Penguin in bondage hides real risks in media M&A

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By Quentin Webb

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

Three deals from 2012 will reshape the book, music and film industries in 2013: Penguin’s merger with Random House, Universal’s $1.9 billion purchase of EMI’s recorded-music business, and Walt Disney’s $4.1 billion takeover of Lucasfilm. There are sound business reasons for all three. There are also reasons for artists and consumers to fret.

Dec 27, 2012 12:52 UTC

Weibo should tap the financial network in 2013

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By John Foley

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

Weibo is changing Chinese society, but can it change investors’ minds? The rambunctious social media site, where over 400 million of the country’s web users post, follow, share and criticise, could be worth multiples of what the market currently suggests. A partial spin off in 2013 could be a good way to unlock Weibo’s charms.

Dec 26, 2012 17:50 UTC

US housing doesn’t need another government bailout

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By Agnes T. Crane

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

America’s housing market doesn’t need another government bailout. But the White House is mulling plans to rescue homeowners trapped by underwater mortgages and above-market mortgage rates by allowing them to refinance into cheaper government-backed loans. Luckily, its latest musings look like a pipe dream.

COMMENT

The FED is currently giving banks 50 million per month, supposedly to help the banks buy back underwater or bad loans, and make it easier for working Americans to borrow. It is apparant this is not working, banks are refusing to lend to anyone without sterling credit. The FED should be buying back the bad and underwater loans directly from the homeowners, thereby repaying the banks and stimulating the economy simultaneously.

Posted by Gallogarden | Report as abusive
Dec 24, 2012 17:15 UTC
Guest Contributor

A merger arb writes to Santa

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By Donder und Blitzen

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

After another thin and bumpy year for betting on M&A, one desperate European merger arbitrageur wrote to Santa. Breakingviews obtained a copy: