Dominic's Feed
Apr 27, 2015
via Breakingviews

Deutsche Bank revamp puts capital ahead of returns

Photo

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

Deutsche Bank investors are being asked to wait for slim pickings. Germany’s largest lender said on April 27 it would cut investment banking assets by 200 billion euros ($217 billion), jettison its underperforming Postbank retail subsidiary, and find 3.5 billion euros in new savings by 2020. The upside is much-improved capital strength. The downside is unexciting returns.

Apr 27, 2015
via Breakingviews

Deutsche Bank revamp puts capital ahead of returns

Photo

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

Deutsche Bank investors are being asked to wait for slim pickings. Germany’s largest lender said on April 27 it would cut investment banking assets by 200 billion euros ($217 billion), jettison its underperforming Postbank retail subsidiary, and find 3.5 billion euros in new savings by 2020. The upside is much-improved capital strength. The downside is unexciting returns.

Apr 23, 2015
via Breakingviews

Deutsche’s attitude problem compounds Libor hit

Photo

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

Deutsche Bank has found a new form of Libor shame. Germany’s biggest bank on April 23 agreed to pay a record $2.5 billion to settle with three U.S. authorities and the UK’s Financial Conduct Authority over rate-rigging misdeeds. On top of the actual fiddling, it misled the UK regulator.

Apr 23, 2015
via Breakingviews

Deutsche’s attitude problem compounds Libor hit

Photo

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

Deutsche Bank has found a new form of Libor shame. Germany’s biggest bank on April 23 agreed to pay a record $2.5 billion to settle with three U.S. authorities and the UK’s Financial Conduct Authority over rate-rigging misdeeds. On top of the actual fiddling, it misled the UK regulator.

Apr 23, 2015
via Breakingviews

French investment banking has less than meets eye

Photo

By Dominic Elliott

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

French investment banking returns flatter to deceive. BNP Paribas and Societe Generale run their trading and advisory businesses with less equity against gross assets than their rivals. Before piling in, investors should recall that smaller capital bases mean less profit is needed to generate the same return.

Apr 21, 2015
via Breakingviews

Thiam needs to think big at Credit Suisse

Photo

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

Chief executive-designate Tidjane Thiam has scope for radical action at Credit Suisse when he joins in July. The Swiss bank’s first quarter shows the outgoing Prudential boss is inheriting a mixed bag. Net profit climbed 23 percent to 1.05 billion Swiss francs ($1.04 billion) from the same period a year earlier, on resurgent trading and wealth management. But progress on weak capital ratios was mixed.

Apr 20, 2015
via Breakingviews

Deutsche should limit retail selloff to Postbank

Photo

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

Deutsche Bank’s upcoming strategy decision boils down to a tradeoff between costs and stability. The German universal bank’s management is likely to offload either part or all of its retail business when it updates investors this quarter, says a person familiar with the executives’ thinking. Co-Chief Executives Anshu Jain and Juergen Fitschen should go for the former.

Apr 20, 2015
via Breakingviews

Deutsche should limit retail selloff to Postbank

Photo

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

Deutsche Bank’s upcoming strategy decision boils down to a tradeoff between costs and stability. The German universal bank’s management is likely to offload either part or all of its retail business when it updates investors this quarter, says a person familiar with the executives’ thinking. Co-Chief Executives Anshu Jain and Juergen Fitschen should go for the former.

Apr 9, 2015
via Breakingviews

Investment banks within reach of adequate returns

Photo

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

Investor redemption may be nearing for investment banks. Most lenders’ wholesale units have destroyed value for seven years. Some may have done so again in the first quarter of this year. JPMorgan kicks off results season next week and Chief Executive Jamie Dimon said in his April 8 annual letter to shareholders that returns could be attractive in the long run, if not the short term.

Apr 8, 2015
via Breakingviews

Shell-BG highlights rise of the micro-boutiques

Photo

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

Royal Dutch Shell’s bid for BG Group underscores two worrying trends for big merger shops. Bosses seem ready to use fewer financial advisers, and to turn to smaller outfits.

    • About Dominic

      "Dominic is a London-based columnist covering investment banking. Prior to Breakingviews, he spent two years at moneydealer ICAP, where he brokered equity derivatives trades between investment banks, high-frequency trading firms and hedge funds. He has more than five years of financial journalism experience, including stints as news editor and investment banking editor at Financial News. He has also written for The Wall Street Journal Europe. Dominic holds an MA in Classics from Oxford University and an MSc in Development Management from the London School of Economics. Follow Dominic on Twitter @DominicElliott"
    • Follow Dominic