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Feb 12, 2015
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Credit Suisse earns the chance to be proactive

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By Dominic Elliott

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

For once, Credit Suisse is on the front foot. Shares in the Swiss bank surged more than 9 percent on Feb. 12 after it kept its full-year dividend intact and revealed reassuringly robust fourth-quarter results. Better still, in outlining up to another 70 billion Swiss francs ($75 billion) in asset cuts this year, Chief Executive Brady Dougan is adopting a more proactive approach to tackling his bloated balance sheet.

Feb 12, 2015
via Breakingviews

Credit Suisse earns the chance to be proactive

Photo

By Dominic Elliott

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

For once, Credit Suisse is on the front foot. Shares in the Swiss bank surged more than 9 percent on Feb. 12 after it kept its full-year dividend intact and revealed reassuringly robust fourth-quarter results. Better still, in outlining up to another 70 billion Swiss francs ($75 billion) in asset cuts this year, Chief Executive Brady Dougan is adopting a more proactive approach to tackling his bloated balance sheet.

Jan 16, 2015
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Review: Why banking is flawed and how to fix it

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By Dominic Elliott

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

“The End of Banking” is an important book about finance. Jonathan McMillan, the nom de plume taken by an investment banker and a macroeconomist, provides a holistic and compelling explanation of the crisis of 2008. The authors predict a repeat, barring a revolution in finance.

Dec 31, 2014
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Banks will make asset managers pay for regulation

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By Dominic Elliott

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

Asset managers are about to find life more expensive. After years of mounting regulatory costs and low interest rates, investment banks are attempting to charge clients more. The trend looks likely to accelerate over the coming 12 months.

Dec 17, 2014
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Russia’s foreign banks have varying pain barriers

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By Dominic Elliott

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

The three main Western banks in Russia are in a curious position. With domestic lenders hobbled by sanctions, the biggest foreign competitors – Raiffeisen Bank International, UniCredit and Societe Generale – are well placed to grab market share. But first they have to withstand the latest Russian crisis. That looks harder for some than others.

Nov 20, 2014
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London gets closer to harsh bonus cap reality

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By Dominic Elliott

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

London is nearing the stark reality of banker bonus caps. An adviser to the European Court of Justice on Nov. 20 struck down the UK’s legal arguments against a European Union law restricting variable compensation to a maximum of two-thirds of overall pay. If the court agrees with him, the practical consequence will be that banks will hike fixed salaries, and overall industry remuneration may stay higher than it should.

Nov 12, 2014
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FX fines are wake-up call on self-policing

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By Dominic Elliott 

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

The $3.4 billion regulatory settlement for currency market rigging is a big wake-up call to the banking industry on self-policing. The firms involved – Citigroup, HSBC, JPMorgan, Royal Bank of Scotland and UBS – are paying 20 percent more than the same authorities have levied from five firms for the Libor scandal. That cannot be dismissed as simple fine inflation. It reflects banks’ failure to learn their lesson. Misdeeds in FX went on as recently as October 2013 – well over a year after Barclays became the first bank to settle over Libor.

Oct 28, 2014
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UBS’ legal pain is beginning to look manageable

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By Dominic Elliott

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

UBS investors can almost see past the bank’s legal woes. The Zurich-based financial group is still paying for past sins, with a 12 month extension of a U.S. non-prosecution deal and a hefty 1.8 billion Swiss francs ($1.9 billion) addition to litigation provisions in the third quarter. But underlying businesses are now prospering.

Oct 23, 2014
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Credit Suisse’s future is mid-table drabness

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By Dominic Elliott

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

Credit Suisse’s future is more workmanlike than its racy third quarter might suggest. The Swiss group revealed on Oct. 23 that its investment bank had trumped Wall Street: fixed income trading revenue leapt by a half year-on-year, against U.S. peers’ average mid-teens increase. But questions linger over Credit Suisse’s ability to maintain that performance if rates rise.

Oct 21, 2014
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FX business now shares equities’ harsh economics

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By Dominic Elliott

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

Currency trading is taking over from equities as the challenged business in investment banking. Resurgent volatility in foreign exchange markets during September and October is unlikely to offer more than a temporary respite for the business.

    • 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"
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