Dominic's Feed
Apr 11, 2014
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Europe’s banks lose their cover on leverage ratio

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By Dominic Elliott

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

Europe’s banks have lost their cover on the leverage ratio. European lenders used to contend that American rivals had an easier ride on newly vogue-ish equity-to-asset yardsticks. New rules published on April 8 mean they can carp no longer.

Apr 9, 2014
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Banks swap rewards for risk on public deals

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By Dominic Elliott

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

Investment bankers are wising up about reputational risk. Deutsche Bank and UBS are now loath to offer long-dated swaps to municipalities. New capital rules making it less attractive to enter into long-dated interest rate swaps partly explain why. But the legal tussles and bad publicity from dealing with public sector clients are a bigger factor.

Apr 9, 2014
via Breakingviews

Banks swap rewards for risk on public deals

Photo

By Dominic Elliott

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

Investment bankers are wising up about reputational risk. Deutsche Bank and UBS are now loath to offer long-dated swaps to municipalities. New capital rules making it less attractive to enter into long-dated interest rate swaps partly explain why. But the legal tussles and bad publicity from dealing with public sector clients are a bigger factor.

Mar 28, 2014
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Intesa’s spring cleaning heralds return to health

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By Dominic Elliott

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

Intesa Sanpaolo has joined rival UniCredit in mucking out the stables. The bank’s full-year results included a massive 6.8 billion euro goodwill hit on the half-dozen domestic mergers that turned it into the country’s largest retail bank. Along with a newly-created “bad bank,” the writedowns have spring-cleaned the books and will help Intesa pass the euro zone’s asset quality review and stress tests in September. But the main reason shares were up 5 percent on March 28 was the pledge that shareholders would receive 10 billion euros in cash payouts over the next four years.

Mar 28, 2014
via Breakingviews

Intesa’s spring cleaning heralds return to health

Photo

By Dominic Elliott

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

Intesa Sanpaolo has joined rival UniCredit in mucking out the stables. The bank’s full-year results included a massive 6.8 billion euro goodwill hit on the half-dozen domestic mergers that turned it into the country’s largest retail bank. Along with a newly-created “bad bank,” the writedowns have spring-cleaned the books and will help Intesa pass the euro zone’s asset quality review and stress tests in September. But the main reason shares were up 5 percent on March 28 was the pledge that shareholders would receive 10 billion euros in cash payouts over the next four years.

Mar 18, 2014
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A credible strategy for Barclays’ investment bank

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By Dominic Elliott
The author is a Reuters Breakingviews columnist. The opinion expressed is his own.

Barclays’ Transform plan needs urgent transformation. Chief Executive Antony Jenkins’ year-old strategy to revamp the UK lender is already struggling. First, the Bank of England jacked up gross equity-to-assets requirements last summer, necessitating a scrambled 5.8 billion pound rights issue and a one-year delay to the bank’s 12 percent return-on-equity target. Then Jenkins reneged on an assumed policy of reining in pay – and justified it with a decidedly pre-crunch declaration of needing to pay up to retain talent.

Mar 18, 2014
via Breakingviews

A credible strategy for Barclays’ investment bank

Photo

By Dominic Elliott
The author is a Reuters Breakingviews columnist. The opinion expressed is his own.

Barclays’ Transform plan needs urgent transformation. Chief Executive Antony Jenkins’ year-old strategy to revamp the UK lender is already struggling. First, the Bank of England jacked up gross equity-to-assets requirements last summer, necessitating a scrambled 5.8 billion pound rights issue and a one-year delay to the bank’s 12 percent return-on-equity target. Then Jenkins reneged on an assumed policy of reining in pay – and justified it with a decidedly pre-crunch declaration of needing to pay up to retain talent.

Feb 26, 2014
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Rudloff’s retirement is bad timing for Barclays

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

Hans-Joerg Rudloff’s retirement at 73 comes at an unhelpful time for Barclays. The UK lender’s chairman of investment banking is stepping down after a distinguished career that spanned five decades – long enough for any banker. Rudloff’s achievements are myriad. A doyen of the eurobond market, which he helped create in the 1960s, 70s and 80s, Rudloff also saw the potential in Russia and central Europe in the 1990s, long before emerging markets became fashionable.

Feb 26, 2014
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Rudloff’s retirement is bad timing for Barclays

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

Hans-Joerg Rudloff’s retirement at 73 comes at an unhelpful time for Barclays. The UK lender’s chairman of investment banking is stepping down after a distinguished career that spanned five decades – long enough for any banker. Rudloff’s achievements are myriad. A doyen of the eurobond market, which he helped create in the 1960s, 70s and 80s, Rudloff also saw the potential in Russia and central Europe in the 1990s, long before emerging markets became fashionable.

Feb 19, 2014
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Candy Crush destined to be a heartbreaker

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

Candy Crush is destined to be a heartbreaker. The addictive mobile app’s Europe-based maker, King Digital Entertainment, is ready to capitalize on the hype with an initial public offering in the United States. With top hit “Candy Crush Saga” generating about 80 percent of revenue, though, investor infatuation would be a dangerous game.

    • 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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