Dominic's Feed
Apr 24, 2013
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European banks turn tables on Wall Street

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By Dominic Elliott

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

Two of Europe’s biggest investment banking firms have defied fears they would fall behind Wall Street peers in the first quarter. Credit Suisse and Barclays succeeded in maintaining revenue in investment banking year-on-year, against an average drop of 7 percent among U.S. peers. Costs fell too. Given their recent history, the decision by both banks to maintain sizeable investment banking operations is controversial. But the numbers provide some justification.

Apr 23, 2013
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Barnier broadside leaves EU looking soft on banks

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By Dominic Elliott

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

The European Union’s top financial regulator seems out of touch on banking reform. His peers want banks to keep more capital, but Michel Barnier says the United States should give European banks a break.

Apr 19, 2013

Breakingviews- Toyota-isation of banking brings reputational risk

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

By Dominic Elliott

LONDON, April 19 (Reuters Breakingviews) – Forget fancy
financial models derived from quantum physics. The solution to
low returns in banking may lie in the car industry of 30 years
ago, in a Toyota-style production-line revolution replacing
people with machines.

Apr 10, 2013
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Robin Hood tax needs carve-out for repo funding

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By Dominic Elliott

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

Europe’s Robin Hood tax needs a temporary carve-out for the funding of banks through repurchase agreements, known as repo financing. Over the longer term, it is a good idea for lenders to reduce the instant gratification that short-term wholesale funding provides. But with sovereign debt concerns lingering, it is too early to pull the rug out from under them.

Apr 5, 2013
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Review: The Robespierres of central banking

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By Dominic Elliott

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

The most lasting inheritance of the 2008 financial crisis may be a change in the purpose of central banks. From the 1980s until 2007, most believed that monetary authorities should primarily use a policy interest rate to combat inflation. Interventions in the markets or in the financial system were outside the remit, or so the orthodox view went. Neil Irwin’s “The Alchemists” shows how that thinking has been turned on its head.

Mar 28, 2013
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Malone swoop frees Barclays but traps Ziggo

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By Dominic Elliott

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

John Malone’s latest swoop in the cable sector is true to form. The cable tycoon’s Liberty Global was sitting on a paper profit of over 40 million euros hours after buying a 12.7 pct stake in Dutch cable company Ziggo from Barclays on March 28. Malone has shrewdly exploited a forced seller, after Barclays was lumbered with the millions of Ziggo shares it failed to sell for the company’s private-equity owners days earlier. What’s more, he has plenty of experience in using blocking stakes as a takeover strategy.

Mar 14, 2013
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Orcel bonanza shows how far banks must go on pay

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

Andrea Orcel’s signing-on package shows the scale of the pay pickle facing banks. UBS stumped up $26 million to prise its investment-bank head from Bank of America Merrill Lynch last year, making a mockery of so-called retention packages designed to stop employees jumping ship. True, Orcel received no new cash or shares for joining his Swiss rival: the award simply replaces three years’ worth of pay he forfeited for leaving BAML. And the award can still be clawed back. But it shows how aggressive behaviour by just one bank can reinforce the industry’s pay problem.

Mar 12, 2013
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Stock sales make IPO rebound more than a pipedream

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By Dominic Elliott

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

Two big equity deals in 24 hours have made a rebound in Europe’s new-issues market look less of a pipedream. Tuesday’s placings in landlord British Land and wealth manager St. James’s Place suggest that those with equity to sell are ready to push the button.

Mar 11, 2013
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UK should accept its counsel on bank reform

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By Dominic Elliott

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

The UK government should heed its own counsel on fixing finance. A schism has opened up between Chancellor of the Exchequer George Osborne and the MP-led commission reviewing his banking reform bill. The MPs’ latest report shows how little of its advice is being taken on board.

Feb 11, 2013
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Deutsche and Nomura should help tidy Monte mess

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By Dominic Elliott

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

Deutsche Bank and Nomura should help clear up the mess at Monte dei Paschi. During the crisis, the investment banks arranged complicated trades for the Sienese lender that have hit the accounts with charges of 579 million euros. It is MPS’s fault that it got into this tangle. But Deutsche and Nomura could still score regulatory and reputational dividends for smoothing its escape.

    • 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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