Olivia's Feed
Aug 21, 2015

Goldman braces for big demand for U.S. government money market funds

By Olivia Oran and Jessica Toonkel

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) fund managers believe investors could pour $450 billion into money market funds that invest in U.S. government debt in response to new rules for the short-term funds, an executive told Reuters. 

Goldman Sachs joins other asset management firms in preparing for the rules, which are designed to protect investors from extreme market stress. The Securities and Exchange Commission approved the rules in July 2014, and they take effect in October 2016.

Aug 18, 2015

Morgan Stanley wealth management focussing on most-profitable clients for international business

By Olivia Oran

(Reuters) – Morgan Stanley’s U.S.-based wealth management business is cutting the number of its foreign accounts to focus on its most profitable customers, a person familiar with the bank’s thinking said.

The wealth management business will focus on accounts with at least $500,000 of assets, the person added. Smaller accounts will be served through a Morgan Stanley call center. The company will close accounts in countries whose restrictive rules for off-shore accounts make working with customers too expensive.

Aug 18, 2015

Morgan Stanley wealth management focusing on most-profitable clients for intl business

Aug 18 (Reuters) – Morgan Stanley’s U.S.-based wealth
management business is cutting the number of its foreign
accounts to focus on its most profitable customers, a person
familiar with the bank’s thinking said.

The wealth management business will focus on accounts with
at least $500,000 of assets, the person added. Smaller accounts
will be served through a Morgan Stanley call center. The company
will close accounts in countries whose restrictive rules for
off-shore accounts make working with customers too expensive.

Aug 13, 2015

Goldman Sachs to buy GE Capital’s U.S. online deposits

By Olivia Oran and Neha Dimri

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) is buying GE Capital Bank’s U.S. online deposits, a move that will help the largest U.S. investment bank reduce its reliance on bond markets for funding.

About $16 billion of deposits will be transferred to Goldman Sachs Bank, GE said in a statement.

Aug 12, 2015

U.S. bank stocks sell off as investors bet the Fed will wait

NEW YORK (Reuters) – U.S. bank stocks fell 1.9 percent on Wednesday as investors bet that a weaker yuan will delay the Federal Reserve rate hikes that are expected to boost bank profits.  

The KBW Bank stock index’s decline exceeded the 1 percent drop in the broader market, and represented a shift for bank stock investors.

Aug 7, 2015

Exclusive: Honest Company in new private fundraising round – sources

By Lauren Hirsch and Olivia Oran

(Reuters) – The Honest Company, maker of eco-friendly diapers co-founded by actress Jessica Alba, has launched a new private fundraising round that could value it at between $1.5 billion and $2 billion, according to people familiar with the matter.

The fundraising is another step in the company’s path towards an initial public offering that is currently expected as soon as the second half of 2016, the people said this week.

Aug 7, 2015

Honest Company in new private fundraising round -sources

Aug 7 (Reuters) – The Honest Company, maker of eco-friendly
diapers co-founded by actress Jessica Alba, has launched a new
private fundraising round that could value it at between $1.5
billion and $2 billion, according to people familiar with the
matter.

The fundraising is another step in the company’s path
towards an initial public offering that is currently expected as
soon as the second half of 2016, the people said this week.

Aug 7, 2015

Coca-Cola near deal for organic juice company Suja: sources

By Lauren Hirsch and Olivia Oran

(Reuters) – Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) is nearing a deal to buy a minority stake in U.S. organic juice company Suja Life LLC, people familiar with the matter said on Friday, as the soft drink giant tries to identify the next big hit with consumers.

Carbonated beverages have suffered from slow growth in recent years as consumer sentiment shifts toward healthier beverages. Coca-Cola’s investment would value Suja, a start-up that counts Hollywood celebrities as investors, at around $300 million, the sources said.

Jul 23, 2015

Lazard profit beats estimates as M&A advisory fees jump

July 23 (Reuters) – Investment bank and asset manager Lazard
Ltd reported a quarterly profit that handily beat
analysts’ estimate as a jump in corporate dealmaking boosted M&A
advisory fees.

M&A and other advisory fees, which account for 45 percent of
Lazard’s operating revenue, rose 17 percent to $273.2 million
in the second quarter ended June.

Jul 16, 2015

Goldman Sachs pads bottom line with frugal hiring

By Olivia Oran

(Reuters) – Goldman Sachs Group Inc is hiring like crazy to expand its investment management business, but because many of its new workers are based in low-cost cities, its costs are still going down.

    The bank, which reported second-quarter earnings on Thursday, said staffing levels rose for the fourth straight quarter. Its workforce of 34,900 employees at June 30 was up 8 percent over a year and up 1 percent since March 31. The growth came in investment management, a business the bank has been trying to grow for years, as well as regulatory compliance, CFO Harvey Schwartz said.