Summit Notebook

AUDIO – The costs of war

December 15, 2008

Wars have numerous costs and most of those are unimaginable for most of us not in the middle of one.

AUDIO – Teddy Roosevelt had it right

December 15, 2008

The world is a more dangerous place because of the global economic meltdown, according to Northrop Grumman Chief Executive Ronald Sugar, whose company provides specialized aircraft, radar and other electronics to meet that threat.

Diller to profitable companies: Lay off the layoffs

December 4, 2008

IAC Chief Executive Barry Diller took several groups to task at the Reuters Media Summit, but he reserved special disgust for CEOs at profitable companies who add to the country’s rising unemployment rate.

No LUV for China real estate, SOHO says

November 6, 2008

China’s real estate sector has a chilly winter ahead, said Pan Shiyi, chairman of Beijing property developer SOHO China Ltd. And he had interesting, alphabetical way of describing it.

Chinese online execs say no to M&A

November 6, 2008

The Reuters China summit in Beijing had two internet executives speak about their business. Kevin Wang, CFO of software maker Kingsoft, and Charles Zhang, the chairman and chief executive officer of Inc. both discussed growth and weathering the financial storm. The companies they lead have some similarities and differences, but both are seen as being less exposed to market fluctuations because after all, a lot of their business is based on people going to their computer, sitting down, and logging onto the internet.

For a banker, no panic in China

November 6, 2008

“Well insulated” China, though suffering from sharp drops in its own equities markets, doesn’t have the sense of crisis that exists in the U.S., says Philip Partnow, managing director of UBS Securities Ltd in Beijing. UBS, the first Western bank to assume management control of a domestic mainland brokerage, points out the fact that what’s hitting companies is not subprime-related securities gone bad.

How wealth managers manage their own wealth

October 16, 2008

lamere.jpgPrivate bankers are guiding their rich clients into safer investments as financial market turmoil spreads, but when it comes to their own money they often take a different tack.
“I don’t have a very well diversified portfolio,” admits Timothy Vaill, chairman and chief executive officer of Boston Private Financial Holdings , which owns 15 independently operated financial services firms.
“The majority of my investments are in my own company,” he told this week’s Reuters Wealth Management Summit.
“And I invested additionally this quarter in my own company again because I really believe what we are doing is the right thing to do and it is a very strong company. And I’m there all day, every day, watching it like a hawk.”
David Lamere, chief executive of The Bank of New York Mellon’s wealth management unit, said his money is managed by his own company.
“I’m a big shareholder in BNY Mellon, and the rest of my assets is managed by our organization,” Lamere told the Reuters Summit. But his investments were “very diversified”, he added.
How much do they own?
According to Thomson Reuters data, Vaill owned 201,794 shares of Boston Private as of mid-August valued at about $1.8 million. As of Thursday afternoon, his stake would have retained its value at $1.8 million.
Vaill also said he does not borrow against his stock and does not invest in hedge funds.
Lamere owned 255,820 shares of Bank of New York Mellon as of May 9, valued then at about $11 million. As of Thursday afternoon, that was notionally valued at about $7.5 million.
Lamere said he was at a lunch on Sept. 18 when Bank of New York Mellon stock briefly fell 35 percent along with a slump in shares of other trust banks and asset managers.
“It all happened within about an hour in the middle of the day and I was in a lunch. I got called six times,” Lamere added.

For wealthy men, the grass ceiling

October 15, 2008

taylor-two.jpgWomen have long bumped up against glass ceilings as they try to advance to upper level executive jobs.
According to research from the Harrison Group, a market research and strategy firm in Waterbury, Connecticut, when it comes to housework wealth men are dealing with barriers too, although it’s unclear where those barriers come from.
“Women handle the household’s employment, treasury and other functions” and are making real money for the family, said Jim Taylor, the group’s vice chairman who regularly researches how rich people behave.
Men work long hours at their jobs and at home they are now allowed only to care for lawns, shrubbery and maybe the swimming pool. That gives rise to the new term “the grass ceiling,” Taylor said at the Reuters Wealth Summit.

Be very afraid — the wealthy are

October 15, 2008

taylor2.jpgHow worried are the richest Americans by the current economic turmoil?
It’s fair to say, “very.”

The credit crisis is affecting us all…

October 15, 2008

rtr1pjb9.jpgSpare a thought for the mega-rich.

While the man or woman on the street cuts back on non-essential spending as the value of their home falls and they worry more about whether or not they will keep their job, so too multi-millionaires are feeling the pinch.