Exclusive outtakes from industry leaders
As global markets rallied over the past five years, talent in the private banking industry had become a heavily fought over commodity. Rain makers, top bankers and entire teams were poached constantly by rival organizations who offered top dollar for the move.
However the unprecedented financial crisis has dramatically changed the talent landscape, with rookie bankers facing a harder time to move up the ladder, said a Merrill Lynch executive.
“Musical chairs are not taking place. People with limited experience, with fewer assets are not today being seen to move in the manner that they did in 2006, 2007,” said Rahul Malhotra, head of Asia-Pacific Advisory for Merrill Lynch.
Malhotra also said that the pace of growth in the wealth management industry outstripped the pace of growth in its talent pool.
So when someone talks about the industry being in “meltdown”, it is good to see they are backing up their dramatic views with some dramatic actions.
But according to Sebastian Dovey, managing partner of wealth management consultancy Scorpio Partnership, they need to spend less time moaning about it and more time working with regulators to communicate the benefits of the industry.
“It’s not good enough to sit back and say this is going to cost us,” he says. “We’re here now, we’re in this mess. We’ve got to try and manage our way out of it.
However, he thinks the market sell-off over the past two weeks has thrown up good value and said the Middle Eastern bank will look to raise up to $600 million for three Asia-focused funds next year. Kuwait Finance House is the Gulf third-largest lender.
Barack Obama may be looking to boost marginal tax rates for the wealthiest 5 percent of Americans, but that doesn’t mean the wealthy are shunning the candidate, said Richard Feurtado, BlackRock’s head of wealth management in the account management group.
In fact, about 50 percent of BlackRock’s ultra-high net worth clients are Obama supporters, Feurtado said at the 2008 Reuters Wealth Management Summit in Boston.
“People do things for all sorts of reasons, and maybe one of them is financial, but there are many other reasons for people voting in certain ways,” Feurtado said.
Super-wealthy individuals in commodity-rich areas such as Russia and the Middle East are reaping the benefits of a five-year boom in oil and other commodity prices.
The problems at U.S. automakers have many obvious effects on the national, state and local economies in the United States, but those effects are felt in Canada as well and they have left one long-time industry observer fearful.
Buzz Hargrove, former president of the Canadian Auto Workers (CAW) union, expressed some of those concerns on Wednesday at the Reuters Autos Summit.
As with most issues, there are two sides to this one as well. and both were heard this week at the Reuters Autos Summit in Detroit.
The U.S. government has committed to spending $25 billion to help the U.S. automakers finance needed changes in production, manufacturing and design. And if the Detroit automakers get their way, that number will end up being more like $50 billion.
OK, that headline might be a little bit misleading for a posting about the difficulty of predicting raw materials prices, but it catches the eye.
Fritz Henderson, chief operating officer of General Motors Co, told the Reuters Autos Summit this week about how the wild price swings in critical raw materials make it especially difficult to predict profitability and margins.
For Ford Motor Co. Chief Executive Alan Mulally before the automakers can really see a meaningful turnaround a number of factors need to be present — and almost all of them deal with a stronger consumer situation.