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Bank deleveraging has barely started

Bank deleveraging has barely started

Banks lending money to governments to help fund bank bailouts looks horribly circular

The US treasury market reaches breaking point

The US treasury market reaches breaking point

The structural issue that could cause the world's market of last resort to grind to a halt

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November 2001

Dobson’s problem





       
Michael Dobson
Michael Dobson should have an interesting time turning around Schroders.
At least having been a non-executive director of the firm, the former Deutsche Asset Management boss has a pretty good idea of what he's letting himself in for.
One of the first headaches he may have to deal with, though, is in the back office - not somewhere this most suave of City characters would necessarily spend much of his time. However a legacy of his predecessor David Salisbury is the outsourcing contract with Chase's old custody division, now JPMorgan Investor Services.
Outsourcing the back-office was supposed to free up the investment staff to concentrate on what they're good at: investing and gathering assets. Outsourcing has been a buzzword in fund management for some time and the JPMorgan deal made a big splash when it was announced last year.
However, it seems not all is going to plan. A source familiar with the deal says it could be another three years before it starts to deliver. Schroders hopes to save some £15 million a year of the £60 million it spends on this part of the business. Not huge sums maybe but enough to make Dobson's job a little harder.
Schroders declines to comment but David Gilks, senior vice-president at JPMorgan, concedes: "The development is taking longer than we expected."







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