How can Russia's small and underfunded equity brokers break into the more lucrative areas of investment banking? By joining forces with foreign institutions, according to the conventional wisdom. But one local broker may have found a different way to turn itself into a major player. In mid-August, details emerged of a deal that brings together Russia's largest securities broker, Troika-Dialog, and the city of Moscow, likely to be one of the country's major sources of financing business over the next few years. The Bank of Moscow, in which the city of Moscow holds a majority stake, will form a strategic alliance with Troika-Dialog. After completion of a share purchase for an undisclosed sum, Bank of Moscow will own 20% of Troika and Andrei Borodine, the Bank of Moscow president, will have...
