The Champions League of investment banking
How we calculated the investment banking Champions League table
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Manager: Dick Fuld
Age: 60
Appointed: 1994
Value added: 31.5% pa (3rd)
Chop rating: 1/5
Fuld is Lehman Brothers. His track record is impeccable. The job’s his for as long as he wants it. So the only question is – how long can Dick the dealmaker maintain the fire in his belly? |
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Star players: Joe Gregory. He’s Fuld’s right-hand man and anointed successor. Meanwhile Jeremy Isaacs has made a great effort in building Lehman’s non-US franchise
Rising star: Bart McDade was one of the key figures behind Lehman’s rise and rise in the fixed income markets. Now he is running global equities and has made an immediate impact
Weakest link: The weakest link is its strength: while Lehman’s mortgage business is the best in the world, any significant slowdown in US mortgage origination would be a concern as it is such a large part of the firm's earnings stream. And it still fails to match its fixed income expertise in other asset classes, while Europe and Asia are works in progress |
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Key transfers 2006:
IN: Jameel Akhrass (CEO for Middle East, from Morgan Stanley); George Walker (global head of investment management, from Goldman Sachs); Richard Gladwin (global head of FX, from Barclays Capital)
OUT: Ernesto De La Fe (head of business development for Latin America, to Morgan Stanley); John Curran (senior VP, global finance solutions group, to Deutsche Bank); Anthony Fry (head of UK investment banking) |
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2006 capital markets performance (▼/▲ 2005)
Overall fees: $2,616mln (+17.8%) 9th (no move)
DCM: $1,087.5mln (+15.7%) 7th (no move)
ECM: $630mln (+11.7%) 9th (no move)
M&A: $899mln (+25.5%) 9th (▼1)
FX market share: 1.84% (-0.62%) 12th (no move)
Rankings 2006:
Return on equity: 23.8% (5th)
Growth of earnings: 23% (11th)
Market cap: $41.4bln (15th)
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Champions League position 2006: 11th
If Lehman were a Champions League team it would be: Porto. By no means the largest club but on their day can beat anybody – in fact, led by an inspirational coach, they recently took the title |
