September 2008
| Euromoney September 2008 Even as they delever, shed assets, raise capital and hoard liquidity against further hits, banks know they must also fundamentally change the rotten underlying business practices that led them to disaster. If they can’t, even those that manage to survive this disaster will fall victim to the next. That’s if the regulators don’t shut them down first. Peter Lee reports on an industry trying to relearn the basics. - CEO Roundtable - After the meltdown: Top bank CEOs explain their hopes and fears
The chief executives of 11 of the world's biggest banks discuss the lessons they have learnt from the global financial crisis, their concerns over a regulatory backlash, and how they plan to rebuild profitability in the toughest markets in history.
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Euromoney September 2008
Before the September crisis, many banks were looking to sell non-core assets to raise capital. Now, safety in size means mergers are the order of the day. But when the market settles, will investors demand that banks concentrate on what they are good at to maximise returns?
Euromoney September 2008
Alessandro Profumo has built his banking group through acquisitions, cementing his reputation as a brilliant dealmaker. The challenge facing UniCredit’s CEO is to get the most out of his empire. At the heart of the group’s strategy is aggressive organic growth in emerging Europe. Sudip Roy reports.
Euromoney September 2008
HSBC’s management has stated that developing markets are key to its growth – and no market is more important to it than China. A confidential report seen by Euromoney sets out aggressive targets in the country where a global banking empire began. Elliot Wilson asked the executives in charge of the China push if its goals are attainable.
Euromoney September 2008
Some European banks are coming through the credit crisis relatively unscathed, or even with enhanced market positions and reputations. Never has differentiation been more important.
Euromoney September 2008
Lawyers around the world are readying lawsuits to file against banks that sold toxic products to investors. Which types of deals are likely to be the subject of the biggest payouts? And how will banks pay for them?
Euromoney September 2008
Global regulators are poised to introduce new rules to clamp down on the securitization industry’s worst excesses. But in doing so they could kill it off for good.
Euromoney September 2008
Continuing problems are forcing firms to reconsider market timing, the balance between public and private funding and the importance of neglected sources such as retail and corporate deposits. Six specialists debate the issues.
Euromoney September 2008
Jean-Claude Trichet, European Central Bank.
Euromoney September 2008
Mexico’s central bank governor has achieved rock-star status with his tough line on inflation by standing up to the president’s pressure to reduce interest rates.
Euromoney September 2008
Outstanding contribution to finance: Dr Sri Mulyani Indrawati, Indonesia
Euromoney September 2008
Xie Xuren, China.
Euromoney September 2008
Today’s long-term rise in agricultural commodity prices is different from previous episodic spikes. Higher prices are having knock-on effects on companies in the sector, as well as on farmers and the poor, and causing a re-evaluation of business models. Peter Koh reports.
Euromoney September 2008
Massive interest in agricultural commodities has turned cautious. Investors are looking for a more lucrative and less volatile way to get exposure to long-term trends through equities and land. Peter Koh has a look at the menu.
Euromoney September 2008
It could be the perfect storm – financial, macroeconomic and geopolitical risk are all on the rise. Risk is both where you anticipate it, and where you least expect it.
Euromoney September 2008
The Middle East's most successful banks remain on a determined course for growth, both regionally and in terms of the products they offer. Will the boom in financial markets and services continue, despite political uncertainty and the contagion of the credit crunch?
Euromoney September 2008
Euromoney asked eight leading chief executives what impact the credit crunch has had on their banks and what they think are the problems and advantages of being a local bank in a time of global crisis.
Euromoney September 2008
Bank chiefs in the region have much to cheer but can’t help feeling a little uneasy. They have no direct exposure to the sub-prime fallout, but have had to rethink their funding strategies. And while they see clear opportunities to grow, an economic slowdown could be looming.
Euromoney September 2008
The market looks set to remain buoyant, especially in the key Gulf centres, with a widening variety of access routes for investors and developers prepared to commit themselves to local contacts and a local presence.
Euromoney September 2008
The continent’s main markets, such as Nigeria, Kenya, South Africa and Angola, are attracting growing interest from investors. Foreign and local emerging market financial specialists analyse this change of attitude.
Euromoney September 2008
Chief executives need to lead from the front to achieve cross-company support for supply chain management projects and they need to identify the right partners to help them adopt successful strategies.
Euromoney September 2008
Prime brokers' relationships with hedge funds have inevitably be modified by the credit crunch but ultimately the brokers have to provide the full range of services funds require at a reasonable cost and without undue constraints.
Euromoney September 2008
The vice governor for international affairs says financial sanctions will not halt the country's growth, as president Ahmadinejad tells the UN the US's years of domination are over.
Euromoney September 2008
With the sale, among other assets, of the state telecommunications firm, privatization in Iran seems to be accelerating. There is an apparent eagerness to attract foreign investors. But, some say, if capitalism in Iran is being let out of the pen, it is still being kept on a tight leash. Dominic O’Neill reports.
Euromoney September 2008
Palestine is a surprisingly attractive prospect – good enough to hold the attention of private and public investors at a conference this year. But Gaza, which must develop pari passu with the West Bank if the Territories are to prosper, is an unstable imponderable. Chris Wright reports.
Euromoney September 2008
The Middle East's most successful banks remain on a determined course for growth, both regionally and in terms of the products they offer. Will the boom in financial markets and services continue, despite political uncertainty and the contagion of the credit crunch?
Euromoney September 2008
Growth potential, better corporate governance, a shot of expert knowledge and a troubled stock market are all reasons why family-owned firms might sell stakes to interested outsiders. Alex Warren reports.
Euromoney September 2008
Lebanon’s banks are slowly moving away from their traditional reliance on sovereign debt – but not because they lack faith in their own country. Alex Warren reports from Beirut.
Euromoney September 2008
The spectacular growth of Middle Eastern markets is attracting new ventures of all sizes. But smaller, more specialized firms are increasingly popular. Jethro Wookey reports.
Euromoney September 2008
Mohammed Al-Hussein, Syria’s minister of finance, talks to Sudip Roy about the effects of oil price rises and declining domestic production, the development of the country’s banking sector, and efforts at budgetary control and the development of a T-bill market.
Euromoney September 2008
Does Syria’s long-awaited equity market finally mean business? Alex Warren reports.
Euromoney September 2008
The market looks set to remain buoyant, especially in the key Gulf centres, with a widening variety of access routes for investors and developers prepared to commit themselves to local contacts and a local presence.
Euromoney September 2008
Commercial banks eager to exploit the opportunities in a rising sub-Saharan Africa might have to pay a high price for first-mover advantage. In this most local of retail banking markets, home-grown firms have developed the most effective, innovative approaches. As Dominic O’Neill finds out while bouncing along dirt roads in Kenya and Mozambique, international firms need to follow the locals’ examples, or discard their most basic ideas of what a bank can do.
Euromoney September 2008
Banks are booming in Nigeria on the back of oil revenue inflows. But solutions to some of the country’s problems – particularly the need for infrastructure development and a reversal of falls in oil production – remain stymied by an inflexible political system. Rupert Wright reports.
Euromoney September 2008
The continent’s main markets, such as Nigeria, Kenya, South Africa and Angola, are attracting growing interest from investors. Foreign and local emerging market financial specialists analyse this change of attitude.
Euromoney September 2008
The Brazilian billionaire built Banco Pactual into one of Latin America’s foremost investment banks before selling it to UBS in 2006. After an inglorious and turbulent two-year stint at the Swiss firm, he is returning to his entrepreneurial roots by setting up a new asset management company. He talks to Chloe Hayward about his plans.
Euromoney September 2008
As foreign banks – with the notable exception of Santander – draw in their horns, local mid-tier banks are racing to take advantage of the domestic boom in Brazil. Chloe Hayward reports.
Euromoney September 2008
Euromoney asked eight leading chief executives what impact the credit crunch has had on their banks and what they think are the problems and advantages of being a local bank in a time of global crisis.
Euromoney September 2008
Central bank governor Martin Redrado is confident he can win the fight against inflation, but investors are sceptical of Kirchner’s policies.
Euromoney September 2008
Turkey set out on the road to EU accession some 60 years ago but the goal remains elusive. Turkish bankers consider the journey worthwhile. But, they muse, if the country keeps on being spurned it should look east rather than west to apply its new-found expertise and dynamism. Eric Ellis reports.
Euromoney September 2008
VTB’s ambition is to be a leading universal bank in Russia, with a strong balance of revenues from its retail, corporate and banking arms. But does it have the wherewithal to achieve those lofty goals? Guy Norton reports from Moscow.
Euromoney September 2008
In contrast to the US and western Europe, the private equity industry in Russia is in rude health. Guy Norton reports from Moscow on the rationale for the optimistic outlook.
Euromoney September 2008
ENRC floated in London last year on the promise that it would make transformational acquisitions globally. Its play for rival Kazakhmys has, however, proved abortive. So what next for ENRC and its frustrated shareholders? Elliot Wilson reports.
Euromoney September 2008
The bank has shone through Kazakhstan’s financial sector gloom thanks to the chief executive’s cautious policies that he put in place while rivals were borrowing abroad to fund over-risky lending. Elliot Wilson reports.
Euromoney September 2008
Bank chiefs in the region have much to cheer but can’t help feeling a little uneasy. They have no direct exposure to the sub-prime fallout, but have had to rethink their funding strategies. And while they see clear opportunities to grow, an economic slowdown could be looming.
Euromoney September 2008
Banks in central and eastern Europe are still posting results that laugh in the face of the credit crisis. But bad – or at least worse – times might be just around the corner for some. Charles Piggott reports.
Euromoney September 2008
After a two-year hiatus, China’s regulators are allowing more foreign investment banks to enter the domestic capital markets. What are their strategies and is China’s potential as great as everyone assumes? Sudip Roy reports.
Euromoney September 2008
India’s state-owned banks still dominate finance, but they’re having to find new ways to compete with private firms – within the tight constraints imposed by government. Dominic O’Neill reports.
Euromoney September 2008
Australia’s new finance minister still has to convince his fellow citizens that he can keep the economy on an even keel.
Euromoney September 2008
The Philippines’ finance secretary has stabilized the economy during his three-year tenure, but external shocks could derail his plans.
Euromoney September 2008
New governor Boediono has to put the central bank back on track as a corruption trial looms over a previous incumbent.
Euromoney September 2008
East Timor’s finance minister Emília Pires knows that wise investment of its $3 billion fund is crucial to the country’s poverty-stricken population.
Euromoney September 2008
The country is looking to the future under a pro-investment government. Foreign banks, private equity funds and manufacturers are interested, but there’s no guaranteed alpha on the Mekong. Lawrence White reports.
Euromoney September 2008
Complex securitization without a single new bond.
Euromoney September 2008
With a huge pipeline of covered bond issuance planned for the next few months, much is being asked of investors. There might not be enough of them to go around.
Euromoney September 2008
Euromoney September 2008
The reintroduction of mandatory market-making in Pfandbriefe has not gone smoothly.
Euromoney September 2008
Euromoney September 2008
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Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
"Our long-term view remains – we will eventually see 1.60 for cable and parity for EUR/GBP"
-Paul Day, Mig Investments
Euromoney September 2008
Euromoney September 2008
Bureau de change claims liberalization of country’s regulations.
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Third rights issue in a row for UK bank is shunned.
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Some 190 IPOs seeking to raise $33.1 billion in capital have been postponed or withdrawn across the world so far this year, according to Dealogic.
Euromoney September 2008
Euromoney September 2008
"It is not reasonable that any director can truly independently understand and monitor the full range of risks and complexities in today's highly sophisticated hedge fund"
-Don Seymour, DMS Management
Euromoney September 2008
Euromoney September 2008
Private equity company Lone Star is fast becoming the biggest beneficiary of the banking woes caused by the credit crisis.
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008
The SEC and the FSA have both acted too hastily in reacting to short selling. In the UK, the new disclosure rules have compounded the turbulent mood of the market. Neil Wilson reports.
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Euromoney September 2008
It is a sign of the times that, as investment banks in the UK and US downsize, those in the Arab world are doing the opposite.
Euromoney September 2008
Bankers are in the final stages of preparing Iran’s first ever securitization, according the head of a Tehran investment bank.
Euromoney September 2008
Georgia’s ill-fated attempt to prevent the secession of South Ossetia and Abkhazia is set to cost the country billions of dollars, but financial backing from western Europe and the US should help to ensure that the country’s economy remains one of the most open and business-friendly of the states that were formerly part of the Soviet Union.
Euromoney September 2008
Euromoney September 2008
Moscow private equity firm Mint Capital has taken a stake in beer restaurant chain Tinkoff Restaurants.
Euromoney September 2008
Euromoney September 2008
Government intervention in financial markets goes against the grain of any US administration. However, it appears preventing closure of the mortgage finance markets is more important than ideology.
Euromoney September 2008
The blow-up of corporate trades in China might lead to regulatory restraints on transparent, run-of-the-mill derivatives use.
Euromoney September 2008
Under his presidency, Pakistan made huge progress in attracting foreign investment, privatization and bolstering the banking system.
Euromoney September 2008
Despite a new round of fundraising for distressed ABS, a market floor is not necessarily in sight.
Euromoney September 2008
US leaders might ponder the lessons of Venezuela and Iran.
Euromoney September 2008
The present round of bank reorganizations look as if they might not be as efficacious as leaving things well alone.
Euromoney September 2008
Concerns about an economic slowdown now weigh on capital markets.
Euromoney September 2008
But exchange still looks like a political tool.
Euromoney September 2008
Commodity prices will need to go higher again to prompt consumer and producer actions that bring them down.
Euromoney September 2008
Many banks will become less-levered, more conservative, far duller institutions promising much lower and more utility-like returns to investors
Euromoney September 2008
"Why did I tell you that? Please, please forget that I mentioned it," a chief wailed.
Euromoney September 2008
Markets are more susceptible to the herd mentality and the creation of bubbles because of agents’ behaviour. Following the money can solve a large part of the asset price puzzle.
Euromoney September 2008
The greenback revival, driven by ECB recognition that the eurozone is faltering, will be sustained by the narrowing of the US current account deficit, the fall in the oil price and the US pursuit of a soft monetary policy.
Euromoney September 2008
Euromoney September 2008
Of benefit to both the environment and HSBC’s bottom line is the opening of a new internal network of conference rooms by the UK bank, which CIO Ken Harvey says will give "the experience and benefit of actually being in the room with colleagues on the other side of the world, without having to pack a suitcase".
Euromoney September 2008
Has the credit crunch led even the brightest students to lose all interest in the financial services industry?
Euromoney September 2008
There is an old joke that represents a quick and easy way to understand the basic principles of political and economic ideologies:
Euromoney September 2008
Euromoney September 2008
Euromoney September 2008