"You’re blue now, not green. Just remember that"

"We are the Betty Ford clinic for financial institutions"

With the edge taken off over-exuberant growth in Middle East markets, good quality research is increasingly important. Individuals in both local and international firms are respected for providing this, the vital factor being that they are on the spot.

Recipients of the Cabinet email magazine, a weekly bulletin from the office of the Japanese prime minister, have long been used to the publication’s conversational, pared-down and occasionally even cryptic style, which has been suspiciously consistent despite the revolving-door policy operated in the office over the past two years. Yet the message dated July 23 that began with news of heavy rain in Yamaguchi prefecture found the magazine in unusually gloomy, introspective voice.

Could the recent opening of Enron the play, to decent reviews, persuade some bright playwright to dramatize the financial crisis?

Euromoney’s annual survey invites investors to rate the quality of bank research on Middle Eastern equity and debt bearing in mind overall performance and accuracy. View the results now:

In May the agency announced that its new super-cautious approach would result in the shock downgrade of nearly 90% of all outstanding triple-A CMBS in the US. But the problem with talking the talk is that you need to walk the walk

Bernie Madoff has 150 years’ imprisonment lined up. However, despite having his freedom taken away, Madoff is keen to influence one last decision. It is up to the Bureau of Prisons to pick out an appropriate facility for the fraudster but Madoff has hired a prison consultant, Herb Hoelter, to help him find a suitable place.

Barclays has already this summer demonstrated the emotional detachment required to make the toughest business decisions by selling its beloved asset management arm.

It’s not quite back to the good old days for interest rate derivatives, but banks have started to make money again. Total Derivatives and Euromoney polled the market to find out who is best. Mark Ramsden spoke to the professionals.

Priced to go, equity capital markets deals succeeded in the second quarter, recapitalizing banks and corporations alike to the tune of $274 billion. As risk appetite revives, the next step is IPOs. Financial sponsors won’t give them away. Peter Lee reports.

The head of the Hong Kong Monetary Authority, winner of Euromoney’s lifetime achievement award in Asia, talks to Lawrence White about his career and how regulators should respond to the crisis.

After the parting with Citi in 2003, Saudi Arabia’s Samba has thrived under the leadership of Eisa Al-Eisa, the recipient of Euromoney’s award for outstanding contribution to financial services in the Middle East. Sudip Roy reports.

Perhaps it’s not sufficiently dramatic for South Koreans to have the world’s craziest regime as their northern neighbour, with its twitchy nuclear finger. It seems they might need to be spooked some more – and what better bogeyman than the foreign-derived global financial crisis? Eric Ellis reports.

Attempting to restructure a complex securitization can be a Sisyphean task. Many experts are reaching the conclusion that it might be simpler to push these deals into insolvency instead. Louise Bowman investigates.

For some it’s the reinvention of structured finance, for others it marks the return of the bad old days. Is the recent increase in the use of securitization as a risk-management tool shifting the log jam of credit portfolios on banks’ balance sheets? Alex Chambers finds out.

As banks boost their commodities businesses, better physical trading capacity is increasingly important. But developing physical trading capacity, and doing so in a wider range of commodities, is easier said than done. Dominic O’Neill reports.

The landscape of Latin American private banking has changed over the financial crisis but the region’s wealthy population remains optimistic. Opportunities abound for those that remain in the business. Helen Avery reports.

Morgan Stanley has reported negative results for the past three quarters, but is still waving its chequebook around as it seeks to build up its trading businesses. First up is Jack DiMaio, who is joining the firm as its global head of interest rate, credit and currency trading. Further down the pecking order, the bank is believed to have lured Stuart Sopp from Citi Singapore to take up a senior spot-trading role in its Hong Kong office.

Barclays Capital is planning a big push across all areas of investment banking in Latin America in the coming months, buoyed up by its acquisition of Lehman Brothers. "In the past we have been focused on the fixed-income business in the region but it has been challenging getting a substantial presence in Brazil. But now that should change dramatically," says Carlos Mauleon, head of Latin American debt capital markets and investment banking at Barclays Capital. "With the Lehman acquisition we have gained a whole new strategic angle with M&A and equity capabilities. This will help us leverage the corporate sector business significantly. That is our mission for the next year."

Morgan Stanley’s fixed-income traders have not excelled and in 2009 the firm has failed to capitalize on opportunities in the flow businesses

A number of senior financiers made an enormous effort to join the party

The disconnect between Wall Street and Main Street widens.

Some are wondering who might be in line to succeed present chief executive Mike Geoghegan should he move on in a few years

The past two turbulent years have also redefined the adjectives that are acceptable to describe a chief executive in the financial services industry

Corporate losses on foreign-currency hedging deals are resolvable but the road to agreement is difficult.

Increased government borrowing is an unsound way to stave off recession. It puts sustained economic growth in peril rather than promoting it.

First economic downturn in decade; Prime minister’s shock resignation

Chris Hansen has swapped his role as head of Deutsche’s institutional client group Europe to head the bank’s FX prime brokerage operations. Hansen will be based in London.

There are foxy footprints all over current policy choices. But cunning plans and clever innovations have a nasty habit of unravelling and causing greater pain than choosing the straightforward course.

Government disputes with foreign companies stymie exploitation of rich natural resources.

Greenspan’s direction belatedly questioned; The flaws of too big to fail

Asset management profits drop; Diversification is no longer in vogue

EU launches consultation on derivatives; EU wants CCP for other derivatives also

Jack Jeffery has left options specialist SuperDerivatives, where he was chief operating officer. Press reports have linked him with various jobs elsewhere – including bond platform MTS – although sources close to Jeffery say he has not decided anything yet. His departure is believed to have been extremely amicable and the same sources say that SuperDerivatives has asked him to retain a seat on its board.

Kai ‘Lucky’ Herbert, who left Bank of America in January 2008 to join Merrill Lynch, has decided to seek his fortune elsewhere. He is off to Zurich to trade emerging market currencies for UBS.

South Korea’s financial regulator, the Financial Services Commission has decided to increase margin requirements on retail FX trading from 2% to 5%. The move, effective on September 1, is largely as a result of the high rate of losses among retail investors. The FSC says that the vast majority – more than 90% – of retail accounts incurred losses.

Investment banking chiefs are joining the increasing chorus of optimistic voices in Asia, as the enthusiastic response to Chinese cement maker BBMG’s debut share offering on July 23 preceded an expected wave of IPOs.

More transactions expected soon; Big European demand for ICA deal

Hapoalim suffers management turnover; Leumi attracts growing interest

Since the global crisis took hold, Argentina’s corporates have struggled to source funding in the capital markets. Working capital needs are thus driving corporates to explore other financing avenues such as loans from multilateral agencies, commercial banks and the newly nationalized pension funds.

The Venezuelan authorities plan to issue about $17.8 billion-worth of bonds in the second half of 2009, according to a report issued by Barclays Capital. The bonds will be split, with $8 billion issued in the external market and $9.8 billion sold domestically.

HSBC chief warns against return of guaranteed bonuses; He asks regulators not to impose capital controls that inhibit lending

Plan to help rid banks of toxic assets dramatically scaled down; Uncertainties remain on the likely take-up of scheme

Although the bank is not commenting, it appears that Bank of America Merrill Lynch is making more changes to its FX business. The latest gossip is that it has hired Tom Gillie from Credit Suisse in Singapore, where he was head of FX options trading and structuring, Asia, for a senior role in options. The bank is also thought to have hired Chris Bae from Goldman Sachs in Asia, where he traded equity derivatives, for a role in FX.

The Deutsche Bank chief executive received an award for his outstanding services to financial markets at Euromoney’s Awards for Excellence dinner. In his acceptance speech, he explained how the industry should face up to its next set of challenges.

The rally in the financial markets does not necessarily mean there will be no more pain to come.

It would be foolish for any in the industry to dismiss those expressing outrage at the resumption of enormous bonus payments as mere populist political posturers. If firms can’t prevent themselves from offering such deals, then others must do it for them

The difficulties in trying to marshal large numbers of disparate creditors will push more corporates into bankruptcy.

Privatization in Iran involves big transfers of stakes from one arm of the state to another, propping up the establishment and helping unbalance the economy.

The revival of developing world capital markets is encouraging but investors should exercise a little caution.

Bad debts rise to new highs; Investors tire of mounting problems

The Mexican peso has completed a year as a CLS-eligible currency. During June 2009, the peak month to date, the average daily volume of instructions settled in Mexican pesos was 2,468 with a US dollar equivalent value of $15 billion, compared with 1,389 worth $17 billion in June 2008 – volume growth of more than 77%.

A reversal of a change of strategy is likely to have a worse effect than if no change had been announced.

Frontier stock markets in Africa have missed out on this years’ rebound in emerging markets. But some private equity funds with a history of investing in sub-Saharan Africa are continuing to raise money for the continent, even if there is often a strong reliance on development agencies.

Savings banks expanded too fast and must merge to survive mounting bad debts; Keep an eye on Sabadell as a potential consolidator

Bank nears top slot after years outside top 10; BofA, StanChart beat Goldman, Stanley

Investors receptive to utility risk; Other WBS still some way off

The build-up at CIBC continues. The bank has hired Chris Dunning as its global head of FX options and Eric Ohayon as a managing director, FX and commodity structuring. Dunning, who joins from UniCredit, will be located in Toronto and reports to Tim Carrington, the bank’s global head of FX options. Ohayon, who was at Bank of America, will also be based in Toronto and reports to Bill Bamber, CIBC’s global head, structuring. CIBC has also hired in sales. Natasha Crago joins from Baring Asset Management as a director, reporting to Barnie Hartley, and Ross Hefford, who is an exile from ABN Amro/RBS joins as an executive director, reporting to his former colleague Mark Sweeting.