Stan O’Neal’s story is unique in investment banking. Born in Roanake, Alabama (because his home town’s hospital refused to serve African Americans), raised in Wedowee (population 750), he was educated in a schoolhouse built by his grandfather, who was born a slave. O’Neal’s father moved his family from the cotton fields to Atlanta, where he worked on a General Motors assembly line. Stan O’Neal worked there as a teenager but GM spotted his strong intellect and sent him on a scholarship to the GM Institute, where he gained a degree in industrial administration. He then took an MBA in finance at Harvard, graduating in 1978.

Daniel Bouton, chairman of Société Générale, plays the game by his own rules. He doesn’t believe that to be a successful investment bank you have to be a global player with a franchise in almost every market. He won’t be rushed into acquisitions. And he thinks that French banks have an exciting story to tell. Having put potential high-growth markets such as equity derivatives and emerging Europe at the heart of his bank’s engine room, is he about to turn the accepted wisdoms on their head? Clive Horwood reports, with research by Lawrence White.

Daniel Bouton, chairman and CEO of Société Générale, discusses in detail his bank’s culture and strategy with Euromoney’s editor, Clive Horwood.

Can Bouton’s unique vision drive SG forward?

What lessons did Stan O’Neal learn from the restructuring of Merrill Lynch at the turn of the decade? What are Merrill’s plans in mortgages, private equity and asset management? And what continues to drive Merrill’s CEO forward? O’Neal reveals all to Clive Horwood in his first in-depth interview since becoming the firm’s chairman and CEO.

When Stan O’Neal took over as president and CEO of Merrill Lynch in 2001, the thundering herd of the 1990s was clapped out. O’Neal imposed a ruthless cost-cutting strategy that saved the firm’s independence. Now his rebuilding plans are starting to bear fruit. Can Merrill heed the lessons of the past, but at the same time make it back to the pinnacle of investment banking? Clive Horwood reports.

Can Bouton’s unique vision drive SG forward?

Standard & Poor’s new evaluated pricing service joins an increasingly crowded field in the race to improve price transparency in European ABS.

Simplify, simplify, simplify. Thoreau’s mantra is good advice for rating agencies when it comes to allocating equity credit.

Equity-linked bankers are among the very few people who actually like to watch markets fall. This is because depressed equity prices and elevated volatility help to make convertible bonds a lot more attractive, especially given the rising interest rate environment.

Private bankers are intent on finding value for their investors by identifying and harnessing influential emerging economic and social trends. Chris Wright reports.

The European Investment Bank has launched a new bond targeted at retail investors that can be sold in all 12 countries in the eurozone. Called eurozone public offering of securities (Epos) the security uses the passporting mechanism that the EU’s prospectus directive introduced last June. The €1 billion 10-year bond is lead managed by Merrill Lynch with a 12-strong syndicate of retail banks – one for each eurozone country. The deal is listed in Luxembourg. It is a lightly structured transaction, offering 5% in the first year and then a multiple of the HICP measure of inflation.

The US bank confirms its top position in the league tables.

All the fundamentals are in place for rapid expansion of the Mexican MBS market. When financing structures are fine-tuned, foreign investors should move in to boost growth. Felix Salmon reports.

Barclays Capital has expanded its electronic trading platform to offer secondary market liquidity in all the bank’s equity structured note offerings.

The real test of Goldman Sachs’s new model will come in a prolonged downturn.

Banco Itaú expects regulatory approval next month for its planned takeover of Bank of America’s BankBoston, a subsidiary of the former FleetBoston. In return, Bank of America will take a 6% stake in Itaú, valued at $2.2 billion. The deal adds $9.7 billion in assets to Itaú’s balance sheet, making it the largest private lender in Brazil. Itaú will also gain BankBoston’s 66 branches and 200,000 clients. Meanwhile, Brazil’s equity markets have erased nearly six months of gains on fears that rising US interest rates will draw investment away from emerging markets.

Citigroup’s global head of fixed-income capital markets, Marwan Marshi, left the bank last month to pursue other interests. Marshi, who worked at Citigroup for 20 years, was previously co-head of credit markets alongside Chad Leat until last year when Leat was promoted and gained control of credit trading as well as credit origination and products. Citigroup is not appointing a replacement in Marshi’s role, which had become increasingly redundant. The regional heads of origination that reported to Marshi now simply report to Leat.

The structured credit market has truly come of age. The correlation meltdown of 2005 spurred a new round of innovation, and shook out the weaker players. A new willingness on the part of investors to buy every part of the capital structure has encouraged the creation of a new suite of products, with more to come. However, with these new products come new risks. Now, more than ever, choosing the right manager is crucial.

A government committed to reforming Portugal’s public sector has also shown that it cares about capital markets. A recent 30-year bond issue signalled a new focus on developing the yield curve and a new covered bond law promises benefits for both issuers and investors.

When Euromoney's journalists were able to do a bit of work between World Cup matches in June, football was never far from our minds. And so it was, as we decided this year's winners of the awards for excellence, that we hit upon a related idea: if investment banks were countries in the World Cup, which would they be?

“Is that ABN Amro doing badly? I noticed they’re using a minicab firm. It’s always a sign that a bank’s in trouble when they use minicabs rather than licensed cabs”

Ever since Kuwait amended its banking legislation in early 2004 to license foreign banks, outside players have continued to show confidence in a high-potential market.

The recent sale of the first Islamic compliant securitization originated in the US is likely to open up a new source for the sukuk market, bankers believe.

“With more traditional managers setting up hedge funds in order to compete, and the general convergence of hedge funds and traditional asset management I think we’ll see ‘hedge funds’ becoming a strategy rather than an industry.” So says Niall Cameron, head of traded markets at ABN Amro in London.

High net-worth individuals (those with more than $1 million in financial assets) increased their wealth by 8.5% in 2005, according to the 2006 Capgemini/Merrill Lynch World Wealth Report. And the number of HNWIs rose by 6.5% to 8.7 million.

Self-made billionaire Mark Cuban, who bought basketball team the Dallas Mavericks with proceeds from the sale of his shared company Broadcast.com to Yahoo!, is launching a website aimed at exposing corporate fraud.

The primary equity market is the latest victim of the sustained falls in stock markets around the world, now into its second month.

Rumours are doing the rounds that an extremely large North American pension fund has taken a big hit in FX.

A sharp sell-off in the Turkish lira illustrates once again that there’s no such thing as a free lunch in the FX markets and has left speculators well and truly plucked.