April 2010
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FEATURES
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Lebanon debate: Lebanon aims to build on new era of stability
Inward investment is rising, government debt ratios are falling, and a government of national unity has ambitious plans to revitalize Lebanon’s economy. Bankers and politicians alike want to capitalize on what could be an unprecedented opportunity to transform Lebanon’s fortunes. -
Islamic finance: Hub or hubris?
Shariah banking is becoming big business in Southeast Asia, with Kuala Lumpur and Jakarta battling for the title of regional Islamic finance centre. But even the most optimistic bankers fear further expansion could be stymied by arcane regulation and lack of cross-border consensus. Eric Ellis reports. -
Al-Maraj: Bahrain shows resilience to region’s jitters
Central bank governor, Rasheed Al-Maraj, has successfully navigated his country’s banking industry through the financial crisis. But headwinds persist, not least the potential for further asset-quality deterioration. He speaks to Sudip Roy about Bahrain’s financial prospects. -
Indonesia’s central question
Touted as the next Bric country, Indonesia has avoided the worst of the financial crisis and its economy is powering ahead – but is that despite or because of a vacancy at the head of the country’s central bank? Eric Ellis investigates. -
Taiwan’s struggling banks look to China
Taiwan’s banks are among Asia’s most unprofitable. They have for years searched for ways to grow. Improved relations with China offer the promise of entry into a hugely profitable new market, but it won’t be easy. Lawrence White reports. -
Cash management: After the goldrush
Supply-chain finance has been the big hit of the crisis for transaction banks. The product was pushed over the past decade without any big success and has now taken off as working capital has become crucial to companies’ survival and buyers have recognized the fragility of their supply chains. Can market growth be sustained? Laurence Neville reports. -
Salamé’s stability strategy underpins Lebanon’s hopes
Through crisis after crisis, Riad Salamé has managed Lebanon’s finances. A new government with big plans will benefit from his prudent policies and his continued firm hand on the tiller. But even the veteran central bank governor is excited by what’s happening in his country. Clive Horwood reports from Beirut. -
Beijing fears threaten Taiwan insurance takeover
The proposed sale of Taiwan’s second-largest life insurer to two firms with reported links to the mainland is causing consternation in Taipei. Is this cross-strait paranoia or are locals right to be worried? Elliot Wilson investigates. -
Asia: Debt markets race for the top again
The competition for debt capital market share in Asia is fiercer than for years. Hungry new franchises are using their balance sheets and aggressive pricing promises to win deals. The region’s top equity houses are bulking up their debt offerings and traditional powerhouses are back in force. Lawrence White reports. -
Covered bonds: The mortgage conundrum
Covered bonds have always been viewed as a funding tool to supplement the securitization market, but while RMBS new issuance remains patchy there are signs that the market is gaining traction and going global. Could this be at a tipping point? Hamish Risk reports. -
Custody: The elephant in the room
The financial crisis has drastically reduced the revenue streams upon which many custodians have based their businesses. Unless they can be replaced, custody will become far more expensive for all concerned. By Louise Bowman. -
Banking: ANZ shoots straight for Asia
At a time when others have retrenched and reshaped, ANZ stands out for the brassiness of its ambition. Can it match its words with delivery? -
The case against State Street
Over the past two years the US custodian has lost money and reputation. The search is on for new fee revenue to support the industry colossus that the bank has become. -
Nixon takes RBC into the big league
Royal Bank of Canada had a great crisis, and it’s thriving through the recovery as well. It has established its position as one of the biggest, as well as best-run, banks in the world. But its new prominence brings added pressure and responsibility to RBC’s long-serving chief executive, Gordon Nixon. He spoke to Clive Horwood. -
Fixed income: Boom over for trading boutiques
Salaries at banks too high to compete; Two mid-sized brokers suffer scandals
OPINION
ALSO IN THIS ISSUE
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Electricity price rise adds to budgetary burdens; Might hit those least able to afford increases
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Bank chiefs deny overwhelming problems; Merger aimed to create stronger institution
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It couldn’t have made for a more bizarre photo opportunity. Donning hardhats and carrying shovels were New York state governor David Paterson, who is at the centre of a scandal that alleges he pressured his aide’s girlfriend to drop domestic violence charges against the aide, and who has been allegedly caught "nuzzling" women other than his wife; New York City mayor Michael Bloomberg, who is coming under fire for pushing a tax on sugary drinks in the city to raise money for the cash-strapped metropolis; rapper Jay-Z, whose tops hits include Dopeman, Nigga What, Nigga Who and So Ghetto; and Barclays president Bob Diamond. The event was to kick off the building of the Barclays Center, an entertainment and sports complex in Brooklyn’s Atlantic Yards. The 675,000 square-foot development will be home to professional basketball team the Nets, of which Jay-Z is a part owner.
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Limitless might have hurried restructuring; Doubts remain on second conglomerate
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"go with BarCap, ditch StanChart and whatever you do don’t tell the media, mate!"
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Kazakh interests in oil and gas sector to be strengthened; ‘Friends & family’ theme receives another boost
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Yanukovich victory boosts ratings; Capital markets rally on results
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The ECB’s reprieve doesn’t solve the underlying problems surrounding European government debt.
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About 4 million people are crammed into the 6,000 square kilometres of the Palestinian Territories. The communities are divided by Israeli-built walls, so mobile phones are as crucial as in remote parts of Africa or Indonesia.
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Strong momentum behind Russian stocks; Increased interest in Bric economy plays
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William Weaver to head Citi’s DCM team; Ulrik Ross gets bigger role at HSBC
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Canadian bank to hire slew of new managing directors; Focus will be on ECM and M&A in Europe
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Sells retail, focuses on investment banking; Regional chairman McCormick bullish on prospects
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The deadline for comments on the proposals of the US Commodity Futures Trading Commission about retail foreign exchange passed on March 22. However a date for a decision on the proposals has not yet been announced.
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Leveraged loan rally makes new issuance viable again
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Icap has received final regulatory approval to complete the acquisition of the remaining 61.78% of stock in Swedish-based post-trade services company TriOptima.
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First true post-crisis deal; US buyers boost demand
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New governor awaits senate approval; Government determined to settle with bond holdouts
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Regulators will be delighted to see debt investors accept capital risk; Other bank issuers remain unconvinced
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Global firms invest in Brazil; Infrastructure offers best opportunity
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FDI forecast to hit $10 billion; Election unlikely to change economic policy
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UK firm considers FDIC route; foreign banks step up presence in US.
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EM investors buy Greek debt; Technical constraints limit flows
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Remaining Asia i-bank head lacks experience in region; Citi hopes to make hay in M&A with new hire
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Departures and reshuffles indicate poor strategic planning; Former Lehman employees frustrated by lack of traction
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Big firms rush to boost headcount; UBS, BofA seen as most aggressive hirers
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Regulators express shorting reservations; Industry participants say “cause and effect” not established
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Rivals question strategy; Institutional trading gains traction
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Internet firm hires Bloomberg FX head; may look beyond data and analytics