November 2011

Top stories

Shrunk and disorderly: Why banks face a painful transition to a smaller future

Shrunk and disorderly: Why banks face a painful transition to a smaller future

Bond and equity investors will no longer support the big bank model that has dominated for a generation. This could force a break-up of large, complex, universal banks into much smaller and more specialized institutions. Peter Lee examines why an investor-led, slow-motion bank run may bring about what politicians and regulators have failed to deliver.

Bank funding

Funding freeze pushes banks closer to the edge

Funding freeze pushes banks closer to the edge

Despite a handful of deals from top-quality issuers, the senior unsecured FIG market in Europe remains on life support. Some institutions will soon have to swallow their pride and issue at record spreads. For others it could already be too late. Louise Bowman reports.

Asia Pacific

Investment banking: Do more due diligence

Consultants hired by banks to help vet potential clients for initial listing say some investment banks are spending less than ever on due diligence, even as more fraudulent companies are exposed. Might investors in their deals suffer? Lawrence White reports.

Africa

Nigeria’s new banking landscape emerges

With the final act of a drastic sector restructuring playing out, the country’s financial industry is much changed. But is it too early to applaud the central bank-sponsored M&A process? Dominic O’Neill reports.

Country risk

Bank scores weigh heavily on Europe

The health of the continent’s banks is in alarming decline, according to the latest results of Euromoney’s country risk survey. And in the US, the signals are no better. Andrew Mortimer reports.

Emerging Europe

Banking: Turkish delight less sweet

Turkish banks are feeling the global squeeze in bank funding, having been immune to recent problems facing other EMEA issuers. But concerns in Europe are now being felt as the banks refinance their annual syndicated loans. Nick Lord reports from Istanbul.

Latin America

Finance minister Larrain keeps driving Chile forward

Finance minister Felipe Larrain is the architect of Chile’s economic success story. He wants to capitalize on it by making the country a financial centre for Latin America. But are the problems the government faces at home simply the growing pains of success or a threat to Larrain’s ambitions? Rob Dwyer reports from Santiago.

Middle East

Middle East: Local investment banks fight to survive

Global investment banks in Dubai are downsizing and relocating staff away from the region, but as deal flow continues to evaporate in the Middle East, local investment banks are in an even worse position. Dominic Dudley reports.

Global Cities

Banking news

Markets news

Asia news

Latin America news

EEMEA news

Tusk win affirms confidence in Poland

Poland’s elections threw up some colourful characters – notably Janusz Palikot, the former vodka tycoon famous for attending press conferences with a dildo in one hand and a pistol in the other. But the result reaffirmed confidence in Poland.

Comment

Two faces of the Arab Spring

The fortunes of Tunisia and Egypt are diverging rapidly since the Arab Spring. Tunisia offers encouraging signs but it is less influential.

Columns

Inside investment: A strategy for UK growth

The UK is in dire economic straits. There needs to be a shift in the Bank of England’s quantitative easing policy to buy the government time and fund a British development bank.

Recapitalization won’t help bank funding

In theory, any boost to banks’ capitalization should enhance their credit metrics and make their bonds more appealing to credit investors. But the great bank recapitalization plan unveiled at the European heads of state summit in Brussels at the end of October won’t do much to halt the slow-motion run on bank funding that has been unfolding since the summer.

Front End