BUSINESS
Bankers need the right Trump outcome to justify stock optimism
Shares in Goldman Sachs, JPMorgan, Jefferies and others are near record highs. What could possibly go wrong?
BUSINESS
Wall Street’s hottest business is about to cool
The private equity and hedge fund lending boom is running into lower interest rates and tighter rules
BUSINESS
Some online finance scam losses are on you
If we automatically compensate people who lose money in scams, they might become even less vigilant
BUSINESS
Big AI users fear being held hostage by ChatGPT
Low pricing is drawing companies into deals with OpenAI and rivals, but what happens once they become reliant on their tools?
BUSINESS
Generative AI’s rise adds to US bank uncertainty
Tech investors reckon that supersmart agents will soon upend the business model of traditional banks, but it could have deeply detrimental effects on financial stability
BUSINESS
Financial crises are a feature, not a bug, of the US system
The US system is highly responsive to democratic, political and often populist demands. SVB sunk, in part, because in 2018, lobbying efforts by smaller banks allowed them to escape tougher rules created only a few years earlier – with bipartisan support. Politics deemed these banks weren’t systemically risky. But they were. Independent central banks may be good at inflation targeting and financial stability, but they struggle to help economic growth or helpful innovations
BUSINESS
Barclays, Deutsche Bank are back into credit derivatives. Stay calm
There is a growing trend of risk-transfer deals mainly by European banks to shore up their balance sheets and capital ratios. Risk-transfer trades like Barclays’ involve selling the risk of losses on a portfolio of loans to an investor that is typically a credit specialist or hedge fund. The investor wants the nice yields available from credit cards or other loans without having to do the nitty gritty of managing customers
BUSINESS
Can Citigroup’s new banking chief Viswas Raghavan reverse the revenue crumble?
Citigroup performed worse than its peers in terms of revenue it earned for the amount of capital it put to work. In the past three years, its revenue per dollar of average assets has tumbled in the banking and markets divisions combined – the kind of structure that most US rivals have. It slipped from third-best, behind JPMorgan and Morgan Stanley in 2021, to last out of five in 2023
BUSINESS
What have you made on private equity? Who knows?!
The internal rate of return metric used by private-capital managers has long had critics in finance and academia because it is easily manipulated and hard to compare with the transparent returns of, say, stocks and bonds. Still, it survives because there is no killer alternative
BUSINESS
Why banks and airlines love rewards cards more than you do
Those who get the best outcome from reward are high-earners with strong credit scores who use their cards a lot but clear their balance every month and so pay minimal interest. But rewards cards are profitable for banks through swipe fees and businesses that run the loyalty programmes
BUSINESS
We’ll soon see if new Fed defenses work against money mayhem
How high do banks’ reserves need to be?
BUSINESS
Private credit isn’t as risky as some may believe
The hottest thing in finance could burn some investors, but it shouldn’t spark financial infernos
BUSINESS
Sorry, European banks. Investors just aren’t into you
The lenders are priced for danger, but there could be some positive third-quarter surprises in store
BUSINESS
There's a good reason why Wall Street is overpaying bankers
Morgan Stanley CEO James Gorman predicts a rebound in deals once the Federal Reserve signals it’s done raising interest rates, so better to lock in the talent now
BUSINESS
Why central banks will soon lend to hedge funds
Stricter monitoring and rules for money managers will be needed if markets are to be given more support
BUSINESS
Did Powell just stamp out bankers’ green shoots?
Stoking uncertainty on the path for interest rates might hurt the nascent pickup in stock listings and loan sales
BUSINESS
Barclays has much at stake in the fintech future
Spending what is required to compete in payments will hold back profits today in exchange for a potentially bigger prize in future. Getting in a partner with deep pockets and tech knowhow could make the UK bank smarter and faster, but sacrifice a share of future earnings
BUSINESS
UBS’s biggest win? Escaping Credit Suisse’s stigma
UBS's second-quarter results should leave shareholders very happy. Headline net profit was $29 billion for the three-month period, ensueing UBS has more than enough capital for its enlarged balance sheet, and the bank also reported strong wealth management inflows and a decent performance in investment banking
BUSINESS
Citigroup's rehab means fewer managers
As a global banking supermarket, the company suffered a lack of focus, but the CEO Jane Fraser's vision is gaining a following
BUSINESS
HSBC is as good as it gets — for European investors anyway
For investors in European banks in terms of profitability and payouts there is no better place than HSBC presently. But that isn’t guaranteed to satisfy disgruntled Asia-based shareholders, as questions linger over its growth and future returns
BUSINESS
Being a financial influencer is fun — until you’re fined!
Britain’s money police are homing in on what finance firms, celebrities and finfluencers are touting on social media
BUSINESS
UBS-Credit Suisse won’t be the bloodiest of bank mergers
The kind of open warfare that typically flares up when banks combine shouldn’t be as bad in the UBS takeover of Credit Suisse
BUSINESS
Archegos fine points to a much bigger issue for UBS
The Credit Suisse takeover may add long-lasting operational risks for its rescuer
BUSINESS
From Goldman to JPMorgan, deals have dried up
Investment banking activity is at decade lows and there are few signs it will improve any time soon
