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☆ US banks have loaned $1 trillion to less regulated 'shadow banks'
▼ + stars: | 2024-02-12 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +1 min

US banks have given out $1 trillion of loans to non-regulated "shadow banks." Regulators said that these alternative lenders increase banks' exposure to higher risk debt. Several major banks including Citigroup and Wells Fargo have strengthened their ties with alternative asset lenders. AdvertisementThe amount of loans made by US banks to less regulated shadow lenders surpassed $1 trillion in January. This story is available exclusively to Business Insider subscribers.

Persons: — Organizations: Regulators, Citigroup, Service, US Federal Reserve, Business Locations: Wells

Stock incentives are seen positively by the market "as higher stock prices directly boost such incentives," she said. Sony, which introduced stock incentives years ago for some management levels, recently changed its framework to make the incentives more attractive, a spokesperson said. "The stock incentives are aimed at beefing up engagement with employees and promoting their interest in raising corporate value." Today, employee stock incentives are also a way for companies to replace cross-shareholdings, a common practice where companies take stakes in partners to cement relationships and avoid activist investors. Despite its increasing popularity, just a quarter of top 100 Japanese companies have employee stock incentives compared to more than 80% in the United States or Germany, data by consulting firm Human Resources Governance Leaders shows.

Persons: Kim Kyung, Motomi Hashimoto, Hitoshi Tanimura, Shintaro Takano, Shinzo Abe, Shinji Ishikawa, Makiko Yamazaki, Ritsuko Shimizu, Miral Organizations: Nikkei, REUTERS, Rights, ANA Holdings, ANA, Sony Group, Tokyo Stock Exchange, Nomura Securities, Reuters, Sony, Human Resources, Leaders, Mitsubishi UFJ Trust, Thomson Locations: Tokyo, Japan, Omron, United States, Germany

The Standard Chartered bank logo is seen at their headquarters in London, Britain, July 26, 2022. The change in CFO will not likely impact Winters' departure timing greatly, Britzman said, with the StanChart CEO more focused on hitting the lender's key performance goals. De Giorgi previously held senior roles at Bank of America Merrill Lynch, including head of global investment banking. Before then, he worked in equity capital markets and financial institutions at Goldman Sachs (GS.N), rising to become chief operating officer for the investment bank by the time of his departure in 2012. That long period of underperformance has seen the bank's shares fall nearly 30% since Winters took over as CEO in June 2015.

Persons: Peter Nicholls, Diego De Giorgi, Andy Halford, De Giorgi, Halford, Matt Britzman, Hargreaves, Bill Winters, Frederic Oudea's, Winters, Britzman, We've, Bank of America Merrill Lynch, Goldman Sachs, Joe Dickerson, StanChart, underperformance, Iain Withers, Lawrence White, Radhika Anilkumar, Bernadette Baum, David Holmes Organizations: Chartered, REUTERS, Bank of America, Pegasus, British, Societe Generale, Goldman, Jefferies, Thomson Locations: London, Britain, Pegasus Europe, Asia, Africa, Bengaluru

The Fed last week raised its policy rate to the 5.25%-5.50% range, the 11th increase in the last 12 meetings. Core inflation is still pretty elevated," Powell said in a press conference after the end of the Fed's two-day policy meeting. We think we're going to need to hold policy at restrictive levels for some time. The Fed's policy rate influences the economy by changing what lenders charge consumers for credit card, auto, and home loans or what businesses pay on bonds or for credit lines. "Given that inflation is still sticky, they're going to end up with rates either too high or as high as they are for too long.

Persons: Antulio Bomfim, Bomfim, what's, Jerome Powell, Powell, Lindsay Owens, Thomas Simons, Howard Schneider, Dan Burns, Paul Simao Organizations: Trust Asset Management, Fed, Reuters Graphics Reuters, STAR, North Star, Open, Jefferies, Thomson Locations: U.S

But while Rose's departure means Europe's 25 biggest banks by assets are still 96% male-run, an analysis by Reuters has found that broader executive management teams have become slightly more balanced since last year. Top management teams at Europe's largest lenders are now 30.6% female, data compiled by Reuters shows, up from 25.6% for the same group of banks in early 2022. Reuters GraphicsAcross the broader financial services sector, however, a recent study by EY found that hiring of women at board of directors level in Europe had actually dipped. Companies appointed women to 44% of board openings in the 12 months through June 2023, down from 52% during the previous year. The overall gender split has nevertheless improved to 43% female and 57% male on the boards of European financial firms, EY found, from a 37%/63% split a year ago.

Persons: Alison Rose's, Isabelle Ferrand, Ann Francke, EY, Brenna Hughes, Tom Sims, Iain Withers, Jesus Aguado, Catherine Evans Organizations: NatWest, Reuters, Reuters Graphics, UBS, European, Chartered Management Institute, Companies, Thomson Locations: ZURICH, Europe, Frankfurt, London, Madrid

☆ Return to Office, Recession Fears End Wall Street's Hamptons Work-From-Home Party
▼ + stars: | 2023-07-09 | by ( Linette Lopez | ) www.businessinsider.com time to read: +13 min

It may seem counterintuitive, but the pandemic was like a brief visit to Shangri-La for Wall Street. For the first time in years, Wall Street has to sing for its supper. A return to the office also means a return to more-classic Wall Street social norms. Wall Street, for all its highfalutin personalities and big paydays, is an apprenticeship system. For Wall Street, the heart of the pandemic was a moment to consider what life would be like at a slower, more-nurturing pace.

Persons: You've, Crypto, Dealmaking, Goldman Sachs, me, Seth Klarman, Klarman, Lee Felty, Harrison, Felty, Jim Chanos, Chanos, Jamie Dimon, David Solomon wouldn't, Fenty, Goldman, Solomon, Wall, Young, It's, Al Mare, Topping Rose, Jean, Georges, Maison, Wall Streeter, Linette Lopez Organizations: Wall, JPMorgan, Hamptons, CNBC, Compass, Chanos, East Hampton, Citigroup, Bloomberg, SoHo Locations: New York, East, Manhattan, Long, Stocks, Bridgehampton, It's

Artificial intelligence algorithms are increasingly being used in financial services — but they come with some serious risks around discrimination. And the problem of amplifying existing biases can be even more severe when it comes to banking and financial services. As for financial services, Manji said a lot of the backend data systems are fragmented in different languages and formats. "Individuals have little knowledge of how AI systems work and that their individual case may, in fact, be the tip of a systems-wide iceberg. Among the top worries industry insiders expressed are misinformation; racial and gender bias embedded in AI algorithms; and "hallucinations" generated by ChatGPT-like tools.

Persons: Nabil Manji, Manji, they've, we're, You've, Banks, Banking's, Rumman Chowdhury, Twitter's, Chowdhury, Angle Bush, Bush, Frost Li, Li, Niklas Guske, Guske, it's, Goldman Sachs, Kim Smouter, Smouter, ethicists Organizations: Photodisc, Getty, Deloitte, CNBC, Microsoft, Google, Black, Artificial Intelligence, Tokyo University, Apple, New York Department of Financial Services, European Network, United Nations Locations: AMSTERDAM, Worldpay, Amsterdam, Chicago, Loup, United

Royal Bank of Canada analysts said the results pointed to a strong performance at BNP's trading arm and good cost control. In securities trading, revenue edged down 1.8% but still performed better than some peers including Deutsche Bank (DBKGn.DE), which saw fixed-income trading decline by 17% in the first quarter. At U.S. bank Goldman Sachs, first-quarter sales from fixed income, currency and commodities (FICC) trading, usually a bright spot, plunged 17% to $3.93 billion, while equity trading revenue sank 7% to $3.02 billion. The first quarter net income, group share amounted to 4.44 billion euros, in line with expectations, and up from 1.84 billion a year earlier. The first tranche of 2.5 billion euros was approved in March, a sign analysts deemed reassuring as it took place shortly after the collapse of Credit Suisse.

☆ JPMorgan just dropped some clues as to who might succeed Jamie Dimon. See Insider's exclusive organizational chart identifying the bank's top 114 executives.
▼ + stars: | 2023-04-04 | by ( Carter Johnson | Samantha Stokes | Dakin Campbell | ) www.businessinsider.com time to read: +6 min

We've got names and faces for more than 100 top JPMorgan leaders across investment banking, and more. The bank's CEO and chairman, Jamie Dimon, has consequently been a leading voice shaping both Wall Street and Main Street for decades. On Tuesday, JPMorgan's board of directors provided a little more insight into its CEO succession plans via a 116-page annual proxy filing. Additions to the organizational chart also highlight the growth within some of JPMorgan's key teams. It also provides some clues as to who might one day succeed Dimon, Wall Street's longest running CEO.

☆ Experts from Morgan Stanley and Wells Fargo share insights on how digital transformation in finance protects and enhances client experiences
▼ + stars: | 2023-03-29 | by ( Elizabeth Wood | ) www.businessinsider.com time to read: +4 min

Experts shed light on what digital transformation in finance means for banks and people. In the session "Demystifying digital transformation in finance," part of the "Finance Meets Its Future" event presented by Amberdata, experts discuss digital transformation in finance on wall street. Customer convenience is at the forefront of digital transformation discussions. Reetika Grewal, head of digital transformation for CB and CIB at Wells Fargo said that that client concerns are at the center of digital transformation. Digital transformation poses key challengesWhen asked about the challenges of driving digital transformation in banks, Akwaboah said the industry is contending with multiple competing agendas.

☆ Investors are flocking to these well capitalized regional banks after SVB's collapse, market analyst says
▼ + stars: | 2023-03-14 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

KBW's RJ Grant say investors should seek out well capitalized banks for sizable returns in the long run. "Banks with strong deposit franchises are the ones that investors have been flocking to," he said. Regional banks on Tuesday staged a comeback, with some rising over 40% after cratering on Monday. While shares in regional banks continued to plunge by double digits on Monday, a reversal was taking shape Tuesday. Regional banks such as First Republic and PacWest watched as their stock prices climb by over 40% on Tuesday.

☆ Citadel joins a growing number of firms rolling out internships for undergrads looking for a fast track to the buy side
▼ + stars: | 2023-02-22 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Investment banks, you've been put on notice: The buy side is coming for your young talent. Insider's Emmalyse Brownstein has a full rundown on an undergrad internship at hedge fund Citadel for aspiring fund managers. The Citadel Associate Program (CAP) is a tough nut to crack, with an acceptance rate of only 1%. Click here learn more about Citadel's ultra-exclusive associate program, along with tips to get ahead during the application process. And if you're wondering who is left leading the world's largest hedge fund, look no further than our list of the fund's top 11 executives.

☆ Goldman plans major overhaul to combine key units -source
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +4 min

Oct 16 (Reuters) - Goldman Sachs (GS.N) is planning a major reorganization to combine its biggest businesses into three divisions with its storied investment banking and trading businesses being merged into a single unit, a source familiar with the matter told Reuters. It would mean CEO David Solomon's ambition to build a mass-market digital bank via consumer banking unit Marcus will take a backseat. The combined investment banking and trading group will be overseen by Dan Dees and Jim Esposito, who are currently global co-heads of Goldman's investment banking, and Ashok Varadhan, now co-head of its global markets division, according to a report from Bloomberg. Goldman reported a 48% slump in second-quarter profit, which beat forecasts due to gains in fixed-income and commodities trading. But the consumer banking unit, launched in 2016, is still struggling to gain traction, and will be brought into asset and wealth management.

☆ Gone are the days of chunky bonuses and salary increases. Wall Street's top brass are ready to trim their workforces as annual staff cuts return.
▼ + stars: | 2022-09-23 | by ( Aaron Weinman | ) www.businessinsider.com time to read: +5 min

It's a shift from this time last year, when junior bankers scored significant pay bumps, dealmaking reached record-breaking highs, and investment bankers prepared themselves for some of the chunkiest bonuses they'd ever received. Per this story from Bloomberg, however, the layoffs should not be as severe as what Wall Street experienced after market crashes in 1987 and 2008. For many, the return of staff cuts is kind of a return to normalcy. Fabrice Coffrini/AFP via Getty Images2. Credit Suisse is planning on splitting its investment bank into three parts, according to the Financial Times. The US Securities and Exchange Commission will let Wall Street keep payment-for-order flow, per Bloomberg.

Additions to the organizational chart also highlight the growth within some of JPMorgan's key teams. The chart focuses on key executives as well as the people who support them. In the chart, those leaders that sit on JPMorgan's Operating Committee are denoted as Senior executives. It also provides some clues as to who might one day succeed Dimon, Wall Street's longest running CEO. See the chart here:Have we missed anyone, or do you know more about how the power is shared at JPMorgan?

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