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☆ Credit Suisse's newly created investment bank lays out plans in memo
▼ + stars: | 2022-10-28 | by ( Saeed Azhar | ) www.reuters.com time to read: +2 min

"Over time, CS First Boston’s structure will evolve to become an independent standalone investment bank, enabling it to attract third party capital and include employee ownership," Miller wrote. The move to become "an M&A boutique with capital markets expertise" will start immediately, he wrote. The Swiss investment banking and capital markets business will be moved to the company's Swiss Bank to offer services in its home market, according to the memo. The bank has traditionally allocated a bigger share of capital to investment banking than its global peers, according to the ratings agency. It will also work closely with Credit Suisse's wealth management business to offer share-backed lending and structured credit to clients in Asia.

☆ JPMorgan M&A co-head urges potential buyers to be proactive, sees more health deals
▼ + stars: | 2022-10-26 | by ( Abigail Summerville | ) www.reuters.com time to read: +1 min

NEW YORK, Oct 26 (Reuters) - Companies that are considering acquisitions should use a slowdown in deals to scope out potential targets, Anu Aiyengar, global co-head of mergers and acquisitions at JPMorgan Chase & Co , said Wednesday. Still, companies should build relationships with potential targets so they can be ready to strike when conditions improve, she said. She also expects a greater share of deals in healthcare after an abundance of technology transactions in recent years. The closing deadline is on Friday and JPMorgan and Goldman Sachs (GS.N) are Twitter's financial advisers. Reporting by Abigail Summerville in New York; editing by Lananh Nguyen and Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.

☆ Twitter plans to close Musk deal on previously agreed terms-JPMorgan exec
▼ + stars: | 2022-10-26 | by ( Ron Bousso | ) www.reuters.com time to read: 1 min

NEW YORK, Oct 26 (Reuters) - Twitter (TWTR.N) plans to close its deal with billionaire Elon Musk on previously agreed price and terms, Anu Aiyengar, global co-head of mergers and acquisitions at JPMorgan Chase & Co, told a conference in New York. Earlier this month, Musk proposed to proceed with his original $44 billion bid, calling for an end to a lawsuit by the social media company that could have forced him to pay up. read moreJPMorgan and Goldman Sachs (GS.N) are Twitter's financial advisors. Reporting by Lananh Nguyen and Abigail SummervilleOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, Oct 25 (Reuters) - Wall Street bonuses in 2022 are expected to fall 22% or more from last year's bumper payouts, according to a report from New York State Comptroller Thomas DiNapoli, as tough economic conditions choked off demand for deals. Across Wall Street, investment-banking fees plunged from their 2021 records as the markets for mergers, acquisitions and initial public offerings dried up. Wall Street firms have set aside 6.5% less for compensation in the first half of 2022 as pretax profits halved to $13.5 billion, DiNapoli said. Wall Street workers remain an important force in New York City, accounting for 16% of its economic activity. The comptroller's annual report on 2022 Wall Street bonuses will be released in March.

☆ 'Unbanked' U.S. households hit lowest level since financial crisis
▼ + stars: | 2022-10-25 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

Oct 25 (Reuters) - The share of Americans who did not have a checking or savings account fell last year to the lowest level since the financial crisis, according to a new study by a U.S. banking regulator released Tuesday. Just 4.5% of 132.5 million U.S. households were considered “unbanked” in 2021, data from the Federal Deposit Insurance Corporation (FDIC) show. The FDIC attributed the decline to socioeconomic gains across U.S. households, particularly increases in income and education. Black and Hispanic families were more likely to be unbanked than their White counterparts at every income level, the data showed. Reporting by Hannah Lang in Washington; Editing by Lananh Nguyen in New York; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ Visa, Mastercard profits expected to jump as travel rebounds
▼ + stars: | 2022-10-20 | by ( Niket Nishant | ) www.reuters.com time to read: +3 min

With more companies resuming business travel and people planning vacations, Visa Inc (<V.N>), Mastercard (<MA.N>) and American Express (<AXP.N>) are likely to see a jump in cross border volume, according to analysts. Cross border volumes are a measure of travel demand reflecting spending on cards outside the country they were issued. American Airlines (<AAL.O>), United Airlines Holdings (<UAL.O>) and Delta Air Lines (<DAL.N>) have also forecast strong profits for the rest of the year, in a sign that travel demand was offsetting concerns about expensive air fares. American Express will report its quarterly earnings on Friday, followed by Visa and Mastercard next week. AmEx shares have dropped 12%, while Mastercard and Visa are down 17% and 14% this year, respectively.

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File PhotoNEW YORK, Oct 19 (Reuters) - Goldman Sachs Group Inc's (GS.N) strategy pivot has solved one problem for investors who didn't love its foray into consumer banking. Solomon's response: Goldman Sachs is focusing on its fundamental operations while maintaining its financial targets. "Ultimately the investment banking business is a great business, it has always done well," he said. "While the consumer strategy has been successful in generating deposits for Goldman Sachs, its expansion has also been costly in terms of operating expenses and provisions.

"There's a reasonable chance of a recession in the U.S., but it's not certain," Solomon said on Tuesday after the company released third-quarter earnings. "Fitch expects the U.S. economy to enter genuine recession territory — albeit relatively mild by historical standards — in 2Q23." David Solomon, Chairman and CEO of Goldman Sachs, speaks at the 2022 Milken Institute Global Conference, in Beverly Hills, California, U.S., May 2, 2022. "Private equity activity gets reset at a time like this because values have to come down because financing costs have gone up," he said. "So there's been less private equity activity right now."

☆ Goldman to merge investment banking, trading as Marcus takes backseat
▼ + stars: | 2022-10-18 | by ( Saeed Azhar | Lananh Nguyen | ) www.reuters.com time to read: +4 min

The group’s reorganization sees its investment banking and trading businesses merged into a single unit, two people familiar with the matter told Reuters. It is the biggest shakeup since the company’s investor day in early 2020 when it outlined plans for four core units: investment banking, global markets, consumer and wealth management and asset management. “They’re excellent at trading, excellent (at) investment banking,” said Marinac. But the consumer banking unit that launched in 2016 has struggled to gain traction and suffered from delays. 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 division, and Ashok Varadhan, now co-head of its global markets division, according to Bloomberg.

☆ Goldman Sachs names new leadership trio
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Oct 18 (Reuters) - Goldman Sachs (GS.N) outlined its leadership team for its new core business units on Tuesday as the Wall Street giant undertakes its biggest overhaul since 2020. The bank named Ashok Varadhan, Dan Dees and Jim Esposito as global co-heads of Global Banking & Markets while Marc Nachmann will be global head of the asset and wealth management division. Stephanie Cohen will become global head of Platform Solutions, the bank said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Saeed Azhar and Lananh Nguyen Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: These are the leaders who want to reshape Goldman Sachs
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +1 min

Oct 18 (Reuters) - Goldman Sachs Group Inc (<GS.N>) unveiled a plan to reorganize its business into three units in another overhaul in less than three years by the Wall Street giant, which also reported a smaller-than-expected 44% slump in third-quarter profit on Tuesday. The bank will now have three operating segments - asset and wealth management, global banking and markets, and platform solutions. Following is the leadership structure at Wall Street's foremost investment bank in the newly organized units:Register now for FREE unlimited access to Reuters.com RegisterAsset & Wealth Management (AWM): The new unit integrates the bank's investing and wealth activities into a single businessGlobal Banking & Markets (GBM): Integrates Goldman's investment banking and global markets into a single businessPlatform Solutions: The bank's new business will bring together its fintech platforms including GreenSky, that Goldman bought in a $2.2 billion deal in 2021Source: Goldman SachsRegister now for FREE unlimited access to Reuters.com RegisterReporting by Manya Saini, Niket Nishant, and Noor Zainab Hussain in Bengaluru and Saeed Azhar and Lananh Nguyen in New York Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

Marcus, Goldman's consumer banking business, will be absorbed into the wealth unit, the sources said, confirming an earlier Wall Street Journal report. Register now for FREE unlimited access to Reuters.com RegisterThis is the biggest shakeup since the company's investor day in early 2020 when it outlined plans for four core units: investment banking, global markets, consumer and wealth management and asset management. The reorganization comes as the Wall Street titan seeks to boost its income from fee-based businesses and cut its reliance on volatile trading and investment banking revenues. The changes also signal Marcus, the consumer unit, is being relegated after Chief Executive Officer David Solomon expressed big ambitions to build a mainstream digital bank. But the consumer banking unit that launched in 2016 has struggled to gain traction and suffered from delays.

Oct 17 (Reuters) - Bank of America Corp (BAC.N) on Monday reported a smaller-than-expected 9% drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. BofA holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. "Consumers remain resilient," Bank of America Chief Executive Officer Brian Moynihan told analysts on a conference call. The bank, however, added $378 million to its loan-loss reserves as it braces for a weakening economy. Citigroup Inc (C.N) wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

Bank of America holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. Its net interest income jumped 24% in the third quarter. JPMorgan Chase & Co (JPM.N) Citigroup Inc (C.N), and Wells Fargo & Co (WFC.N) also saw their net interest income rise in the same period. read moreThe bank's leveraged loan losses were lower in the third quarter than in the second, Borthwick said. Peer Citi also wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

The second-largest U.S. bank added $378 million to its loan-loss reserves as it braces for a weakening economy. The U.S. Federal Reserve's aggressive monetary policy actions to tamp down inflation have sparked concerns that the economy could slip into a recession as interest rates rise. The bank's consumer business reported a 12% jump in revenue, helped by higher balances and a rise in interest rates. Investment-banking fees fell 46% as global dealmaking shrank for the third consecutive quarter after a blockbuster 2021. Net profit applicable to common shareholders was $6.6 billion, or 81 cents a share, for the quarter ended Sept. 30, compared with $7.3 billion, or 85 cents a share, a year earlier.

REUTERS/Andrew KellyOct 14 (Reuters) - Profits slid at Wall Street's biggest banks in the third quarter as they braced for a weaker economy while investment banking was hit hard, but investors saw a silver lining with some banks beating estimates. Banks set aside more money in preparation for a hit from a potential economic slowdown. Marinac said investors would want to see banks build reserves at this point in the economic cycle. Morgan Stanley's earnings showed that investment banking revenue more than halved to $1.3 billion with declines across the bank's advisory, equity and fixed income segments. Corporations' interest in mergers, acquisitions and initial public offerings dried up, particularly hitting banks strong in investment banking.

JPMorgan reported a 17% drop in third-quarter profit to $9.74 billion, although that was less than had been feared. Banks set aside more money in preparation for a hit from a potential economic slowdown. While investment banking and investment management were impacted by the market environment, he said fixed income and equity divisions "navigated challenging markets well." Morgan Stanley's earnings showed that investment banking revenue more than halved to $1.23 billion with declines across the bank's advisory, equity and fixed income segments. Corporations' interest in mergers, acquisitions and initial public offerings dried up, particularly hitting banks strong in investment banking.

"And I'm really pleased with the high-caliber bankers who are attracted to both our platform and our culture." Register now for FREE unlimited access to Reuters.com RegisterWhile Wall Street powerhouse Morgan Stanley (MS.N) boosted its ranks by 11% to 81,567, compensation at the firm fell 5%. "We're looking at headcount," James Gorman, Morgan Stanley's chief executive officer, told analysts in a conference call. Separately, Morgan Stanley's chief financial officer in an interview said that the company is "constantly evaluating" its resources, and "when we think about headcount, we always think of it relative to the economic environment." The culls come as a darkening economic outlook and rising U.S. interest rates weighed heavily on dealmaking businesses.

☆ JPMorgan profit down 17% as sluggish dealmaking, loan loss reserves weigh
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +2 min

Oct 14 (Reuters) - JPMorgan Chase & Co (JPM.N) reported a 17% drop in third-quarter profit on Friday, as a worsening economic outlook curbed dealmaking and prompted the largest American bank to boost its reserves for possible defaults. Register now for FREE unlimited access to Reuters.com RegisterDimon, however, cautioned that rising interest rates, inflation and geopolitical turmoil pose significant headwinds. The bank set aside $808 million in reserves, as the Fed's interest rate hikes stoke fears of an economic downturn. By comparison, in the same quarter last year, the bank had released $2.1 billion of reserves that it had kept aside for potential COVID losses. The bank reported $32.72 billion in revenue for the quarter, up from $29.65 billion last year.

"I'm now being attacked equally by the left and the right so I'm doing something right, I hope. Register now for FREE unlimited access to Reuters.com RegisterBlackRock is ready to fund U.S. energy pipelines as soon as the projects receive government approvals, he said. The company is one of the largest financiers of pipelines in the world, investing in pipelines in Texas, Saudi Arabia and the United Arab Emirates. Energy security is in focus following the latest move by OPEC+ to cut its oil production target over U.S. objections. Fink was speaking ahead of BlackRock's release of its third-quarter results on Oct. 13, when it is expected to show a fall in quarterly revenue.

☆ JPMorgan CEO warns higher inflation could push U.S. rates above 4.5%
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

Oct 13 (Reuters) - JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon on Thursday warned that persistent and elevated inflation could spur interest rates to rise higher than 4.5%, as he cautioned about the possibility of a looming recession. Consumers are in strong financial health, and are still spending robustly, he told attendees at the Institute of International Finance meeting in Washington. Register now for FREE unlimited access to Reuters.com RegisterThereafter, policy makers may have to increase interest rates to more than 4.5% to tame inflation, he said. Dimon pointed to more turbulence ahead with quantitative tightening and fragile energy supply making the future more uncertain. "It's bad... those things are huge turbulence which are right in front of us - that can easily cause recession."

☆ JPMorgan, Citigroup say higher capital requirements may hurt lending
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Oct 13 (Reuters) - Leaders from U.S. banking giants on Thursday said strict capital requirements, which were bolstered after the 2008 financial crisis, could restrain economic activity. Higher capital requirements for big banks may curb lending and amplify a potential recession, Citigroup (C.N) Chairman John Dugan told attendees at the Institute of International Finance conference in Washington. Register now for FREE unlimited access to Reuters.com RegisterRestraining banks from lending during a slowdown could "amplify the recessionary effect," he said. The U.S. Federal Reserve is conducting a "holistic" review of bank capital requirements and might impose tougher rules on large regional lenders, its new regulatory chief said last month. But the biggest banks, which face the strictest set of capital requirements and have lobbied for years for relief, face an uphill climb with regulators.

☆ BlackRock's Fink says he is seeing some signs of easing inflation
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: +1 min

Citing factors such as an acceleration in building new supply chains, which were hit hard by the COVID-19 pandemic, Fink said measures to counter inflation may, in the long run, weigh on price pressures. "I just started to see more threads of declining inflation, but they're not in the numbers yet," Fink said at an Institute of International Finance (IIF) event in Washington. Register now for FREE unlimited access to Reuters.com RegisterFinancial markets have been slammed this year as global central banks have raised interest rates to fight stubbornly high inflation. Fink said declines in stocks and bonds valuations, however, present opportunities for investors, and that his firm is witnessing a "really big interest in bonds". Register now for FREE unlimited access to Reuters.com RegisterReporting by Davide Barbuscia and Lananh Nguyen; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of America CEO says U.S. consumers still in good financial health
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Oct 12 (Reuters) - Bank of America Corp (BAC.N) Chief Executive Officer Brian Moynihan said U.S. consumers are still in good financial health. "Right now, they're in very good shape," Moynihan told attendees at an Institute of International Finance conference in Washington. He cited high savings rates, strong credit quality, and a 10% increase in consumer spending so far in October. Register now for FREE unlimited access to Reuters.com RegisterReporting by Lananh Nguyen and Saeed Azhar Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Brendan McDermid/File PhotoOct 12 (Reuters) - Signs of stress are growing in the global financial system, sparking worries over everything from contagion between markets to ruptures in financial products. This week alone, a gloomy report from the International Monetary Fund flagged risks of “disorderly asset repricings” and “financial market contagions” while JPMorgan chief Jamie Dimon predicted a looming recession. Global financial conditions, which reflect the availability of funding, touched their tightest since 2009 in late September, an index compiled by Goldman Sachs showed, lifted by surging interest rates, falling equities and a soaring dollar. “There are dollar funding shortages.”The IMF's Global Financial Stability Report, released Tuesday, also highlighted specific risks in open-end investment funds and the leveraged loan market. U.S. Treasury Secretary Janet Yellen on Tuesday said she has not seen signs of financial instability in U.S. financial markets despite high volatility.

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