DIRS.INFO The most relevant business & tech news

A spokesperson for the hedge fund declined further comment on Thursday. Big banks typically agree terms with hedge funds that allow them to cut ties at short notice, five sources from prime brokerages and hedge funds told Reuters. Prime brokerages may now refine due diligence processes and perform more thorough background checks on hedge funds, said Jim Neumann, chief investment officer of Sussex Partners, which advises investors on how they give their money to hedge funds. But many of these agreements mainly focus on the financial viability of the hedge fund, two of the sources said. One hedge fund manager said he was asked in his due diligence with the bank if he was approved by the UK regulator, the Financial Conduct Authority.

Persons: Banks, Crispin Odey, Goldman Sachs, Morgan Stanley, MS.N, Odey, Epstein, Michael Oliver Weinberg, JPMorgan Chase, JPM.N, Jeffrey Epstein, Bill Hwang, brokerages, Jim Neumann, Neumann, Archegos, Erika Kelton, Phillips, Cohen, Nell Mackenzie, Kirstin Ridley, Carolina Mandl, Dhara Ranasinghe, Elisa Martinuzzi, Matthew Lewis Organizations: Wall, Odey, Management, Financial Times, Tortoise Media, JPMorgan, Odey Asset Management, Reuters, CMT, Archegos Capital Management, Sussex Partners, UBS, Financial, Authority, Thomson Locations: London, New York

☆ Odey Asset Management freezes funds as clients pull money, prime brokers flee
▼ + stars: | 2023-06-13 | by ( Nell Mackenzie | ) www.reuters.com time to read: +3 min

LONDON, June 13 (Reuters) - Odey Asset Management (OAM) is closing one fund and restricting money clients can pull from another, two investor letters showed, just as the hedge fund was scrambling on Tuesday to keep its prime brokers from ending vital relationships with the firm. Odey Asset Management has closed its Odey Swan Fund and is restricting the money clients can pull from its Brook Developed Markets Fund, according to investor letters seen by Reuters. An OAM spokesperson declined to comment but confirmed the letter about the Brook Developed Markets Fund and was not immediately available to respond to a request about the closure of the Swan Fund. He did not respond when contacted by Reuters on Tuesday about either the Brook or Swan fund. Brook Developed Markets Fund is open to retail investors and had about $216 million, as of the end of February, the latest data from Morningstar showed.

Persons: Crispin Odey, Odey, Goldman Sachs, Morgan Stanley, Swan, Nell Mackenzie, Dhara Ranasinghe, Elisa Martinuzzi, Susan Fenton Organizations: Odey, Management, Financial Times, Tortoise Media, Reuters, JPMorgan, Swan, Swan Fund, Morningstar, Thomson

THE SWISS BANKPossibly the first hurdle is a politically fraught decision on Credit Suisse's "crown jewel", its domestic business. But UBS will have to weigh that against public pressure to keep the Credit Suisse business separate with its own brand, identity and, critically, workforce. However, insiders talk of rivals aggressively wooing Credit Suisse clients and employees. Clients who would typically bank both with UBS and Credit Suisse to spread their risk, might now take some of that business elsewhere. One potential risk stems from legal challenges to the decision by Swiss authorities to write off special AT1 bonds issued by Credit Suisse.

Persons: Sergio Ermotti, Ermotti, Colm Kelleher, Alan Mudie, Arturo Bris, Kelleher, Lars Schweizer, John Revill, Oliver Hirt, Noele Illien, Tomasz Janowski, Elisa Martinuzzi, Alexander Smith Organizations: Credit Suisse, UBS, Suisse, Woodman Asset Management, Finance, International Institute for Management Development, Reuters Graphics, Credit, Frankfurt University, Barclays, Thomson Locations: ZURICH, Switzerland, Swiss, Lausanne

NEW YORK/LONDON, June 10 (Reuters) - Crispin Odey, one of Britain's best-known hedge fund managers, will be leaving the company he founded, Odey Asset Management, following allegations of sexual misconduct, the firm's executive committee said on Saturday. Odey and Duncan Lamont, a consultant at law firm Charles Russell Speechlys, which represents Odey Asset Management (OAM), did not immediately respond to a Reuters request for comment about the hedge fund manager's departure. OAM will continue to operate without him and his partners will control and manage the asset management firm, the company said. It added it has been investigating allegations concerning Odey, but cannot comment in detail because it is bound by legal obligations of confidentiality. Odey told the FT on Saturday that he had been notified of the firm's position, adding: "You have to have (a) willing buyer, willing seller."

Persons: Crispin Odey, Odey, Duncan Lamont, Charles Russell Speechlys, Goldman Sachs, Morgan Stanley, Goldman, Carolina Mandl, Nell Mackenzie, Kirstin Ridley, Elisa Martinuzzi, Daniel Wallis Organizations: Odey Asset Management, Financial Times, Management, JPMorgan, Reuters, UBS, Conservative Party, Securities and Exchange Commission, Financial, Authority, Carolina, Thomson Locations: Brexit, British, New York, London

☆ JPMorgan and Morgan Stanley review prime broking ties with Odey Asset Management -sources
▼ + stars: | 2023-06-08 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

LONDON, June 8 (Reuters) - JPMorgan (JPM.N) and Morgan Stanley (MS.N) are reviewing their prime broking relationships with Odey Asset Management after allegations of sexual misconduct and bullying by Crispin Odey reported by the Financial Times and Tortoise Media on Thursday, sources familiar with the matter said. A source familiar with the matter told Reuters JPMorgan was also reviewing its relationship with Odey Asset Management. A source at one of the banks said the allegations of misconduct at Odey Asset Management conflicted with their standards. Morgan Stanley and JPMorgan declined to comment. Odey Asset Management did not respond immediately to a phone call and email requesting comment.

Persons: Morgan Stanley, Crispin Odey, Odey, Morgan Stanley's, Nell Mackenzie, Elisa Martinuzzi, Dhara Ranasinghe, Catherine Evans Organizations: JPMorgan, Odey, Management, Financial Times, Tortoise Media, FT, Reuters, Odey Asset Management, Thomson Locations: Brexit

After receiving $145 million from Binance.US's operator by 2021, Sigma Chain spent $11 million on buying a yacht, the SEC complaint said, without elaborating. It is unclear from the SEC complaint how much money Zhao is alleged to have drawn from Merit Peak and Sigma Chain. The SEC also said Zhao used Merit Peak to direct more than $16 million to fund Binance's purportedly independent U.S. affiliate Binance.US. Binance used its BUSD holdings to meet customer withdrawals by selling them for dollars as needed, Reuters reported in May. The SEC complaint also identified Binance Labs, a venture capital arm of Binance, as part of the exchange's plan to increase demand for BNB.

Persons: Zhao, Binance, Benoit Tessier LONDON, Changpeng Zhao, John Reed Stark, Stark, Binance's, Angus Berwick, Tom Wilson, Lisa Barrington, Hadeel Al, Elisa Martinuzzi, Alexander Smith Organizations: Viva Technology, Porte de, REUTERS, Binance, Securities and Exchange Commission, SEC, Swiss, Sigma Chain, Reuters, Silicon, Internet, Futures Trading Commission, U.S . Justice, Reuters Graphics, Silvergate Bank, Merit, Sigma, Binance Labs, Thomson Locations: Porte, Paris, France, Binance, U.S, Virgin Islands, Dubai, London, Hadeel Al Sayegh

Deutsche swapped billions of euros in securities for cash and government bonds, the sources told Reuters, which count towards its liquidity coverage ratio (LCR). This is meant to determine the extent of a bank's access to ready cash to fund outflows such as depositor withdrawals. The trades caught the attention of European Central Bank (ECB) supervisors, who questioned Germany's largest lender about them during routine exchanges, the sources said. Even without the trades, Deutsche would have far exceeded a 100% LCR regulatory requirement and overshot its own target, the sources said, adding that its liquidity is not a concern. Deutsche's trades helped it raise its LCR to 143% at March 31, its first-quarter earnings report published in April showed.

LONDON/LISBON, May 19 (Reuters) - Portuguese insurer Fidelidade is exploring a potential stock market listing of its private healthcare subsidiary Luz Saude, six people familiar with the matter told Reuters. Luz Saude reported operating income of 599 million euros in 2022, a 10.6% jump from the year before, driven by growth in private healthcare services. They come after Fidelidade acquired the remaining 49% of Luz Saude it did not already own from parent Fosun in September. An IPO would mark a return of Luz Saude to the stock market after the healthcare group stopped trading on Euronext Lisbon in 2018. It could also awaken Europe's IPO market, after activity levels plunged last year on the back of soaring interest rates and economic uncertainty.

LONDON, May 17 (Reuters) - Planisware is working with investment bankers on strategic options, including a stock market listing of the French software group, four people familiar with the matter told Reuters. Rothschild (ROTH.PA) is acting as financial adviser to Planisware, two of the people, who declined to be named, said. BNP Paribas (BNPP.PA) and Citigroup (C.N) have been lined up to arrange a possible initial public offering (IPO), one person added. Private equity group Ardian, which holds an undisclosed stake in Planisware through its growth capital arm, declined to comment. In France, IPO volumes plunged in 2022 to levels similar to the first year of the COVID-19 pandemic.

Shareholders of Credit Suisse and UBS were not granted a vote on the deal that was sealed over one weekend in March. Officials for QIA, UBS, the Swiss finance ministry and Credit Suisse declined to comment. QIA's investment in Credit Suisse dates back to the global financial crisis of 2008. The sovereign wealth fund had increased its stake in Credit Suisse to just under 7%, only trailing largest shareholder Saudi National Bank's roughly 10% stake, according to a January filing. Among them, Middle Eastern backers which own more than 20% of Credit Suisse face the largest hit.

"Our commitment to Juventus is unchanged and no meetings have taken place," a spokesperson for Exor said when asked to comment by Reuters on Friday. Juventus also faces potential new penalties, including further points deductions, in a separate case over alleged irregularities in payments to players. The Agnelli family has owned the club, which it listed in 2001, almost uninterrupted since 1923. New potential co-investors could include Middle Eastern or Asian sovereign wealth funds, or U.S. funds or family offices, two sources said. Juventus ranked 11th in Deloitte's European Money League published in January, based on its annual revenue of 400 million euros in 2021/22.

LONDON, May 4 (Reuters) - Blackstone (BX.N) is weighing options for Spanish gambling company Cirsa, including an initial public offering (IPO), people familiar with the matter told Reuters. The U.S. buyout group recently invited proposals from investment banks to manage a possible share sale and refinancing of Cirsa's debt, said the people, speaking on condition of anonymity. An IPO would follow a public share sale by Italian peer Lottomatica (LTMC.MI), backed by Apollo Global Management (APO.N), whose shares began trading in Milan on Wednesday. Cirsa, a casino operator, posted 552.5 million euros ($609.24 million) in earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022. Based on Lottomatica's valuation, Cirsa could be worth several billions of euros, including debt.

LONDON, May 4 (Reuters) - U.S. buyout house Blackstone (BX.N) is weighing options for Dutch merchant bank NIBC, including a possible sale, people familiar with the matter told Reuters. Blackstone has also been considering potential acquisitions in the absence of a sale, one person added. The Hague-based NIBC offers financing for industries such as automotive, commercial real estate, infrastructure and shipping, as well as retail mortgages. It has been exiting non-core businesses, including deal advisory and leveraged finance, in a bid to streamline its operations. The group had 22.8 billion euros of assets on its balance sheet at the end of last year and an equity value of around 2 billion euros ($2.21 billion), according to its 2022 annual accounts, which showed a profit of 179 million euros excluding non-recurring expenses.

The seizure was to "thwart the activity" of Islamic State and "impair its ability to further its goals," the NBCTF said on its website. The NBCTF document, which has not been previously reported, did not give any details on the value of the crypto seized, nor how the accounts were connected to Islamic State. Binance, the world's largest crypto exchange by trading volumes, did not respond to Reuters' calls and emails seeking comment. The U.S. Treasury said in a report last year that Islamic State had received crypto donations it later converted to cash, accessing funds via crypto trading platforms. The owner of the two Islamic State-linked Binance accounts seized by Israel was a 28-year old Palestinian called Osama Abuobayda, the NBCTF document shows.

LONDON, May 4 (Reuters) - U.S. private equity firm Summit Partners is looking to sell a stake in Swiss wealth manager Cinerius Financial Partners amid increasing consolidation in the sector, two people familiar with the matter told Reuters. Summit intends to bring in another private equity fund to help fund Cinerius' growth, particularly through acquisitions, one of the people said. Asset manager BlackRock Inc (BLK.N) provides debt financing for Cinerius' acquisitions through its private credit arm, the person added. BlackRock, Cinerius and Summit Partners did not respond to requests for comment. Belgian private bank Degroof Petercam is reviewing strategic options after drawing interest from rivals, Reuters reported last Friday.

The future of Credit Suisse's business in Switzerland is being closely watched as one of UBS's key strategic decisions. Credit Suisse's Swiss bank is one of the lender's four operating units and is seen as the jewel in the crown. In January, Credit Suisse had moved the business from its broader investment banking division into the Swiss unit, according to Credit Suisse's 2022 annual report. On a possible sale, Ermotti has said all options for the Swiss business are on the table. On Sunday, NZZ am Sonntag newspaper reported that UBS was working towards spinning off Credit Suisse's domestic unit.

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.

It may explore a private sale alongside a stock market listing, they added. An IPO might not take place until next year, as market conditions remain challenging for new listings, one person said. LimaCorporate, which designs orthopedic implants, posted revenue of 248.6 million euros ($274.5 million) for 2022, and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 66.2 million euros. It also reported a yearly loss of 27.9 million euros after taxes. EQT was reported in 2020 to be working with advisers on a possible IPO or sale of the business, but a transaction never materialised.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

REUTERS/Dado RuvicLONDON, April 19 (Reuters) - Crypto firms have been left scrambling to find banking partners after the collapse of three crypto-friendly lenders in the U.S. last month, creating a risk their business will become concentrated in smaller financial institutions. Mainstream banks have become increasingly wary of crypto clients following a series of high-profile collapses, including the bankruptcy of major exchange FTX in November last year, and a lack of regulation. "Crypto and Web3 start-ups are telling us they simply cannot get a business bank account," said Marcus Foster, head of crypto policy at Coadec, a body representing UK start-ups. A spokesperson for ING said the bank does not "target or focus actively on crypto firms" so its exposure is "very limited." But for smaller crypto start-ups, securing a banking partner could be more difficult, said Ricardo Mico, the U.S. CEO of Banxa (BNXA.V), a payment and compliance infrastructure provider for crypto.

The investors, who hold some Casino bonds maturing in 2026 and 2027, are seeking to move quickly before details of the tie-up are agreed, the sources added. Other debt being left out of the joint venture could have lower prospects to recover its full value. Casino does not require consent from bondholders to potentially push their holdings into the joint venture, according to two sources. Unrestricted status would allow the joint venture to potentially list on a stock exchange and receive capital from a third party. Casino and Teract said in a joint statement in March that discussions have already started with potential investors about providing the additional capital.

In addition to mergers and acquisitions, the options include a sale of the bank and an initial public offering (IPO), the people said. Officials for Co-op Bank, Aldermore, OneSavings Bank, Paragon and Shawbrook declined to comment. Co-op Bank had an equity value of close to 1.3 billion pounds ($1.61 billion) as of the end of December, based on its latest annual accounts. It had more than 28 billion pounds of assets on its balance sheet and reported a profit before tax of 132.6 million pounds for 2022. Later that year, Co-op Bank made an offer for domestic rival TSB Group, which was rejected by Spanish parent Banco Sabadell (SABE.MC).

☆ Credit Suisse, SEC letters show months-long reporting errors debate
▼ + stars: | 2023-04-11 | by ( Chris Prentice | ) www.reuters.com time to read: +2 min

NEW YORK, April 11 (Reuters) - Credit Suisse and the U.S. Securities and Exchange Commission (SEC) engaged in a months-long debate over the severity of reporting deficiencies that led the Swiss bank to delay its annual report last month. Credit Suisse (CSGN.S) said in March it had postponed the annual filing after a "late call" with the regulator which raised questions about earlier financial statements. Correspondence published in the SEC's online database on Tuesday show that agency staff first raised questions with Credit Suisse officials in July 2022.Credit Suisse and the SEC declined to comment. The last-minute delay concerned analysts and sent Credit Suisse shares to near an all-time low. In the March 10 letter to Joshi, SEC staff acknowledged discussions with the bank on March 8-10.

Media coverage of BDO's warning on March 1 prompted immediate questions from financial regulators, a March 6 letter to Reuters from Revolut shows. The letter did not address the banking licence application nor its status. "I would be astonished if the regulators go ahead with the banking licence," he added. Revolut applied for a banking licence about two years ago. With a banking licence, Revolut would become a more established player in the U.K. banking market and be able to draw more customers.

Search resuls for: "Elisa Martinuzzi"

25 mentions found