Global Banking at Bloomberg Opinion. Ex-WSJ and FT. Why, why, why, why, why? Opinions mine, "likes" are often bookmarks, RTs don't mean I agree.
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Paul J. Davies’ articles predominantly focus on in-depth investment analysis and legal policy regulation within the finance, economy, and business sectors. He frequently references data to support his analyses.
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By: Paul J. Davies
The US Federal Reserve could shrink its assets by changing bank liquidity rules. But doing this too quickly would spook a system that adjusted to quantitative easing after the 2008 crisis. And while Trump may want lower interest rates, Warsh might not find a way to ease policy.
London still has a lot going for it: History, habit and all the past investments that turned it into a global financial hub can't be easily thrown away
When Banca Monte dei Paschi di Siena SpA sealed its hostile takeover of Mediobanca SpA last year, the financial rationale was dubious but the politics were clear: Italy wanted a third major lender to compete with its top two. Now, one of those leading banks, Intesa Sanpaolo SpA, has launched a €30.6 billion ($35.3 billion) bid for the enlarged Monte Paschi and the picture is reversed: For investors, the strategy mostly adds up, but the politics make almost no sense at all.
If Andrea Orcel wants to seduce the shareholders and staff of Commerzbank AG, he has a funny way of going about it. The chief executive officer of UniCredit SpA has been using all the smarts of a seasoned investment banker to keep increasing its stake in the German bank in quietly efficient ways. But his tactics have left his targets cold, particularly the German government, which has a near 13% stake.
Founders and venture capitalists love to moan about being stymied by risk-averse rules and regulators in the UK and Europe. Their ambitions get frustrated, investors are put off and the result is less innovation and slower growth, goes the argument. But then there’s Revolut Ltd.
Morgan Stanley was among the first major banks to roll out generative artificial intelligence for its people to use in their day-to-day dealings with customers in late 2023. The internal chatbot was designed to give its financial advisers swift access to all the firm’s research and knowledge so they’d have answers or ideas on investments, tax or most other questions from wealthy clients. The point was to make every adviser as good as the smartest.
JPMorgan Chase & Co. has long made a habit of chewing through potential successors to Chief Executive Officer Jamie Dimon, but its latest management reshuffle is a sign that the 70-year-old is finally preparing to relinquish the role.
The Federal Reserve is close to finally finishing its rewrite of bank-capital rules. But, in the final stretch, it has provoked a fight between the biggest US main-street lenders on one side and the markets- and trading-focused investment banks on the other. The ultimate battle in the so-called Basel III endgame is less about how much capital should be in the financial system, and more about which firms should bear the burden.
Everyone likes to test the boundaries of what’s possible, especially multi-millionaire hedge fund traders fixated on paying as little tax as they can. But once the law, right up to the UK Supreme Court, has judged that you’ve gone beyond what’s reasonable, you should concede gracefully, pay up and move on.
Hedge fund borrowing is soaring, and with the biggest players betting on both the artificial-intelligence boom and government debt the risk of a blow-up in one asset class causing chaos in the other is growing. UK gilts are right in the crosshairs of these trades, and yet the Bank of England plans to loosen rules in ways that will allow banks to lend even more to hedge funds. What gives?
