Fri, Sep. 23, 1:02 PM
- In an acknowledgement of the major slowdown in activity in the region, Goldman Sachs (NYSE:GS) is cutting nearly 30% of its 300 investment banking jobs in ex-Japan Asia, reports Reuters. Most of the cuts will take place in Hong Kong, Singapore, and China, where the bank's main Asian offices are located.
- The total value of M&A deals in Asia-Pacific this year of $572.9B is down from $745.7B during the same period in 2015.
Fri, Sep. 23, 12:05 PM
- The proposed rule would make it more difficult for banks to be involved with physical commodities by raising capital requirements. Further, banks would be prohibited from activities involving power plants, and owning or storing copper.
- The Fed today begins a 90-day period of accepting public comment.
- Banks like Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) have relied on grandfather clauses to engage in physical commodity businesses not allowed for other lenders, while Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM) remain somewhat involved in commodity trading and energy tolling activities.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Tue, Sep. 20, 7:48 AM
- Since Goldman Sachs (NYSE:GS) began offering ETFs one year ago, it's already brought in $2.4B of assets, making their funds among the most successful product launches in ETF history.
- JPMorgan (NYSE:JPM) - which entered the ETF business two years ago - has garnered just over $800M, despite the earlier start and more successful performance record.
- "Goldman did quite a bit of work priming the pump, pre-vetting its strategies with institutional clients," says Morningstar's Ben Johnson. "This is a marathon, not a sprint," says JPMorgan's ETF boss Bob Deutsch.
- Helping Goldman are low prices - its flagship fund, the Active Beta U.S. Large Cap Equity ETF, charges just nine basis points. Then there's the Goldman name: "They have a real panache if you are some RIA in Iowa who has never had a relationship with Goldman at all,” says FactSet's David Nadig, who imagines said RIA going to clients and saying, "We can now get access to Goldman’s quant expertise for the same price as most of the index funds we look at at Vanguard."
- Source: Bloomberg
Tue, Sep. 13, 5:42 AM
- Building its U.S. consumer bank, Goldman Sachs (NYSE:GS) has established a team to put its deposits to work on Wall Street, sources told Reuters.
- The existence of the team, which has not been previously reported, was set up in mid-2015 and is formally known as the institutional lending group.
- Lately, it has ramped up activities as Goldman looks to do more lending broadly.
Mon, Sep. 12, 3:06 PM
- The Goldman Sachs Treasury Access 0-1 Year ETF (GBIL) began trading last week with $20M in AUM. The cost for the "ultrashort" duration ETF is 0.14%.
- The bank launched its first ETFs about a year ago, but this is its first fixed-income offering.
Thu, Sep. 8, 3:27 PM
- Part of the Dodd-Frank law requires regulators to submit fixes to potential risks not covered by the post-crisis rules aimed at cutting bank certain trading and investments.
- As part of the Fed's contribution, it is recommending Congress repeal banks' merchant banking powers, and their ability to operate in the physical commodities business. The OCC and FDIC are yet to be heard from.
- Goldman Sachs (NYSE:GS) could have most to lose as that company booked $1.2B in revenue in H1 in the division housing its merchant banking business.
Wed, Sep. 7, 4:29 AM
- Goldman Sachs (NYSE:GS) has banned its high-ranking employees from contributing money to certain campaigns including that of U.S. Republican presidential candidate Donald Trump, according to a report in Politico.
- The policy change is meant to "prevent inadvertently violating pay-to-play rules," but don't prohibit top brass from donating to the Clinton ticket.
- A spokesman emphasized that the impact on the presidential election is entirely coincidental.
Thu, Sep. 1, 2:36 PM
- The Fed stress tests are the centerpiece of post-crisis bank regulatory reform, and that the banks would even consider challenging a bureaucracy that's not in the habit of being challenged is a shocker. The WSJ, however, reports bank trade groups and industry advisers are debating just that, but say talks are still in an early stage.
- Fans of Dodd-Frank will naturally argue the stress tests have made the banks far safer, but at what expense to investors? A main area of contention is the opacity of the tests, says the report, as well as the ability of regulators to block returns for subjective reasons (such as challenging them?).
- Perhaps lenders are feeling their oats following MetLife's successful challenge of its SIFI designation. If the insurer can take on Uncle Sam and win, why not the banks?
- Interested parties are too numerous to name, but include: Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM).
- ETFs: KBE, KRE
Thu, Sep. 1, 4:09 AM
- Despite an increasing regulatory burden and lackluster share performance, the U.S. banking industry just logged its most profitable quarter ever, according to figures from SNL Financial and S&P Global Market Intelligence.
- Earnings for the three-month period totaled $43.6B, compared to the $43.01B in Q2 of 2015, a 1.4% beat.
- On a sequential basis, the April-to-June period topped the previous quarter by $4.56B, an 11.7% rise.
- Related tickers: JPM, C, BAC, WFC, GS, MS, USB, BK, STT, PNC, COF
Wed, Aug. 31, 9:23 AM
- Unlike a number of other big banks which have announced big cuts in their fxied-income units, Goldman Sachs (NYSE:GS) has remained firm in its commitment to the slowing debt-trading business. But, write Lisa Abramowicz and Lionel Laurent, this doesn't necessarily mean a commitment to the number of people in the operation. The bank, they say, is busily preparing a future in which machines will handle much of the work.
- While electronic trading in corporate bonds isn't yet too big of a deal, it's market share has nearly doubled in two years. One example of how Goldman is responding is the "Goldman Sachs Algorithm," which allows investors to trade U.S. corporate bonds without having to communicate with a human.
- The leader in this field is MarketAxess (NASDAQ:MKTX), and it's price chart resembles a rocket ship launch.
Tue, Aug. 30, 7:14 AM
Tue, Aug. 30, 2:21 AM
- More than 76,000 people have signed a petition demanding former European Commission President Jose Manuel Barroso be stripped of his pension after taking a job at Goldman Sachs (NYSE:GS).
- Organizers plan to present it to current leaders of the EU institutions at the end of September.
- Critics claim the role is inappropriate given Goldman's role in the U.S. subprime crisis and Greek debt talks.
Wed, Aug. 17, 3:04 PM
Fri, Aug. 12, 2:05 AM
- Big Wall Street banks, including Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM), have asked the Federal Reserve to grant them an additional five-year grace period to comply with the Volcker rule, according to Reuters.
- If granted, the extension would see the changes not kick in until 2022.
- The Fed also said the lenders must specify the investments they are referring to, before it makes a decision.
Wed, Aug. 10, 3:15 PM
- Incentive pay for fixed-income sales and trading may fall 10-15% this year, according to Johnson Associates. Three months ago, the firm forecast a 15-20% decline. Bankers involved in corporate M&A may see bonus pay fall just 5-15% vs. an earlier expectation for 10-15%.
- Source: Bloomberg's Laura Keller
- The Brexit vote, notes Alan Johnson, may not erode H2 revenue as much as previously thought.
- It's a little bit of good news for an industry still having to deal with sluggish revenue. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) slashed first-half compensation by the most in at least four years, according to the most recent filings. At Goldman, the average H1 compensation fell 29% to $168.65K.
Mon, Aug. 8, 9:29 AM
- Goldman Sachs (NYSE:GS), Credit Suisse (NYSE:CS) and the European Bank for Reconstruction & Development have invested $150M in TFI TAB Gida, the Turkish company that controls the biggest international Burger King franchise.
- The trio of investors may also be involved in an IPO in the next couple of years, although their current funding will be invested in new restaurants.