The Banking and Strategy Initiative

Chillin' out till it needs to be funded

US Morning report: The new Baers, a 20% slimmer Hellomoto and nothing new in Japan or Europe

Julius Baer completed its global ambitions in a single swipe giving BofA the out it probably did not deserve or should not have depending on which part of the merged bank you come from . The erstwhile Merrill Lynch assets and business outside US were wortha small 3% stake in Julius Baer and a $882 mln consideration that dwarfed the extent of Merrill Lynch’s stamp on global investment banking business from Emerging markets to Central and Eastern Europe and everything except London with more than 5 Euromoney awards in 2011 itself as cased on the BofA EMEA website. Despite the lower fees the Europe, Asia and LatAm markets make up 30% of the Global Investment Banking market, closer to 50% in Deal volumes across M&A, Syndication, Equity and Debt (origination) and before the merger Merrill Lynch had significant ‘assets’ manning the non US desks. BofA has appointed new seniro leaders in Europe for its ‘leftover’ Investment Banking business.

Bear Sterns on the other hand transitioned the retail assets based WaMu business to JP Morgan in 2007 before winding up while Wachovia also was an asset based $16 B purchase for Wells Fargo. Goldman Sachs in the time since has started pushing for a asset based retail addition to its brokerage and advisory businesses and use the Fed banking license as a new opportunity to build returns in the business. Swiss banks have been hit by anti terrorist and tax law breaches called by  US and European regulators.

Meanwhile Japan reported a stalled Q2 despite improving bank credit and better performance from the carmakers.

Google will spend $300 mln in Q3 on transitioning 1 in 5 of the staff at erstwhile Motorola Mobility , costing 4,000 Jobs at the $12 B hard wired Google acquisition for the less than 20,000 patents

The Euro started the week spiralling to the Top in the first hour of London trading even as Asia rounded off a good bullish start to equitiies even as Spain counts the damage on a daily basis till DEcember when the paperwork and probably the politics is ironed out and we also get to figure out how many member states will be left inside the Euro in the long run.


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