SWFs

Capital raising to get harder for commercial banks

Thu, 22 May 2008 06:59:54 -0400

We all get the sense that banks are due for some more capital raising. But it comes down, in large part, to upcoming writedowns. If they are much worse than expected, banks will have to hit the capital trough again, notes Investors' Business Daily. The problem is, raising capital will only get harder, especially if we assume the SWF and private equity money has dried up. Many have already pushed to the limit of preferred sales. At some point, common shareholders will be forced to protest the terms and dilutive effects. Common share offerings will be iffy propositions at best. The article makes an interesting point. Commercial banks may have the harder time if other asset classes--auto loans for example--hit some turbulence.

For more:
- here's the article

Top banks eyeing sovereign wealth funds

Wed, 23 Apr 2008 06:59:56 -0400

For all their controversy, the top investment banks sense that sovereign wealth funds represent a huge opportunity. We're talking trillions of dollars that must be deployed. Several top banks are moving to get their piece of the pie. Lehman Brothers just appointed Makram Azar to head their new SWF team, which will be based in Dubai, notes Financial News Online. His job will be to interest these funds in the full array of Lehman Brothers products. Morgan Stanley has tapped three senior bankers to cover Middle Eastern funds as part of a larger effort to generate business in the region. We'll likely see other banks follow suit.

For more:
- here's the Financial News Online article

ALSO NOTED: Wachovia cuts Merrill estimates; Citi takes minority stake in TradeWeb; and much more...

Wed, 09 Apr 2008 06:59:50 -0400

Company News:
> Citi takes minority stake in TradeWeb. Article
> John Mack sees crisis ebbing. Article
> WaMu investment from TPG-led group to be $7 billion. Article
> Wachovia cuts Merrill estimates. Article

Regulatory News:
> SWFs to be scrutinized more closely? Article
> Seven charged with illegal trading on NYMEX. Article

And Finally... The world's most expensive restaurants. Slide show