Word: bankes
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Dates: during 2000-2009
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...success of Citi's dealmakers comes as a surprise because the sprawling bank has generated nothing but frightening headlines in recent months. Like the other big banks, Citi received billions in aid from the government, and has been back to the government's well more often than most. Last month, the Treasury, along with private investors, agreed to convert some of their Citigroup preferred shares into common stock, which will strengthen the company's capital position. All told, the government has injected $45 billion into Citi by buying preferred shares; it has also insured the bank against losses...
...Citi businesses that seem to be doing well. Along with mergers and acquisitions, analysts point to Citi's foreign-currency trading divisions and its business of processing payments and moving money around the world as two other bright spots. Earlier this month, Citi CEO Vikram Pandit said his bank was profitable in the first two months of the year. "M&A alone is not a big enough businesses to swing the bank," says analyst Richard Bove, who follows bank stocks at Rochdale Securities. "But put them all together, along with the fact that Citi's business is positioned to benefit...
Advising companies on mergers has long been one of the big moneymakers on Wall Street. Companies doing an acquisition or being bought typically hire an investment bank, or a few, to steer them through the transaction. The companies pay fees for this work, which advisers for both the buyer and seller usually split. For large transactions these fees can be substantial: Pfizer is paying an estimated $207 million in M&A fees to the seven banks that are acting as advisors to both companies...
Boutique firms believe that Citi's troubles will shift the balance in the M&A business again. "We are being approached by more and more clients who are concerned about getting services from entities that are having trouble," says Kenneth Berliner, who is the president of top boutique investment bank Peter J. Solomon. "How much longer are the bankers who work there going to stick around...
...There are two major arguments against the level of regulation that the Administration would like. The first is that regulations do not prevent people from acting rashly or dishonestly. Rogue traders can still lose hundreds of millions of dollars on an investment bank trading floor with a PC and access to their firm's capital. Inside trading and naked shorting of stocks happen all the time, although both are illegal. Fighting regulation because some people refuse to be regulated turns out to be indefensible because the alternative is chaos...