Europe

  • None for you

    News

    European Regulator Bans Bonuses In Fixed Income Clothes, Asks Banks If It Looks Stupid

    Nice try attempting to pay employees bonuses while calling them “role-based allowances,” “role-based payments,” “a little something extra for your trouble,” etc, but the European Banking Authority is on to you.

    / Oct 15, 2014 at 2:58 PM
  • Hedge Funds

    Local Superhero Ready To Fix Europe

    Europe’s leaders, adopting a money begets money approach, are looking to conjure a few billion dollars to juice up the continent’s economy. Perhaps they should give Cliff Asness a call. He’s always happy to weigh in on such things.

    / Sep 15, 2014 at 6:35 PM
  • I don't know why but I love this picture

    News

    Pay Hike Watch ’14: It’s A Swell Time To Be A Junior Banker (Unless You Work In Europe)

    …in which case, better luck next time.

    / Aug 22, 2014 at 12:14 PM
  • lloydblankfeingarycohn

    News

    Role-Based Pay Watch ’14: Goldman Sachs

    Goldman Europe sees your bonus caps and raises you this:

    / Jan 17, 2014 at 12:28 PM
  • News

    Europeans Near Resolution To Semantic Debate

    Six years and countless working lunches after the financial crisis began, European regulators have at last nearly come to grips with one of its root causes.

    / Oct 22, 2013 at 6:08 PM
  • News

    Europeans Embrace Dark Pools While They Can

    The menace spreads.

    / Aug 13, 2013 at 12:47 PM
  • You have underestimated me for the last time.

    News

    Apparently Some People Pay Attention To Ratings Agencies

    Would you have predicted this? This paper investigates the impact of credit rating changes on the sovereign spreads in the European Union and investigates the macro and financial factors that account for the time varying effects of a given credit rating change. We find that changes of ratings are informative, economically important and highly statistically […]

    / Jun 17, 2013 at 9:41 AM
  • News

    German Central Bank Chief Hopes You’re Not Banking On That European Recovery Any Time Soon

    Bundesbank President Jens Weidmann does not mean to alarm you, but he thinks that Europe’s, um, difficulties could take a while to resolve.

    / Apr 17, 2013 at 3:37 PM
  • News

    IMF: Europe Is Still Ruining Everything For Everybody

    Perhaps it would like to do something about that?

    / Apr 16, 2013 at 4:48 PM
  • No line!

    News

    Cyprus Finds Exciting New Way To Make Everyone Miserable

    Things in Cyprus: kinda bad. There are better places than here to read about it; I particularly recommend Joseph Cotterill here and here, pseudo-Paweł Morski here and here, Mohammed El-Erian here, the FT’s coverage here and here, the Journal’s round-up of analyst reaction here, etc. The basic story is that Cyprus’s government and banks are […]

    / Mar 18, 2013 at 9:27 AM
  • Deustche Bank, HSBC

    Deutsche Bank Sinks Right Past HSBC

    Getting caught money-laundering for the Iranians and drug cartels is pretty bad for business, as HSBC’s 2012 results demonstrate. But coming into compliance with all these new banking regulations is even worse.

    / Mar 4, 2013 at 5:44 PM
  • Honestly she has nothing to do with this at all, but she's (1) European and (2) kind of fun to look at.

    News

    On The Bright Side, European Banking Bonuses May Be A Lot More Predictable

    It’s probably good news that “European Union finance ministers reached a landmark deal early Thursday that would bring many of the continent’s banks under a single supervisor,” but of course it wouldn’t be Europe without some self-evidently bad ideas for financial regulation, so today we also get this: Bankers’ bonuses in Europe would be capped […]

    / Dec 13, 2012 at 1:26 PM
  • cows, possibly European

    News

    EFSF Conveniently Downgraded

    Here are two tiny little puzzles about Moody’s’s’s downgrade of the European Financial Stability Facility from Aaa to Aa1 just now. But first, here is some math on EFSF guarantees; basically every €100 of EFSF bonds has €165 of member guarantees, of which €103ish were Aaa-rated and €62ish were not. Until Moody’s downgraded France last […]

    / Nov 30, 2012 at 6:17 PM
  • News

    Europe’s Short Sale Ban May Be Slightly Less Terrible Than They Want You To Think

    Europe is doing various terrible things about short selling today, and go talk about them in the comments, but this whole thing is really boring isn’t it? It’s like the “price gouging is grrreat” arguments that spring up like weeds after natural disasters;1 there’s the thing that politicians do to Convey Emotion and then we […]

    / Nov 1, 2012 at 6:42 PM
  • News

    Layoffs Watch ’12: UBS

    UBS is said to be embarking on a “fresh round of cuts” in the investment bank, starting with the team in Europe.

    UBS, Switzerland’s biggest bank, plans to cut about 80 to 90 jobs in its European investment- banking division as part of a global revamp, according to two people familiar with the matter. The cutbacks, which are likely to take place before year- end, would amount to about 17 percent of staff within the region’s investment-banking division and include junior and senior bankers, said the people, who asked not to be identified because the plans are private. The division includes merger advisory and equity and debt capital markets. The reductions probably will kick off a fresh round of job cuts within the broader investment bank, which includes UBS’s fixed-income and equities units, said the people.

    [Bloomberg]

    / Sep 18, 2012 at 6:38 PM
  • That would have been a better program.

    News

    ECB Announces Unlimited Bond Buying, Will Fill In Limits Later

    Every time I talk about Europe I begin by saying “Europe is all better,” because Europe these days operates on big-bang fixes followed by long slow decays, repeated indefinitely, so I guess you should sell the news and buy the quiet. Anyway, Europe is all better, since Mario Draghi announced today that the ECB will […]

    / Sep 6, 2012 at 2:33 PM
  • We've talked before about how I own these cufflinks. Two notable events where I failed to wear them: (1) CFA Level I exam, (2) the time I quit Goldman Sachs.

    News

    Sometimes Companies Buy Low And Sell High

    I liked that the two top articles in Money & Investing in the Journal today were (1) that European banks are buying bonds, and that’s bad, and (2) that American corporates are selling bonds, and that’s bad. And: probably! The European banks are behaving sensibly: With the European crisis knocking down the value of banks’ […]

    / Aug 13, 2012 at 6:02 PM
  • We don't have enough Angela Merkel around these parts.

    News

    A Euroblather Arbitrage

    No human can realistically be expected to understand or focus on the constant stream of Eurozone gyrations and in fact humans increasingly don’t, with the half-life of blather-driven euphoria declining rapidly. The latest gyration seems to be that Germany is contemplating letting the Eurozone collective rescue funds think about maybe one day putting up for […]

    / Jun 20, 2012 at 12:49 PM
  • News

    Bonus Watch ’13 & Beyond Will Be Pretty Predictable In Europe

    You would think that European regulators have a lot to worry about with their banks but they’ve got time for a surprising distraction: finalizing a plan to cap bankers’ bonuses at 1x base compensation*: Bankers’ bonuses across the European Union are set to be limited by law, with many bank lobbyists admitting in private that […]

    / Jun 13, 2012 at 7:08 PM
  • News

    One Last Greek CDS Post Before It All Goes Poof

    One of the side benefits of Greece taking whatever somewhat irreversible steps it is now taking is that something will happen to CDS written on existing Greek debt and that will mean that we can stop talking about what will happen to CDS written on existing Greek debt and start talking about more interesting things like quasi-CDS written by the EFSF on shaky Eurozone government debt.

    For now, though, we’ve got at least a few more weeks of surprisingly and unsurprisingly ill-informed fretting that triggering the $4bn of Greek CDS will Bring Down The Entire Global Financial System. That seems sort of silly because notionals aren’t that big, mark-to-market collateral is mostly being posted, and at this point the marks are pretty close to what you’ll get from Greece so it doesn’t look like there’s tons of unknown unrecognized losses lurking out there.

    On the other hand, we’re mostly through with the speculation that not triggering Greek CDS will Prove That CDS Is Worthless and thereby Bring Down The Entire Global Financial System, so that’s nice. The reason that’s mostly over is that it sure looks like Greek CDS will in fact trigger, as Athens has moved to adopt a collective action clause that will flip the Greek restructuring from “voluntary, heh heh heh” to “involuntary” and thus trigger the ISDA restructuring event definition. You can argue that the mechanics of the cash settlement auction will mildly screw CDS holders but I’m not so sure, and in any case this is pretty solidly in the category of derivatives nerdery rather than Bring Down The etc.

    / Feb 22, 2012 at 6:29 PM
  • Banks

    Deutsche Bank Treasures Its Reputation (For Making Economically Questionable Decisions) So Much That It Turned Down Free Money

    You may have heard that some shit is going down in Europe. This came as some surprise to me since I stopped paying attention to that whole continent when the banks were all fixed in December. What could possibly go wrong? I asked myself loudly, to drown out all the “Greece talks near [success / […]

    / Feb 7, 2012 at 3:03 PM
  • Banks, News

    Volcker Rule Will Be Bad For European Governments, Say European Government Ministers Who Were Told By Banks That The Volcker Rule Would Be Bad For Them

    I’ve been pretty skeptical of the whole Volcker Rule thing because I don’t really understand the conceptual division between “making bets with your own money” and “market making,” and I’ve been gratified to see that paid financial industry mouthpieces are on the same page. Now it’s nice to see unpaid mouthpieces agreeing too: Yet finance […]

    / Jan 31, 2012 at 12:29 PM
  • News

    Europe Needs A Better Blender

    I guess we should talk about Europe and credit ratings. Now France isn’t AAA and Italy isn’t A and Portugal isn’t investment grade and here is something that someone at S&P actually said: Our role is to give timely information to investors and if you give them timely information, if you give it to them […]

    / Jan 17, 2012 at 11:58 AM
  • News

    Fitch: You Should Just Give Up Already

    Fitch Ratings lowered its outlook on France’s triple-A rating to “negative” from “stable,” indicating there is a 50-50 chance the nation could lose its top investment-grade rating over the next two years. The move came as Fitch also placed its ratings on six other euro-zone nations, including Spain and Italy, on watch for downgrade after […]

    / Dec 16, 2011 at 2:04 PM
  • News

    Now That European Banks Have Money, Lots Of People Have Ideas For What They Should Do With It

    So Europe’s all better now, or something. The banks are anyway. They have had the money flung at them, in the form of the European Central Bank advancing them tons of medium-term funding at attractive rates and with pretty chill collateral requirements, and now they just have to sit back and be awesome. Since they’re […]

    / Dec 15, 2011 at 3:45 PM
  • News

    This Europe Crap Is Throwing A Wrench In Josef Ackermann’s Plans To Be Out Of The Office Every Day By 5 This Year

    Deutsche Bank said Monday that the bank’s Chief Executive Josef Ackermann won’t take over as chairman of the supervisory board when he steps down in May, and it is proposing Allianz SE financial chief Paul Achleitner for the position instead. Citing “extremely challenging” conditions on the international financial markets and in the political-regulatory environment,” Mr. […]

    / Nov 14, 2011 at 5:47 PM
  • News

    If You’re Not Into Greek CDS Any More, Maybe You Can Buy This Monstrosity

    We’ve noted here before the irony that Europe is both (1) screwing with your ability to get paid on CDS on shaky European sovereign debt (sort of) and (2) hoping people will buy more shaky European sovereign debt because they can get tradeable first-loss protection, suspiciously reminiscent of CDS, from the EFSF on those bonds. […]

    / Oct 28, 2011 at 1:43 PM
  • News

    A Conundrum

    The EU authorities propose to entice investors to return to buying peripheral sovereign bonds by offering tradeable first-loss protection on those bonds. This protection is described as functioning like credit default swaps. At the same time, the EU authorities assert that the solution to Greece’s sovereign debt overhang is for private holders of Greek debt […]

    / Oct 24, 2011 at 2:41 PM

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