The investment banks promised favorable research to Toys “R” Us Inc. and its private-equity owners to win roles in its initial public offering, the Financial Industry Regulatory Authority said today in a statement. The regulator fined the firms a total of $43.5 million, faulting them for “implicitly or explicitly” making promises that their analysts would give positive coverage. Six of the 10 firms didn’t have adequate supervisory procedures to prevent the practice…In May 2010, Citigroup’s investment bankers hosted a chaperoned call with the firm’s research analyst, who then e-mailed a supervisor. “I so want the bank to get this deal!” the analyst said in the e-mail, according to Finra. Days later, bankers told the retailer that they could “count on Citi’s firm-wide support and advocacy for the Toys story and valuation.” Other firms contacted Toys “R” Us after making their pitches, expressing enthusiasm about the firm’s prospects and providing assurances that the views of bankers and analysts were aligned, Finra said. Toys “R” Us and investors, including KKR & Co., withdrew the IPO filing last year. [Bloomberg]
Like Bank of America, RBS has some big goals for the coming year, chief among them being the firing of several thousand investment bankers. (For those skeptical they can do it, according to a PowerPoint presentation presented yesterday, re: the “exits,” quite a bit of progress has already been made.) Read more »
Tomorrow morning, Anshu Jain will start his new job as co-CEO of Deutsche Bank. Despite having previously overseen operations that produce 90 percent of the firm’s profits in any given quarter, sitting on the management committee, and generally being considered a “star” both within the company and among those who follow his work, chief executive officer is a title no one thought AJ would be given if he remained at DB, because 1) people back in Germany don’t like that he’s an investment banker and 2) “In Germany, no one can imagine an Indian working in London who does not speak German being CEO of Deutsche Bank.” To the haters’ chagrin, though, that’s exactly what’s about to happen. And if they want to continue bitching about it, they can be Jain’s guest– their insults go in one ear and out the other. Read more »
Gird your loins, which have apparently gotten a free pass for too long. Read more »
Are you the employee of an investment bank with offices in Japan? Last week, after the biggest earthquake in nearly a hundred years occurred, which was just the start of the fun, did you try and get out of a country that might be on the precipice of a nuclear meltdown? Which is to say, did you act like a total pussy? We have a message from one of your colleagues. He wants you to know that there’s no reason to worry about being “ostracized” for leaving. Such a thing would be patently ridiculous. Having said that, you are all a bunch of pansies who will be reminded of that fact as soon as you return. Read more »
New York City wants to hire investment banks to improve the way assets are managed — from parking meters to buildings — but the mayor on Friday flatly rejected selling any of these valuable properties…Though investment banks and hedge funds have raised hundreds of millions of dollars to invest in publicly owned infrastructure — from roads to bridges to tunnels — Bloomberg made it clear he would only consider privatizing the way, for example, equipment is installed and maintained. [Reuters via BI]
Have you ever wanted to learn how to kill a person with your bare hands, as a matter of self-defense or just cause? Are you going to be in Vegas the weekend of the 14th? I am and I thought we could take this class together, which comes highly recommended by the “senior staff” at Goldman.*
Las Vegas’ Tim Larkin is teaching Investment Bankers ‘How to Kill’ as a method of self defence at a closed-venue in Las Vegas on 14th and 15th November. He has taught senior staff of Goldman Sachs, JP Morgan, Deutche Bank and Credit Suisse and also Scotland Yard.