Morgan Stanley Books Archegos Loss, But Profit Hits New High [WSJ]
Morgan Stanley said Friday that first-quarter profit more than doubled from a year earlier…. The New York-based bank reported record quarterly profit of $4.1 billion, or $2.19 a share, on revenue of $15.7 billion. That beat the consensus estimates of analysts polled by FactSet of per-share earnings of $1.72 on revenue of $14.1 billion…. Stock- and bond-trading revenue rose 29% to $5.8 billion. Fees from advising on deals and underwriting stock and bond offerings more than doubled to $2.6 billion.
Morgan Stanley’s E*Trade business also benefited from the burst of trading activity among individual investors.
Citi to Exit Retail Banking in 13 Markets Across Asia, Europe [Bloomberg]
The bank will instead operate its consumer-banking franchise in both regions from four wealth centers in Singapore, Hong Kong, the United Arab Emirates and London…. The withdrawal came as Citigroup reported record quarterly profit, boosted by the flurry of blank-check companies it helped take public in the first three months of the year.
Hedge fund Millennium’s $50m meme-stock short is a sign GameStop army in retreat [FN]
Hedge fund Millennium International Management, with some $50bn in assets under management, is piling into a big bet against Arrival, a British electric vehicle firm that debuted on the Nasdaq on 26 March following a Spac deal.
Arrival is a meme stock and retail favourite — it’s been more popular among retail investors than Deliveroo, short selling and trading research firm Breakout Point found….
The daily average of short-dated call options — a popular tool of bullish Reddit meme-stock traders — plunged in March from February.
SoftBank Infusion Meant to Pay Back Credit Suisse Investors Went to Greensill Bank [WSJ]
SoftBank invested $440 million into Greensill, according to people familiar with the transaction. SoftBank executives expected Greensill to send the money directly to Credit Suisse, according to the people…. Greensill put the proceeds of the SoftBank investment in a bank it owned in Bremen, Germany, according to the administrator’s report. The report said Greensill had used money it received from SoftBank, including the $440 million, to boost its bank’s capital position and fund Greensill’s overall operations.
City of London Brexit hit worse than expected, says study [Reuters]
“We think it is an underestimate and we expect the numbers to increase over time: we are only at the end of the beginning of Brexit,” the study said…. The total of 440 relocations is higher than anticipated and well above the 269 in New Financial’s 2019 survey. New Financial believes the real number is well over 500….
Dublin has emerged as the biggest beneficiary with 135 relocations, followed by Paris with 102, Luxembourg 95, Frankfurt 63, and Amsterdam 48…. The study expects that 300 to 500 smaller EU financial firms may open a permanent office in Britain, far fewer than the prevailing forecasts of around 1,000.
Goldman Sachs’s Top Image Maker Is Leaving [DealBook]
[Jake] Siewert is headed to Warburg Pincus to effectively become a political and policy adviser. The role — which will take him away from P.R. and see him working for both the firm and its portfolio companies — reunites him with Mr. Geithner, who has been Warburg’s president since 2014. Mr. Siewert’s departure is amicable, according to people with knowledge of the matter, though he was considered closer personally to Lloyd Blankfein, the Goldman C.E.O. who hired him, than the current chief, David Solomon.