GLG News(sm): Financial & Business Services

ACL is one of Thailand's smallest bank

Bernard Lapointe — Fri, 03 Jul 2009 05:21:49 EST

1) Why is one of the world's largest bank by market capitalization, Industrial and Commercial Bank of China (ICBC), interested in buying ACL, one of Thailand's smallest bank? 2) Bangkok Bank has been trying to 'unload' its 19% stake in ACL since 2007. It seems that this time the price is right. 3) Will Thailand's Ministry of Finance agrees to this? The Thai government owns nearly 31% of ACL.

Felix Rohatyn, strong and respected American financier, issues warning sure to be ignored

Michael Lynch — Wed, 01 Jul 2009 10:54:18 EST

Felix Rohatyn, in an editorial in the New York Times issue of June 29 noted that Europeans were fascinated by the economic freedom that is fundamental to American capitalism. But the practice of that has become different from the theory. The U.S. began to diverge from Europe in the 1980s as a result of population growth plus greater investment in technology. By the 1990s, changes in the U.S. corporate culture plus easy money resulted in astonishing levels of wealth. Management and directors collected hundreds of millions while thousands of employees lost their jobs. These events struck at the heart of market capitalism. The problems began in the 1980s with a shift away from an industrial economy. Repeal of Glass-Steagall allowed to banks to enter the securities field. The Enron collapse resulted in the Sarbanes-Oxley Act of 2002. It is late in the day to restore faith and confidence. The administration must engage the Congress to return to American market capitalism.

Perpetual mispricing machine - Durable misconceptions about Asia’s markets

Marshall Mays — Wed, 01 Jul 2009 05:27:57 EST

1. China's growth, a two-decade-old story, has been rewarding on average to those allowed to tap it, but access price has been high and the disappointments painful. We face huge risk of another one now, at a time other exporters and financial investors can least afford it. When might a publicly disclosed slow-down arise? Will bank performance be the symptom or the cause? 2. Japan is clearly more linked to China's growth than other rich countries, so China's problems are Japan's. Can the accumulation of improvements in Japan make up for the weight of a continued slow-down in PRC demand? 3. If the current risk is no worse than that elsewhere, what about the long term prospects? Are they superior to those elsewhere? Are current earnings multiples justified? If not now, when?

Rate of UK job cuts in financial services forecast to decline in Q3

David Potts — Wed, 01 Jul 2009 05:21:33 EST

The Confederation of British Industry talks about further job cuts in financial services in the next quarter but should this be surprising? The forecast represents a fall in the rate of compared with Q1 and Q2 2009 and this at a time when a major banking merger in the UK is in progress.

Capital Without Representation

Mark Mariotti — Tue, 30 Jun 2009 17:59:03 EST

Very tricky investing when it comes to buying stock which can be revalued by the adjustment of the underlying security asset. Buying stock in a bank holding company is similar to buying options. Various issues develop from the government nationalization of previously held assets by the private sector. Obviously the first issue is the principal stripping (inevitable price valuation destruction), and the second issue is becoming; which controls are available to the existing private sector holders (those in at the beginning) and those new government (government of the people by the people) holders.

Beware of tax saving promotors with fancy brochures!

Don Dykstra — Mon, 29 Jun 2009 00:57:04 EST

The importance of the article is that it shows that the KG structure has some major flaws.

Hedge Funds' response to proposed EU regulation

John Poole — Fri, 26 Jun 2009 05:27:07 EST

The proposed EU Alternative Investments ("AI") Directive is wide ranging. Market participants need to consider what the EU is seeking to achieve. There is also a need to reflect on the part played by certain types of AI in the financial crisis. AI providers also need to think on the possible commercial benefits of EU regulation. Previous versions of this in mainstream mutual funds, ie the UCITS Directives, have been of massive benefit to fund promoters in distributing products globally, not just within the EU.

Gateway to Trader Performance or Waste of Time?

James Bennett — Thu, 25 Jun 2009 16:36:57 EST

Recognizing the growing importance of trading performance to buy-side institutions, Greenwich Associates surveyed institutions in the U.S., Canada and Europe about their use of TCA tools, the effectiveness of these tools and shortcomings that limit TCA’s utility. Based on this new Greenwich Market Pulse, we compiled a list of steps that buy-side institutions, broker-dealers and third-party vendors can take to improve the effectiveness of TCA.

U.S. Institutions Roll Out Their Responses to Global Downturn

James Bennett — Thu, 25 Jun 2009 16:36:36 EST

U.S. institutions used the first half of 2009 to take a close look at their investment policies, asset allocations and investment managers to determine what went wrong last year, to pinpoint the policies, investments and managers that performed as expected through the market crisis and to identify those that fell short.

With Bank Credit Still Not Flowing, European Companies Adjust

Steven Busby — Thu, 25 Jun 2009 16:30:31 EST

Large European companies are scaling back expenditures and locking in funding from investors in the debt capital markets where they can amid continuing deterioration in bank lending markets.

State Farm is Bluffing

Stephen George — Thu, 25 Jun 2009 12:49:07 EST

State Farm is renewing most windstorm risk west of US1 in Miami State Farm is renewing "all other perils" and dumping Wind east of US1. State Farm has many loyal but frightened (20-40 year old) agency owners whose existence is threatened if State Farm abandons Homeowners, so it is unlikely. Gov. Christ is setting Citizens (JUA) wind storm rates politically and not financially. Washington already turned down Gov. Christ to bail out JUA if we get a disaster. According to National Underwriter, Citizens sells $3 Billion in premium and has $29 billion in liabilities.

State Farm is Bluffing

Stephen George — Thu, 25 Jun 2009 12:48:42 EST

United Tells Travel Agents to Cover Credit Card Fees

Tom Botts — Wed, 24 Jun 2009 23:12:47 EST

How widely adopted will this change be? What will the effect be on consumers? On OTAs? On the airline industry?

Hedging Energy Commodity Exposures: Corporate Best Practices in OTC Derivatives

Steven Busby — Wed, 24 Jun 2009 18:35:24 EST

Companies around the world are hedging a growing proportion of their commodities exposures as they grapple with soaring levels of volatility and risk amid an historic economic crisis.

State Farm / Florida: Insurance Intelligence?

James Roncevich — Wed, 24 Jun 2009 14:27:11 EST

* Executives at large insurance organization are accountable for KPI’s to stakeholders; not for providing “socialistic goods, regardless of the financial considerations”.

Health Insurance in India. Factors considered by consumers while choosing providers. Apnapaisa

Harsh Roongta — Wed, 24 Jun 2009 08:28:22 EST

Premiums are not the only factor in deciding the health care provider Future premiums, age upto which renewable,coverage of pre-existing disease, pre-insurance medical tests all matter

6/23/2009

Matthew Eaton — Tue, 23 Jun 2009 23:29:45 EST

A large percentage of the Audatex feild sales force was given layoff notice today. It appears Audatex is undergoing a massive reorganization.

Health and Fitness Clubs in Great Shape

David Teatum — Tue, 23 Jun 2009 23:28:15 EST

According to Financial Week.com Health and Fitness Clubs could be one of the top six winners during these recessionary times. IBIS senior analyst George van Horn told financial week.com that growth in 2009 in the fitness industry would be 2.2% With a population penetration rate of only 16% for health club membership there would appear to be room for growth. Many pundits predicted that the club membership would be the first to go during the financial belt tightening. Not so! With membership growth being driven by people taking control of their own health and accelerated growth in the over 55 years of age market, club memberships are actually up both here in the US and in Europe.

BlackRock manages the planet's equity

Mark Mariotti — Tue, 23 Jun 2009 23:26:55 EST

U.S. fund manager BlackRock with various origination ties to U.S. banking and U.S. government asset management; reaches across the pond and expands its horizons.

The Taming of the Shrewd

Norman Chait — Tue, 23 Jun 2009 13:12:03 EST

Hedge Funds are not an asset class, they are a talent pool. It is rare for independent Hedge Fund managers to integrate successfully into larger firms. While large operators and M&A bankers are keen to see increased transaction flow and Hedge Fund mergers, the eclectic investment management culture of hedge funds does not lend itself to the transactional mindset. In other words, it is hard to tame the shrewd!