The Right Rubicon
by Robert B. Albertson, Principal - the latest Euro resolution plan is much more likely to resolve the short-term uncertainties by making it clear to bank depositors and creditors that the full faith and credit of the European Monetary Union is behind its banking system and greatly limits the call on hard cash support that could mushroom into socializing private debt onto public balance sheets.
U.S. Basel III Capital Rules - Broad Application with Substantial Increase in Complexity and Required Capital
by Thomas W. Killian, Principal - Banks will face several new challenges when the Basel III capital standards become U.S. regulations as perscribed by the Fed's Notice of Proposed Rulemaking. Many speculated that the rules would only affect large banks, but the Fed is applying them to all insured depository institutions, savings and loan holding companies, and all bank holding companies with $500 million or more in assets.
Asset Manager M&A Quarterly Review - M&A Growth Expected Due to Improving Market Conditions
M&A activity in the first quarter of 2012 remained consistent with the fourth quarter of 2011. In total, 34 transactions were announced during the quarter versus 33 in the fourth quarter of 2011.
No One Fails (Really)
by Robert B. Albertson, Principal - The Comprehensive Capital Analysis and Review (CCAR) is a furthrer vindication of U.S. banking sector balance sheet integrity. It removes a layer of regulatory uncertainty and should enhance sector confidence, valuations and impetus to consolidation.
Deja Vu All Over Again - 2011 M&A Activity in the Asset Management Industry
Amid market volatility, M&A activity was relatively flat in 2011, with deal values up 7% from 2010 and deal volume down 5%. Organic growth was scarce among the publicly traded asset managers, causing multiples to compress in announced deals. Many prospective sellers spent the majority of the year focusing on client retention amid the market volatility.
The Great Credit Redistribution
by Robert B. Albertson, Principal - Our conviction on financial stocks continues to improve. Financial stocks have become proxies for global uncertainties rather than sector fundamentals. But remaining losses are mostly embedded in reserves and investor expectations, and bank loan growth appears promising.
Asset Manager M&A Quarterly Review: Continued M&A Growth Expected to Resume After 3Q Slowdown
M&A volume to stem from divestitures and sales of independently owned asset managers
GQ China: Sandler O'Neill 10 Years After September 11, 2001
The Chinese edition of GQ details the rebuilding of Sandler O'Neill as well as the steps forward made by employees and families in the decade since 9/11.
America's Economic Aneurysms?
by Robert B. Albertson, Principal - We have been very suspicious of the domestic U.S. economic recovery, doubting the sustainability of consumer spending and expecting a significant correction higher in Treasury bond rates. Why short-term indicators have pointed in the opposite direction for both.
Double Bubble
by Robert B. Albertson, Principal - U.S. monetary policy is not only confronting a daunting liquidity trap, it is also driving U.S. indebtedness into a global box canyon, almost certainly marrying a declining U.S. dollar to higher long-term interest rates.
Basel III and Its Implications: A Closer Look
Assessing the impact on the U.S. banking industry of the Basel Committee’s global capital standards announced on September 12th as originally introduced in December 2009 and later amended – highlights four near term and four long term implications.
Safe Haven China
by Robert. B Albertson, Principal - China has simply built a better balance sheet than most industrialized economies and its equities are looking far more appealing than US or European alternatives.
Government's Supporting Role
by Robert B. Albertson, Principal - The amount of government support in personal income has surpassed all records, raising serious concerns about the sustainability of consumer spending.
Letter to Basel Committee on Banking Supervision
The policies outlined in the Basel Committee’s Consultative Documents would significantly deleverage the banking system, dramatically reduce industry profitability, exacerbate balance sheet and earnings volatility and undermine capital formation.