Facebook Roadshow Begins, Morgan Stanley May Need $7.2Bn, Barclays Gains In Investment Banking:Wall Street News 5/8/2012
by Wall Street Job Report on May 8, 2012
Facebook Executives Talk Growth as IPO Meetings Begin [Bloomberg] Facebook Inc. (FB) officials are touting growth prospects for the largest social network in meetings this week in New York and Boston with hundreds of would-be investors before its record initial public offering. Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Ebersman led a presentation in Boston today. They were joined yesterday in New York by Chief Executive Officer Mark Zuckerberg. The executives discussed reasons for acquiring photo-sharing site Instagram and told investors they were optimistic about potential for future gains.
Banker Joins Perella Weinberg [DealBook] Perella Weinberg Partners today announced that Alexander Schnieders has joined the Firm as a Managing Director in its Advisory business. Based in New York, Mr. Schnieders will provide strategic and financial advice to life and property & casualty insurance clients as part of the Firm’s Financial Institutions Group (FIG).
Wells Fargo’s Play for Prime Brokerage Prompts Skepticism [DealBook] As Wells Fargo becomes a bigger player in the investment banking game, not everyone is a fan. Moody’s Investors Service, the rating agency, raised concerns on Monday about the bank’s recent move outside its comfort zone of consumer lending. Moody’s directed criticism at the bank for stepping into prime brokerage, calling the bank’s recent acquisition of the midsize company Merlin Securities “credit negative.”
After Strong Start to Year, Hedge Funds Fall in April [Reuters] Hedge funds lost some ground in April, after the industry stormed into 2012 with the best first-quarter of performance since 2006. The HFRI Fund Weighted Composite Index fell 0.36 percent last month, according to data released Monday by Hedge Fund Research, which tracks industry performance and flows. Still, hedge funds narrowly beat the Standard & Poor’s 500 index in April, which fell 0.8 percent.
Morgan Stanley Says May Need $7.2B New Collateral [MarketWatch] Morgan Stanley MS -2.17% may have to put up $7.2 billion in additional collateral or termination payments to counterparties, and may face $2.4 billion collateral requirements at certain exchanges and clearing organizations in the event of a three-notch credit rating downgrade. The potential collateral needs for Morgan Stanley–disclosed in a quarterly report filed with the Securities and Exchange Commission–under that scenario are higher than the projections the securities firm issued in late February.
UPDATE 4-Investment Bank, Cost Cuts Help HSBC Top Forecasts [Reuters] HSBC beat expectations with an underlying first-quarter profit of $6.8 billion as Europe’s biggest bank saw a rebound in investment banking, growth in Asia and a fall in U.S. bad debts. HSBC said on Tuesday it was making good progress with its strategic revamp, including cost savings, and had shed 14,000 jobs since last year as part of chief executive Stuart Gulliver’s drive to boost profitability. ”We are pleased that the measures that are under our control, we are getting some serious traction on,” Gulliver told reporters.
Barclays Will Gain Investment Banking Market Share, Diamond Says [Bloomberg] Barclays Plc will gain market share in investment banking, Chief Executive Officer Robert Diamond said in a speech in New York today, according to a transcript published on the lender’s website. “In a world where the industry is polarising, we believe we will continue to gain share as weaker players withdraw from the market,” said Diamond. The lender will maintain its 13 percent target for return on equity, he said.