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With as much as $300 million in underwriting fees at stake, one of the largest paydays many years for investment bankers, Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) are reportedly among the leading candidates to land the underwriting job for the initial public offering of General Motors.
Citing one person with knowledge of the matter, a Fox Business report said, “All the signs coming out of Washington are that JPMorgan and BofA will win the deal.”
Even so, the process of selecting the underwriters isn’t over, and it’s not a surety the two companies will end up getting the account.
Some sources say whoever does end up getting the job should be announced sometime next week.
What seems to be most important about this report isn’t who may be getting it, but who isn’t, which in this case is Goldman Sachs (NYSE:GS).
Goldman CEO and chairman Lloyd Blankfein was out traveling, which was given as the reason behind his not showing up to be interviewed by Treasury and GM officials. That’s significant because almost all major banks has either their chairman or CEO at the procedure, implying Blankfein may have been considered a liability or distraction to the process for Goldman.
A person familiar with the matter said the Treasury and GM are looking for a head underwriter which would focus on the smaller investors, and another one that would target the larger institutional clients; the reason two companies were evidently named.
It’s doubtful that Goldman or competitor Morgan Stanley (NYSE:MS) will simply accept this, and will undoubtedly strongly pursue landing the underwriting job.
This article (Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) Leading Candidates for Underwriting General Motors’ IPO) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Citigroup (NYSE:C) Adds Metals Analyst Heath Jansen
Posted by: | CommentsShoring up their mining and metals segment, Citigroup (NYSE:C) has hired Heath Jansen to manage the European metals and mining research unit of the bank, along with two others for their London office, who will also focus on the overall metals market and companies within it.
Hired for London were Tom O’Hara from Metal Bulletin and Anindya Mohinta from Marble Bar Asset Management LLP, both of which will cover steel companies and the metals industry in general.
While the sovereign debt crisis in Europe and slowdown in manufacturing in China, along with China battling inflation, especially in their property market, the expectations for metals seem to be falling, although there can be no doubt over time they’ll increase in demand and prices along with them.
A number of banks and investment houses have strengthened their research and analyst department in order to more thoroughly cover the metals sector.
To that end, Jansen will cover some of the companies himself, but also coordinate the company analysts and researches working in these markets.
Jansen had left the company for a short time, working there from 2005 to 2009, and was one of the founding partners of Verulam Resources Fund; a hedge fund which invested in commodities.
This article (Citigroup (NYSE:C) Adds Metals Analyst Heath Jansen) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Citigroup (NYSE:C) Says Euro Could Drop to 2005 Levels
Posted by: | CommentsCitigroup (NYSE:C) say the euro could drop to levels not seen since the latter part of 2005, with estimates it could fall to $1.164 over the next 30 to 90 days.
Noting the currency fell to the middle of its all-time high and all-time low, dropping to $1.2134 today, head technical strategist at Citigroup, Tom Fitzpatrick, said if it can’t break up that mark, it could has some negative ramifications going forward.
“As we stand today, we made that break, we’ve been unable to get above it,” said Fitzpatrick. It really does open up the danger that we could start a leg lower.”
The prior low was $82.80 cents, while the all-time high is $1.6038. The low today is its weakest since April 14, 2006.
Fitzpatrick said if the euro is able to close over the $1.2329 at the close of the markets this week, it could rebound.
That seems to be a major challenge to overcome as Chinese manufacturing has fallen while news banks in the EU could lose up to $237 billion over the next 18 months doesn’t offer a lot of support for the euro.
According to Fitzpatrick, if the euro were to strengthen during the week, it could show the market may have been overreacting to the sovereign debt crisis in Europe.
This article (Citigroup (NYSE:C) Says Euro Could Drop to 2005 Levels) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.