Investment Banks
Investment bank Goldman Sachs to partially retreat from consumer banking
Goldman Sachs no longer wants to be the bank for everyone. The storied investment bank spent eight years attempting to expand its business beyond corporations and the wealthy. But in recent months, Goldman has signalled a partial retreat from those efforts by scrapping plans for a checking account broadly available to the public and mothballing its personal loan business. A popular savings account and a credit card business survive for now. Last week, the bank disclosed that it had accumulated USD 3 billion in losses in its consumer banking franchise since 2020, mostly money set aside to cover potential loan losses in its Marcus personal loan business. Bank regulators are reportedly looking into whether the consumer business had proper safeguards in place as it grew larger. The retreat in consumer banking comes as Goldman tries to refocus on its roots: advising corporations on deals, investing, and trading, and servicing the well-to-do. The firm's revenue from investment banking, .
 "Investment bank Goldman Sachs to partially retreat from consumer banking")
Goldman Sachs sees 69% drop in Q4 net profit on dealmaking slump
It also reported a pre-tax loss of $778 million in its platform solutions unit
 "Goldman Sachs sees 69% drop in Q4 net profit on dealmaking slump")
Credit Suisse lays off one-third of China-based investment bankers
Credit Suisse has laid off about one-third of its China-based investment banking team and nearly half of its research department
 "Credit Suisse lays off one-third of China-based investment bankers")
Amisha Vora increases stake four fold to 96% in Prabhudas Lilladher
Acquired stakes of partners Arun Sheth, Dhiren Sheth and Dilip Bhatt. Vora will now serve as chairperson and MD of PL Group
 "Amisha Vora increases stake four fold to 96% in Prabhudas Lilladher")
M&A recovery: Kotak Mahindra Bank plans to hire 20 investment bankers
The firm is looking to fill positions from analyst to director levels across sectors including financial services, health care and technology
 "M&A recovery: Kotak Mahindra Bank plans to hire 20 investment bankers")
Credit Suisse is not for the sale, says chairman Axel Lehmann
With its share price slumping by more than half this year, the 166-year-old institution has been vulnerable to rumors of takeover bids and concerns over its stability
Goldman Sachs plans major rejig, to merge trading and banking units
The move comes as the Wall Street titan has sought to cut its reliance on volatile trading and investment banking revenues by boosting its fee-based businesses.
 "Goldman Sachs plans major rejig, to merge trading and banking units")
JPMorgan names former Reliance M&A head as India investment banking chief
Navin Wadhwani has headed M&A for oil-to-retail conglomerate Reliance for the past 10 years and was previously a senior managing director at Rothschild India
 "JPMorgan names former Reliance M&A head as India investment banking chief")
I-banking fees dip in nine months to September as smaller deals dominate
Even some big-ticket deals such as the LIC IPO did not generate higher fees
 "I-banking fees dip in nine months to September as smaller deals dominate")
Inga, TIH Singapore tie up to launch PE fund for mid-sized companies
The fund has set an overall target of raising Rs 500 crore and has received commitment of Rs 25 crore
 "Inga, TIH Singapore tie up to launch PE fund for mid-sized companies")
Rothschild plans to hire 7 bankers in India before year-end for expansion
The expansion comes as India's dealmaking is bucking a global downturn driven by concerns over heightened inflation and a potential recession
 "Rothschild plans to hire 7 bankers in India before year-end for expansion")
Credit Suisse considers splitting investment bank in three: Report
Under proposals to the board, the bank is looking to sell profitable units such as its securitised products business to prevent a damaging capital raise, the report said
 "Credit Suisse considers splitting investment bank in three: Report")
Smaller i-banks join big-fat IPO party; large players get picky
Many are beefing up their investment banking teams and pitching for deals which otherwise would have gone to larger banks
 "Smaller i-banks join big-fat IPO party; large players get picky")
Centre shortlists six investment banks to assist in HZL stake sale
Centre is looking to sell its residual 29.5% in tranches through offer for sale mechanism
 "Centre shortlists six investment banks to assist in HZL stake sale")
Goldman Q2 profit halves but beats estimates as fixed-income trading shines
Investment banking revenue fell 41% to $2.14 billion in the quarter
Negative interest rate and financial repression
Investments drive growth but how will investors get funds if the savings pile shrinks with no incentive to save in a negative interest rate regime?
Share of Casa in total bank deposits rose to 44.8% in March 2022: RBI data
Seven states accounted for 63.3% of overall deposits; share of female holdings in incremental deposits more than doubled
 "Share of Casa in total bank deposits rose to 44.8% in March 2022: RBI data")
Private banks are better money managers, state-owned lenders grow faster
They witnessed higher gains from parking funds with RBI and income from investments; as rates rise, space for both would shrink
 "Private banks are better money managers, state-owned lenders grow faster")
Global investment banking faces tougher times after blockbuster year
Russia's invasion of Ukraine and significant monetary tightening have led to volatile trading in financial markets this year
 "Global investment banking faces tougher times after blockbuster year")
The stock of this merchant banker has zoomed 226% in five weeks
Galactico Corporate Services hit a new high of Rs 249.65 and was locked in upper circuit of 5 per cent for 14 straight trading days.
 "The stock of this merchant banker has zoomed 226% in five weeks")
