It's a sad, sad day for ECM bonuses at Credit Suisse, HSBC and JPMorgan, and a sad, sad, day for M&A bonuses at Credit Suisse, J.P. Morgan Cazenove, Ondra Partners and Lazard. The Prudential deal is, needless to say, off.
According to various estimates, had it been completed, the deal would have generated 850m in fees, including everything from underwriting, M&A advice, legal, accounting and printing costs.
Now that the deal's not going ahead, it will still generate 450m of fees, but 152m of them will take the form of a break fee to AIA, leaving a mere 300m in legal fees, advisory fees, and the cost of derivative contracts. This is evidently not to be disregarded completely, but nor is it quite the same.
Some people are blaming fee-frenzied bankers for the deal's demise. "At least 50 percent of the blame would go to the investment banks, I would say," Ian Nelson, a senior adviser at Wyvern Partners told Reuters. "They're obviously motivated by big transaction fees, and that's understood, that's how they earn their living."
Pru may have made $500m from its currency hedges. (Telegraph)
HSBC is creating 550 additional back office jobs in Geneva. (Le Temps)
SocGen has now hired 15 M&A bankers this year and is halfway to its hiring target. (Financial News)
Hong Kong trader alleges she was fired before bonus day so that her boss could take a higher bonus for himself. (Bloomberg)
Commodities analyst who left Citigroup to set up a hedge fund has returned to Citigroup. (Bloomberg)
Big banks face financial doomsday in 2012. (Daily Finance)
In the next few weeks, however, ill-informed senators will meet with ill-paid representatives to reconcile their ill-conceived financial reform bills. (NY Times)
I don't want to pretend that all hedge fund managers are degenerate parasites with a sociopathic disregard for their fellow man... (Evening Standard)
It is no longer shameful to drive a very expensive car. (BusinessWeek)