All GLG News Analyses Filed Under: Investment Banking & Commercial Finance

Deutsche Bank is completely undercapitalized after writedowns and the repurchase of shares over the last few years to increase return on equity. A substantial takeover would require a massive capital increase. In addition, Citibank Germany would have to be purchased at a premium over fair...

The news is not good for UBS. The amount of mortgage holdings in US and Non-US declining markets will lead to further losses. 1. $45 B of additional US Mortgage Holdings. 2. An undisclosed amount of non-US mortgage holdings. 3. A UK and Eurpoean mortgage market that is going down as well. 4. The slump...

UBS should hold up better than other investment banks going forward. Unlike Morgan Stanley, for example, with a failed asset management and private banking business, UBS has two strong and stable divisions to rely upon. Part of the stock price decline is the ex-rights impact. Other banks will be as...

The article is right on target in pointing out the various issues around bank reporting their losses todate. 1. Allowable accounting standards. 2. Permanent versus Temporary Losses 3. Capital Requirments The article goes on to highlight the various issues around soveriegn wealth funds, capital levels...

The article does not adequately explain all the issues. Trading Assets are assets which the institution intends to sell and mark to market adjustments are recognized in the income statement. Assets which an institution does not intend to sell, except in exceptional circumstances, are classified...

Bank of America shareholders would be well served if Bank of America would just walk away from Countrywide.  Why would any bank buy another bank that is hemorrhaging so much?  It doesn't make any sense as to why Bank of America would buy Countrywide if they may write-down another $20 - $30...

Implications: 1.The Up-Side of Bank Of America walking away from the Deal - a positive Earnings per Share Ratio for Shareholders.A potential positive savings of the current staus: 2.0% to 9.0%. 2.One other Up-Side - Eliminate a remote possibilty of having to raise additional Capital and maintain an...

Implications: 1.Stock Offerings are Hugh - additional capital is needed after a recent Capitalization of $37B. Endless Re-capitalization? 2.Excessive losses on Mortgages, Bonds and Loans are materializing at a faster pace than expected by management. 3 The Insitution in question will not be able to...

Implications: 1.A search for Capital in a Down - Side Financial Marketplace , perhaps, a signal of Material Undercapitalization. 2.Due Diligence and Disclosure should be of paramount importance. 3.Tainted Financial Posture caused by mortgage -  related losses and write downs due to all credit market classes....

JP Morgan's capital raising is prudent because (1) the Bear Stearns acquisition will be dilutive to JP Morgan's capital position, and (2) the current turmoil in the credit markets is far from over.