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

This article summarises Temasek's recent equity investment in Merrill, including the price paid and future intentions.  Temasek appears to be more than satisfied with its investment and is inclined toward similar investments (financial institutions undervalued due to over-estimates of subprime/CDO...

Impications: 1. Sub-prime collapse is a major indicator of less than adequate performance by "management". 2."Expected" further growth by some financial institutions is questionble and , possibly , week. 3.It is , entirely, possible that foreign institutions will have a reasonable managemet exposure...

Implications: 1.Additioanal Investment Options may be granted , which may lower the stocks trading price. 2.A Massive write-down of the financial value , as it relates to mortgage-related holdings. 3.Stock's trading price of Merrill Lynch has been lowered by almost 10% - shareholder value will reflect...

Implications: 1.Government and Financial Regulators must restore confidence in the Sub - Prime Sector. 2.The U.S. Federal Reserve and European Central Banking Authorities must infuse large sums of money into the Marketplace. 3. Cash infusion is most likely to made by Foreign Institutions. 4.The Salient...

Implications 1.One of the largest largest subprime casualities of a major European Bank. 2.The FIRST full year operating loss , since the 1960's. 3.A Full Dilution of Earnings per Share in decades. 4.Credit Rating Agencies will flag this institution to mirror the loss. 5.Cash dividends will be replaced...

Citigroup's eroded capital ratio will put added pressure on the company to reduce its dividend payment or take other steps to protect its capital position.

Abu Dhabi is now the largest stake holder in Citigroup just ahead of Prince Alwaleed of Saudi Arabia. Citigroup needed cash for its balance sheet and Abu Dhabi got junk bond returns from a highly rated global financial instution.

Citigroup's new CEO, Vikram Pandit has of course promised to overhaul the bank. However, the real question is should Citigroup be split up into smaller parts or can it find a way to deliver superior value as one large firm?

Congress is in the process of re-acting to the problems caused by subprime lending and securitization of subprime debt.  As the extent of the problem grows, Congress will respond with legislation to "reform" the marketplace and "punish" the guilty.  Wall Street firms will be a clear target,...

Internet and the Telecom industry will define how business are done in the future specially in how to add value to people, products and whole business sectors will the key elements in the New Economy.