Thursday's Headlines: Cantor Fitzgerald plans to set up hedge fund
Cantor Fitzgerald plans to turn itself into a full-service investment bank, and expects to acquire funds of funds and individual managers as it sets up a hedge fund business, Bloomberg reports.
The funds will likely be bought in the coming six months, while managers will likely be added in the next three years. Money for the expansion could come from investors in the next year, Bloomberg says.
"Cantor has expanded its equity, fixed-income and investment-banking businesses as larger rivals cut staff during the financial crisis. The firm sees a chance to enter the $2.04 trillion hedge-fund industry because of the difficulty money managers have in raising capital without institutional support," Bloomberg adds, quoting the firm's investment advisory head.
Bank of New York Mellon wants judge to reject New York AG intervention in Bank of America settlement. [Bloomberg]
Federal Reserve worried about credit crisis spillover into European banks' US units. [Reuters]
Barclays says Chinese investment banks creating stiff competition for deals. [BusinessWeek]
JP Morgan to open new South African corporate banking business. [Bloomberg]
UK banks cut costs anyway they can: jobs, travel, biscuits cut. [Reuters]
Whistleblower claims SEC destroyed documents in Madoff, Goldman Sachs investigations. [Forbes]
US Justice Department looking into S&P's pre-crisis mortgage ratings activity. [Reuters]
Ex-Barclay's Todd Edgar gets laid off, plans new hedge fund. [Financial Times]
Lehman Brothers Holdings decides against asset management business on creditor objections. [Reuters]
Hedge funds that added Goldman Sachs in the first quarter dump it in the second quarter. [Barron's]
South Korea's Woori Finance only finds a single bidder, indicating sale may be scrapped. [Wall Street Journal]
Lehman Brothers Holdings wants ex-brokers to pay back signing bonuses. [Dow Jones Newswires]
Canada's Canaccord Financial one of the interested buyers of Evolution Bank. [Financial Times]
Federal court ruling makes it easier for other lawsuits challenging Dodd-Frank. New York Times]
Congressman Barney Frank wants Fed to look deeper into Capital One Financial's purchase of ING Direct. [Bloomberg]