Lunchtime Links: Thank goodness you don't work at MF Global now
There was a time, not long ago, when it looked like MF Global was a good place to be. In July, the future broker/investment bank beat analyst expectations, rose 12% and said it was involved in building its mortgage and credit trading business and that it intended to begin underwriting debt.
Come September, however, it revealed plans to reduce headcount in equities and equities trading by 30%. And then yesterday, shares in MF Global plummeted nearly 50% after it revealed a Q2 loss of $187m and a massive $6.3bn of exposure to European debt, on $1.1bn of revenues year to date.
The Financial Times reports that MF Global may now have its debt downgraded to junk status, which would be the death knell for its aspirations as a trading business. However bad things are elsewhere, at MF Global they currently look considerably worse.
Deutsche said revenues in foreign exchange, money markets, commodities and residential mortgage-backed securities were all "significantly higher" than the year-ago figure. (Financial Times)
UBS said its foreign exchange business performed well, with revenues more than doubling on high volatility and good client flows. (Reuters)
Morgan Stanley has formed a new team focused on advising banks worldwide on capital and financing issues. (DealBook)
Kleinwort Benson has hired a new chief operating officer and a new chief technology officer. (Financial News)
For every 100 Swiss francs earned, UBS's investment bank spent 145. (Financial Times)
UBS has 374 more people (6% more) working in the UK now than it did last year. It has 9% more in Asia Pac. And 13% more in the Middle East and Africa. (UBS)
Bankers fear the CDS market could be killed if politicians put pressure on banks to accept big haircuts without triggering a CDS payout. (Financial Times)
SocGen says it won't be needing a bailout. (Evening Standard)
Banks in Europe have to refinance $911bn of senior bonds next year and may need government backing if the debt crisis continues to block access to markets. (Bloomberg)
In 1986, the first train of the day left Haselmere at 0715; nowadays it leaves at 0521. (Financial Times)
