Monday’s Headlines: J.P. Morgan to Merge Corporate and Investment Banks, Adding Forex Bankers
Every bank has a strategy for getting back on track. J.P. Morgan aims to raise an additional $1 billion in pre-tax profit in five years by merging its investment and corporate banks along with its treasury and securities services business, according to the Financial Times. The group intends to add bankers, particularly in foreign exchange services, and more TSS branches providing custody and treasury services.
Last year, the investment bank reported a pre-tax profit of $10.4 billion.
The group will find efficiencies by investing in electronic trading and “predicted its scale and diversification would allow it to take market share from weaker rivals.”
J.P. Morgan is doing a little back-peddling, however, retracting an earlier set target of 17 percent return on equity in the investment bank. This announcement is no small thing, as that goal established an industry benchmark, “as tougher regulation creates a harsher climate on Wall Street,” the London newspaper explained.
Julius Baer will buy BoA Merrill Lynch's private banking operations outside the U.S. [NY Times]
Could an agreement to sell BofA's non-U.S. wealth management business signal the unwinding of the merger? [DealBook]
Private banks try to get more exclusive. [Financial Times]
The Data Collective is a new fund specializing in big data investments with 35 partners. [NY Times]
Standard Chartered pushes for a settlement. [Financial Times]
CFP board bought radio spots on NPR to air in the fall. [Investment News]
The art of quitting gracefully. [CNN Money]
Bankers can learn from the Olympics. [Businessweek]