Search results for

For international equity investors these days, working without an array of technological equipment is inconceivable. When Art Lerner began actively to invest in 1969, though, his main tool was the telephone. Even then it could be frustrating. "Back when I started, the companies we visited were usually shareholder unfriendly. There was very little information or research material available - some annual reports didn't even have an English version. You could ring up a company in, say, the Netherlands and have the CFO say to you: 'What do you care for? We run the company, we make money, and that's that.' Of course, they were salaried staff, and had no incentive to improve the share price."

Prompted by the ravages of Hurricane Mitch and the crisis in emerging markets, Central America is changing - fast. As the crisis in Brazil finally explodes the myth of monetary sovereignty, Central American capital markets and institutions are being restructured in line with global developments. Michael Peterson toured Central America's banking sector, stopping off in Costa Rica to interview the president.

After five years on Morgan Stanley's fixed-income syndicate desk in London, would-be rock star Eden Riche is leaving. Riche was one of the guiding lights behind Morgan Stanley's steady rise to the top tier of Eurobond underwriters over the past few years, along with former department head Riccardo Pavoncelli, who three months ago moved to head the firm's media banking group.

Two months ago, Stephen Saali had plans. The bank of which he is president, Republic New York Corporation, had been through a rough six months. Republic, which is ultra-conservative in its approach and proud of it, had tarnished its image with a $200 million loss betting on Russian treasury GKOs during the Russian crisis, and reported a third-quarter loss as a result.

Lebanese banks have lived well by investing in high-yielding treasury bonds. But with government debt issuance and interest rates set to fall, banks are looking for new ways to make money. Charles Olivier reports

Australia: After the gold rush

The race towards a pan-European exchange speeded up on March 11 when Borsa Italiana, the Italian stock market, agreed to cooperate with the Paris and Swiss bourses in their effort to create a single market for the new century.

The Germans are at it again. Amid a big diplomatic punch-up, the Basle Committee on Banking Supervision failed to release its long-awaited consultation paper on credit risk control and capital adequacy on April 9.

Sicily's wait for money is over. The regional government found itself nearly L1.7 trillion ($1 billion) late last year and over 40 banks refused to lend. Nor was there interest in a local bond issue.

Who is Alice in euroland? Is it the average euro-punter watching his assets disappear down a deflationary rabbit hole? According to Willem Buiter, Cambridge economics professor and a member of the Bank of England's monetary policy committee, the white rabbit is the European Central Bank (ECB). It's operating on flawed principles, he says in a paper, Alice in euroland, published by the Centre for Economic Policy Research (CEPR). Hoping that his criticism will be constructive, he recommends the ECB should have greater accountability – publishing its minutes and answering to a parliamentary/judicial committee – and a smaller governing council and executive board, so it can act more promptly. Above all it should have the role of lender of last resort, so that, like the US Federal Reserve, it can stand behind the currency and, implicitly, support the major credit institutions when they're strapped for cash.