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Sigma triggers global meltdown

A well-trodden path leads from Eton College through Oxford University to the City of London. Christopher Mackenzie followed it, adding McKinsey, JP Morgan and Schroders. That conjures up a picture of institutional orthodoxy, but Mackenzie says he has always felt somewhat outside the formidable British establishment.

On August 24 when Asian markets were being blighted by Russia's debt default, the Indian government was busy closing a $4.23 billion deal that made investment bankers salivate. Over 74,000 expatriate Indians in over 30 countries bought up five-year Resurgent India Bonds (RIBs) denominated in dollars, sterling and Deutschmarks in what was the single largest debt offer out of India. The dollar bonds carried a coupon of 7.75%, a spread of 225 basis points over US treasuries. The State Bank of India, India's largest commercial bank that issued the bonds on behalf of the government, clinched the sale in just 20 days.

Suddenly merger mania has reached Scandinavia's most insular banking market. But as Chris Wright reports, in Norway banks that want to merge have to make some strange moves.

Credit Suisse First Boston's acquisition of BZW's equities and corporate advisory divisions at the start of the year was a quite coup for the Swiss bank (and cheap at twice the price the bank paid £100 million). At a stroke, the Swiss bank had suddenly become one of the top equity brokers in the UK, ranking second so far, up from 15th last year.

Britain's leading corporate banker needs a drastic solution to the problem of low margins. Rolling up 200 of the best loans and selling them as bonds is certainly that. But it has invoked a ferocious response from corporate treasurers and competitors. Brian Caplen reports on the controversy surrounding the deal

Bill Harrison is not the most orthodox chief executive you will come across in the City. The new boss at BZW speaks with a strong Birmingham accent and refers to telephoning people as "giving them a bell".

French banks are starting to restructure and consolidate. But they remain obsessed by the domestic market and are more concerned with market share than return on equity. All that will change with the euro. Rebecca Bream reports.

In 1997 Intralinks began providing internet-based document management for capital market deals such as syndicated loans. It claims that electronic dissemination can cut hard costs such as phone, fax, overnight mail, messengers, financial printing and paper by up to 30%.

Striking out for the sectors

It's the only private-sector bank to have retained its triple-A rating. What's more, Rabobank is the only foreign bank to have an office in Wagga Wagga. This cooperative, with 467 member banks in the Netherlands, was viewed as a domestic farmers' bank. But for three years that has been changing. First there were moves into insurance and asset management in the Netherlands. Then, for the past year-and-a-half, Rabobank International has been developing as an investment bank. Antony Currie spoke to Henk Visser, member of Rabobank Group's managing board, and Alex von Ungern-Sternberg, head of global investment banking.

Which banks will weather the storm?