Rothschild investment banking posts record results

[Judas]

http://seekingalpha.com/article/1069...s-their-secret


The inability of the current investment banking model to withstand the ongoing liquidity crisis has forced many investment bankers out of business or those few that have survived to get by on reduced or no bonuses this year. However, as lenders globally continue to write off and provision for a significant volume of soured loans, U.K.’s Rothschild group, one of the world’s leading investment banking organizations, has posted record results. The bank has been able to maintain its very strong performance again this year, despite the credit crunch, economic slowdown and the threat of a U.S. recession, with investment banking and corporate banking businesses both producing record revenues.


The bank, according to Timesonline - reported a 31%, 459 million euro, improvement in profits. In addition, record results from the organization’s advisory and private banking operations enabled the bank to pay record bonuses to its 2,700 people in June.


The bank’s chairman Davide de Rothschild, following unconventional investment banking strategies, has steered his organization clear of proprietary trading, prime broking and other activities that have devastated rivals as a result of an environment where asset prices keep falling while liabilities remain fixed. The bank however, still wrote off 96 million euro because of souring loans. At some point, considering the global financial system is galloping off a cliff - today’s difficulties in investment banking will prompt an overhaul of the system favoring those players that have shown themselves to be the most cautious during this cycle.


Alongside its pro-forma group-wide results, Rothschild also unveiled that it had entered into a co-operation agreement in the field of M&A and Equity Capital Markets advisory in the food and agriculture sectors on a global basis with Netherlands' Rabobank, a premier global financial institution providing financing and other services to food and agri business clients around the world.


As part of the deal, notes Timesonline, Rabobank is buying a 7.5% stake in one of the key holding companies in the Rothschild empire, Rothschild Continuation Holdings, which owns the N M Rothschild business in the U.K.
Rabobank becomes the second biggest investor outside the Rothschild family after the trading group Jardine Matheson, which owns 20%. This is Rothschild’s second joint venture with a Dutch bank.


Rothschild advisory clients include Rio Tinto (RTP), which is fighting a hostile bid from BHP, Billiton (BHP), and British Energy in its deal with France’s power giant EDF, a deal that gives the French company a dominant role in the British nuclear industry.

[goadam1]

Re: Rothschild investment banking posts record results

Is this posted to show that you can do good business (even in bad times) if you aren't criminally stupid or as some kind of anti-semitic post?

Because I think the problem we in is because of criminally stupidity on the part of government, banks and consumers.

I don't steal, even if you leave the bank vault open.

[sirbrian82]

Re: Rothschild investment banking posts record results

What are you talking about anti-semitic? The family is of German/Jewish descent and while the name is symbolic of the evils of banking, I don't see where anti-semitism comes into play in the post.

Is this posted to show that you can do good business (even in bad times) if you aren't criminally stupid or as some kind of anti-semitic post?

Because I think the problem we in is because of criminally stupidity on the part of government, banks and consumers.

I don't steal, even if you leave the bank vault open.

[Judas]

Re: Rothschild investment banking posts record results

Is this posted to show that you can do good business (even in bad times) if you aren't criminally stupid or as some kind of anti-semitic post?

Because I think the problem we in is because of criminally stupidity on the part of government, banks and consumers.

I don't steal, even if you leave the bank vault open.

It is posted to show that the world of finance still has pools of money to be made by smart or connected operators, and I find it interesting that two of the areas mentioned are mining (Rio Tinto) and nuclear power (EDF)– two areas that are of prime interest to iTulip readers. EDIT: Oh, and agriculture.

Your reply about anti-semitism, whether you would steal from an open bank vault, etc. puzzles me. I have to assume that you are either having a bad evening, confusing me with somebody, drunk, or an idiot. Since I'm not familiar with your posts I hope it's an aberration.

[hellstan]

Re: Rothschild investment banking posts record results

I agree with Judas.
Having known for many years a prominent associate of Rothschild in France,
who joined Rothschild after leaving one of those idiotic bankers you speak off, I find it very interesting indeed that such sectors were picked up by
R-UK.
In fact, if a strong rebound occurs, as Faber called it, modeled on strong pullbacks in 1929-1933 bear market, I'm looking towards energy stocks
mainly.

[goadam1]

Re: Rothschild investment banking posts record results

I'm just joking about the usual Rothchild anti-semitism you see on boards.

[goadam1]

Re: Rothschild investment banking posts record results

and laughing that people with half a brain know how to make real money in bad times.

[Serge_Tomiko]

Re: Rothschild investment banking posts record results

What are you talking about anti-semitic? The family is of German/Jewish descent and while the name is symbolic of the evils of banking, I don't see where anti-semitism comes into play in the post.

The Rothschilds played a major role in arms financing during World War I and were directly named by Adolf Hitler in Mein Kampf. The Anschluss of Austria resulted in the Rothschild bank there being seized. Needless to say, the wealth of the family there was also seized.

Amongst many, it is not possible to mention the Rothschilds without thinking of how central they were in the Nazi characterization of Jews.

[Judas]

Re: Rothschild investment banking posts record results

Having known for many years a prominent associate of Rothschild in France,who joined Rothschild after leaving one of those idiotic bankers you speak off, I find it very interesting indeed that such sectors were picked up by R-UK.

In fact, if a strong rebound occurs, as Faber called it, modeled on strong pullbacks in 1929-1933 bear market, I'm looking towards energy stocks
mainly.

It's interesting that the energy sector they're becoming involved with is atomic power and not wind, solar, etc.

Also, it states:

"Alongside its pro-forma group-wide results, Rothschild also unveiled that it had entered into a co-operation agreement in the field of M&A and Equity Capital Markets advisory in the food and agriculture sectors on a global basis with Netherlands' Rabobank, a premier global financial institution providing financing and other services to food and agri business clients around the world."

With some talk of farmers not being able to secure financing they are smart enough to know that eating isn't optional, and will remain a place where business must go on even in hard times. A smart, conservative operator might be able to snap up large agriculture sectors when their regional banks stop lending.

[Judas]

Re: Rothschild investment banking posts record results

I'm just joking about the usual Rothchild anti-semitism you see on boards.

Ah, OK. I thought you were flinging accusations my way. No worries.

[Judas]

Re: Rothschild investment banking posts record results

The Rothschilds played a major role in arms financing during World War I and were directly named by Adolf Hitler in Mein Kampf...

Henry Ford was a Hitler supporter, but that doesn't mean talking about Ford today is some kind of veiled insult.

Well, unless you are talking about the recent begging and abuse fest in Congress. ;)

[metalman]

Re: Rothschild investment banking posts record results

Henry Ford was a Hitler supporter, but that doesn't mean talking about Ford today is some kind of veiled insult.

Well, unless you are talking about the recent begging and abuse fest in Congress. ;)

i didn't read anything anti-semitic into your post. facts are facts... those who made good decisions are making money.

hell, nyc and london finance fully backed hitler's 1932 campaign. they thought he'd bring stability to germany and safeguard the investments they made there 1924 - 1929... was convenient to believe that hitler's anti-jewish rhetoric was populist election propaganda... he did not intend to act on it. wrong.

money... fear of major losses or promise of big gains... makes for shit judgment.

that basic truth is behind the usa's love affair with authoritarian china. they lend us money, we buy their stuff and look the other way as the the gov't imprisons and executes dissenters... what could go wrong? that love will dissolve like a chunk of ice cream dropped on a shanghai sidewalk in summer as the world econ goes into the shitter. under totalitarian party rule, when things go to hell crank up the gov't controlled media and turn that popular anger out at the 'foreigners' who 'caused our great difficulties'. in this case there is even some truth to it. listen for the gov/t there to promote nationalism combined with the idea that the chinese are the superior race as china devolves into chaos...

Police brutality triggers massive riot in China’s Gansu province

Sun, 23 Nov 2008.
“I saw many farmers seriously injured” says eyewitness

chinaworker.info

An angry crowd of perhaps 10,000 people – some eyewitnesses say 50,000 – battled police in China’s Gansu province over a government relocation plan. In two days of street demonstrations and clashes, 17-18 November, crowds torched cars and attacked the local Communist Party office, injuring 60 officials, according to state-run media. The protests erupted in Wudu, in the poverty-stricken district of Longnan, Gansu province, an area badly damaged by May’s major earthquake. 1.8 million were made homeless by the quake in Gansu, second only to the devastation in Sichuan province where the epicentre lay.

The protesters fear that a plan to relocate the city of Longnan’s administrative center using earthquake reconstruction funds to a less quake-prone location, would mean the abandonment of an existing development plan through which many families have lost their land but not been re-housed or adequately compensated. But eyewitness accounts indicate that brutal, repressive police tactics turned a peaceful protest into the most serious incidence of rioting in China since the “June 28” incident in Weng’an township, Guizhou province, in which crowds of 50,000 laid siege to party offices and police stations. As is increasingly common nowadays in China, even protest by one, relatively small group of aggrieved people can lead to a conflagration in which other layers of the society are drawn in. This is because discontent – over police brutality, official corruption, high prices and low incomes – is reaching crisis levels.

In Longnan, crowds burned cars and battled police with rocks, iron bars and axes, according to the local government’s website. Based on some accounts, the street fighting reached the level of a localised civil war, with demonstrators hijacking a fire engine in order to attack heavily armed police lines. One media report said that 70 percent of the windows in two government buildings were smashed in the hail of rocks and other projectiles.

The violent clashes in Gansu are yet another serious warning sign of rising social unrest in China, which is now exacerbated by the sharp economic slowdown gripping the country as it reels from the effects of global recession and high levels of industrial overcapacity. They are also a sign of general frustration building up over the slow pace of longer-term earthquake relief and reconstruction. State-run news media has reported on numerous strikes and demonstrations across China in recent weeks, including a wave of strikes by taxi drivers and other transport sector workers in at least ten cities.