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The president promised an antitrust crackdown. A new study finds, however, that despite high-profile cases like AT&T;, he’s no bolder than his predecessor, who Obama called wimpy on the subject. While tough talk can be a deterrent, the law trumps politics in deal enforcement.
Do-it-yourself law firm IPO looks a bit too feisty
Bankers are valuing LegalZoom at a whopping 40 times last year’s earnings. That’s justifiable if the U.S. online legal site can turn impressive revenue growth into consistent earnings. But rising competition and potential lawsuits are just two of the company’s biggest risks.
China Inc not letting politics get in way of M&A;
A once-a-decade changing of the Communist Party’s top guard was supposed to hold back the ambitions of state enterprises, at least temporarily. But CNOOC has now kicked off a hefty $15 bln outbound takeover. Maybe, seen from Beijing, there’s no such thing as a bad energy deal.
BarCap shrinkage can't wait for new CEO
The strategic commitment to investment banking ultimately will be a matter for new management at rudderless Barclays. But the residual top brass is already implementing a plan to identify parts of BarCap that may need paring. It could be just the start of bigger cuts to come.
Risk appetite set for brutally hot Spain vacation
Distress in Spanish regions and new fears for Greece have broken the markets’ summer calm. Italy’s spreads have overtaken Ireland’s. Until external support for Spain is clarified, stocks, commodities and the euro may pay. Yet again, the dollar, yen and safe-haven bonds will win.
Investment banking job cull is long overdue
Faced with slumping income and tough regulation, the industry is bracing for another round of cuts. That won’t be easy: to make savings, banks will have to ditch business lines or redesign structures. But with shareholders antsy and no rebound in sight, they have little choice.
Can Citic avoid the investment bank buyer’s curse?
The Chinese securities firm is paying $1.3 bln for Credit Agricole’s CLSA. Avoiding another Dresdner/Wasserstein, Nomura/Lehman or Credit Suisse/DLJ would be hard for any bank - much less one controlled by Beijing. Arm’s length management alone is unlikely to make this deal different.
FEATURED VIDEO
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Breakingviews: LegalZoom’s pricey IPOJuly 24 - Antony Currie and Breakingviews columnists discuss why lawsuit risks and low earnings make the online legal site’s valuation look ambitious.Video
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Breakingviews: Imagine a “normal” BarclaysJuly 24 - Barclays is trading at a substantial discount to other banks, but as it makes changes the share price could “normalise” offering substantial gain for new investors say Breakingviews.Video
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