Equity & Derivatives

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First with financial industry news & insight around the world

First with financial industry news & insight around the world

Reuters was the first major news outlet to report on Jan 21 that banks like Citi could get a big boost if the U.S. government switched its preferred share investments in the sector into common shares. Our analysis was duplicated by research analysts at several firms, including KBW. The possibility of a swap is now at the center of discussions about the next stage of the government’s rescue of Citi. A top executive at Charles Schwab’s institutional arm exclusively told Reuters the company was in talks with investment advisers managing a combined $45 billion who were considering using Schwab’s custodial services. Preliminary talks were taking place with a larger group of advisers managing a total of $140 billion — shedding more light on the pipeline of new client assets that could possibly come under the care of the No. 1 U.S. online broker. Reuters was ahead of the pack on Feb 13 when it reported hedge fund Citadel Investment Group would pay out redemption requests if its two largest funds met certain criteria in the coming months. Reuters got hold of a confidential investor letter from CEO Ken Griffin, which also revealed how this widely followed self-made billionaire investor remains cautious about the outlook for financial markets. Reuters clients got the inside track on insurer Swiss Life’s plans to reduce its stake in German pension specialist MLP to less than 10 percent. Swiss Life shares rose more than 2 percent after the report was sent to Reuters clients, while MLP dropped 7 percent. Reuters broke news in a Feb 17 column that China Investment Corp, a $200 billion sovereign wealth fund, was in talks with local banks to jointly bid for AIG’s $8 billion aircraft leasing unit ILFC — widely seen as an attractive asset with few buyers in a position to make such a big outlay.

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