Overcharging underwriters
Article Abstract:
Investment banks have not changed fees charged in the US for underwriting for more than ten years, and issuing companies appear to be overcharged in both the US and United Kingdom. This is partly because there are close relationships between companies issuing stocks and bankers, which lessens competition in an otherwise competitive industry. Some investment banks also allege that cartels operate in this field. Companies issuing stocks tend to be large, and their acceptance of high prices may mean that prices are not the key factor affecting their decisions on which investment banks to choose.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Henry Grunfeld
Article Abstract:
Henry Grunfeld was a banker who had a long working relationship with Siegmund Warburg. Both men were in London, England, during the 1930s, and were Jewish, having come from Germany. They set up a company called the New Trading Company, which later became SG Warburg. Grunfeld was able to tackle details, while Warburg possessed charm. Grunfeld was punctual and worked long hours, and the discipline at Warburg's was a contrast with other companies in the financial center of London at that time.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Fools' gold
Article Abstract:
The merger of Union Bank of Switzerland and Swiss Bank Corp creates a new challenge to the domination of investment banking by the four largest US firms. However, costs are increasing and margins are shrinking as investment banks grow larger.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1997
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