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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
China's CLSA Shuts U.S. Equity Research, Axing 90 Including Analyst Mike Mayo
[Photo: Wall Street Analyst Mike Mayo, by Scott Mlyn / CNBC]
CLSA Ltd, the brokerage owned by China’s Citic Securities, shut down its U.S. equity-research operations Monday, laying off 90 employees - more than half of workers based in this country. Most of those affected work in research, including research sales support staff and several traders.
The terminations include analysts Mike Mayo, an MD who covered banks, and Avi Silver and Ed Maguire, both of whom wrote about technology firms.
Financial research houses are facing revenue pressures, including from a proposal in Europe to make investors pay for investment analysis separately from trading commissions. While CLSA CEO Jonathan Slone said the move wasn’t directly linked to the so-called MiFID initiative, he said last week that investors should be allowed to decide what they want to pay for analyst research without too many regulatory restrictions.
While the rules - under the Markets in Financial Instruments Directive (MiFID)- are a European initiative, banks in Asia are also feeling the effects. Global investors have been allocating a smaller proportion of their commission payments to brokers that provide equity research and advisory services in Asia over the past 2 years, according to a survey released last month by Greenwich Associates.
Citic Securities, which bought CLSA from French bank Credit Agricole in 2013 for about $1.2 billion, considered selling the HK-based brokerage last year
The firm’s Americas unit will now employ 85 workers to execute U.S. and Asia stock trades, plus Asia equities sales