The new UBS (NYSE:UBS) investment bank executive Andrea Orcel has shaken up management at the division, only days after slashing 10,000 jobs and also taking the unit out of fixed income trading. Observers had thought that Orcel’s advent this summer could mean that the bank’s “old guard” were being moved aside for outside talent, but these changes seem more about moving existing managers around.
E*Trade Financial Corporation (NASDAQ:ETFC) intends a sale of $1.3 billion in senior notes, with the proceeds for paying off existing paper, some of which has a 12.5 percent coupon and the remainder at 7.875 percent.
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The Bank of New York Mellon (NYSE:BK) is not waiting on the Federal Reserve as it is busy reducing costs and reinforcing its franchise. The dividend of 2.1 percent is equal to the S&P yield and the shares trade at or under the PE ratios of its rivals.
Morgan Stanley (NYSE:MS) might be able to get traction for its shares by quickening the pace at which it decreases its fixed income trading assets, according to Brennan Hawken at UBS. But even in the current weak investment banking environment, Hawken believes that return on equity could be raised by 40 to 100 basis points.