by Dan Shirai and James Crombie
Balance Sheet Battles Brains
Pure investment banks are ramping up LatAm operations amid crisis at home. They must outsmart locals and European shops throwing balance sheet at big mandates.
The collapse of Bear Stearns heralds a thorough shakeup of the
global investment banking industry, which will have to retrench
and refocus to survive. A beneficiary of this process is LatAm,
through a rush to develop meaningful presence in key growth
pure investment banks must rethink their approach to emerging
markets if they are going to beat commercial bank competition
both local and international which has formidable
balance sheet and longstanding relationships with the rising
corporate second tier. The investment banks are caught in a
dilemma of maintaining profitability through sticking to a
niche while also doing sufficient volume to win league table
standing to demonstrate commitment. This, at a time when the
rules of the game are also shifting.
Its an industry that is in a radical
transformation from a country-centric/macro-centric approach to
more industry-centric specific approach in the...
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