When I was a general partner at Cowen in 1998, Societe Generale purchased the business for four times book value. Expectations were obviously high. But I had seen this movie before. I left a year later to start at Neuberger Berman.
The French bank lost several hundred million dollars on its investment when Cowen spun off in 2006. It was a prime example of a European bank faltering in an attempt to capture American share. Many attempts like this in the 90's had similar fates.
But my "Call-to-Action" today is to watch this movie again with a revamped ending. European banks might have it right this time, and here's why.
On The Strategy Session yesterday, we had a special guest in Scott Page. With over twenty years of experience in the executive search industry, the Co-CEO of Solomon Page is on the pulse of the most influential financial services professionals on a global basis.
Page discussed the resurgence of Wall Street hiring on the show. Afterwards, I got to thinking about these European banks and how things may have changed based on what was said.
Page agreed that there was some tough-sledding in the mid-90's, but that was a different economy. The global nature of today's infrastructure has enabled European firms to make tremendous inroads.
And while Page cannot comment on the specific details of movements and agendas that he sees, he certainly sees the revival of Wall Street hiring shining a positive light on names like Barclay's, Deutsche Bank, and Credit Suisse.
With our eye on the capital markets, the syndicate calendar, and dealmaking, it is important to stay tuned here.
All year we've heard about the problems of Europe and contagion. But the big banks might be in better shape than ever to make moves where they've failed in the past
Related Links:
- Euro Shares Fall After US Jobs Data
- Video: Scott Page, the Co-CEO Solomon Page
- Sovereign Credit-Default Swaps
- The Importance of the Syndicate Calendar
Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.
DISCLOSURE:
Gary Kaminsky does not hold any equity positions.
DISCLAIMER:
The content of this blog is published in the United States of America and persons who access it agree to do so in accordance with applicable U.S. law.
All opinions expressed in this blog are solely the opinions of Gary Kaminsky and do not reflect the opinions of CNBC, NBC UNIVERSAL or their parent company or affiliates, and may have been previously disseminated on television, radio, internet or another medium. You should not treat any opinion expressed by Mr. Kaminsky as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Kaminsky’s opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Kaminsky, CNBC, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Mr. Kaminsky’s statements and opinions are subject to change without notice. No part of Mr. Kaminsky’s compensation from CNBC is related to the specific opinions he expresses.
Past performance is not indicative of future results. Neither Mr. Kaminsky nor CNBC guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website or on the show. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this website or on the show may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this website or on the show. Before acting on information on this website or on the show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.