|Bid||325.01 x 800|
|Ask||330.38 x 1100|
|Day's Range||323.31 - 331.00|
|52 Week Range||130.85 - 335.81|
|Beta (5Y Monthly)||1.47|
|PE Ratio (TTM)||13.33|
|Forward Dividend & Yield||5.00 (1.52%)|
|Ex-Dividend Date||Mar 01, 2021|
|1y Target Est||N/A|
(Bloomberg) -- To the outside world, Wall Street banks looked like great places to be last year, as they printed profits during the pandemic slump. To those inside, they now look like great places to leave, too.Technology upstarts and investment firms are offering some unusually attractive opportunities to seasoned Wall Street professionals, including shots at multiplying their paychecks -- an allure all the greater after banks showed restraint in doling out rewards for 2020. Exits are now proliferating as bonus season wraps up.A pair of Goldman Sachs Group Inc. partners, including an architect of its consumer business, became the latest examples over the weekend by giving up their coveted spots for an unconventional alternative: Walmart Inc.’s nascent financial-technology venture. A day later, news broke that another top Goldman executive left to join Tiger Global Management.While Walmart certainly isn’t Wall Street, recruiters and industry veterans say the allure of such an opportunity is obvious: A shot at building something from scratch with enough resources to challenge incumbent players. That’s not to mention the potential riches if the new business succeeds.“These people are very motivated, they’re super smart and they set goals for themselves,” said Noor Menai, chief executive officer of CTBC Bank USA. They’re saying, “‘I built this, now I need to build something else.’”Fintech is a hot space right now. Venture capital firms are pumping money into young companies. Businesses focused on cryptocurrencies, payments, financial advice and no-fee trading are taking off.Companies embarking into financial services need experienced people -- not so much generic investment bankers or management consultants, but those who understand the intricate, unsexy details of consumer banking, like consumer protection and lending risk, said Menai.A division chief making $10 million to $15 million at a top bank can make two to three times that taking the helm of a company, with more upside over time, one senior executive estimated.The Goldman consumer bankers -- Omer Ismail and his deputy David Stark -- had scored promotions in recent months to carry out the 152-year-old firm’s biggest strategy refresh in decades. So it wasn’t that Ismail was looking to leave Goldman but that an opportunity arose to make a big impact.Walmart announced plans in January to build a fintech business with Ribbit Capital, a venture capital firm. Though they’ve disclosed few details on their aspirations beyond saying it will serve Walmart shoppers and associates, the companies’ resources and credibility are enough to get Wall Street buzzing. JPMorgan Chase & Co. CEO Jamie Dimon pointed to Walmart during a Bloomberg Television interview Monday when asked about the competitive environment.Jumps to investment firms are an older phenomenon, but they could pick up this year as senior money managers look to pass the torch or reinvest their profits from the bull market.On Monday it emerged that Eric Lane, who became Goldman’s co-head of asset management less than six months ago, would join Chase Coleman’s Tiger Global as president and operating chief. The move evoked memories of investment-bank boss Gregg Lemkau’s recent exit for billionaire Michael Dell’s investment firm.Despite their windfall last year, Wall Street banks are under pressure to improve shareholder returns by holding down costs -- especially as some firms set aside cash to cover potential losses on loans. Keeping a tight hand on compensation helped big banks post results that sent some of their stock prices to record heights in recent weeks.Initial recruiting packages may offer an immediate boost and have the potential to get dwarfed by greater payouts down the line if the venture proves successful. Closely held companies with external investors, like Walmart’s tie-up with Ribbit, can offer profit-sharing plans or equity awards separate from the parent company’s publicly traded stock.Money, however, isn’t the primary driver for many making the shift from finance to fintech, said Jon Pomeranz, a partner at executive search firm True Search in charge of those two areas.“It’s the build,” he said. “The opportunity to be linked up with a brand that’s known by billions of consumers around the world -- and the opportunity to get into an organization where you can build a differentiated financial-services company.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Hong Kong imposed record-high monetary penalties in its capital markets last year as authorities stepped up vigilance and enforcement to clamp down on market misconduct. The Securities and Futures Commission slapped HK$2.8 billion (US$361 million) of fines on industry participants, 117 per cent more than in 2019, according to data compiled by law firm Freshfields Bruckhaus Deringer. The amount was also 32 per cent higher than the sum collected from 2015 to 2019. The bulk of the sum, or HK$2.71 billion, was extracted from Goldman Sachs (Asia) when it reprimanded the US investment bank's unit for "serious lapses and deficiencies" that contributed to the misappropriation of funds at the Malaysian sovereign investment fund known as 1Malaysia Development Bhd. Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China. "Given the SFC's focus on 'high-impact cases', we can expect to see the SFC continue its pursuit of large fines," said Tim Mak, a partner of Freshfields, which began compiling the statistics in 2014. Mak said civil fines from disciplinary actions tend to be easier to obtain because of the lower threshold of proof than in criminal cases. A Goldman Sachs sign is displayed inside the company's post on the floor of the New York Stock Exchange (NYSE) on April 18, 2017. Photo: Reuters alt=A Goldman Sachs sign is displayed inside the company's post on the floor of the New York Stock Exchange (NYSE) on April 18, 2017. Photo: Reuters Goldman has paid more than US$5 billion in penalties in Hong Kong, Singapore, Malaysia, the UK and the US for its role in helping 1MDB raise US$6.5 billion in three bond offerings in 2012 and 2013. Much of the money was siphoned off by people associated with disgraced former premier Najib Razak and funnelled to pay for a Manhattan apartment, Monet art, a superyacht and even a Hollywood movie. In 2019, the SFC imposed HK$814 million of fines on five investment banks - UBS, Morgan Stanley, Merrill Lynch, Standard Chartered Bank and China Merchants Securities (HK) - for shortcomings as sponsors for several initial public offerings (IPOs) over the past decade. As Hong Kong is one of the world's leading IPO venues and the SFC has been focusing significant efforts on enhancing the market quality, the watchdog will continue to scrutinise the work of the listing sponsors, Mak said. Hong Kong was the top IPO venue globally seven times in the past 12 years, while the stock exchange operator has planned to expand its listing reforms further to attract more candidates. "Historically, Hong Kong regulatory fines have tended to be lower than those in other major markets like the UK and the US, but the SFC is catching up," Mak added. The UK's Financial Conduct Authority meted out about £200 million (US$278.5 million) of fines last year, while the US' Securities and Exchange Commission handed out US$4.68 billion, according to data published on their websites. "It is good to see the SFC issuing heavy fines on some big investment banks for those malpractices" to protect investors, said Tom Chan Pak-lam, chairman of the Institute of Securities Dealers, the brokerage industry body in Hong Kong. "They will act as a deterrent to market participants. It shows the SFC is very keen to improve the market quality." Chan hopes to see the SFC handing out more compensation to investors who suffered as a result of malpractice in the market. The US Securities and Exchange Commission returned about US$600 million last year to investors as a result of enforcement actions. In Hong Kong, the SFC fines go into the government's treasury, according to local law. The commission, however, can seek compensation for investors by seeking a court order, as it did in the case of Tianhe Chemicals Group last September. In that event, the market watchdog initiated legal action against China's largest lubricant additives producer and its executive director Wei Xuan in the Market Misconduct Tribunal. It is seeking to recover HK$3.52 billion of proceeds from its 2014 IPO, saying the parties overstated revenue by US$1.04 billion from 2011 to 2013. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
Robinhood, which has faced increased scrutiny recently due to its handling of (GME) trading, is on track to launch its much anticipated IPO in the second quarter. The trading platform is reportedly planning to file confidentially with the Securities and Exchange Commission as soon as this month. Robinhood has held talks with its underwriters to move forward with the IPO, Bloomberg is reporting.