BrokerDealer Banks Bagged in IPO Mess: Finra Claims Conflict of Interest is Widespread

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Brokerdealer.com blog update courtesy of excerpt from Bloomberg LP and reporters Leslie Picker and Dakin Campbell

conflictWall Street brokerdealers are changing the way they pitch for IPOs as investment banks prepare to settle with regulators, people with knowledge of the matter said, following claims analysts inflated estimates to win business for their banks.

The settlement with the Financial Industry Regulatory Authority, or Finra, which may be announced next month, will focus on meetings between analysts and companies ahead of their IPOs, said the people, who asked not to be identified because the information is private. At least seven banks, including Goldman Sachs Group Inc. and JPMorgan Chase & Co. (JPM), may be asked to pay a fine of about $50 million collectively as part of an agreement, the people said.

“We cannot confirm the existence of enforcement investigations or related matters,” Nancy Condon, a spokeswoman for Finra, said in a statement.

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Amid the Crazy Enterprise Valuations, Google Finds a Steal of a Deal: Entrepreneurs and Bankers Take Heed; A BrokerDealer.com Blog

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BrokerDealer.com thanks Connecticut’s JLC Group for below extract.

How to differentiate your disruptive and innovative company from the rest? Have your chief cheerleader (presumably your CEO) make an epic statement in which your entire company and your constituents can continuously hang their hats on..  The following is a classic example:

“We think we are going to fundamentally change humanity’s understanding of the economic landscape on a daily basis.” Skybox co-founder Dan Berkenstock

The above words from an entrepreneur whose offering is seemingly perceived to be something simple: satellite technology.

If you are an aspiring tech czar in the capital raising mode, a brand enhancement specialist, a brokerdealer or venture capitalist doing due diligence, or a mere investment banker who is working with an advanced-stage company whose execs are also looking to you to help ‘craft the value proposition” to investors, your target audience will always be more inspired when you perspire passion to the point where its dripping from your pores.

The context of the above quote is in connection with a very compelling piece written by WSJ reporter Christopher Mims in his aptly-titled column “KEYWORDS”

Hyperlink above will bring you to the June 16 WSJ article: The story itself is not merely about enterprise valuation techniques and not only about the next great technology innovation, the story transcends borders for those who can read in between the lines..

BrokerDealers & Bankers Cashing In on IPO Boom

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Below Brokerdealer.com blog news extract courtesy of FT.com

Investment banks are cashing in on a boom in global stock market listings this year amid a resurgence of initial public offerings from Europe and Asia. Worldwide IPO fees of $3.15bn for the year to date are up nearly two-thirds from the same period a year ago, according to Thomson Reuters and Freeman Consulting.

The amount garnered in the Americas has risen slightly from $1.25bn to $1.31bn. Fees from these deals in the Asia-Pacific region jumped by almost three times to $853m, and more than doubled in Europe.

IPOs have been a bright spot for banks as volatility in secondary markets vanished, putting pressure on trading revenues. The CBOE Vix equity volatility index this month fell to a seven-year low.

The listings market in the US has been strong for a few years, experiencing a pullback this spring after overheating at the start of the year. Stabilisation in southern Europe has served as a catalyst for a rebound in deals throughout the continent, while Asia has been choppy.

“When you see sovereign yields in Greece and Spain fall, it allows people to put good values on any solid European company that may want to go public,” said Dan Simkowitz, co-head of global capital markets at Morgan Stanley.

The calendar is not necessarily dominated by southern Europe, but influenced by the “healing”, he said.

The IPO revival in Asia and Europe has clipped the global market share of fees for top earning banks as those with a strong regional presence in rebounding areas, such as UBS in Asia, move up the charts.

Sam Kendall, global head of equity capital markets at UBS, said: “Investors in Asia’s market are not just buying anything. The deals have to be priced sensibly, structured properly and have a good equity story. It’s the same thing all over the world.”

In Europe, the rush to list has been led by London where smaller banks such as Zeus Capital and Numis have used strong local profiles to gain market share against much larger competitors.  For the complete story, please visit FT.com

BrokerDealer.com Launches Business Intelligence Portal For Bankers, Investors and Entrepreneurs Raising Capital

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Immediate News Release

BrokerDealer.com Launches Broker-Dealer Business Intelligence Portal for Global Bankers,

Qualified Investors and Entrepreneurs Raising Capital

New York, NY—May 28–Broker Dealer LLC, a provider of financial industry corporate intelligence and qualified investor databases, announced today the launch of a new, broker dealer web-based portal that incorporates 100,000 broker dealer, investment banker and securities dealer profiles as well as upwards of 20,000 qualified investors extending across 35 major countries, including capital formation brokers and deal investors based in North America, EU, Eastern Europe, China, Pacific Rim, the Middle East and Africa.

Apart from detailed lead generation and decision-maker metadata, the company’s platform incorporates a range of social media applications, including a “deal room” forum that enable capital-seeking business enterprises to share their business plans with professional deal-sourcing bankers and private funding sources that include qualified angel investors, hedge fund managers, private equity and venture capital firms and family offices seeking investment opportunities. The firm’s investor database is available for free and is accessible via http://BrokerDealer.com.

“Brokerdealer.com could be the right domain for this new player in the business intelligence space when considering the evolution of the JOBS Act in the U.S., the global embracement of crowd-funding in advance of traditional investment bank capital-raising techniques and the depth of global contact information available within the brokerdealer.com database. The social networking function within its subscriber-based platform is compelling, and it’s advertising-free.”

Brokerdealer.com was designed to help connect companies seeking broker dealers, funding, underwriting, or lead manager assistance for debt and equity offerings. The platform was created out of the need to give entrepreneurs, investors and data providers the ability to connect with one another. The broker dealer databases found on brokerdealer.com includes information such as broker dealer’s name, address, phone, URL/emails, and most important, a description of what the broker-dealer actually performs. If a company is seeking to raise capital for a real estate project the user will be able to filter the broker dealer databases – on a global scale – and reach out.

Brokerdealer.com anticipates adding 45 additional securities dealer and broker directories, giving network members of brokerdealer.com upwards of 75 of the world’s most popular broker dealer lists.

For Additional Info:

Email: [email protected]

Twitter: @broker_dealer