TORONTO ON -- NOVEMBER 9, 2015: Commuters gather at Bay and Wellington Streets, during evening rush hour, in Toronto, November 9th, 2015. (Ian Willms / Boreal Collective for the Globe and Mail)Ian Willms/The Globe and Mail
Berman: Why Home Capital shares surged Tuesday despite a key question unanswered
After Home Capital Group Inc. reported that a buyer is looking at its mortgage book, investors jumped at the beaten-up stock without knowing a crucial bit of information: What is this mystery buyer willing to pay?
Investors, knowing that the value of Home Capital rests to a large extent on confidence in its loan book, aren't sweating over the details.
They bid up shares by 29.7 per cent on Tuesday, to $8.86. That marks the highest level for the stock since the company was caught in a dramatic downturn on April 26. Story
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RBC eyes bigger cut of U.S. banking market
Royal Bank of Canada seeks to capture as much as 4.5 per cent of the $40-billion (U.S.) pool of U.S. investment-banking fees within three years as it expands operations in the world's largest market for deal-making.
Royal Bank currently collects 3.5 per cent of fees paid to investment banks for U.S. activities such as advising on takeovers, arranging equity financing and managing bond sales, according to Blair Fleming, head of RBC Capital Markets in the United States,
"We're punching at a decent level," Mr. Fleming said Tuesday during a panel discussion in Toronto, adding that the bank is aiming for share of 4 per cent to 4.5 per cent in the next two to three years. Story
DAILY DEALS
EU to approve Broadcom's Brocade computer chip deal
Chip maker Broadcom Ltd. is set to win EU antitrust approval for its $5.5-billion (U.S.) bid for Brocade Communications Systems Inc. after agreeing to modest concessions in the latest deal in the chip sector, three people familiar with the matter said on Tuesday. Story
McEwen Mining aims for S&P 500, sees gold on the rise
Canadian resources magnate Rob McEwen aims to list his company McEwen Mining Inc. on the S&P 500 in two to three years' time to meet a rise he predicts in demand for gold as part of investor portfolios. Story
ELSEWHERE IN FINANCE
JPMorgan chief executive officer Jamie Dimon has been saying for a while now that there are too many banks. It appears that message has filtered through the ranks. (Bloomberg) Story
Main Street doesn't ordinarily concern itself with the minutiae of banking regulation, but ever since the 2008 financial crisis, one Depression-era banking law has stuck in the public imagination but probably shouldn't. (Bloomberg) Story
A federal appeals court on Tuesday vacated a lower court's ruling that the 2008 federal bailout of American International Group Inc. was unlawful, taking a moral victory away from former Chief Executive Maurice R. "Hank" Greenberg. (WSJ) Story