Daily Archives: February 12, 2010

Louise Lucas

Barclays, expected to lead the ranks as Europe’s most profitable bank with an estimated £10bn of net income when it reports results next week, is a shining example of how to stay upright when all about you are flailing. Here are the golden rules:

1. Participate in auctions for banks if you must, but avoid succeeding – especially when said transaction takes place on the cusp of the mother of all financial crises
2. Ditto for distressed US banks
3. Just say no to state aid
4. When disposing of toxic assets remember the old tricks are the best: sivs fell into disrepute, but with a new name and sounder financing they are a useful tool for magicking assets off the balance sheet
5. Keep on banking 

Tony Tassell

Everything happens in private equity in slow motion compared with public markets. The cycles of accountability are so extended. It takes a long time to raise funds, invest and then realise profits or losses that the deal disasters can take years to emerge.