NatWest to buy top US broker for pounds 385m
Wednesday 12 June 1996
The purchase of Greenwich from the Long Term Credit Bank of Japan follows NatWest's recent purchases of Gleacher, a mergers and acquisitions adviser, and Gartmore, the UK fund manager.
Martin Owen, chief executive of NatWest Markets, the bank's corporate and investment banking arm, said: "This acquisition completes the major strategic moves needed to build a strong competitive position in the US.
"We now have critical mass in the US government bond markets, providing strong institutional distribution and trading expertise. We will also have leading skills in asset-backed securities. This will be a strong platform on which to develop our position in the global bond markets," Mr Owen added.
NatWest Markets has 6,500 staff in 24 countries and provides risk management, foreign exchange, securities sales, trading and research to institutions.
Greenwich, which is in the top 10 among fixed income firms in the US, was bought by LTCB of Japan in 1988 for US$140m (pounds 85m) becoming the Japanese bank's primary US operations unit.
Its capital markets arm has an average daily clearing volume of more than $20bn and is a leading underwriter and dealer in US Treasury, mortgage and asset-backed securities. The company is also a broker in exchange- traded options.
In 1995, Greenwich, which employs 400, recorded pre-tax profits of US$75m, down slightly on its previous year's total of US$76.4m, achieved during the 1994 bear market in bonds.
Mr Owen said: "The Greenwich management team have proven expertise and a disciplined approach which has built a consistently profitable fixed- income business. This will be a very strong position to build our position in the global bond markets."
He added that NatWest's interest in Greenwich followed the bank's decision to acquire a strong presence in US government bond trading and related derivatives. Organic growth was considered but not chosen because it would not have led to a market-leading position in the time desired.
Greenwich had been identified some months ago as being potentially for sale by LTCB, which has suffered bad loans problems in Japan.
Discussions between NatWest and Greenwich began in earnest several weeks ago after the US firm was given the go-ahead by its Japanese parent.
Greenwich's joint chief executives and co-presidents, Gary Holloway and Konrad Kruger, will jointly head NatWest Market's global fixed- income arm.
- 1 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...