• Top brass from JPMorgan and BlackRock, among the firms to kick off earnings season with their results, said Tuesday that they expect more consolidation in the wealth- and asset-management industries.
  • Pressures on money managers have fueled a flurry of acquisitions in those areas this year, and analysts questioned executives about their own deal ambitions, albeit coming from different corners of the market. 
  • JPMorgan boss Jamie Dimon said the bank would be “very interested” in deals in that space, and BlackRock finance chief Gary Shedlin said the firm was focused on targets that could expand its technology, global distribution, and private markets capabilities.
  • Last week, Morgan Stanley said it would buy investment manager Eaton Vance in a deal valued at $7 billion just days after it closed on its E-Trade acquisition. 
  • Visit Business Insider’s homepage for more stories.

Top brass at the world’s largest asset manager and largest US bank told analysts on Tuesday that they expect more mergers and acquisitions in the wealth- and asset-management industries, and signaled both firms are on the prowl. 

On the back of Morgan Stanley’s $7 billion deal for Eaton Vance last week, analysts peppered JPMorgan and BlackRock executives with questions about their appetites for deals during their respective third-quarter calls, which helped kick off the latest earnings season. 

“Well, since we have you all on the line, our doors, our lines are wide open. We would be very interested, and we do think you’ll see consolidation of the business,” JPMorgan Chief Executive Jamie Dimon said. 

“But we’re not going to be more specific than that,” he said, adding there were considerations around what type of deal would make sense for the largest US bank by assets, like technology, product, and execution. 

Dimon emphasized early this year that he was interested in carrying out more



a man wearing glasses and looking at the camera: Shannon Stapleton/Reuters


© Shannon Stapleton/Reuters
Shannon Stapleton/Reuters

  • BlackRock CEO Larry Fink told CNBC on Tuesday stocks have more upside ahead and most investors should put more money to work in the market.
  • “I believe we still have more to go on the upside even in front of probably rising infection rates with COVID-19,” Fink said. 
  • With interest rates lower for longer and the likelihood of a second fiscal stimulus, Fink expects the market to move higher.

BlackRock CEO Larry Fink told CNBC on Tuesday that stocks have more upside ahead and investors should put more money to work in the market. 

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“We have a strong conviction that the average investor still is under-invested and they’re going to have to be putting more and more money to work over the coming months and maybe even years,” Fink said. “I believe we still have more to go on the upside even in front of probably rising infection rates with COVID-19.” 

The CEO of the world’s largest asset manager said that he’s not concerned about markets, citing the Federal Reserve’s plan to keep interest rates lower for longer, and saying he expects the US will see another fiscal stimulus “whether it occurs this month or in January.” He added that even as coronavirus infection rates rise, hospitalizations are falling. 

Read more: Good deals in pandemic-hit companies are proving hard to find. Here’s how big investors that raised billions to pounce on corporate distress are changing up their playbooks.

Another factor likely supporting the stock market’s climb upward is the record amount of retail participation, Fink said. He added that the coronavirus pandemic likely caused this surge in individual investing activity.

Fink told CNBC: “You report a lot about Robinhood and the day traders but across the board the average investor is putting more

  • Morgan Stanley will buy asset manager Eaton Vance in a deal valued at $7 billion, the firms said on Thursday, in the latest sign of widespread consolidation in the money-management industry. 
  • The deal beefs up Morgan Stanley’s position in customizable fund offerings and sustainable investments through Eaton Vance’s affiliates, industry analysts and consultants said in interviews.
  • One East Coast-based Morgan Stanley financial advisor told us that he was most interested in the fixed-income capabilities Eaton Vance could bring to the firm, along with its Parametric mutual funds. 
  • Morgan Stanley’s move underlines its own transformation and the realities of pressured mid-sized asset managers that need size to survive. 
  • On a conference call to discuss the deal with analysts on Thursday morning, CEO James Gorman said the tie-up fit into Morgan Stanley’s shift to “more balance sheet-light, more durable businesses.”
  • Visit Business Insider’s homepage for more stories.

Sustainable investing, big stable businesses, utter size, and tailored products for investors: Morgan Stanley’s move to buy Eaton Vance at a premium is a deal made for modern Wall Street.

The New York investment bank said Thursday it would acquire the Boston-based investment manager, which oversees some $500 billion in assets, and its affiliates in a deal worth $7 billion in cash and stock.

Coming just six days after Morgan Stanley closed on its all-stock E-Trade acquisition, the deal highlights the bank’s transformation toward more stable operations from once-core sales and trading under Chief Executive James Gorman within an industry that has shifted significantly since he took the reins a decade ago.  

The tie-up would create a $1.2 trillion asset management behemoth alongside Morgan Stanley Wealth Management, one of the largest wealth managers in the world with 15,400 financial advisors and nearly $2.7 trillion in client assets as of the end of June.

Eaton Vance

(Bloomberg) — Legal & General Group Plc’s investment arm will vote against certain senior appointments at FTSE 100 and S&P 500 companies if they fail to include ethnic minorities on their board.

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The asset manager wants to see at least one Black, Asian or other ethnic minority on the board at major U.K. and U.S. firms by January 2022, according to the newsletter from Legal & General Investment Management. If there isn’t any such representation, L&G will vote against appointments to chair the board and nomination committee.

“The horrifying killing of George Floyd and so many others has led many institutional investors to think much more seriously about structural racism and inequality,” LGIM wrote. “We believe asset managers must go further. Now is the time for action.”

As the U.K.’s biggest money manager with around 1.2 trillion pounds ($1.6 trillion) of assets, Legal & General’s warnings carry some heft. The firm owns stakes in many of the biggest U.K. and U.S. firms and has previously vowed to vote against companies that lacked women on boards.



graphical user interface: Boardroom Bias


© Bloomberg
Boardroom Bias

Floyd’s death prompted collective demands for action from the financial world, with Morgan Stanley and Wells Fargo & Co. vowing to elevate Black executives. Goldman Sachs Group Inc. has required more bias training; JPMorgan Chase & Co. has expanded its mentoring programs; and Bank of America Corp. has pledged money to fight inequality.

The L&G letter was first reported by The Times.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

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A former finance manager for Amazon.com and two of her family members were charged on Monday with insider trading by the Securities and Exchange Commission, which accused the family of making $1.4 million from unlawful trading.



a sign on the side of a building: SEATTLE, WA - APRIL 30: A person walks by an Amazon Go store at the downtown Amazon campus on April 30, 2020 in Seattle, Washington. Amazon recorded sales of $75.4 billion in the first three months of the year as many consumers increased their online purchases, up 26% over last year, but with net income for the same period falling nearly 31% due to costs of managing the coronavirus pandemic. (Photo by Lindsey Wasson/Getty Images)


© Lindsey Wasson/Getty Images
SEATTLE, WA – APRIL 30: A person walks by an Amazon Go store at the downtown Amazon campus on April 30, 2020 in Seattle, Washington. Amazon recorded sales of $75.4 billion in the first three months of the year as many consumers increased their online purchases, up 26% over last year, but with net income for the same period falling nearly 31% due to costs of managing the coronavirus pandemic. (Photo by Lindsey Wasson/Getty Images)

The complaint alleges that Laksha Bohra, a senior manager in Amazon’s tax department, leaked confidential information about the company’s financial performance to her husband Viky Bohra. The husband and his father then traded on the confidential information in 11 separate accounts managed by the family, according to the SEC complaint.

Bohra’s lawyers didn’t immediately respond to a request for comment. Amazon declined to comment on the charges.

The SEC said the trading took place in advance of Amazon’s earnings announcements between January 2016 and July 2018.

“We allege that the Bohras repeatedly and systematically used Amazon’s confidential information for their own gain,” said Erin Schneider, director of the SEC’s San Francisco Regional Office. “Employees with access to confidential, potentially market-moving corporate information may not use that information to enrich themselves, their friends, or their families.”

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