iBanker.jp

The article reference below highlights an interesting development. I happen to know that Morgan Stanley Private Equity Asian team is much more nervous about the Volcker rule and does not rule out the possibility of having to become independent. JPMorgan, on the other hand, seems to be on prowl to acquire HF/PE firms. I think there are two points that are worth mentioning in connection with these differences: 1. JPM is much more of a deposit holding bank than MS. As such, it is likely they will be less affected by any looming regulation. 2. Even more importantly IMHO, Brazil is increasingly catching the headlines and claiming the spotlight, in a sense becoming "the next China". And in many respects, for a good reason: it's much less reliant on exports (and when it comes to oil, on imports), the fundamentals look robust, the GDP growth is accelerating and the inflation has been within a reasonable range for years. I have never had the pleasure of talking to a Brazilia...

My comment to the article published on Economist.com (see the link below) http://www.economist.com/node/16271499/comments#comment-563496 It is probably fair to say that smaller Japanese companies are starved of capital and additional lending by banks would be beneficial. However, I seriously doubt that lack of liquidity is at the root of the problem. Rather, I would say it is the overregulated and highly concentrated markets within most industries, and onerous risk disclosure rules for banks that are to blame. P.S. Curious photograph for the article: it seems that the semitransparent tape that binds the bills has a Korean inscription on it. ■