Finshastra Mid Feb

8/7/2019 Finshastra Mid Feb

1/18

Information Technology SolutionsFINShastraNews letter offinance cell , Master of International Business

Volume IX |ssue I

eb 16 ,2011

Team Finshastra

Ankit

Saurabh

Kamal

Sunita

Anuratn

For any query or suggestion email us at [email protected]

ffffdgfYour gateway to the world of finance

Your Finance Vocab

Captive FundMean?

A fund that provides investment services solely to the one firm holding ownership. A captive

fund can also refer to a type of fund where most of the capital is provided by the

shareholders and management of its parent company. The fund exists solely to provide

investment management services to one part icular group of investors.

RaintakerMean?

A former employee of a brokerage firm who takes high-value clientelle from his or her

previous employer to his or her new brokerage. The term raintaker is taken from rainmaker,

which is used to describe a brokerage employee who brings in large amounts of business to

their brokerage.

Merchant banking is

generally understood to meannegotiated private equity investment by financial institution

in the unregistered securities of either privately or publicly held companies

Underwriting1. The process of placing a new issue with investors. Underwriting involvesthe issuing company using one or (usually) more companies who are each responsible fo

placing a certain amount of the new issue. The underwriting firms contact potentiainvestors to gauge interest and sell the issue. Underwriters guarantee the price for a certainnumber of shares of the new issue

A credit union:

is a cooperative financial institution that is owned and managed by its members, and i

closely regulated just like any other financial institution. Usually, credi

unions provide services to groups that sharecommon interests or something in common

(such as a workplace), an area where they live, or a church theyvisit. Credit unions were

created with an objective to provide a secure and convenient place where members can

save their money and also avail for loans at reasonable prices


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Affinity fraud

A name for a type of scam that targets members of a specific demographic. Perpetrators may

attempt to relate to or exploit characteristics common to the demographic. Targeted groups

can include the elderly, ethnic groups, and religions. Perpetrators attempt to portray

themselves as members of this group or people who can relate to the members of the group

in order to gain trust and eventually money.Ponzi schemes and pyramid schemes are

sometimes combined with affinity fraud.

Debtor-In-Possession Financing - DIP FinancingMean?

Financing arranged by a company while under the Chapter 11 bankruptcy process. DIP

financing is unique from other financing methods in that it usually has priority over existing

debt, equity and other claims.

Triple top

A technical analysis term used to describe a chart on which the price of a security has made

three approximately equal tops over a period of time and then broken throughthatsupport level. In most cases, a triple top occurs more quickly than a triple bottom.

Earnings yield

Earnings per share for the most recent 12 months divided by current price per share. The

reciprocal of the price/earnings ratio.

PEGpaybackperiod

Ratio used to determine how long it would take an investorto double his or her money ina stock. This ratio is used instead of a PE ratio as it assumes that thegiven company'searnings are expected to grow over time. This ratio is also used indetermining how risky an investment may be.

contributed byKamalMIB 2nd Year


3/18

Quiz

3

Q.1 Allen Solly is a brand owned by which group of companies?

a) Tata group

b) Damani group

c) Arvind Mills group

d) A V Birla group

Q.2 It took a while, but Microsoft andYahoo finally made an Internetsearch deal aimed atchallengingGoogles dominance of onlineadvertising. How many yearsdoes the deal cover?

a) 5

b) 10

c) 15

d) 20

Q.3 KMalleswari, the lone medal winner for India in the millenium Olympics, and the first

woman from India to ever win a medal, is employed at which Central Government

Corporation?

Q.4 Which bank offers a virtual temporary credit card for online purchases called NetSafe?

a)ICICIBankb)HSBCc)HDFCd)State Bank of India

.5 When was the ministry of divestment formed in India?

a) 1997b)1999c) 2001d) 2003

.6 Which is the largest unlisted company in India in terms of turnover?


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TITLE 1

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.7 What major currency is known as Greenbacks in slang?

. 8 Name the low profile partner of Warren Buffett of over 40 years who shares hisinvestment philosophy.

. 9 Who has taken charge as PMs advisor on skill development in a cabinet rank ?

Q. 10 Which guru once said with 20 hours of library research about a co he would know asmuch about the business as the CEO?

contributed bySunita AroraMIB 1st year


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I Banking

5

The investment-banking industry was constrained during the Depression of the 1930s, wheWall Street firms such as that founded by Morgan were split into commercial banks andsecurities houses. The lattertoday's investment banksunderwrite stocks and bonds andadvise companies on mergers and acquisitions, rather than collect deposits and make loans.the 1980s and 1990s they developed a reputation for gluttonous excess. But a lot has changsince then.

Intensely private partnerships have become publicly traded companies. Commercial bankssuch as Citigroup and JPMorgan Chase have muscled back into investment banking. And

European warhorses such as Deutsche Bank, UBS and Credit Suisse have joined the race fglobal supremacy. The bets, and the profits, have got bigger, though investment banks aretrying to keep quiet about that, for several reasons.First, they are under more scrutiny. Wall Street firms had their wings clipped by Eliot Spitz

New York's former attorney-general, for plugging worthless shares during the dotcom era.Being publicly traded companies has tamed some egos, too. Star traders do not enjoy thesame headroom on salaries (albeit very large salaries) as they did when they were partners

the business. At UBS, a Swiss bank which in 2000 moved into the American equity marketby merging with PaineWebber, a brokerage, fiefs are explicitly banned.Meanwhile another group has overtaken the investment banks in the excess stakes: theirmoney-spinning clients in the private-equity and hedge-fund industries. Already they thro

the biggest parties, do the boldest deals and launch the most celebrated initial publicofferings. The IPO of part of Blackstone, a private-equity group, might well raise moremoney than Goldman Sachs's did in 1999, when even the company's doormen and drivers

became extremely rich.

Even if they are no longer the pioneers, the investment banks have played a crucial part inbringing about the extraordinary changes seen in the financial markets, starting in the 1980sand accelerating dramatically in the past five years. Technology and innovation have broughtunprecedented breadth, depth and richness to financial instruments. According to McKinsey,

a consultancy, the stock of shares and public and private debt securities held in America grewfrom 2.4 times GDP in 1995 to 3.3 times in 2004. In Europe the increase was even moredramatic, albeit from a lower base. These figures do not include derivatives, notional amountsof which traded privately, or over-the-counter securities, which had soaredto $370 trillionby last June, from $258 trillion less than two years earlier, according to the Bank forInternational Settlements (BIS). Given such torrid growth, the markets are becomingincreasingly vital to global financial stability.


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EVEN by its own notoriously cyclical standards, investment banking has been on a stomach-

churning ride in the past five years. After an apparently golden age, with quarter after quarter

of record profits, came the bursting of the debt bubble, a deluge of red ink and bail-outs; then,

last year, firms bounced back obscenely quickly thanks to record trading profits. Now they

are being squeezed once more, and this time the slump may last.

American banking giants third-quarter results, starting with JPMorgan Chase on October

13th, will show that trading revenues fell by perhaps 20-30% from the previous quarter. With

nervy investors sitting on their hands, client activity was painfully slow across the board

IN THE early years of this decade, when banks did quaint things like making money, the

mantra on Wall Street was: Be more like Goldman Sachs. Bank bosses peered enviously at

the profits and risk-taking prowess of the venerable investment bank. No longer. Be less like

Goldman Sachs is the imperative today.

Of the five independent investment banks open for business at the start of the year 2008, only

Goldman and Morgan Stanley remain.Spreads on their credit-default swaps, which protect

against the risk of default, soared as investors digested the implications of Lehman Brothers

demise.

contributed bySaurabh chopraMIB 1 year


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ValuationMethodoligies

7

What are themost commonlyused ValuationMethodologies..??

There is no one way to establish what a business is worth. That's because businessvalue means different things to different people. In determining value, there are severalbasic analytical tools that are commonly used by financial analysts. The methods, tovalue a company, have been developed over several years of research and refinementand are based on financial theory and market reality. However, these tools/methods arejust the tools/methods and should not be viewed as final judgment, but rather, as astarting point to determining value. Three most common used valuation methodologiesinclude:

1) Comparable Company Analysis (Trading Comps): TradingComps methodology uses the multiples to value a company byassuming that it should be worth similar multiples to similarlisted companies. The multiples can be Enterprise Value (EV)based multiples like EV/ Sales, EV/EBITDA or EV/EBIT, andEquity based multiples like Price to Earnings (P/E).

2) Precedent Transaction Analysis (Deal Comps): Deal Compsmethodology involves the post M&A / Deals analysis to aid thecorrect valuation for future M&A / Deals prospects within thesame industry. Deal Comps are very similar to trading comps

except deal comps utilize actual transactions instead of publiclytraded companies as the universe of comparable companies.

3) Discounted Cash Flows Analysis (DCF Valuation): In

addition to the multiples approach (Deal comps and Tradingcomps), another useful technique for valuation is DiscountedCash Flows (DCF) analysis. DCF analysis is a fundamentalvaluation methodology that derives the value of acompany/business from the present value of its forecasted freecash flows.


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With Trading Comps, we arrive at at the trading multiples to compare the operating andtrading statistics of the company with its peer group. This methodology uses theratios/multiples to value a company by assuming that it should be worth similarmultiples to similar listed companies. Deal comps or Precedent Transaction comps, onthe other hand, involve the post mergers and acquisitions analysis to aid the correctvaluation for future M&A prospects within the same industry.

The use of transaction comps, differs from using trading comps, in that the value isbased on the level at which transactions have occurred, rather that the level at whichpeers trade. The trading multiples do not reflect control premiums or potentialsynergies from a buyer. Deal comp multiples can be higher or lower than trading compmultiples; higher due to control premiums (premiums paid for a controlling stake in acompany) and/or potential synergies, such as cost savings and revenue synergiesresulting from a combination of the two entities; lower due to lack of liquidity andsmaller size, etc.

How Transaction Comps are differentfrom Trading Comps, When they both

calculate multiples

contributed byKamal


9/18

Career In InvestmentBanking

9

Dictionary defines investment as the money that people or organizations have put into a

company, business, or bank in order to get a profit, or to make a business activity successful

(Longman). An investment banker is someone whose job is to make investments as

successful and as profitable as possible. It is investment bankers job to use the knowledge of

the market and economy in advising his/her clients on a variety of financial matters.

Investment bankers perform a wide range of finance-oriented functions. They control the

issuance of stock and oversee its sale to the public. They analyze the probability of success

of a single stock, or a whole area of public companies. They also recommend and execute

merger strategies, as well as the buy and sell bonds. Because of such a wide range of tasks,investment bankers should not limit their education to a single major of study.

To get the most money and the most satisfaction out of a career in investment banking, a

person should try to graduate from the most prominent university. Various schools offer

excellence in various areas of study. A university can have the best finance division in the

world, yet its accounting or economics department may not even make it to the top fifty

rankings.

Choosing the right university is very important since most students have preferences not only

in terms of academic reputation, but also with regard to location, price, diversity, admissionstandards, and many other factors. To be an investment banker a student does not have to

select one specific major of study or graduate from a specific university. He or she can

pursue a career in this field with a degree in accounting, actuarial science, agricultural

economics, business communication, economics, finance, history, industrial management,

international business, logistics management, managerial economics, marketing, physics,

political science, risk management, or statistics, to name a few.

In addition, it is always helpful to get more than one degree, or complement any of the

degrees mentioned above with a degree in law or business law. Due to the variety of

educational programs, students must evaluate their skills and interests in order to select amajor that would suit them the most and that would aide in amplifying those skills.

Interests needed to be an Investment Banker

A career in investment banking requires a variety of skills. Communication, creativity,

analytical skills, and people skills are a must in the field of investment banking. In addition,

initiative, and some basic sales abilities are also quite helpful.


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In order to succeed in this profession a person must be able to deal with people as well

computers and numbers. Versatility and broad knowledge base can provide an extra edge f

an investment banker. In the course of a career, an investment banker may have t

opportunity to work for companies in every single field. The more a banker knows about t

field or the company he/she is hired by, the higher are his/her chances of success.

The market for investment bankers has been booming since the 1980s, and it is becomi

increasingly easer to find a job in the banking industry. A degree in virtually every major

study will do. Professionals from almost any career field can join the banking indust

without needing additional education. A degree in finance and economics is always helpf

but it does not necessarily provide an advantage at the entry level. People with degrees

liberal arts may have a tougher time entering the industry than people with degree

engineering or medicine. Investment banks are always on the lookout for people willing a

able to deal with challenges that the job imposes.

To find the perfect job an investment banker may have to travel. It does not necessarily me

that he/she must leave everything and move to New York, although spending some time

Wall Street will help an investment banker gain a better perspective on the business wor

and help in future career mobility. However, New York is no longer the hottest market f

investment bankers. Great Britains growing economy propelled London to be the best pla

to find a banking job by offering higher wages as well as a higher rate of upward mobilit

Other European countries with an enormous desire to hire investment bankers are German

Poland, France, and Hungary. The banker job markets in Australia, New Zealand, and Sou

Africa are also showing an increased interest in hiring quality banking professionals. Plac

such as Russia and Ukraine are to be avoided because despite their booming market f

professionals in the banking industry, the economic markets in those countries are t

unstable. The Asian market is booming; however, with a thousand applicants per positi

available, entry in that market is very difficult (Wall Street Journal Online). Even though t

business world does revolve around New York, there are a lot of great jobs in the bankiindustry all over the world. In this global market, knowing a foreign language can provide

investment banker with an additional edge in searching for a job.

Investment banking is one of the very few professions were there are virtually no limitatio

on income. It provides excellent wages and a high potential for upward mobility.

addition, investment bankers can apply their professional skills and knowledge to grow the

personal investments. This knowledge gives an investment banker the ability to determi

where and when to invest to gain the optimal returns. In fact, some of the companies a

looking at the performance of investment bankers personal portfolio when making hiri

decisions.

The entry-level salaries in investment banking are relatively low considering the hours one

has to put in. However, salary is not the most significant factor in finding the first job


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The advantages of making good contacts and learning from the best far outweigh the

financial difficulties that lower salary may impose. In addition, it is doubtful that an entry-

level analyst will have the time to worry about his/her salary. However, after a few years of

experience, wages raises dramatically.

Salaries in Investment Banking (with bonus)

Job Level Salary RangeTypical All-inComp

Prerequisite(degree/yrsexperience)

First Year Analyst $90K - 150K $125K Bachelor's

Third Year Analyst $120K - 350K $165K Bachelor'sFirst Year Associate $150K - 250K $180K MBAThird Year Associate $300 - 500K $350K MBAVice President $350K - 1MM $700K 3-6 years

Director / Principal$400K -1.5MM

$900K 5-10 years

Managing Director /Partner

$500K - 20MM

$1.5 MM 7-10 years

Department head $800K - 70MM$3.5MM 10+ years

Note: This table is based upon conversations with banking insiders about yearly bonuses

expected to be paid between December 2010 and February 2011. MM denotes millions. K

denotes thousands of US dollars.

The basic entry position in investment banking is a financial analyst. An analyst is required

to analyze financial reports, gather and analyze information, prepare financial plans, and

make predictions regarding the outcome of future deals. Analyst is expected to do a lot of

reading, and to be up to date with all the latest trends of the business world. Wall Street

Journal and other business periodicals are essential for analyst. In addition, personal lifestyle

of the analyst is severely restricted by extended working hours, which range form 70 to 120hours per week.

An analyst holds a great deal of responsibly, as analysts provide the foundation for most

investment decisions. However, despite all the challenges, the burnout percentage is fairly

low. Only eight percent of financial analysts leave their jobs in pursuit of a career in a

different field (Princeton Review). The primary reason for such a low percentage is the fact

that most people know what they are getting into. They enjoy the challenges and patiently

wait for the rewards. After three to five years, an analyst is usually promoted to a junior

associate position.

Junior associate has mostly the same duties as an analyst. Fortunately, an associate may have

several analysts on his or her staff to help reduce the workload. An associates job is simple,

make the boss look good (James Libman). Although the job is still tedious, the pay is

improving.


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A junior associate must be very flexible and willing to travel. It is not uncommon to be

receiving orders to fly to the other side of the planet tomorrow and to stay there indefinitely.

Some of the other crucial skills for an associate are finding compatible companies, dealing

with huge egos, performing well in groups, taking control of meetings, and arranging for

client meeting. The ability to use Excel and generate spreadsheets in your sleep(James

Libman). The ability to work under pressure is also very important. Impossible deadlines are

a part of the daily routine for an associate.

Benefits of a Career in Investment Banking

Investment banking provides the perfect opportunity to learn about money. The ability to

invest properly can secure a persons financial independence.

Another benefit of a career in investment banking is the ease of entry. A degree in virtually

every area of study will enable a person to secure a position as ether an analyst or an

associate. Additionally, with booming market, finding a job has never been easer.

A career in investment banking may also provide an excellent opportunity to see the world.

Expect to do quite a bit of traveling in the early stages of a banking career. It is verycommon for banker to visit more cities and countries around the world by the age of twenty-

five, thenmost people do in a lifetime.

A high salary is an important factor in deciding on a career. Investment banking offers a

salary range almost without bounds. Salaries as high as $235,000 are available straight out of

business school (Careers in Finance). Later in the career, a salary can grow to as much as

seven or eight digits.

Drawbacks of a Career in Investment Banking

Extremely long hours and relatively low salaries at the first stages of the career in investment

banking as well as strenuous work schedule may be significant drawbacks. It takes a lot of

hard work and patience in order to succeed in this field. Constant pressure to meet deadlines

and a lot of nights spent sleeping in the office can serve as a major deterrent for entering the

field of investment banking. In addition, the job may require a banker to constantly move

around the world. In order to succeed in investment banking one must be willing to give up

his/her social and personal life for a few years.


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Investment banker is required to design, analyze, and execute a variety of business transaction

with the ultimate goal to maximize financial profit. To succeed as an investment banker a perso

must be determined, goal oriented, and dedicated. An investment banker must posses

communicational, analytical, and interpersonal skills.

A college graduate with a degree in an assortment of majors of study with a strong analytica

ability should consider investment banking as a possible career choice. Investment bankin

offers a challenging and exciting career that provides substantial financial rewards. With higsalaries and good prospect for upward mobility, investment banking may be an excellent caree

choice for anyone who is interested in business and finance.

If you are considering a career in business or finance and are interested in working with people

you should consider a career in investment banking. To decide if investment banking is a righ

career option for you, you should talk to investment bankers. Find and talk to bankers who are i

different stages of their careers in order to gain insights about the field. Try getting som

information from the investment banks. Getting an internship at an investment bank would n

only provide you with a wealth of information about the career, but would also allow you to star

developing a network of contacts. You should also lookup the references attached to this repo

for some additional information.

ANKIT SINGH

MIB (2012 Batch)


14/18

News

14

Obama budget to cut deficit by $1.1 trillion President Barack Obama's 2012 budget plan would slash the U.S. deficit by $1.1 trillion over 10years, officials said on Sunday, but Republicans were unimpressed and vowed to push fordeeper cuts in spending.

Sen. Schumer told NYSE to lead merged exchangeSenator Charles Schumer on Sunday said he was told that officials at NYSE Euronext, in talks tobe acquired by larger rival Deutsche Boerse, will have management control of the exchanges

company if they merge.

Egypt Sells $1.1 Billion Bills, First Sale Since Mubarak OusterEgypt sold 6.5 billion Egyptian pounds ($1.1 billion) of treasury bills in the North Africancountrys first auction after the resignation of Hosni Mubarak. The yields held around thehighest levels in two years.

US banks to outsource $5 bn of IT and back office projects to India US banks to outsource $5 bn of IT and back office projects to India. Citigroup, JP Morgan andBofA are set to outsource IT and back office projects worth nearly $5 billion this year to India, as

they seek to lower costs.

Hefty fine for 'insider trade' looms over Reliance IndustriesHefty fine for 'insider trade' looms over Reliance Industries. Attempt by the company to settlecase fails; Reliance Industries may have to shell out up to Rs 1,500-crore penalty.

Toshiba, NTPC in talks for carbon capture projectNTPC is in talks with Toshiba Corp to build a pilot project in India for capturing and storingcarbon emissions, a Toshiba official said.

Black money: Switzerland willing to share Indians' Swiss bank account details

Black money: Switzerland willing to share Indians' Swiss bank account details. Switzerland iswilling to share information as part of New Delhi's effort to bring back an estimated $1.4 trillionblack money in tax havens abroad.

ONGC share sale set to go ahead: Finance chiefOil & Natural Gas Corp will file for its planned share sale by the end of this month and stillexpects to launch the offer in mid-March, its finance chief said.


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Julius Baer Announces Buyback After Profit DeclinesJulius Baer Group Ltd., the 121-year old Swiss wealth manager, plans to buy back as much as500 million Swiss francs ($524 million) of shares after full-year profit declined 9.3 percent.

Danaher to buy Beckman Coulter for $6.8bnThe acquisitive US conglomerate has agreed to buy the diagnostic equipment maker as it seeksto expand its reach in the life sciences testing market

Wall St looks to boost market in US muni CDSWall Street is seeking to expand the market for derivatives that allow banks and investors to

profit from or hedge against bond defaults by struggling US states and local governments

Russia Follows China in Raising Bank Reserve RatiosRussia, the only one of the so-called BRIC countries without capital controls, is following Chinaand Turkey in relying on reserve requirements to drain cash from the economy and avoid luringmore speculative investment

Egypt turmoil may worsen India's current account deficit: CitiCrisis in Egypt could result in oil prices trending higher, which will impact India's alreadydeteriorating current account deficit, leading to inflation.

Direct tax collections up 20% in Apr-Jan this fiscalHelped by robust economic growth, the government collected Rs 3,17,501crore from directtaxes during April-January 2010-11, up 20.37 per cent from the year-ago period.

Cathay Pacific opts for Kerala IT firm's solutionHong Kong-based Cathay Pacific airline has signed a multi-million dollar contract to implementIBS' new generation solution iFly Staff to automate and improve the management of employeetravel.

Small car Reva maker Maini Group to make Airbus parts for A380 & A320Maini Group has bagged multi-million dollar contract from German engine maker MTU Aero-Engines to make components for Eurofighter Typhoon & Airbus

Deutsche Boerse in Talks to Buy NYSEA deal would create the worlds biggest stock exchange and unite equity and derivativesplatforms from the U.S. to Europe.

London Stock Exchange, Canadas TMX Gain on TakeoverLondon Stock Exchange Group Plc and TMX Group Inc. rallied after LSE agreed to buy the ownerof the Toronto Stock Exchange for about $3.2 billion in stock. The shares pared gains after NYSEEuronext said its in merger talks with Deutsche Boerse AG.


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Most Stocks Fall on Inflation Concern; Treasuries, Wheat AdvanceMost stocks fell, sending emerging markets down for a fifth day, amid concern rising inflatilead to higher borrowing costs. Wheat rose to the highest price since August 2008. The doand Treasuries rebounded.

Fannie, Freddie Could Be Phased Out Under Treasury Housing PlanU.S. Treasury Secretary Timothy F. Geithner will present Congress with three options for rthe governments role in the nations decades-old housing finance system and shrinkifootprint of mortgage companies Fannie Mae and Freddie Mac, according to two people fwith the plan.

ANKIT SINGH

MIB(2012 batch)

Answers to the Quiz

1) d A V Birla group

2) b 10 years

3) Food Corporation of India

4)c HDFC bank

5) b 1999

6)MarutiUdyog

7) US Dollar

8) Charlie Munger

9) S. Ramdorai

10) Michael Porter


17/18

CEO Corner

17

He's a "crown prince" when it comes to performance, but he has one huge handicap:

He doesn't speak German

Anshuman Jain (born 1963 in Jaipur , Rajasthan India) is a financier of Indian descent. He isa member of Deutsche Banks Management Board and, as head of the Corporate andInvestment Bank since July 2010, is globally responsible for Deutsche Banks corporatefinance, sales and trading, and transaction banking business.

Jain studied economics at Shri Ram College of Commerce at Delhi University, earning abachelor's degree with honors in 1983. He continued with a Master of Finance at theUniversity of Massachusetts Amherst through 1985.

After having finished university he started as an analyst in derivatives research at KidderPeabody & Co. (now part of UBS) where he worked from 1985 to 1988. After three years he

joined Merrill Lynch in New York where he founded and led the securities industrys firstdedicated hedge fund coverage group.

In 1995 Jain joined Deutsche Banks nascent markets business to set up and run a specialistunit focusing on hedge funds and institutional derivative coverage.

The appointment of Anshu Jain as sole head of Deutsche Bank's (DB) investment bank puthim in charge of more than 80 percent of the company's profit and reinforced his position as afront-runner to become chief executive. One catch: He was born in India and doesn't speakGerman, a potential handicap for an executive who must negotiate the corridors of political

power as well as global markets. "Based on performance, Jain is the crown prince," says LutzRoehmeyer, who helps manage about $15 billion at Landesbank Berlin Investment in theGerman capital. "But Deutsche Bank has a split personalitya global investment bank beingrun out of London and a German lender with a very political role. Any successor's key

challenge will be bridging these two worlds."

He took over the debt sales and trading division in 2001 and in 2004 was named co-head ofthe investment bank, with Michael Cohrs, who is retiring this year. Jain helped buildDeutsche Bank into a fixed-income powerhouse, more than doubling debt sales and tradingrevenue between 2000 and 2009. The investment banking division generated 78 percent ofthe bank's pretax earnings in the first half of this year.


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These days Jain, trim and graying, projects the poise and confidence of a seasoned investmentbanker. His speech, direct and precise, still carries a faint Indian accent. A cricket player andgolfer, he's competitive in both work and sport, colleagues say, and relishes opportunities to

prove his doubters wrong. He held a stake in the Mumbai Indians, a cricket team, until sellingit last year.

Deutsche Bank shone a light on Anshu Jain's compensation for the first time today,revealing in its annual report that its head of global markets earned 7.8m ($10.7m) in

compensation for the final nine months of 2009 after joining the management board.

The figure suggests his overall compensation for the year was roughly level with that of chiefexecutive Josef Ackermann, who was the highest paid board member earning 9.6m.

contributed byAnuratnMIB 1st year

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Finshastra Mid Feb