Dodd-Frank Act - White Paper - J.P.Morgan Cazenove: Regulatory Arbitrage series: OW European over US IBs

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Global Investment Banks: Regulatory Arbitrage series: OW European over US IBs, March 8, 2011

In response to the impending Dodd-Frank regulatory changes in the U.S, J.P. Morgan Cazenove Global Equity Research conducted a study on the likely impact of such regulatory reform on investment banks (IBs) and credit banks (CBs).<ref>Regulatory Arbitrage series: OW European over US IBs. J.P.Morgan. Retrieved on March 15, 2011.</ref> The study, which was published on March 8, 2011, combines the company's three-part series on regulatory arbitrage with additional research on such topics as executive compensation, proprietary trading, and the Basel 3 regulatory framework. It concludes with its investment banking "pecking order" and the rationale behind its preferences, which rank European institutions such as UBS, Credit Suisse above U.S.-based investment banks Morgan Stanley and Goldman Sachs.

Listed below are the key topics in the study, and their corresponding page numbers:

  • Page 3:Portfolio Snapshot
  • Page 6:Investment Case and Valuation
  • Page 22:Regulatory Arbitrage I: Tougher than expected Volcker rules undiscounted
  • Page 33:Key terms from Dodd-Frank Act on “Proprietary Trading” 33
  • Page 42:Regulatory Arbitrage II: EU compensation analysis – favors Global IBs over EU IBs
  • Page 46:Compensation Regulation and disclosure creates an equal level playing field
  • Page 49:Basel 3 framework -“Building buffers through capital conservation”
  • Page 50:Key Points from the EU Compensation Regulation
  • Page 62:Regulatory Arbitrage III: Section 716, pushing part of derivatives out of the US depositary bank
  • Page 77:Valuation Methodology and Risks


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