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Reuters – General Growth Properties Inc GGP.N, the second largest U.S. mall owner, on Thursday filed for bankruptcy protection on Thursday, making it one of the biggest real estate bankruptcies in U.S. history.
Ending months of speculation, the Chicago-based mall owner which listed total assets of $29.557 billion and total debts of $27.294 billion, sought Chapter 11 bankruptcy protection from creditors along with 158 of its more than 200 U.S. malls, while it seeks to restructure some of its debt.
Bloomberg – Switzerland’s asset managers and private bankers haven’t drawn much mirth from investing this year, making the timing of the “Art of Money” show in Lugano ironic.
The exhibition by New York-based artist Jenna Lash features a dozen brightly colored images based on currencies, some so familiar they’re taken for granted, and others extinct. Works on display feature pensive soldiers from the Lithuanian litas, a haunting Mahatma Gandhi from an Indian rupee, and a red, white and blue George Washington imitating the U.S. dollar.
“To finish a year that will go down as the ‘annus horribilis’ for money with a collection like this has beautiful irony,” said Klaus Muhlhausser, a German artist whose studio in a former typography factory a few blocks off Lake Lugano hosts the show through Dec. 13. “I’m one of the few people in Lugano not in the financial business, and this seemed a fun way to participate.”
Reuters UK – Switzerland’s fledgling hedge fund industry is set for strong growth in the coming years as the credit crisis forces the industry to focus on lower-cost centres and the country aims to lure managers back from London.
Lower living costs, as well as better personal tax rates than London in some cantons, improving tax terms for fund firms and a high quality of life are carrots Switzerland is dangling in front of continental European managers based in London.
And as the credit crisis and huge market volatility decimate returns in the hedge fund industry, Switzerland looks set to benefit as managers facing fee pressure and outflows look for cheaper places to relocate to in order to survive.
"London is still dominant, but we’re seeing some activity (new funds) in Geneva," said Mark Lewis, senior investment funds partner at Cayman Islands-based law firm Walkers Global.
Reuters UK – Britain’s temporary ban on short-selling financial stocks is irksome for London’s hedge funds and is another factor which could help undermine the city’s pre-eminent position in Europe as a hedge fund base.
Short-selling is a key trading strategy for hedge funds as they aim to profit regardless of whether a stock is rising or falling, but London’s curbs come as rival centres seek to attract hedge funds to bolster their financial sectors.
Switzerland, France, Luxembourg and Scandinavia have all begun to emerge as alternative options for hedge funds looking for lower tax and a higher quality of life.
The European industry could follow the U.S. model and develop in a number of regional centres, although London’s upmarket St James’s and Mayfair districts are likely to remain the heart of the industry in Europe for at least the time being.
Reuters – U.S. hedge fund Fairfield Greenwich Group has merged with Swiss private bank Banque Benedict Hentsch, bringing their combined assets under management to more than $18 billion.
The deal will allow Fairfield’s clients to access Banque Benedict Hentsch’s (BBH) suite of wealth management services and provide it a broader base of operations within Switzerland, according to a letter by Fairfield founding partner Andres Piedrahita to investors.
BBH gains added products and infrastructure support from the deal and the combined company will try to grow the private bank, the companies said in a statement.
The terms of the deal were not disclosed.
Geneva-based BBH, which was founded in 2004, serves institutional and private clients in areas such as banking, securities, foreign exchange, tax and estate planning, they said.
Evening Standard – Krom River, which has £453 million in assets, said it was moving to Switzerland, known for its low tax regime.
The fund is one of the few to perform well in the credit crunch and would see its partners’ income tax rate fall from 40 per cent to 10 per cent with the switch to the small town of Zug, south of Zurich.
The move makes the firm the latest to quit London for lower tax regimes. It came as HSBC fuelled fears of an exodus of leading companies. Three FTSE250 firms disclosed last month that they were leaving London.
The disclosure by Britain’s biggest bank that it was reviewing having its headquarters in London will heap more pressure on the Government to end uncertainty over its tax policies. Key tax concerns include government proposals to begin taxing "non-domiciled" foreign staff.
Times Online- Arpad Busson was 10 minutes late. As the 44-year-old financier (who is also actress Uma Thurman’s boyfriend) hobbled through the door of his Mayfair boardroom, it became apparent why.
“I’ve done my back in,” said Busson, in a hoarse French accent. The injury is an old one acquired on the ski slopes.
Born in France and educated “between France and Switzerland”, Busson skied as soon as he could walk. At the age of 13 he begged his mother to let him go professional — in downhill racing — but she wouldn’t allow it.
