FT News Briefing Wall Street banks net record fees, Johnson channels FDR, remdesivir cost
Jun 30, 2020
Wall Street banks have thrived during the pandemic, raking in record fees through emergency fundraising. Meanwhile, UK Prime Minister Boris Johnson plans significant infrastructure investments reminiscent of FDR's New Deal. The cost of Gilead's remdesivir treatment raises eyebrows, priced at $2,340 for a five-day course. Additionally, there are rising concerns about China's national security law, which may threaten Hong Kong's financial transparency and its status as a crucial capital-raising hub for Chinese companies amid geopolitical tensions.
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Record Investment Banking Fees
- Investment banking fees hit a record $57B in the first half of 2020, up 9% year-over-year.
- This surge is driven by increased debt sales as companies raise cash during the pandemic.
Companies Raising Capital
- Companies like Ford, Boeing, and Carnival raised capital through debt offerings during the pandemic.
- This led to record profits for top investment banks like JPMorgan Chase and Goldman Sachs.
UK's Infrastructure Plan
- Boris Johnson announced a £5B infrastructure plan, referencing FDR's New Deal.
- The plan includes hospital maintenance and school building but isn't new economic stimulus.