Wall Street banks to preserve energy sources in European offices

Hi. I am Aaron Weinman. Banks on Wall Street – American and European – are literally turning off the taps to conserve power in their European offices, which are preparing for a freezing winter.

Companies like JPMorgan and Deutsche Bank are shutting down hot water and drinking fountains to mitigate the impact of the Russian government’s decision to stop the flow of gas to Europe via the Nord Stream 1 gas pipeline.

Russia – which was hit with sanctions after President Vladimir Putin opted to invade Ukraine – has said Nord Stream 1 will not reopen until those sanctions are lifted.

JPMorgan’s European offices completed power failure simulationtests that help the bank prepare for a power outage.

The Russian government’s decision to stem the flow of gas to European countries – which are heavily dependent on energy from Russia – is having a ripple effect on various parts of the global economy, from utility bills to currency volatility (stock up on your USD!).

Let’s dig into it.

If this was forwarded to you, register here. Download the Insider app here.

Office buildings including the headquarters of Deutsche Bank stand in the downtown financial district on March 7, 2019 in Frankfurt, Germany.

Thomas Lohnes/Getty Images

1. JPMorgan mulls using diesel generators to stay online as banks’ European offices contemplate life without the Nord Stream 1 pipeline. Deutsche Bank is turning off hot water in bathrooms and changing temperatures in its offices.

The German lender is also turning off the fountain and illuminated advertising outside its headquarters in Frankfurt.

Other financial firms, from France’s BNP Paribas to the insurance company Zurich, are also taking steps to preserve energy ahead of the coming winter cold. If things get worse, Zurich could close services like its office gym.

Financial services firms are reacting to Russian energy giant Gazprom’s decision to shut down a crucial pipeline for Europe’s energy sector.

This is the second time in recent months that Gazprom has shut down Nord Stream 1. The pipeline was shut down on August 31 for three days of maintenance.

Despite being brought back online on September 2, it was only operating at 20% capacity. The gas passes through the Nord Stream 1 gas pipeline under the Baltic Sea to Germany. It has historically provided about a third of the gas exported by Russia in Europe.

In Germany, natural gas accounts for around 27% of the country’s consumption. overall energy mix. Before Russia crossed the Ukrainian border, more than half of the gas consumed in Germany was imported from Russia.

Since then, European countries have been scrambling to obtain gas supplies from other countries such as Norway or the Netherlands. Germany has also sought to expand its infrastructure to enable it to import more liquefied natural gas from the United States and Qatar.

As temperatures in the Northern Hemisphere cool in the coming months, European homes and offices will struggle to diversify their energy mix and conserve existing energy sources to ensure homes and businesses stay heated .

In other news:

Kim Kardashian attends the New York City KKW Beauty Launch at ULTA Beauty in 2019.

Dimitrios Kambouris/Getty Images for ULTA Beauty / KKW Beauty

2. Kim Kardashian is teaming up with Jay Sammons, a former partner who ran consumer investing at Carlyle, to start a new private equity firm called SKKY Partners, the Wall Street Journal first reported. SKKY will focus on investing in consumer products, hospitality, luxury goods, digital commerce, media and entertainment companies. The Kardashian reality star, meanwhile, has built a $1.8 billion empire.

3. Broadcom’s $61 billion acquisition of VMWare is poised to expand its cloud efforts. But customers and employees say the deal ruins VMWare’s success. Insider took a deep dive into the frustrations bubbling up in the company’s ecosystem as the takeover progresses.

4. Twitter’s legal battle with Elon Musk has provided a clue as to who manages the billionaire’s fortune. Twitter has subpoenaed Jon Neuhaus, chief executive of Musk’s favorite investment bank, Morgan Stanley. Here is what we know about the wealth advisor. A judge, meanwhile, called the efforts of Musk’s legal team “suboptimal” and attempted his decision to waive due diligence on his original deal to buy Twitter.

5. British cinema operator Cineworld has filed for bankruptcy protection in the USA. The world’s second-largest movie theater chain has $1.94 billion in debt with existing lenders, and it plans to exit Chapter 11 in the first quarter of 2023. PJT Partners is financial advisor to Cineworld, while AlixPartners advises on restructuring. Kirkland & Ellis and Slaughter & May are the cinema operator’s legal advisers.

6. The death of former Bed Bath & Beyond CFO Gustavo Arnal has renewed scrutiny of the struggling retailer. Here’s a look at what led to this critical moment and whether the company will sink or swim from here.

7. Goldman Sachs internships have ended, but interns don’t have job offers (yet), according to efinancialcareers. Interns at the bank’s London office won’t know if they can convert their internships into full-time jobs for a few weeks after the end of the program.

8. Bank of America expects its new back-to-office policies within the next six to eight weeks, Bloomberg reported. The plans will be based on feedback the bank has received from staff surveys, chief executive Brian Moynihan said in a conference on tuesday.

9. Angelina Jolie’s former investment firm is suing Brad Pitt for $250 million. Firm alleges Pitt secretly moved assets and devalued former couple’s joint wine company, Château Miraval.

10. Miren, a fintech that helps lenders assess small business owners, just won a startup grant from Google. Here’s the 16-slide pitch deck the company used to help founder Gabriela Campoverde become a finalist for the David Prize, a $200,000 grant awarded annually to five New Yorkers.

Transactions concluded and removals:

  • Private equity investor Francisco Partners has acquired a majority stake in Kobalt, a music and technology company.
  • Antelope, a pet wellness company owned by Alpine Investors, has purchased Ark Naturals Company, another pet health and wellness brand. Ark will still operate under its brand name.
  • Bank of America has appointed JuliAnn Burkhardt as chief strategy officer for global investment bank, Bloomberg reported. Burkhardt – who joined BofA in 2007 – will succeed Dave Fishman. She was until recently Managing Director of the bank’s retail and retail investment banking division.
  • Truist has hired Hayes Smith to oversee private equity coverage for its investment banking arm, Bloomberg reported. He joined Credit Suisse. The Charlotte-based bank has also hired Chris Cormier to lead its equity capital markets business in technology, media and telecommunications. Cormier joins from UBS.

Organized by Aaron Weinman in New York. Tips? E-mail [email protected] or tweet @aaronw11.

Comments are closed.