Bank Watch: Stocks slide, and banks suffer
[Posted on December 1, 2008 at 12:32 PM]
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Filed under: Banking | Corporate restructuring | Crisis On Wall Street | M&A
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Filed under: Banking | Corporate restructuring | Crisis On Wall Street | M&A
Stocks slid Monday morning. The Dow was down 370.60 at 8,458.44, the S&P 500 fell 42.37 to 853.87, and the Nasdaq slid 68.12 to 1,467.45. Financial stocks came up short Monday morning.
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Things are going to get ugly in Europe ... at least that's what movement on credit default swaps for European corporate debt are indicating. The Markit iTraxx Crossover index, a measure of the spreads on swaps for 50 mostly junk-rated European corporations, rose 39 basis points to reach an all-time high of 929 basis points Monday, according to 
Well, it looks like Morgan Stanley may really acquire regional retail banks to bulk up and convert into a bank holding company. In October the bank raised $3 billion in certificates of deposit during part of its broader plan to build deposits.
Though most of the attention in recent weeks focused on the tribulations of General Motors Corp., it is important not to forget that Detroit's other automakers are also scrambling to cut costs and survive a severe sales decline that is plaguing the industry.
As Black Friday approaches, retailers are scrambling to meet business plans, especially with activist investors clamoring for changes. According to CNBC 
Although Goldman Sachs Group Inc. is a bit bruised and disheveled from the global financial crisis, the New York-based bank is not desperate and won't pull a trigger on a deal just for the sake of cushioning its wallet in these lean times. Just ask electronics maker Panasonic Corp.
President-elect Barack Obama is not wasting any time. He wants to hit
the ground running on Jan. 20 and is creating the President's
Economic Recovery Advisory Board to help. During his third news conference on
the economy in as many days, Obama said Wednesday the board will
be headed by former Federal Reserve Chairman Paul Volcker and work
outside the White House to provide "independent, nonpartisan
information, analysis and advice" to the government on economic recovery.
The president-elect says the board will be established for a two-year
term and will comprise experts from business, labor and
academia. Additional members will be announced at a later time. 
The bleak predictions coming out of top private equity dealmakers are starting to pile up, as the industry braces for the dismal task of writing down the value of portfolio companies purchased at sky-high valuations in 2006 and 2007, when easy debt made almost any deal seem like it could be profitable. Charles Sherwood, a partner at U.K. buyout shop Permira, predicted that it would take a "mathematical miracle" for any equity value to be left in many of the deals from that heady period, 
Lehman Brothers Holdings Inc. may have gone bankrupt eight weeks ago, but the filing continues to reverberate throughout the financial world and even in some unexpected places 
