http://blogs.wsj.com/deals/2008/09/16/deals-of-the-day-what-will-the-new-wall-street-look-like/?mod=googlenews_wsj
September 16, 2008, 7:58 am
Deals of the Day: What Will the New Wall Street Look Like?
Posted by Deal Journal
By Stephen Grocer and Heidi Moore
/Deals of the Day includes all the major news of the morning related to
mergers and acquisitions and financing. For breaking deal news, turn to
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<http://online.wsj.com/public/page/deals.html?mod=2_0029> or click here
<http://blogs.wsj.com/deals/2008/09/16/deals-of-the-day-what-will-the-new-wall-street-look-like/%3Ca%20class=>
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The Game
*Envisioning a New Wall Street:* The modern Wall Street is dead. Here
are four trends that will determine the shape of the future. [WSJ
<http://online.wsj.com/article/SB122152115872039347.html>]
Crisis on Wall Street
The convulsions in the U.S. financial system sent markets across the
globe tumbling, as two of Wall Street’s biggest firms looked set to exit
the scene and insurance titan American International Group Inc. turned
to the Federal Reserve and the state of New York for assistance. [WSJ
<http://online.wsj.com/article/SB122152314746339697.html>]
Lehman Brothers is negotiating a last-minute plan to sell large portions
of itself to Barclays. An agreement is hoped to be reached by Tuesday.
[WSJ <http://online.wsj.com/article/SB122149661255536931.html>]
/Related:/ Lehman’s bankruptcy-court filing had rivals trying to lure
the firm’s clients without looking like ambulance chasers. [WSJ
<http://online.wsj.com/article/SB122152975860140729.html>]
/Related:/ Now that Lehman has been fed to the wolves, what’s next, asks
Ambrose Evans-Pritchard, [Daily Telegraph
<http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/16/ccambrose116.xml>]
*What is old, is new again:* The balance of power in the banking
industry is shifting to the old-fashioned business of chasing customer
deposits and building branch networks. [WSJ
<http://online.wsj.com/article/SB122151242235938477.html?mod=special_coverage>]
*All eyes turn to AIG:* Standard & Poor’s cut AIG’s credit rating by
three notches but it was unclear what direct effect the move would have
on the company’s abilities to meet its obligations. [WSJ
<http://online.wsj.com/article/SB122148503202636197.html>]
*Finally, part of the club:* Bank of America CEO Ken Lewis couldn’t help
but crow yesterday about his momentous purchase of “Mother Merrill.”
[WSJ <http://online.wsj.com/article/SB122152741171440359.html>]
*Before Bank of America, there was Goldman:* Merrill Lynch explored
selling a minority stake in the brokerage to Goldman Sachs before
deciding to negotiate an acquisition by Bank of America. [WSJ
<http://online.wsj.com/article/SB122152630466040217.html>]
*HBOS:* Shares of Britain’s biggest mortgage lender fell by more than
17% Monday. Friends Provident, Bradford & Bingley and Royal Bank of
Scotland also saw big falls. [The Independent
<http://www.independent.co.uk/news/business/news/hbos-shares-plunge-in-lehman-crisis-931048.html>]
*The worse may not be over:* “The irony is that yesterday’s traumatic
events may prove cathartic for financial markets; the necessary and
painful adjustments to an unsettling new reality. For everybody else,
unfortunately, catharsis seems some way off,” writes Gerard Baker.
[Times of London
<http://business.timesonline.co.uk/tol/business/columnists/article4761891.ece>]
/Related:/ “Soon enough we will discover if the core of Western finance
is just an elaborate Ponzi scheme, underpinned only by new waves of
suckers, or an imperfect but flexible machinery that, despite its flaws,
has the capacity to withstand shocks. Either way, it seems to me,
Paulson was right to turn off the tap. If the system is rotten, why
shore it up? If it’s not, then it will - somehow - survive without more
state aid,” writes Jeff Randall [Daily Telegraph
<http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/16/ccjeff116.xml>]
/Related:/ As the credit crunch enters a new and more lethal phase, all
prediction has become essentially worthless, writes Jeremy Warner. [The
Independent
<http://www.independent.co.uk/news/business/comment/jeremy-warner/jeremy-warners-outlook-wall-street-and-the-city-get-their-comeuppance-932149.html>]
Mergers & Acquisitions
*British Energy:* The U.K. energy firm is on the brink of a deal with
EDF, as the boards of the two companies are scheduled to meet to
consider a sweetened £12 billion-plus bid. [Times of London
<http://business.timesonline.co.uk/tol/business/industry_sectors/utilities/article4760960.ece>]
*BASF:* The German firm launched a friendly offer to buy Ciba, a Swiss
specialty chemicals maker, for almost $3 billion. [WSJ
<http://online.wsj.com/article/SB122145978942335629.html>]
Bankruptcy & Restructuring
* Bringing back Alitalia’s rescue plan:* A plan to rescue Alitalia was
partially revived as some labor unions signed a draft deal with
potential investors, but a deal must be reached with other unions for
the airline to keep flying. [WSJ
<http://online.wsj.com/article/SB122147466554736001.html>]
People & Players
*Severance Packages:* The regulator of Fannie Mae and Freddie Mac
provided details on planned payments to the companies’ recently ousted
chief executives. [WSJ
<http://online.wsj.com/article/SB122151799460638921.html>]
*
Moelis & Co.*: The advisory boutique is opening an office in London,
which is its first office outside the U.S. [eFinancialNews.com
<http://www.efinancialnews.com/usedition/index/content/2451824956>]
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