Financial firms face a "NEW WORLD ORDER" (my emphasis) after a weekend fire sale of Bear Stearns and the Federal Reserve's first emergency weekend meeting since 1979, research firm CreditSights said in a report on Monday.
More industry consolidation and acquisitions may follow..
Simpson Thacher & Bartlett LLP is one of the oldest and most prestigious law firms in the United States...Simpson Thacher is renowned for its litigation and corporate practices, with special attention focused on its mergers and acquisitions specialty. The firm has particularly important relationships with private equity firms such as the Blackstone Group and Kohlberg Kravis Roberts.
Oct. 29 (Bloomberg) -- The U.S. government's $160 billion handout to banks from Niagara Falls to Beverly Hills is going mostly to lenders that need it least, putting weaker rivals at risk of being shut down or taken over, analysts say.
``This has the unintended effect of making the strong stronger and the weak weaker,'' said Gray Medlin, founder of Carson Medlin Co., a Raleigh, North Carolina, investment bank focused on banking deals. ``Banks that are getting bad exams and are under intense pressure from regulators won't be successful in applying.''
Has the Treasury partially nationalized the private banks, as we have been told? Or is it the other way around? Is it Treasury that has been partially privatized by Wall Street, its massive rescue plan now entirely in the hands of a private bank it is directly subsidizing?
. $ 8 Billion loan from Citigroup Inc. to Dubai public sector entities made on or about December 14, 2008. Win Bischoff, then-Chairman of Citi, said about the transaction, "'We continue to place the Gulf region among our globally most significant markets." Citi received $25 Billion of TARP funds on October 26, 2008.
. $ 1 Billion investment by J.P. Morgan Treasury Services in development of cash management and trade finance solutions in India made on or about November 11, 2008. J. P. Morgan Treasury Services is a wholly owned subsidiary of J. P. Morgan Chase & Co. J.P. Morgan Chase & Co. received $25 Billion in TARP funds on October 26, 2008.
. $ 7 Billion investment by Bank of America in China Construction Bank Corporation, after November 1712008. This purchase constitutes the exercise of an option acquired from China SAFE Investments Limited (Huijin). Bank of America received $25 Billion in TARP funds on October 26, 2008.
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