Will this all unwind?
Yesterday was a special day. In the late afternoon I visited Costco, which some people feel simultaneously represents everything that is both bad and good about the retail channel. The change in time over the weekend had made it so the setting sun shone through the front entrance, illuminating the Samsung 46 inch plasma, the
Treasury Secretary Henry Paulson, now that he’s got his initial $250b approved and $450b more if needed (which it will be), has said that it’s not going to quick enough to handpick illiquid securities to buy from banks to help them recapitalize—as the Troubled Asset Relief Program (TARP) plan initially called for. With global markets
Morgan Stanley, fresh off its announcement last week to convert from pure investment bank to commercial bank (Goldman Sachs did the same), has reached an agreement to sell a 21% stake of the company to Mitsubishi Financial for $9b. Earlier this year, Mitsubishi did the biggest bank deal of the year (at the time) by
UPDATE 1: Citi beat Wells on Wachovia, will acquire them for $2.16b. UPDATE 2: Morgan/Mitsubishi deal is done for $9b. The week opens with Wachovia a bit closer to a deal. There were a few suitors for Wachovia which is troubled by a $110b option ARM loan portfolio, including Citigroup, but Wells Fargo has emerged
Mitsubishi Financial, Japan’s largest bank, increased its bid today to take over the third of Union Bank of California that it doesn’t already own. It will buy the remaining shares for an estimated $73.50 per share, valuing the bank at $10.1 billion. It’s the biggest bank deal announced this year. This is relevant for California