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Big Banks for Sale: A Buyer's Market or Dilemma?
March 14, 2008
The malaise that has dominated bank earnings coupled with dramatic hits to bank capital ratios and stock prices has created an opportunity for buyers. A number of large banks are now looking at severely depressed stock prices and multiples that have approached or dropped below book value.
Is now the time for a buyer to step up and take out a struggling big bank? If so, who are the most likely buyers and sellers? If not, when will it make sense for a buyer to cut a deal? What are the odds that deals will be struck in the near term? Are existing M & A deals still going to close? What will be the impact on other market players and suppliers if more deals occur?
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