The Two Sides of Chaos in M&A
Published October 3, 2011 1:50 PM
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Updated October 12, 2011 11:52 PM
1 Min Read
It's Not Over, Over There
"I do think it is a moment everywhere, including in America, to be worried about Europe ."
— J. Christopher Flowers, founder of J.C. Flowers & Co. (Image: Bloomberg News
Trying to Keep Perspective
"[Banks] are probably sitting with capital ratios twice those, when you look at Tier 1 common, than at the beginning of 2008. The U.S. banking system has revenue challenges … but as far as balance sheet solidity and liquidity I would say they're in much better shape."
— H. Rodgin Cohen, senior chairman, Sullivan & Cromwell LLP
The Economy Giveth …
"In terms of stress like this, there are opportunities everywhere. The number of assets we've seen come on the market has increased exponentially."
— P. Olivier Sarkozy, managing director and head of global financial services, Carlyle Group (Image: Bloomberg News)
…And the Economy Taketh Away
"We don't see much activity based on the combination of uncertainty and low valuations ."
— Jonathan Pruzan, managing director and co-head of global financial institutions, Morgan Stanley.
Fire Sale
Some big banks "need to get smaller. … [I]n the end, the assets that are sold tend to be good businesses that are not so capital intensive."
— Gary Parr, vice chairman, Lazard LTD (Image: Bloomberg News)
Disappointed Shopper
"We're disappointed to see the [bank M&A] opportunity evaporate ."
— Stephen Ross, chief executive of Related Cos. (Image: ThinkStock)
Inevitable Pipeline
"A lot of [small banks] are kind of throwing their hands up, saying, 'This is a losing game — I'm not going to be making any earnings any more.' "
— Wilbur Ross, chairman of WL Ross & Co. (Image: Bloomberg News)
Seeking Smart Growth
"We're never going to measure success by our branches. But we are in growth mode ."
— Irene Dorner, president and chief executive of HSBC's U.S. bank (Image: Bloomberg News)
Thin on Buying Opportunities
"Would you sell your house today if you didn't have to? Business owners have been the same way ."
— David Pruett, the vice chairman of BB&T Corp.'s insurance unit
Ready, Willing and Able
"We're already building a pipeline of targets ."
— A. Dwight Utz, ECB president and chief executive.
