M&A Feels Credit Crunch's Impact
By MICHAEL CONNOLLY
The latest to feel the impact of the credit crunch is the mergers and acquisitions market, with the collapse of two major multibillion-dollar deals and the near-collapse of a third this week as volatility in global stock and bond markets, slowing U.S. economic growth and banks' unwillingness to lend appear to be scaring away acquirers. At least for now, Asia remains a bright spot.
Meanwhile, U.S. Treasury Secretary Henry Paulson called Wednesday for additional oversight of investment banks by the U.S. Federal Reserve following the central bank's decision last week to give them access to the central bank's credit. Mr. Paulson's suggested measures include greater access to information and public disclosure.
Economics editor David Wessel, in a wide analysis of efforts to date to get the U.S. out of the housing mess and ensuing credit crunch, says the past 10 days will be remembered as the time the U.S. government discarded a half-century of rules to save American financial capitalism from collapse. It happened without an explicit vote of Congress, and, though the U.S. Treasury hasn't cut any checks for housing and Wall Street rescues, billions of dollars of taxpayer money were put at risk. Yet it appears to have been necessary. Fed Chairman Ben Bernanke spent an academic career learning how to avoid repeating the mistakes that led to the Great Depression.
Read our report on the M&A market's decline by Dana Cimilluca in London and Rick Carew in Hong Kong:
http://online.wsj.com/article/SB120655723150165989.html?mod=djemasialinks
Read David Wessel's Capital column:
http://online.wsj.com/article/SB120657397294066915.html?mod=djemasialinks
Read Tom Barkley's report from Washington on Henry Paulson's call:
http://online.wsj.com/article/SB120654119555265465.html?mod=djemasialinks
Read Peter A. McKay's report on Wednesday's U.S. markets:
http://online.wsj.com/article/SB120652919820765211.html?mod=djemasialinks
Read Jackie Range's report from New Delhi on the Indian stock market's 21% fall so far this year:
http://online.wsj.com/article/SB120655900851466113.html?mod=djemasialinks
