Friday, August 3, 2007

Now that a credit market freeze has crashed private equity firms’ dealmaking party, Bear Stearns Cos. and Lehman Brothers could be the investment banks left with the biggest hangovers.

LBO exposure may hit Bear Stearns, Lehman

If the debt from the deals gets stuck on those banks' balance sheets over a protracted period, that could limit their ability to finance other deals, as well as crimping other activities like trading. Bear Stearns is the investment bank most exposed to private equity activity, according to an Alliance Bernstein research note, with about 5.1 percent of total revenue coming from LBO firms, known on Wall Street as financial sponsors.

Posted by chris :-)) @ 02:27 PM (359 views)
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