Odds ‘n Sods:
Remember how I predicted that the global credit crisis would spawn a wave of forced buy-outs, mergers, acquisitions, and liquidations? Here is news of another one: Washington Mutual close to $5 billion deal with TPG, others. Be prepared for more mergers, many of which will be cases of “strange bedfellows” involving credit unions, pension funds, and perhaps even cities (municipal bonds). Derivatives contract defaults will indeed force some very odd partnerships and salvage operations. If managers’ only options are bankruptcy or buying out the counterparty to a derivative, then guess which they will choose? o o o Frequent contributor …