peHUB Second Opinion 9.15.08

The Sky Is Falling Edition

The Deal Professor: One of the few rational takes on the day’s events. Deal Professor offers a bittersweet list of lessons learned. Like John McCain, he agrees that “the sky is not falling” (see #7).

FT: A slightly harsher take on the reason for black Sunday from FT’s Avinash Persuad.

Dealbook: Don’t rule out a Neuberger sale yet, kids. Bain, KKR, CD&R and Hellman & Friedman are all still in talks for the busted bank’s investment management division.

Dealbook: Why old fashioned advisory suddenly looks appealing. Worth quoting, Teitelman writes:

When we have the time to look back at the last decade or so, we may well see two new trends: the slow unseating of Wall Street investment banks at the hands of institutions with bank pedigrees and regulatory oversight; and the creation of a parallel universe of firms, many private — some of whom, particularly the hedge funds — were active in the speculative pressures that took Bear, Lehman and Merrill off the table.

Dealscape: Wall Street’s woes extend to Jersey, too.

Me: Why has no one run with “Bank of AMerrillca” in a headline yet? Because I am a sucker for horrible puns and the only one entertained by it? Oh, right, that’s why.

Dealscape: WR Ross is seeking to draw a connection between this weekend’s events and his firm’s buyout strategy of taking over distressed financial businesses. Ross predicted 1,000 more bank closures. I believe he was referring to regional, consumer facing back branches here.

Big Picture: Lessons to learn from Bear Stearns (though I’m not sure who these lessons are directed at). The most interesting thing is the blog’s assertion that Bear Stearns’ bailout could have also been a preventative JPMorgan rescue, since the firm owned 40% of Bear’s derivatives.