Remember the Sallie Mae situation not too long ago when the firm continuously insisted it had a solid deal with banks and that it expected those banks to keep their commitments? Well, as the Financial Times points out, banks are being advised that it would be cheaper to walk away from such deals (and pay the breakup fee) rather than to take a loss. For many of you, this is not news. But it does suggest that we're in for more busted deals, especially as top banks struggle to work down their leveraged loan exposure. We'll likely see some big writedowns. In some cases, it will be unclear if the party most in favor of breaking the deal is the buyout firm or the bank. Both may agree.   

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- here's the article