Wall Street should fear academics

Wed, 07 May 2008 06:59:54 -0400

Wall Street firms would be wise to beware of academics out to make a name for themselves. There have been quite a few cases where professors have caught the eye of regulators: the order handling rules, way back when; the still on-going options backdating scandal. These are two examples of academia-driven regulatory actions. Which brings us to a new study by three University of Southern California professors. According to the New York Times, they have found evidence that "club deals may indeed be detrimental to target shareholders because they result in a lower price, on average, than in deals with a single private equity buyer." Shareholders basically get 10 percent less in club deals than single sponsor deals. It's unclear where the Justice Department's probe stands. This much is clear: There aren't many more club deals these days.

For more:
- here's the New York Times item

Related Article:
Meet the man who uncovered the options scandal

Get ready for Quattrone 2.0

Wed, 19 Mar 2008 07:59:58 -0400

Frank Quattrone spent four lonely years fighting the Justice Department, who really threw the book at him. But he prevailed after two trials; seven months ago a judge approved a request that all charges be dropped. The speculation since then has been heavy about what he'll do next. His answer: Qatalyst Group, an advisory and merchant banking outfit. It looks to be a blockbuster. His press release included quotes from, among others, Google CEO Eric Schmidt. No longer a pariah, he will not lack for business.

For more:
- here's the New York Times item

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Quattrone wins! No third trial. Article
Quattrone ready to take Wall Street by storm. Article
Frank Quattrone eyes a golden future. Article