October ranks as the largest-ever month for completed leveraged buyouts, those debt-ladden deals that are giving Wall Street a bad case of indigestion.

Led by TXU, the largest completed LBO at $32 billion, global buyout volume this month already stands at $119.8 billion via 112 deals, according to Dealogic. The second highest month was in November 2006 with $84.0 billion via 175 deals that closed.

While such a record would seem worthy of champagne and cigars, it’s actually inflicting a lot of pain on Wall Street. Indeed, the huge volume of deals this year followed by the credit crunch dealt a big body blow to banks.

Crapulous investment bankers are struggling to find buyers for leveraged loans that financed the deals — which, combined with writedowns on mortgage loans, have cost the banks billions –  and maybe Merrill’s Stan O’Neal his job.

If anything, the record LBO closure record this month is a sign of the peak– welcome news for banks getting hammered by writedowns. Dealogic’s stats on buyouts completed globally is below.

(Photo. Librado Andrade of Mexico is sent to his corner by referee Jay Nady after knocking down Yusaf Mack of Pennsylvania during their super middleweight fight at the Mandalay Bay Events Center. Reuters file)