DealZone

Obama’s bank plan — good for M&A?

January 22, 2010

President Barack Obama’s plan to limit financial risk-taking could drive eager bankers, who had seen the juiciest business at the prop desks, to return to Mergers and Acquisitions — the former darling desk of Wall Street.

Picking a fight with the financial titans (that just last week sent their top executives to offer platitudes to Congress about the financial disaster they created), the administration unveiled a plan that would stop banks from playing with their own money to take risky positions – the so-called proprietary trading operations.

Way back when, these were small, cloistered parts of the business, shying away from attention and very much in the shadow of the mighty M&A side of the investment banking world.

Megan Davies reports that the move could force banks to shed parts of their private equity operations. Might that also provide another crop of bonus-hungry bankers for M&A?

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