As major stock indexes continued to slide on Wednesday, there were fears that the choppy markets would cool the recent deal-making frenzy. Volatility is the enemy of all deal negotiations, and many Wall Street firms have been banking on China, where the recent stock slide was most severe, for much of their growth potential.
Brokerage stocks were especially hard hit on Tuesday, in part because of fears about their exposure to the troubled subprime mortgage sector.
Shares of securities giant Goldman Sachs slumped 8.4 percent on Tuesday, more than most of its peers, which analysts said was partly due to its minority stake in the Industrial & Commercial Bank of China, China’s largest private sector bank. Shares of Lazard, an investment bank that advises on mergers and restructurings, fell 4.6 percent.
Go to Article from The New York Times »
Go to Article from MarketWatch »
Go to Article from Reuters »
Go to Article from The Financial Times via MSNBC »