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Saturday, November 21, 
9:18 pm

Reform talks have little impact on financial Deal Stocks

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bull.jpgDeal Stocks in the financial sector showed indifference to U.S. Treasury Secretary Henry Paulson's blueprint of reforms to the bodies that oversee the U.S. capital markets. The moves follow the lax oversight that resulted in the subprime meltdown leading to problems spilling into other parts of the domestic and global economy that includes the recent bailout of Bear Stearns Cos [BSC]. Overall, the Dow gradually advanced 98.35, or 0.81%, to 12,314.75, and the Nasdaq increased 24.36, or 1.08%, to 2,285.54. Here's a look at the performance of Deal Stocks in Monday midday trading:

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  • Bear Stearns backpedaled slightly following Paulson's announcement. Meanwhile, Bear's acquirer J.P. Morgan Chase & Co. [JPM] moved up. Investors are still digesting J.P. Morgan's latest $10 per share offer for Bear.
  • Toronto-Dominion Bank [TD] completed its largest deal ever, acquiring Cherry Hill, N.J.-based Commerce Bancorp Inc. [CBH]. Under the cash-and-stock agreement, Commerce Bancorp shareholders receive 0.4142 Toronto-Dominion share and $10.50 in cash for each Commerce share tendered.
  • Meanwhile, Citigroup Inc. [C] announced a restructuring of its own, with the separation of its consumer bank and creation of a new division for its credit cards. Analysts reportedly say that the restructuring may lead to a spinoff or sale of the unit.

- Gerald Magpily





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