Financial Services Deal Insights, October 2008

Introduction

This report contains extensive qualitative and quantitative analysis of monthly deal activity (including strategic alliances) in the banking, asset management, insurance, investment banking, capital markets and brokerage, and cards sectors across global markets, with a specific focus on key emerging markets. It offers insights into deal activity, deal rationale, and valuation trends.

Scope

• *Analysis through two deliverables analyst opinion on key deals (PDF brief), and monthly roundup with analysis of trends and drivers (PowerPoint)
• *Insights into deal activity across M&A, private equity, private placement, IPO, secondary offering, and strategic alliance deals
• *Analysis on all key sectors, namely banking, asset management, insurance, investment banking, capital markets and brokerage, and cards
• *Detailed analysis of the deal activity during the month, along with the trend for the last six months by deal volume and value

Highlights

• October 2008 will be remembered as the month in which the fallout from the global credit crunch truly fed through into mainstream financial services. Traditional M&A activities stalled as the international banking crisis drove massive global players into turmoil and forced governments to step in and inject capital into the banking sector.
• The US government pressed forward with its emergency relief program. The most significant element of this is the voluntary Capital Purchase Program, which made up to $250 billion of capital made available to banks and other financial institutions; a move that has effectively part-nationalised many household names in US financial services.
• Europe's governments also decided that recapitalisation by the state was the only way to try and bring an end to the immediate threat to the financial system. The European bailout has seen governments inject capital in return for equity stakes in several of its banks; a subtle but significant difference in approach to that of the US Treasury.

Reasons to Purchase

• *Understand which sectors are experiencing the most activity, and which type of investor, and advisor are playing the significant roles
• *Find out how key deals are changing the competitive landscape of your business
• *Find out how companies in financial services industry are raising funds through capital markets, private equity, and private placement deals

• Overview
• Catalyst
• Summary
  • Table of Contents
• Analysis
• October 2008 Was Dominated by Government Intervention in The Financial Services Sector
• The Slump in Global Stock Markets Highlights The Impact of The Crisis
• Datamonitor's Global Share Price Index Highlights The Impact of These Changes alongside Key Events in The Global Economy
• in A Very Real Sense, The US Government's $700bn Bailout of The Financial Sector Is The Biggest Deal of The Month
• Governments across Europe Have Stepped in to Rescue Their Domestic Banking Sectors
• Appendix
  • Definitions
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Top 10 largest US Treasury investments under its voluntary Capital Purchase Program as at December 08
• List of Figures
  • Figure 1: Global stock prices hit a low in October, amid frantic government intervention in the banking sector