Friday, November 19, 2010

Recent Milwaukee Biz Times Article on Merger Trends - Dr. Krause Commentary

Dr. Krause and Stanley Nunoo

Dr. David Krause, director of the Applied Investment Management program, discussed the likely growth in the pace of mergers and acquisitions in 2011. The story appeared in BizTimes Milwaukee, Nov. 12-25, 2010.

"David Krause, assistant professor of finance at Marquette University and director of its applied investment management program, said the pace of mergers and acquisitions is likely to grow in 2011 because of large cash reserves held by many companies and private equity firms.

However, uncertainty created by the Dodd-Frank financial reform bill will keep acquisitions within the financial sector to a minimum for the next six to nine months, as regulators begin crafting the actual rules within the regulation, Dr. Krause said.

“The regulations haven’t been written yet,” he said. “Now that we know who will be the chairs of the committees, in the next six to nine months we’ll know what aspects of the law will not be as strong, and which will be more strong. In this space, until the financial regulations are determined, there will not be a lot of consolidation. Give it nine months and then the banks will have some clarity.”

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