Monday, August 6, 2007

Banks Fight For Blackstone Business

Another quick look at the ratings for Blackstone Group indicate that despite all current indications to the contrary and the potential for massive tax increases on the company by a Democratic congress, big banks still will not piss off a potential big customer

Here is the list (updated as of Friday)

Credit Suisse (CS)= Outperform

Lehman (LEH)= Outperform

Morgan Stanley (MS)= Overweight

Merrill Lynch (MER)= Buy

Deutche Bank (DB)= Buy

Citigroup (C)= Buy

Bank Of America (BAC)= Buy

Wachovia (WAC)= MarketPerform

All great ratings for a company with a deteriorating business environment, tightening credit markets, political hostilities, and increasing competition.

I have to wonder that if Blackstone did not generate almost all it's business through loans made by these very companies that generate billions in fees for the banks, would the ratings be so good? If they sold candy, had no real use for the banks and had the same current business environment, would they still be a "outperform"?

I do not think so either...

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