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…
One reply on “Banks Fight For Blackstone Business”
An International open Buffet of lenders have a LOT of cash and Blackstone is top shelf on the borrowers list.Are they blustery,obnoxious and bold yes.Are they clever,successful and really never defaulted on a dime,yes.There are many customers like them they just hit the politically oriented ears of a few blustery Congressional People who have to please their constituants to keep cushy jobs and pensions.