With Wall Street I-banks continuing to flounder through the credit crisis and the dollar near historic lows, firms like Lehman (LEH), Goldman (GS), and Morgan Stanley (MS) may be vulnerable to foreign takeovers, says Ralph Silva of TowerGroup.
Speaking to CNBC, Silva suggested that European banks, which are less exposed to the credit crisis than their American counterparts, could use the turmoil to snatch up under-valued American brands:
Some of the players that might be in play for this are companies like HSBC or Sandander who have done relatively well through this, they’re well capitalised… The European and Asian markets are not following the same trend here. The European banks have kitchen-sinked most of their writedowns so most of the problems have gone away
Silva singled out Lehman Brothers, Goldman Sachs, and Morgan Stanley as potential targets.