End of Poolings of Interest Could Slow Mergers but Help Financiers
Tarquinio, J. Alex, American Banker
Commercial bankers may not like the possibility that pooling-of-interest accounting for mergers will be eliminated, but the move could create a money-raising boomlet for securities firms.
Banks and other companies planning mergers would, under a proposed accounting change, be required to lay out more cash up front. That, in turn, would mean more loans, bond issues, and other financings, experts said.
Lewis W. Coleman, chief executive officer of Bank of America Corp.'s securities affiliate, NationsBanc Montgomery Securities LLC, said in an interview here that much of the additional financing business will go to securities firms aligned with banks. …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: End of Poolings of Interest Could Slow Mergers but Help Financiers. Contributors: Tarquinio, J. Alex - Author. Magazine title: American Banker. Volume: 164. Issue: 92 Publication date: May 14, 1999. Page number: 1. © 2009 SourceMedia, Inc. COPYRIGHT 1999 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.