Chrysler For Sale. Sold.
The biggest piece of business news this morning is the sale of 80 percent of Chrysler to a private equity firm, Cerberus Capital. As John Berlau, I’m sure, will comment, the fact that a private equity firm is doing this may result in part from Sarbanes-Oxley. Particularly for a vastly complicated company like Chrysler, it must be very attractive to escape from the “Sarbox trap.” I don’t think that can explain the entire rise of private equity or this merger but, if nothing else, Sarbox has given private equity firms more capital to take over major companies.