Buyout Fever Infects Financials

No sector of the economy is immune to the allure of private equity anymore.

Private equity shops have racked up more than $370 billion in global buyouts this year. The private equity gang is on pace to easily eclipse last year's record in terms of deal volume, at $730 billion.

The biggest headline getters have been megadeals such as the $43 billion offer by Kohlberg Kravis Roberts and Texas Pacific Group for Texas utility giant TXU (TXU Quote). This week, Warburg Pincus agreed to fork over $3.7 billion for struggling contact lens maker Bausch & Lomb (BOL Quote). Buyouts big and small have come in practically every business. ...