The last thing FED needs is for some banks on this side of the pond to go under. They want this deal to go through and there will be pressure to merge FBP and DRL. Not sure who is taking who. Relative valuations probably already dictated by FDIC/Treasury.
Unfortunately more job losses, but stronger new bank going forward.
Well it would make sense to hold off on consolidation until 2012 if there is pretty good gaurantee the stock prices will not slide further and deteriorate confidence in the business. But from this viewpoint, you need rose colored glasses to see that scenario. I think just like 2008 early 2009 there will be some deals shoved through. I hope I'm wrong or I hope they at least make it look like a happy marriage with whoever.