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No. 2 - Is Dealmaking Done?

One of the biggest casualties of credit drying up may be dealmaking. Sources close to Fast Money tell us investment banking could be closing up shop for the summer. Should you care?

Dylan Ratigan says he’s hearing that M&A will slow down considerably over the next month.

Guy Adami agrees with Dylan, but he doesn’t think all dealmaking is over. Guy explains that US corporations have great balance sheets and companies such as Pfizer (PFE), Microsoft (MSFT), and Exxon (XOM) have more money on hand than perhaps ever before. He anticipates that they will put that money to work.

Pete Najarian says AIG (AIG) has a huge amount of cash on its balance sheet.

Eric Bolling says deals scheduled for August are already in due diligence. He doesn’t think they will be derailed.

Jeff Macke says the low-hanging fruit is gone. He thinks private equity will wait until Labor Day to resume M&A activity. He recommends selling Wendy’s (WEN) and Dillards (DDS) because he feels these stocks benefited from takeover speculation.

Guy Adami adds Lazard (LAZ) and Greenhill (GHL) could get beat up in this environment.

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Trader disclosure: On July 24th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (JWN) Bolling Owns (BP), (T), (XOM), Gold, Silver, Copper, Platinum