Traders Blame Regulatory Crackdown for ‘Arb

Lina Khan, chair of the Federal Trade Commission

Yiqin Shen

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Hi, it's Yiqin Shen in New York, looking at the state of play for the merger arbitrage community, after this corner of the Wall Street got stung by Washington's aggressive antitrust ruling. Elsewhere, behind the scenes of the shock PGA-LIV merger and the latest from private equity's annual Berlin meet-and-greet. Today's top stories

It has been a disastrous stretch for the merger arbitrage community, dubbed "arb-ageddon" by DuPont Capital Management. Major setbacks in three of the largest pending transactions—Horizon Therapeutics, First Horizon and Activision—snowballed, causing painful ripple effects across their positions.