Large deals just aren't getting done. We continue to see smaller deals, but companies are still hesitant to take any risk. This trend is likely to continue until the clouds of Enron, WorldCom and Arthur Andersen clear.

Depressed valuations may help fuel acquisitions in specialty finance and asset management and brokerage, as buyers can pick up strong franchises at discount prices. But as buyers continue to struggle with their own business and past deals, M&A will probably remain flat for some time.

M&A in insurance was bleak this quarter. Equity market jitters combined with accounting and reserve issues will likely keep M&A sluggish for the next couple of quarters.

There's uncertainty within the insurance industry, as companies are currently unwilling to take the risk of another company's business and infrastructure. There also have been plenty of rate increases, so there is not as much pressure to grow through acquisition.

We knew it would come down to this. I'm hoping we can get three of those singles matches.

There is lots of scope for European banking deals.