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2006-12-09 Home Front Economy

BoNY to have $17 trillion in assets under trusteeship or management.

Consider $17 TRILLON is more than 1 years GNP and it is all in control of BoNY.
More consolidation in the financial services market as the Bank of New York (BoNY) announces it will acquire Mellon Financial for around $17 billion. This combination of two top US money management companies is just another step in the consolidation of the custody bank field - the companies that do the often tedious work of managing and transferring money for other banks and hedge funds. It also gives the two institutions a strong position in the more glamorous world of asset management - the investment of money for rich individuals and institutions.

This is a coming together of iconic firms. BONY was established in 1784, Mellon in 1860. BoNY tried to make a hostile takeover of Mellon in 1998, but was fended off. The deal follows a similar one whereby Bank of America bought asset manager US Trust from the Charles Schwab group. Other trust companies, including State Street Trust and Northern Trust are now seen as potential takeover targets.

Over the past year, BoNY had already sold off its retail banking operations to JPMorgan Chase; in exchange BoNY received the corporate trust assets of JPMorgan. Chase/ (A $3.1 billion deal.)

The new entity will be a global leader in financial custody with $17 trillion in assets under trusteeship or management. The deal will result in the usual back-office savings, it is claimed, with about a tenth of the jobs form the combined companies on the block. In fact, since the trust bank operations are more of a technical, organizational task rather than an interpersonal job.

Posted by 3dc 2006-12-09 14:05|| || Front Page|| [27 views since 2007-05-07] Top

#1 Now known as Bony M.

Posted by Grunter 2006-12-09 14:54|| 2006-12-09 14:54|| Front Page Top

#2 A friend of mine lives above a bank.

His assets over five million.

Posted by Zenster">Zenster 2006-12-09 23:18|| 2006-12-09 23:18|| Front Page Top

#3 So there are five million dollars in the bank vaults below?

Posted by trailing wife 2006-12-09 23:23|| 2006-12-09 23:23|| Front Page Top

#4 I used to be in the manager in charge of maintenance for a cemetery. I had a lot of people under me.

Posted by gorb 2006-12-09 23:32|| 2006-12-09 23:32|| Front Page Top

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