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BNY Reportedly Pitched Merger to Northern Trust
- Bank of New York Mellon (BNY) has reportedly approached Northern Trust about a potential merger, aiming to combine two major asset-servicing businesses.
- The deal, if successful, would create an investment-management giant overseeing more than $3 trillion.
- CEOs of both institutions have had discussions, but no specific offer has been made yet.
- BNY is considering its next steps, which may include presenting a formal offer to Northern Trust.
- However, it is uncertain if the talks will result in a merger.
- The Trump administration has shown willingness to approve major bank mergers, which have been uncommon in recent years.
- The Federal Deposit Insurance Corp. (FDIC) has proposed rolling back oversight policies for large bank mergers, signaling a potential shift in regulations.
- Under the previous rule, mergers involving institutions with assets of $100 billion or more would undergo increased financial stability analysis.
- Bankers have been advocating for a relaxation of regulations for merging or establishing new banks.
- Recent research indicates that banks offering real-time payments to businesses highlight enhanced payment tracking as a significant benefit.
- Real-time payments offer businesses operational transparency and improved cash flow management.
- Northern Trust, with a market value exceeding $21 billion, has seen its share price rise by 9% this year.
- BNY and Northern Trust have not provided official comments on the potential merger.
- BNY's return with a formal offer to Northern Trust remains a possibility.
- The outcome of the merger talks is uncertain at this time.
- The article discusses how real-time payments benefit businesses in managing cash flow efficiently.
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