In a $16.5 million deal Bank of New York (BK) and Mellon Financial Corp. (MEL) will merge and create a securities-processing powerhouse.
The combined company will be called the Bank of New York Mellon Corporation and will be based in New York. The New York Bank was founded by Alexander Hamiltion in 1784.
Eight years ago the Bank of New York tried to take over Mellon with an unsolicited offer that they unceremoniously rebuffed.
According to this NYTimes.com article the Bank of New York shed most of its struggling retail banking business by swapping many branches for J. P. Morgan Chase's corporate trust unit, a move that doubled the size of its debt-issuance recordkeeping business. Now, with this merger, the bank will surpass Morgan as the biggest player in the custody business.
The merged company will be the country's 11th-largest financial institution generating more than $12 billion in revenue, with more than 25 percent of that coming from overseas.
Read the full article here.
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