Where have all the banks gone? Bank of New York Agrees to Acquire Mellon Financial

News moves quickly. Another bank merger!! If you have not already heard according to Bloomberg "Bank of New York Co. agreed to buy Mellon Financial Corp. for about $16.5 billion, creating the biggest custodian of assets for institutional investors almost a decade after Mellon rejected an unsolicited bid from the bank." The combined company will safeguard $16.6 trillion for institutions, topping JPMorgan Chase & Co. as the world's largest custody bank. It will manage $1.1 trillion in assets and have revenue of about $12 billion a year, the companies said today in a statement. The companies said they will cut pretax costs by about $700 million a year, or about 8.5 percent, in part by shedding about 3,900 of their 40,000 employees over three years. Restructuring charges from the merger, which the companies expect to complete by July 1, 2007, will be about $1.3 billion, they said in the statement."

Below is a ranking of custody banks by assets as of September, assuming the Bank of New York-Mellon merger:

Company Assets:

Bank of New York Mellon Corp. $16.6 trillion
JPMorgan Chase & Co. $12.9 trillion
State Street Corp. $11.27 trillion
Citigroup Inc. $9.6 trillion
BNP Paribas SA $4.56 trillion

Source: Company financial statements.

Visit: http://www.bloomberg.com/apps/news?pid=20601087&sid=aoXC0e3ZPnHU&refer=home for entire story.

If you are one of the unfortunate 3900 employees who happens to be in payment processing operations, post your resume on TAWPI's Careerlink http://www.tawpi.org/careerlink.html.