Mellon and BNY

So merger mania continued today with the announcement of an MOE between Mellon Financial and Bank of New York. The deal makes logical sense - the two companies are big in the securities servicing, a business where scale is huge. The money for institutions like BNY and Mellon is in catering to hedge funds that either need capital or need to borrow stock stock for trades.

Management is calling this an MOE, but, as the media has pointed out, BNY shareholders will control 63% of the company post-deal and command 10 out of 18 board seats.

Check out the Bloomberg article here.

Be sure to check out the companies' filing with a presentation outlining the deal.