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BNY Eyes $3 Trillion Powerhouse With Northern Trust Deal

1. BNY Mellon is considering acquiring Northern Trust. 2. Discussions have occurred, but no formal proposal exists. 3. Potential merger could enhance BNY's position in asset servicing. 4. Concerns exist regarding Northern Trust's independence and regulatory hurdles. 5. BNY's shares fell 2%, indicating investor skepticism.

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FAQ

Why Neutral?

While a merger could provide scale, lack of agreement and regulatory hurdles create uncertainty. Historical deals in similar situations often experience mixed outcomes.

How important is it?

The potential acquisition may shift investor perception and stock performance, but immediate agreements are unlikely.

Why Short Term?

The sentiment around acquisition talks can immediately influence stock prices based on news; however, long-term impacts depend on execution.

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