News that Bank of New York
The combination of BoNY and Mellon promises to eclipse the leading custody banks in terms of assets under custody. The Bank of New York Mellon Corp., as the firm will be known, will have more than $16 trillion of assets under custody, compared with the $13 trillion now at JPMorgan Chase
Mellon's substantial asset management business is another reason to look forward to next year. Asset management provides better growth opportunities and stronger profit margins than the asset servicing activities of trust banks. Consequently, firms heavily involved in both asset management and asset servicing businesses, such as State Street
The Motley Fool CAPS community shares a favorable outlook on BoNY, with 25 outperforms and just four underperform ratings on the stock. Highly ranked CAPS member jfjf88 considers the bank's growing size an asset and says, bring on the volume. Bank executives project that efficiencies will soon lead to an 18% improvement in the pre-tax profit margin.
The Wall Street community seems enthusiastic about the leadership of Robert Kelly, who is CEO of Mellon and will become CEO of the combined firm after the merger. Kelly played a successful role at Wachovia
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