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Warren Warns BNY Mellon-Northern Trust Merger Could Violate Antitrust Laws

By  |  July 22, 2025

Senator Elizabeth Warren has raised concerns about the potential merger between BNY Mellon and Northern Trust, warning that such a deal could violate federal banking laws and result in serious financial stability risks. According to Reuters, Warren, who serves as the top Democrat on the Senate Banking Committee and is a vocal critic of major banks, expressed her alarm in a letter to BNY CEO Robin Vince sent on Tuesday.

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    Warren’s letter, seen by Reuters, cautioned that a merger between BNY Mellon, the world’s largest custody bank, and Northern Trust, a major competitor in the custody services sector, would raise substantial antitrust concerns. The senator pointed out that the combined entity would control more than 30% of the custodial services market, leading to fears of reduced competition and potential price hikes. “Pursuing a merger that drastically consolidates a key market while supercharging the firm’s risk profile and systemic importance is irresponsible and may also violate federal banking laws,” Warren wrote.

    The senator further questioned the financial stability implications of the merger, which could lead to a firm with significantly increased market power and a heightened level of systemic risk. She requested a briefing on the status of any merger talks, as well as information on any ongoing discussions with regulators. As of now, BNY Mellon has declined to comment on the letter, and Northern Trust has not responded to requests for comment.

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    The proposed merger has gained attention after a report from The Wall Street Journal in June revealed that BNY Mellon had approached Northern Trust about the possibility of a merger, although Northern Trust has expressed its desire to remain independent. BNY Mellon has yet to make a public statement on the initial report.

    The growing interest in large bank mergers comes amid a broader discussion among regulators, particularly those appointed during the Trump administration, about refining the merger review process. This follows a more cautious stance taken by the Biden administration regarding deals among major financial institutions.

    In her letter, Warren emphasized that such a deal would likely harm customers by reducing the already limited choices available for institutional clients seeking custodial services. She argued that further entrenching BNY Mellon’s dominant market position would give the firm greater leverage to increase fees and reduce incentives for innovation, ultimately undermining customer service.

    “Further entrenching its already-dominant market position would enable BNY to hike fees and increase prices, undermine its incentives to innovate, erode its customer service, and reduce the already-limited choices available for institutional clients looking for custodial services,” Warren warned.

    Source: Reuters