Here’s an Idea for Goldman: Buy Bank of New York Mellon

Here’s an Idea for Goldman: Buy Bank of New York Mellon
On top of that, if Goldman could cut as much as 20 percent of its target’s expenses, those would be worth some $17 billion once taxed
and capitalized — enough to justify paying a 30 percent premium to Bank of New York Mellon’s current market value.
Finally, as much as banks’ mood about regulation has brightened in the past year, allowing two systemically important financial institutions — one in trading, the other in clearing
and custody — to hook up has been taboo for a decade.
But buying $56 billion Bank of New York Mellon could be a better fix — if only the asset-management
and custody specialist weren’t in a different league.
If the two were to combine, Goldman would get hold of more than $33 trillion in assets under custody
and supervision — think clearing, cash management, global payments and the like.
First, Bank of New York Mellon may not relish losing its independence, and Charles W. Scharf took over as its chief executive only last summer.
Marrying Bank of New York Mellon also would reduce Goldman’s reliance on trading.