Case | HBS Case Collection | October 2009 (Revised February 2010)

Merger of Equals: The Integration of Mellon Financial and The Bank of New York (A)

by Ryan D. Taliaferro, Clayton S. Rose and David Lane

Abstract

Less than a month after the close of the merger between The Bank of New York and Mellon Financial, managers at the two firms realized that plans for combining their asset servicing businesses—and realizing the $180 million of annual cost savings that they had promised Wall Street—were fraught with risk. Senior executives must evaluate the seriousness of the risks and identify alternative ways of integrating the two firms, while safeguarding the technologies that process and clear a substantial fraction of the world's financial transactions.

Keywords: Mergers and Acquisitions; Asset Management; Financial Institutions; Risk Management; Integration; Information Technology; Financial Services Industry;

Citation:

Taliaferro, Ryan D., Clayton S. Rose, and David Lane. "Merger of Equals: The Integration of Mellon Financial and The Bank of New York (A)." Harvard Business School Case 210-016, October 2009. (Revised February 2010.)