Supplement | HBS Case Collection | October 2009

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

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

Abstract

[Continuation of "A" and "B" cases.] 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; Horizontal Integration; Financial Institutions; Business Processes; Risk Management; Strategy; Market Transactions; Assets; System; Saving; Banking Industry; New York (state, US);

Citation:

Taliaferro, Ryan D., Clayton S. Rose, and David Lane. "Merger of Equals: The Integration of Mellon Financial and The Bank of New York (C)." Harvard Business School Supplement 210-028, October 2009.