Two US financial services firms in merger talks that could create $3T powerhouse

A combination of an investment bank with a market cap of around $65 billion and an asset manager valued at around $21 billion would create a financial services powerhouse managing more than $3 trillion.

But for now, this scenario is speculative as the two firms in question have only had initial talks, according to a report from the Wall Street Journal, which cites unnamed people familiar with the matter as saying that at least one discussion took place between CEOs.

The world’s largest custodian bank, BNY, is said to have approached Northern Trust last week to test the waters on a potential merger. The sources claim that Northern Trust was not interested in pursuing a tie-up.

However, this does not mean a potential deal is off the table, with the story suggesting that BNY could return to Northern Trust with a formal bid.

Deals in the asset and wealth management space have been subdued in the second quarter due to economic and market uncertainty, according to a recent report from PwC which notes a slowdown following a post-election spike at the end of 2024 and the first three months of 2025.

At its annual conference earlier this month, BNY subsidiary BNY Pershing unveiled new reporting features, UMA functionalities, and a new advisor growth network, along with other updates.

Bob Savage, head of markets macro strategy at BNY, spoke recently with InvestmentNews anchor Gregg Greenberg to discuss the direction of the dollar and its impact on stocks and bonds both domestically and internationally.

Northern Trust has been bolstering its management team in the past year as part of its One Northern Trust strategy. This includes enhancing its client services operation,  making two strategic hires for its asset management business, and appointing a new chief investment officer for the asset management division.