BNY Mellon is just going to get smaller and smaller. They will see temporary benefits from layoffs and pitting people against each other. But that will pass, and they will be left with the reality that they simply don't know how to make their IT efficient. They will be sending 20,000 FAXES a day for the foreseeable future. Bridget isn't half the intellect Suresh was, and she knows it. He struggled, and she will struggle more. The board will grow impatient and eventually they will have to sell off portions of their business to focus on the few things they are good at.
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As I stated, they are prepping for a merger with JP MORGAN. Changes being made are in line with how they work. Also JP Morgan management has been join in ng BNY MELLON. This will happen shortly. Perishing will be sold off. Everett office will be shutdown.
They are setting up at least some of it to sell. The steps they are taking are typical. It has been inflated over the years, they are behind, and to change it is painful. This could have been done over the past 15 years slowly but the can got kicked down the road. They are a servicing bank, period. Wealth and PB will be sold. Tech will win the day and run it with half the people. Times are changing but it’s sad to see that the very people that got it here are being retained
Anyone who thinks these meager employee salaries are going to "modernize the IT infrastructure" is drinking way too much BNYM koolaid! Celine Dion is singing and the Titanic is taking on water...
Worry not, the SG&A saved jettisoning the dead weight will be used to modernize IT infrastructure and back end systems that will act as a force multiplier to a reduced but effective workforce. Visa services transactions by the billions seamlessly daily after all without any need for human intervention. It'll take time to bring BNYM to the 21st century, but it'll get there.
State street, Northern Trust, US Bank and BNY are all stuck in a slow mature 2% population revenue growth pattern out of which none have a good chance to exceed unless they change their operational structure. Sending 20k manual faxes in the age of Instagram does not give you good chances to grow more than 2% and unfortunately no board will stand for that. Put in any CEO and the same happens.
State street, Northern Trust, US Bank are just salivating right now. They are more than ready and capable of taking business from BONY. They may not be perfect but they don’t have a raving lunatic foaming at the mouth sitting in the CEOs chair either.
Disagree. BNY is about volume and scale. It cannot allow itself to shrink. Yes it will exit unprofitable manual businesses but will grown in others. Someone needs to be the plumber of the finance industry and for sure it's not going to be the high touch guys who will be ok paying a fee to not deal with the headache.
OP - we will get acquired within next six months. I'd bet money on this.
A ship? More like a dinghy on rubberized pontoons with JAWS waiting to swallow it.