Sen. Warren warns Bank of New York on potential Northern Trust deal

Sen. Elizabeth Warren (D-Mass.) warned Bank of New York’s (NYSE:BK) CEO that a potential purchase of Northern Trust (NASDAQ:NTRS) would violate antitrust laws and threaten financial stability.

“A combination of this scale appears to be ‘presumptively illegal,’ raising serious antitrust concerns and presenting risks to financial stability given the firms’ dominance in important markets that serve as the plumbing of the financial system,” Warren, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, wrote in a letter Tuesday to Bank of New York CEO Robin Vince.

The letter comes after a WSJ report last month that Bank of New York Mellon (NYSE:BK) recently talked to Northern Trust (NASDAQ:NTRS) about a potential merger. The newspaper, citing people familiar with the matter, said that BNY Mellon is still evaluating its options, which could include a formal offer.

Northern Trust CEO Michael O’Grady said on Wednesday that the company has never entertained talks about a sale while he was in charge.

“I want to reaffirm our commitment to remain independent,” O’Grady said on the company’s Q2 earnings conference call on Wednesday.” Contrary to recent speculation, during my tenure as CEO, we have never entertained discussions regarding the sale of the company with any financial institution, nor do we intend to.”

BNY Mellon is the world’s largest custodian bank and securities services company.

BNY Mellon (BK) may not be the only company interested in Northern Trust (NTRS). Semafor on Monday reported that Goldman Sachs (NYSE:GS) held takeover talks for Northern Trust earlier this year.

Northern Trust (NTRS) earlier reported Q2 results.