Senator Elizabeth Warren has warned BNY that a potential merger with Northern Trust could violate federal banking laws, raising antitrust concerns. Warren expressed major financial stability concerns and requested a briefing on the status of talks. Interest in larger bank deals has been rising, with regulators discussing refining the merger review process.

In June, The Wall Street Journal reported BNY approached Northern Trust for a merger, although Northern Trust wants to remain independent. Warren stated a merger would create an institution with a custodial services market share over 30%, raising competition concerns and breaching antitrust law. BNY declined to comment on the original report.

Warren criticized the potential merger, stating it could consolidate a key market, increase the firm’s risk profile, and violate federal banking laws. She warned that further entrenching BNY’s market position could lead to higher fees, decreased innovation, and limited choices for institutional clients seeking custodial services. Northern Trust did not respond to comments.

Interest in potential bank mergers has increased as regulators appointed by Trump discuss refining the merger review process. Warren’s letter to BNY CEO Robin Vince expressed concerns about the impact of a merger on financial stability and competition within the custodial services market. BNY declined to comment on the letter, and Northern Trust did not respond to a request for comment.

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