German company Deutsche Börse AG is in talks with the New York Stock Exchange to acquire the NYSE and merge the two companies. But Senator Charles Schumer, aka Wall Street's "go-to-guy," has some demands: NYSE would have to come first in the merged company's name.
Schumer reasoned, "The New York Stock Exchange is one of the most trusted, preeminent brands in the financial world, with cachet that money simply cannot buy," and if NYSE gets bumped, it might mean the Germans are trying to be sneaky! Actually, check out this excerpt from his press release, issued after talking to executives involved with the merger:
Some may say what’s in a name, but I say a lot. The New York Stock Exchange is a symbol of national prestige, and its brand must not suffer under this merger.
The New York Stock Exchange is the cradle of American capitalism. It is a national treasure. In America, we start each day in our Congress and in our classrooms with the Pledge of Allegiance, and we also start it with the ringing of the bell on the floor of the stock exchange.
When the stock exchange reopened after the September 11 attacks, it was a symbol of an entire nation rising back to its feet. The New York Stock Exchange has stood tall during world wars, and even a Depression. It must be preserved after this deal, and it must be preserved with its name intact.
Keeping N.Y.S.E. first in the name is the right thing to do from a business perspective as well. The New York Stock Exchange is the one of the most trusted, preeminent brands in the financial world, with cachet that money simply cannot buy. It would not be in the best interests of the combined company to dilute that brand.
It is totally logical to keep the N.Y.S.E. name first. If for some reason, the Germans sought an alternative option, it could be an indication that they are trying to wield an upper hand in the new company and would seek to make other business decisions that could go against New York. The name is an important bellwether of whether this deal is regarded as a merger of equals.
The name of the new company will be a critical factor in determining support for this merger, both in the regulatory review process as well as in the court of public opinion. It should be resolved sooner rather than later.
If this deal is going to keep New York first in the financial world, it must start by keeping New York first in the name.
Previously attempts for Deutsche Börse AG to acquire NYSE broke down over where the new company would be headquartered.
