Disturbing

NYSE, Deutsche Boerse Are Said to Be in Advanced Talks to Merge Exchanges

NYSE Euronext and Deutsche Boerse AG are in advanced talks to merge into the world’s biggest equity exchange, accelerating a day of takeovers that began with the London Stock Exchange Group Plc acquisition of TMX Group Inc., according to two people familiar with the situation who declined to be identified because the talks are private.

http://www.bloomberg.com/news/2011-...-be-in-advanced-talks-to-merge-exchanges.html

 

why is this disturbing?

 

I as well fail to grasp why this is disturbing...

 

1) Exchange-related mergers can be an omen of overall bearishness in the near future. :eek:
2) Exchange fees for members AND customers can increase to pay for the deal.
3) Jobs at the US-based exchange may migrate away to the foreign exchange involved in the deal.

 

Opens the door to global regulation, and we all know about the Germans and their cough cough, love for taxing and other socialist stuff..

Its just bad, but the NYSE is a disaster and they cannot compete it seems.

 

IIRC these two tried to tie the knot 2 or 3 years ago but it feel apart due to regulatory issues. Hopefully this will be the case again.

Here is a little blurb from Raymond James this afternoon:

NYSE Euronext: Hearing cautious mention at Raymond James related to potential regulation hurdles

-Guru

 

Very disturbing indeed, mergers destroy value. They should be outlawed for large companies. This is what got us into trouble in 2008. And for traders merging exchanges are not good news. Exchanges should never have moved away from their traditional model .

 

Agreed. Where is America headed these days??? Scary!

 

This is and was my first thought, concern, and prediction on hearing the news release.:eek:

 

America is trending towards a Utopian society where everybody is a financial professional earning more than "7-figures" per year.