NYSE Deal Stokes Anxieties for Some in New York
While leaders of Deutsche Boerse and NYSE Euronext touted the advantages of creating the world’s largest exchange operatoron Tuesday, many reactions close to Wall Street itself have been at best guarded and at worst, strongly opposed to the deal.
Sen. Charles Schumer, (D-NY), who serves on the Banking Committee, which oversees financial institutions, and the Finance Committee, told CNBC Tuesday that he is withholding his decision about the merger until the new name is announced.
“If this is truly a partnership and not a takeover, the NYSE’s name should go first,” said Schumer, who added that he would not file a “friend of the court” brief supporting the deal.
”It’s better for the company, because the NYSE brand is important,” he added. “The only reason not to have NYSE first is if the Deutsche Boerse's people are pushing politically.”
Schumer said that overall the deal is “good” for New York and the Deutsche Boerse, but the decision on the new name is key.
- Watch Video of Schumer's Comments Here
NYSE exchange shareholder Peter Costa said he’s “dead-set against” the deal, because he fears that the Germans, who will hold a majority interest in the newly created exchange, could decide to close the NYSE eventually.
Sixty percent of the group will be owned by Deutsche Boerse shareholders and the remainder by NYSE investors.
“I don’t think it’s going to be a one-year or two-year thing, but in three or four years when they [the Germans] feel that they’re not getting return that they thought on this investment [of the NYSE], they’d have no problem shutting it down,” added Costa, who is president of Empire Executions and has been a floor broker for 19 years.
- Listen to More of Costa's Comments Here
Costa said the NYSE doesn’t need to merge to remain competitive, because the exchange has made strides and continues to progress to ensure its success.
The harshest words came from New York real estate mogul Donald Trump, CEO and chairman of the Trump Organization. However, before giving his thoughts on the deal, he asked CNBC which exchange the NYSE was merging with. When he learned it was a German exchange, he had this to say.
“It’s ridiculous that this country allows Germany to buy our New York Stock Exchange,” said Trump. “It’s great for Germany. It’s another black eye for the United States. Victory for Germany, not for the United States.”
- Watch the Interview with Trump Here