UPDATE 1-Bloomberg says NYSE deal "very good" for New York

Thu Feb 10, 2011 2:00pm EST

* New York Mayor Bloomberg supports NYSE-D.Boerse deal

* "London has the problem now" -- Bloomberg

* U.S., Europe will gain access to the other's markets

NEW YORK, Feb 10 (Reuters) - New York Mayor Michael Bloomberg said on Thursday he supports advanced talks that would place the iconic New York Stock Exchange into the hands of Germany's Deutsche Boerse AG (DB1Gn.DE).

NYSE Euronext NYX.N, parent company of New York's Big Board, said on Wednesday it was in advanced merger talks with the bigger, Frankfurt-based exchanges company. News of that deal came one day after the London Stock Exchange (LSE.L) announced it was buying Canada's TMX Group (X.TO). [ID:nLDE71808S]

Bloomberg, who was a Salomon Brothers equities trader before making his fortune through media company Bloomberg LP, said the deal will help keep New York's marketplace competitive globally.

"I think it's very good for New York to have two of the strongest exchanges together. It's going to give us access to Europe, and the Europeans access to the States in a way that our competitors, like London, will not have," Bloomberg said in a press conference in New York.

The LSE's purchase of the Toronto stock market operator would make it the world's fourth-largest exchanges company with annual stock-trading volume of $4.1 trillion. That deal would be dwarfed by Deutsche Boerse-NYSE, which would have annual trading volume exceeding $20 trillion.

"London has the problem now, as it has to find a way to become as strong as the New York and German stock exchanges," he said, citing the latest wave of consolidation.

An NYSE-Deutsche deal faces scrutiny from German regulators and European antitrust officials, but so far the response from the United States has been nil. Bloomberg is the first major U.S. public figure to speak publicly on the potential sale of the NYSE, a 218-year old symbol of American capitalism.

The combined group would have headquarters in New York and Frankfurt, with Deutsche Boerse shareholders holding about 60 percent of the combined company.

"The stronger the New York Stock Exchange is globally, the better for us," he said. "If the New York Stock Exchange didn't form a partnership like this, it could have been frozen out." (Reporting by David Sheppard, writing by Joseph A. Giannone; Additional reporting by Jonathan Spicer; Editing by Phil Berlowitz and Gerald E. McCormick)

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Comments (16)
Robert_A_Hahn wrote:
Let’s pass more regulations to really sock it to Wall Street. Maybe we can get the whole thing to move to Germany!

Remember, only greedy CEOs ever move jobs overseas. It’s never the politicians! The politicians are your friends!

Feb 10, 2011 2:47pm EST  --  Report as abuse
student1776 wrote:
Given the relentless assault on the financial industry by Spitzer and Cuomo, it is not surprising that the centers of finance are moving out of New York along with the corporations. Why stay where you are not wanted? With at 60/40 split favoring Germany, all but the operational detailed jobs will leave NY for Germany. Democrat anti-business policies at work. The only justice of this is that all the crony bankers who donated to Democrats looking for government money will either have to move to Europe or lose their jobs.

Feb 10, 2011 4:42pm EST  --  Report as abuse
student1776 wrote:
Given the relentless assault on the financial industry by Spitzer and Cuomo, it is not surprising that the centers of finance are moving out of New York along with the corporations. Why stay where you are not wanted? With at 60/40 split favoring Germany, all but the operational detailed jobs will leave NY for Germany. Democrat anti-business policies at work. The only justice of this is that all the crony bankers who donated to Democrats looking for government money will either have to move to Europe or lose their jobs.

Feb 10, 2011 4:42pm EST  --  Report as abuse
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