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Deutsche Boerse, NYSE in talks as merger frenzy grips
(Reuters) – Deutsche Boerse is in advanced talks to buy NYSE Euronext in a deal that would create the world’s largest trading powerhouse and put the citadel of American capitalism into foreign hands.
My Note –
I had heard this earlier on the news, cnbc I think it was and it means that our stock market would be owned by Germany, more or less. That isn’t interesting – that is something else, but I’m not sure what.
Maybe it is like the anchors said wherever I heard them talking about it today, on cnbc or bloomberg or CNN – that it doesn’t matter if Japan owns it or Germany or if we do. None of those nations would really own it anymore than we do.
When trades are made and taxes paid – don’t they go to the US and the US owned NYSE (I guess its US owned so far), pays their taxes to the US now, or do they not? Wouldn’t it then be the responsibility of some other government entity to get those taxes and to receive whatever other benefits that we have been receiving? Would they also be doing the regulating or would our nation still be footing the bill for that too?
A lot of interesting questions. It seems like we would be giving an entire industry to another country far removed from the US and far removed from our jurisdiction even as we would be forced to continue jurisdiction over it – but with none of the benefits that its US ownership has offered. Talk about national security issues. This would have to be one of great import.
I don’t know that Washington would look at it that way – until maybe after it is too late. What a mess that would be to sort out at some later date, if they’ve chosen the wrong thing. At whose mercy would we be begging at that point?
That seems pretty tricky. Whose anti-trust and monopoly laws would apply, who gets the corporate taxes, what happens if the whole system gets buggered, does it put the US at a disadvantage or is it just another corporate entity getting sold off to somewhere else with no real downside (but it is the core of our financial system and a substantial part of our “free” marketplace), and does it mean that if the government of Germany or the ideologies of the EU change that it could affect the running of the NYSE?
Lots of questions about this but it probably won’t matter, they’re going to do it anyway. (And then see what happens, after it is gone amuck or not.)