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CEO DATELINE – Report: Financial industry association merger excludes big banks

June 11, 2018
By Walt Williams

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The proposed merger of Financial Services Roundtable and The Clearing House Association will move forward without three of the world’s largest banks, industry news site American Banker reported Friday.

Financial industry executives blocked Goldman Sachs Group, Morgan Stanley and Credit Suisse Group from joining the merged association out of concern their inclusion “would highlight the stigma that Wall Street still carries from the 2008 financial crisis,” according to the news site. Many executives also believe the group’s members should be limited to consumer-oriented institutions.

The decision is part of a larger dispute about what direction the merged association should take. FSR and TCH Association announced in March they would combine into a single organization to be led by TCH Association President Greg Baer. The name of the combined group has yet to be announced.

Some regional banks have considered dropping out of the merged association because of the dispute, but the deal is expected to move forward, American Banker reported. However, PNC Financial Services Group CEO William Demchak, who is helping organize the merger, told the publication he was “a bit surprised” to hear about any conflicts.