The Bank of New York Mellon Corp.

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The Bank of New York Mellon
BNYMellon.jpg
Founded 2007 as a Joint Bank
Headquarters New York City
Key People Gerald L. Hassell, Chairman and CEO
Employees 43,000
Products Global private banking and investment management products and services
Website bnymellon.com

The Bank of New York Mellon Corp. is a leading global private banking provider, mostly for companies, institutions and wealthy individuals, focusing on investment and asset management. The product of a 2007 merger, BNYM is now one of America's top 10 wealth managers and has $23.5 trillion in total assets under custody and administration and $1.6 trillion in assets under management.[1]

History

The Bank of New York Mellon (BNY Mellon) was formed in July 2007 through the merger of the Bank of New York Co. of New York City and Mellon Financial Corp. of Pittsburgh.[2] Its predecessor, Bank of New York, was launched in 1784 as the city's first bank and its constitution was written by financial pioneer Alexander Hamilton. Hamilton remained actively involved in the organization through its early years, before going on to become the first U.S. Secretary of the Treasury and a member of George Washington's first cabinet.[3]

T. Mellon and Sons' Bank was founded in 1869 by Thomas Mellon and his sons Andrew and Richard Mellon, as T. Mellon & Sons' Bank. In 1902, it became Mellon National Bank. The bank later helped finance the founding of industrial giants U.S. Steel, Alcoa and Westinghouse. Andrew Mellon became one of America's foremost financiers, industrialists and philanthropists.

In June 2008 BNYM and Claymore Securities jointly launched their 'Frontier Market ETF' (FRN) on NYSE Euronext, based on the BNYM New Frontier DR Index. The fund invests in 42 countries in the Middle East, Africa, Eastern Europe, South Asia and Latin America.[4]

BNYM admitted in August 2008 that up to 12 million of its customers may have been affected by a breach of its computerized data in May.[5] The bank originally thought that only four million had been affected by the disappearance of tapes from a third-party courier firm.

In July 2009, the Bank of New York Mellon announced that it made a strategic minority investment in International Derivatives Clearing Group (IDCG). IDCG is a majority owned, independently operated subsidiary of The NASDAQ OMX Group. IDCG serves as a designated clearing organization for clearing and settling interest rate swap contracts and other fixed income derivatives contracts.[6]

In September 2014, BNYM said it planned to shut down its European derivatives clearing business out of frustration with the delay of Europe's swap clearing mandate. [7] The company will focus on its core business of custody and collateral services, according to a Bloomberg Businessweek story. [8]

The CME Group teamed up with BNY Mellon in November 2014 to launch futures contracts based on US Tri-Party Repo indices, set to go live on the CBOT in 2015. The contracts will track the US$400 billion per day of overnight repo transactions in the index asset classes processed daily on BNY Mellon's Tri-Party Repo platform.[9]

Products and Services

Offers a full range of high-end financial and investment banking, most notably:

  • Private banking
  • Wealth management
  • Asset servicing
  • Clearing and treasury services
  • Fund management

Key People

References

  1. Who We Are. BNY Mellon.
  2. Bank of New York merges with Mellon in £8bn deal. The Guardian.
  3. Timeline. BNY Mellon.
  4. Claymore Lists the Claymore/BNY Mellon Frontier Markets ETF on NYSE Arca. NYSE Arca.
  5. Bank of New York Mellon data breach could now affect 12 million. Central New York Business Journal.
  6. Bank of N.Y. Mellon Takes Stake in Nasdaq Derivatives Unit. Wall Street Journal.
  7. BNY Mellon shuts European clearing unit. FOW.
  8. Bank of New York Mellon to Shut Derivatives Sales, Trading Group. Bloomberg Businessweek.
  9. CME to launch repo futures through BNY Mellon agreement. The Trade.