The Bank of New York Mellon
|Traded as||NYSE: BK
S&P 500 Component
|Industry||Banking, Financial services|
|Predecessor(s)||The Bank of New York
Mellon Financial Corporation
|Founded||9 June 1784|
|Headquarters||1 Wall Street, Manhattan,
New York City, New York, U.S.
|Key people||Gerald Hassell
(Chairman & CEO), Karen Peetz
(President), Ra'ad Siraj
|Products||corporate banking, investment banking, global wealth management, financial analysis, private equity|
|Revenue||US$ 14.73 billion (2011)|
|Operating income||US$ 3.617 billion (2011)|
|Net income||US$ 2.569 billion (2011)|
|Total assets||US$ 325.266 billion (2011)|
|Total equity||US$ 34.087 billion (2011)|
|Employees||48,700 (Dec 2011)|
The Bank of New York Mellon Corporation (NYSE: BK), commonly referred to as BNY Mellon, is an American multinational banking and financial services corporation formed on July 1, 2007 as a result of the merger of The Bank of New York and Mellon Financial Corporation. The company employs more than 48,700 staff up to Dec 2011 worldwide  and has over US$1.4 trillion in assets under management and US$27.69 trillion in assets under custody and administration thereby being the largest deposit bank in the world. It operates in six primary financial services sectors including advisory services, asset management, asset servicing, broker-dealer, issuance services, treasury services and wealth management. It is the oldest banking corporation in the United States, tracing its origins to the establishment of the Bank of New York in 1784 by Alexander Hamilton.
Bank of New York
The Bank of New York was founded by Alexander Hamilton on June 9, 1784, in the old Walton Mansion in New York City. The President of the new bank was former Major General Alexander McDougall, with William Winston Seaton as the Chief Cashier. In 1792, when the New York Stock Exchange was first opened, The Bank of New York was the first company to be traded on the Exchange. The bank was founded in 1784 by a series of documents drawn up by Alexander Hamilton. It wasn't until May 2, 1791 that the Bank was able to procure a charter.
The charter was renewed several times until the era of free banking, when in 1852, it was officially recognized under Banking Law as a bank having a capital of US$2,000,000. Following the instigation of the National Banking Act, the Bank of New York in 1865 was once again chartered, this time as a National Bank via the act.
Through the early 1900s, the Bank of New York continued to expand and prosper. In July 1922, the Bank of New York and the New York Life Insurance and Trust Company merged. The bank survived the Great Depression. In 1948, the Bank once again merged, this time with the Fifth Avenue Bank, to be followed by a merger in 1966 with the Empire Trust Company. That same year, 1966, the Bank of New York opened offices in London. The addition of the London office, was instrumental in the establishment of the Bank on the international level. The bank's holding company was created in 1969. It was instrumental in the growth and expansion of the Bank of New York outside of New York City.
"T. Mellon & Sons' Bank", as Mellon Financial was originally called, was founded in Pittsburgh, Pennsylvania. The bank was established in 1869 by the retired Judge Thomas Mellon and his sons Andrew W. Mellon and Richard B. Mellon. Alcoa, Westinghouse, and Bethlehem Steel amongst other industrial firms, were a few of the companies T. Mellon & Sons' financed. The former oil company Gulf Oil was considered to be one T. Mellon & Sons' most successful financial investments. The former Judge Thomas Mellon decided to retire as President of the firm in 1886 to be succeeded by his son, Andrew.
In 1902, T. Mellon & Sons' name was changed to that of the Mellon National Bank. The firm merged with the Union Trust Company in 1946, a business founded by Andrew Mellon. The name of the newly formed organization was the Mellon National Bank and Trust Company, Pittsburgh's first US$1 billion bank.
In 1920, Andrew left his leadership post of the bank to become the longest serving U.S. Treasury Secretary in history (serving under three separate administrations). In 1929, Richard founded Mellbank Corporation. In 1946, Mellon National, Mellbank, and the Union Trust Company merged to form Mellon National Bank and Trust Company. A reorganization in 1972 brought about a name change to Mellon Bank, N.A. and the formation of a holding company, Mellon National Corporation.
In 1983, Mellon bought Girard Bank of Philadelphia and Central Counties Bank of State College, Pennsylvania and the next year, Mellon National Corporation became Mellon Bank Corporation, and purchased Northwest Pennsylvania Corporation of Oil City, Pennsylvania. In 1986, Mellon bought Commonwealth National Financial of Harrisburg, Pennsylvania and in 1991, added United Penn Bank of Wilkes-Barre, Pennsylvania. The next year, Mellon acquired 54 branch offices of Philadelphia-based Philadelphia Savings Fund Society, whose parent company had become insolvent. Philadelphia Savings Fund Society, was the first savings bank in the United States, founded in 1819.
In 1993, Mellon acquired The Boston Company from American Express and AFCO Credit Corporation from The Continental Corporation. The following year, Mellon merged with the Dreyfus Corporation, bringing its mutual funds under its umbrella. In 1998, Mellon purchased United Bankshares, Inc., of Miami, 1st Business Bank of Los Angeles, and Founders Asset Management.
In 1999, Martin G. McGuinn became chairman and chief executive officer of Mellon Bank Corporation and Mellon Bank Corporation became Mellon Financial Corporation. In 2004, Mellon announced it would purchase Safeco Trust Company from Seattle-based Safeco Corporation. The same year, it purchased outstanding shares in London-based Pareto Partners and offered them floor space in Mellon Financial (opened earlier in the year).
On December 4, 2006, Bank of New York and Mellon Financial Corporation announced they would merge to create the world's largest securities servicing and asset management firm. Under terms of the deal, Bank of New York's shareholders received 0.9434 shares in the new company for each share of Bank of New York that they owned, and Mellon shareholders (Taks) received 1 share in the new company for each Mellon share they owned. Bank of New York and Mellon entered into mutual stock option agreements for 19.9% of the issuer's outstanding common stock.
The new company, called BNY Mellon, is the world's leading asset servicer by a considerable margin, with over US$26.3 trillion in assets under custody as of March 31, 2013 (vaulting it over State Street Corporation, which has US$15.1 trillion of assets under custody), and corporate trustee with US$8 trillion in assets under trusteeship. It ranks among the top 10 global asset managers with more than US$1 trillion in assets under management.
Coincidentally, the merger also brought together two financial institutions that had recently divested their retail banking divisions. Bank of New York sold its retail banking division to JPMorgan Chase in 2006, while Mellon sold its retail banking division to RBS-owned Citizens Financial Group in 2001.
It ranks as a top-10 U.S. wealth manager with more than US$160 billion in client assets, and is a leading U.S. cash management and global payments provider. The company has annual revenues of about US$13 billion, and pro-forma market capitalization of about US$50 billion. The company has 40 thousand employees around the world. The Bank of New York Mellon Corporation operates in 37 countries, serving more than 100 markets. The company provides financial services for institutions, corporations, and high-net-worth individuals, through a worldwide team. It also services more than US$11 trillion in outstanding debt.
Tom Renyi, former chairman and chief executive of Bank of New York, served as executive chairman of Bank of New York Mellon for 18 months following the close of the deal, with overall responsibility for the integration of the two companies, having retired effective July 1, 2008.
Robert P. Kelly, former president, chairman, and chief executive of Mellon, served as chief executive of the new company and succeeded Renyi as chairman of the board through August 2011. On August 31, 2011, Kelly resigned, according to a press release, "by mutual agreement with the board of directors, due to differences in approach to managing the company." Gerald L. Hassell, former president of Bank of New York, was named Chairman and CEO on that date.
The board of directors had 10 members designated by Bank of New York, and 8 members designated by Mellon. The new company's headquarters is based in New York City, though it maintains significant operations in Pittsburgh. Kelly's resignation left 13 directors (8 from Bank of New York and 5 from Mellon).
The merger was finalized on July 2, 2007, with the principal office of business at the One Wall Street office and the BNY Mellon brand name used for most lines of business.
In February 2008, the company experienced a data spill, losing an undisclosed number of tapes containing customer information. Victims of the data spill were offered two years of credit monitoring.
In late November 2008, the company announced that due to the global financial crisis, the company would lay-off 1,800 employees, translating into 4% of its global work force, with CEO Robert Kelly citing the need to "reduce expenses" past any post-merger plans.
Financial crisis and anniversary
In October 2008, The Bank of New York Mellon received US$3 billion in Troubled Asset Relief Program (TARP) funds from the U.S. Treasury during the financial crisis of 2007–2010. On June 9, 2009, the company paid back the funds in full, along with US$136 million to buy back warrants from the Treasury. The bank is the master custodian for the TARP funds, hired by the Treasury to handle accounting and record-keeping for the program.
The bank also celebrated its 225th anniversary on June 9, 2009. The company honored this milestone with a commemorative video addressing its history and prominent position in the global economy.
The Bank of New York Mellon was the seventh largest bank at the end of 2008 (not including subsidiaries).
The Bank of New York Mellon operates worldwide in more than 100 markets in 36 countries and employs more than 48,000 employees. The group's American and worldwide headquarters is located at One Wall Street. The group's EMEA headquarters is located at One Canada Square, in London and its APAC headquarters is located in Hong Kong.
- Asset Management (provides asset management services through a number of asset management companies to institutional and individual investors)
- Wealth Management (provides investment management, wealth and estate planning and private banking solutions to high net worth individuals and families, family offices and business enterprises, charitable gift programs and endowments and foundations)
- Asset Servicing (provides global custody and related services and broker-dealer services to corporate and public retirement funds, foundations and endowments and global financial institutions)
- Issuer Services (provides corporate trust, depositary receipt and shareowner services to corporations and institutions)
- Clearing Services (provides clearing, financing and custody services for broker-dealers and registered investment advisors)
- Treasury Services (provides treasury services, global payment services, working capital solutions, capital markets business and large corporate banking)
- Bank of New York
- Mellon Financial Corporation
- 1 Wall Street
- BNY Mellon Center (disambiguation)
- Pershing LLC
- CIBC Mellon
- Eagle Investment Systems
- Ra'ad Siraj
- "Bank of New York Mellon, Form 10-K, Annual Report, Filing Date Feb 28, 2012". secdatabase.com. Retrieved Feb 5, 2013.
- "BNY Mellon Profile". Google Finance. Retrieved 2007-08-06.
- "BNY Mellon at a glance". BNY Mellon. Retrieved 2009-03-30.
- "Bank of New York Mellon Profile". Yahoo! Finance. Retrieved 2008-08-19.
- Teather, David (5 December 2006). "Bank of New York merges with Mellon in £8bn deal". The Guardian (London: guardian.co.uk). Retrieved 2007-08-08.
- "Bank of New York Building Profile". NYC Architecture. Retrieved 2007-08-08.
- "The History of New York States". USGenNet. Retrieved 2007-08-08.[dead link]
- "Bank of New York Profile". The New York Job Source. Retrieved 2007-08-08.
- "New York's Oldest". TIME (time.com). 26 March 1934. Retrieved 2007-08-11.
- "Mellon Financial Profile". The New York Job Source. Retrieved 2007-08-09.
- "Mellon Financial Corporation Profile". Excite Careers. Retrieved 2007-08-16.
- "Pittsburgh pride". Vault. Retrieved 2007-09-06.
- "Next Mellon". TIME (time.com). 19 February 1934. Retrieved 2008-08-23.
- "The Mellons Go to Work Again". TIME (time.com). 7 February 1946. Retrieved 2008-09-08.
- "Tape Query". Retrieved 2008-10-11.
- "WaMu, BNY Mellon latest to shed jobs". NBC News. AP. 21 November 2011. Retrieved 2012-11-14.
- "Companies That Have Refunded Bailout Money". Propublica. Retrieved 22 November 2009.[dead link]
- Dash, Eric (2008-10-15). "Bank of New York Mellon Will Oversee Bailout Fund". The New York Times. Retrieved 2010-05-25.
- "Commemorative Video on YouTube". Retrieved 2009-06-08.
- "1911 Bank Data-Bank of New York Mellon". Money Economics. 30 June 2012. Retrieved 2012-11-14.
- "Company Profile". BNY Mellon. 30 September 2012. Retrieved 2012-11-14.
- "BNY Mellon in the UK". BNY Mellon. Retrieved 2012-11-14.
- "BNY Mellon in Hong Kong". BNY Mellon. Retrieved 2012-11-14.
- "BNY Mellon in the Asia-Pacific". BNY Mellon. Retrieved 2012-11-14.
- "Quarterly Earnings Review Financial Results" (Press release). BNY Mellon. 21 April 2009. Retrieved 2012-11-14.
- Official website: Bank of New York Mellon
- Official career website: Bank of New York Mellon
- Bank of New York Mellon SEC Filings
- Google Finance: Bank of New York Profile
- Pershing: Pershing LLC., a subsidiary of The Bank of New York Mellon Corporation
- YouTube: 225th Anniversary Commemorative Video
- iNautix: iNautix Technologies, a subsidiary of The Bank of New York Mellon
- New York Life Insurance and Trust Company Records at Baker Library Historical Collections, Harvard Business School.