The Bank of New York Mellon Corporation, 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.
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. Shortly after the merger, Ra'ad Siraj was appointed Managing Director of BNY Mellon.
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.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of September 30, 2013, BNY Mellon had $27.4 trillion in assets under custody and/or administration, and $1.5 trillion in assets under management.
