Oct. 13, 2015, 2:36 PM
- With a sluggish economy and low rates making for a challenging banking environment, lenders are subject to growing ranks of shareholder activists, reports SNL Financial.
- A bank with an ROE in the 5-6% range when the cost of capital is closer to 9% or 10% is going to make for a ripe target, says RBC's Gerard Cassidy. And those activists have an ally in proxy advisory firms which have recently been in favor of the shareholders instead of management teams, says Sandler O'Neill's Emmett Daly. Daly notes the pending sale of Metro Bancorp (NASDAQ:METR) to F.N.B. Corp. (NYSE:FNB) - Metro went from having no activists to a handful. "I don't think anyone is too strong," says Daly.
- Other campaigns include Trian and Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT), Greenlight and Citizens Financial (NYSE:CFG) and CIT Group (NYSE:CIT), and Basswood and First California (NASDAQ:FCAL), Bank of California (NYSE:BANC), Hudson Valley Holding (NYSE:HVB), Synovus (NYSE:SNV), Astoria (NYSE:AF), and the above-mentioned Metro.
Sep. 17, 2015, 11:30 AM
- The bank is on track to meet its investor day goals, though noting a seasonal slowdown in Q3 in transaction volume and lower sequential net interest revenue. 2015 operating expenses are still expected to be flat to slightly down, with an improved operating margin.
- Presentation slides
- The company has generated $14.6B of capital from 2011 through Q2 of 2015, with 41% of that going to share repurchases, 22% to dividends, and 37% retained.
- In other BNY (BK +1.4%) news, the stock was upgraded to Buy at BAML. The $48 price target is about 20% above last night's close.
Sep. 14, 2015, 11:29 AM
- A day ahead of the launch of Symphony -- a service seen as a potential rival to Bloomberg's lucrative terminal business -- New York's Department of Financial Services has reached a deal with four banks over record keeping for the system, CNBC reports.
- Goldman Sachs (GS -0.4%), Bank of New York Mellon (BK -0.1%), Deutsche Bank (DB +0.1%) and Credit Suisse (CS -1.8%) are party to the deal where Symphony's chat service will keep all e-mail exchanges between the banks for seven years.
- The banks will also have to hand over a "spare set" of duplicate encryption keys to an independent auditor.
- Without the safeguards, the regulators worried that probes into insider trading and related crimes would be stymied.
Sep. 9, 2015, 11:34 AM
- The bank's Frankfurt and London branches have significantly increased the number of global currencies they can provide, with the total now expected to top 120 currencies over time. Clients with accounts at those locations can use account balances in any single currency to make payments in any of the others as needed.
- "Partnering with BNY Mellon's (BK +1.2%) FX business to expand the range of supported currencies demonstrates how our technology investments and business strategy are delivering meaningful service improvements to help our clients succeed," says the bank's Michael Bellacosa.
- In other bank news, its stock today was upgraded to Buy from Neutral at BAML.
Sep. 8, 2015, 12:39 PM
- Massachusetts Secretary of the Commonwealth William Galvin has opened a probe into whether inaccuracies in BNY Mellon's (BK +1.3%) reporting of ETF and mutual fund NAVs harmed investors Also asked for information regarding the matter are Goldman Sachs, Deutsche Bank, First Trust Advisors, Guggenheim Investments, Prudential Investments, and Federated Investors.
- "The investigation asks that BNY Mellon and the investment companies provide the scope of the problem and type of corrective action that is being taken to address individual investor harm.”
- Previously: "NAV-gate" is over at BNY Mellon (Aug. 31)
Aug. 31, 2015, 11:03 AM
- BNY Mellon (BK -2.2%) has completed proper system-generated NAVs through the close on Friday of ETFs and for all mutual fund clients (h/t to Barron's Chris Dieterich for the clever headline).
- Next up, writes John Carney, are the costs: "If fund sponsors face angry clients, they may turn to Bank of New York Mellon for recompense. The SEC could also seek to impose penalties." At a minimum, says Carney, the events could crimp the bank's plans for expense cuts.
- Previously: "Black eye" for BNY Mellon as fund-pricing issues continue (Aug. 31)
Aug. 31, 2015, 7:47 AM
- It "has taken far longer than any of us would have expected," said BK CEO Gerald Hassell in a Sunday night conference call after more than 100 bank employees had worked through the weekend to correct a technical glitch causing mis-pricing for about 1.2K mutual funds and ETFs for nearly all last week.
- Hassell says the bank has calculated NAVs for all funds through last Thursday with the exception of one company (20 mutual fund companies and 26 providers of ETFs had been affected). The job should be nearly complete for all mutual funds sometime this morning, but not necessarily by 9:30 ET. Correct prices for ETFs are expected by market open.
- The issue "isn't life threatening, but it's a black eye," to Mellon's reputation, says CLSA's Mike Mayo. "The company is a plumber to the banking industry."
- Source: WSJ
Aug. 27, 2015, 6:04 PM
- After a breakdown last weekend, problems with Bank of New York Mellon's (BK +3.4%) fund pricing system may stretch into this weekend, which may compound confusion over trade prices and how to straighten them out.
- The cause still isn't fully known, BNY Mellon and software firm SunGard say, and performance issues still plague the system even after days of scrambling to resolve it.
- The bank said it should be able to finalize Wednesday net asset value prices later on Thursday, assuming no other problems develop.
- SunGard broke days of silence this afternoon, calling the issue an isolated incident related to an OS change -- not a hack.
- Many big fund managers rely on BNY Mellon for proper NAV calculations, but analyst Mike Mayo seems sanguine: "BNY Mellon is the plumber to mutual funds and capital markets ... There are a couple of broken pipes, but it doesn't seem like a systemwide issue."
- Previously: Glitches remain for BNY Mellon's fund pricing system (Aug. 27 2015)
Aug. 27, 2015, 10:35 AM
- An accounting system used by BNY Mellon (BK +1.1%) to help calculate the prices of client mutual funds and ETFs broke down over the weekend, and resumed with limited capacity on Tuesday.
- "Performance issues remain" today, says a bank spokesman.
- The system is run by SunGuard, which is in the process of being purchased by Fidelity National Information Services (FIS +0.2%).
Aug. 20, 2015, 7:58 AM
- At issue are $2.06B in MBS issued by Bear Stearns and Countrywide purchased by a now failed Texas bank, and for which BNY Mellon (NYSE:BK) was trustee.
- As bond trustee, the bank "shirked its duty" to ensure the loan documents on the mortgages backing the securities were not incomplete or defective, says the FDIC.
- "While BNY Mellon stood idly for years, the sponsors kept defective mortgage loans in the covered trusts, servicers reaped excessive fees for servicing the defaulted loans from the covered trusts, and plaintiff was left to suffer enormous losses."
- The former Guaranty Bank suffered more than $440M in losses when it sold the MBS in March 2010.
Aug. 18, 2015, 3:35 PM
- Three interns hired during the summer of 2010 obtained their positions thanks to being relatives of high-ranking officials of a Middle Eastern sovereign wealth fund which was a client of the bank, according to the SEC, which charged BK with violating the Foreign Corrupt Practices Act.
- Emails released by the SEC paint a pretty damning picture of the hiring of the three; not only that, but the trio's work effort was apparently not up to snuff either. Go figure.
- The bank has agreed to pay $14.8M to make the matter go away, and it's also taken steps to assert better internal control over its hiring practices.
Aug. 5, 2015, 10:18 AM
Jul. 21, 2015, 10:21 AM
- Q2 adjusted net income of $868M or $0.77 per share vs. $715M and $0.62 one year ago.
- Fee revenue of $3.012B up 3% Y/Y. Net interest revenue of $728M up 8%, with NIM of 1% up two basis points.
- Non-GAAP noninterest expense of $2.603B down 1% Y/Y. Staff expense of $1.434B flat. Staff expense as a percent of revenue of 37% down 100 basis points.
- Non-GAAP pre-tax operating margin of 33% up 300 basis points. Non-GAAP ROTCE of 22.5% up 410 basis points.
- AUM of $1.724B up 5% Y/Y.
- CET1 ratio of 10.9% up 10 basis points for the quarter. $1B returned to shareholders during quarter through dividends and buybacks.
- Previously: Bank of New York Mellon beats by $0.11, beats on revenue (July 21)
- BK +2.35%
Jul. 21, 2015, 6:36 AM
- Bank of New York Mellon (NYSE:BK): Q2 EPS of $0.77 beats by $0.11.
- Revenue of $3.85B (+3.2% Y/Y) beats by $30M.
Jul. 20, 2015, 5:30 PM
Jul. 20, 2015, 2:55 PM
- JPMorgan (JPM +0.4%) faces the largest capital "surcharge" or 4.5% of its risk-weighted assets, with the other seven lenders falling in the 1-3.5% range.
- Citigroup's (NYSE:C) surcharge is 3.5%, BofA (NYSE:BAC), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) 3%, Wells Fargo (NYSE:WFC) 2%, State Street (NYSE:STT) 1.5%, and Bank of New York Mellon (NYSE:BK) 1%. Taken together, the group's capital cushion will more than $200B larger than if the surcharge was not implemented.
- The surcharges will begin to be implemented on January 1, and fully phased in by January 2019. JPMorgan has taken steps to boost its capital levels, and Fed officials indicate the bank is about $12.5B shy of the full surcharge, reports the WSJ.
- The other lenders currently have the necessary capital.
- This new requirement comes on top of the existing base 7% common-equity capital standard necessary for most banks.
The Bank of New York Mellon Corp. operates as a bank holding company, which engages in global financial services. It provides financial services for institutions, corporations and high-net-worth individuals, offering investment management and investment services through a worldwide... More
Industry: Asset Management
Country: United States