Thu, Jan. 22, 5:30 PM
Tue, Jan. 20, 2:25 AM
- Fidelity Investments and eight other big money managers, including BlackRock (NYSE:BLK), BNY Mellon (NYSE:BK), JPMorgan (NYSE:JPM), and T. Rowe Price (NASDAQ:TROW), are close to launching a dark pool.
- The project is aimed at creating a private trading venue for the benefit of mutual fund shareholders in an effort to reform trading by cutting costs and weeding out high-frequency traders.
- Despite coming under increased regulatory scrutiny, dark pools have recently seen a major jump in trading volume.
- Previously: Nasdaq considers joining the dark side (Jan. 12 2015)
Mon, Jan. 5, 8:36 AM| Comment!
Dec. 8, 2014, 10:28 AM
- A combination of new regulations and near-zero interest rates has some banks - including JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, Deutsche Bank (NYSE:DB), and Bank of America (NYSE:BAC) - privately telling larger clients to take their deposits elsewhere or face fees on accounts which have long been free.
- “Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” says an executive with a title insurance company, complaining of sleepless nights amid negotiations with his bankers.
- BNY Mellon (NYSE:BK) has begun charging institutional clients money to park money in euros, and State Street (NYSE:STT) says itwill soon begin doing so.
- Some bankers are advising large clients to break up large deposits across a number of lenders (including smaller banks not subject to the new regulations), and other corporations are going to find themselves needing to build more sophisticated (and riskier) portfolios likely including vehicles like short-term bond funds and uninsured money-market funds.
Dec. 3, 2014, 4:34 PM
- Nelson Peltz and his Trian Fund may be most well-known for forays into consumer names, but what - following Trian's winning of a seat on the BNY Mellon (NYSE:BK) board - what about the track record with financial names.
- Lazard: Trian took a stake in 2012 calling the stock undervalued and pushing for expense cuts. Since, the shares are higher by 137% vs. the S&P 500' 54% gain.
- State Street: Trian disclosed a 3.3% stake late in 2011, calling for expense cuts, share buybacks, and a spinoff of the investment-management division. Peltz had no success with moving the spinoff plan forward, but the cuts and buyback went ahead. State Street is up 144% vs. the S&P up 69%.
- Legg Mason: Peltz landed a seat on the board in 2009. The stock's up 85% since vs. the S&P 500's 94% gain.
Dec. 2, 2014, 9:34 AM
- Trian Fund Management's Ed Garden has been made a director at BNY Mellon (BK), effective immediately. His election boosts the size of the bank's board to 14, 13 of whom are independent. Along with Nelson Peltz, Garden founded Trian, and he serves as the company's CIO.
- BNY Mellon CEO Gerald Hassell: "We have had valuable discussions with Ed and Trian over the past several months about our progress towards improving our financial performance and capitalizing on the expanding opportunities in the markets we serve."
- Source: Press Release
- Previously: Report: Peltz's Trian getting seat on BNY Mellon board
Dec. 2, 2014, 8:00 AM
- It was earlier reported that Nelson Peltz was exiting the Legg Mason board to give him more time to focus on other board commitments. Now the WSJ is reporting BNY Mellon (NYSE:BK) has agreed to give a seat on its board to Ed Garden, Trian' co-founder and CIO.
- Trian last summer disclosed a 2.6% stake in the bank, and has privately urged the company to cut costs, according to insiders.
- Previously: Peltz resigns from Legg Mason board
Nov. 26, 2014, 12:41 PM
- The firing is the first from either BNY Mellon (BK -0.3%) or any of the custodial banks sine the global probe into currency trading began last year - a sign the investigation has spread past the group of dealer banks which earlier this month agreed to pay $4.3B in fines over the matter.
- Jon Smailes was a senior trader on the London spot desk at BK, and was fired months ago based on the findings of an internal review which found his e-mails broke bank compliance rules - his exit wasn't disclosed before now. The bank informed the U.K.'s FCA of its findings and Smailes' firing, but isn't currently under investigation in the U.K.
Oct. 23, 2014, 4:49 PM
- Not having had the pleasure of being subject to the stress test and CCAR previously, Deutsche Bank's (NYSE:DB) U.S. unit will be a participant next year
- As in prior years, those BHCs with large trading operations - BAC, C, GS, JPM, MS, WFC - will be required to factor in a global market shock as part of their scenarios.
- Those six, plus STT and BK - thanks to their custodial operations - will be required to incorporate a counterparty default scenario.
- Among the items in the severely adverse scenario is the unemployment rate jumping to 10%, a 60% dive in the stock market, and oil jumping to $110 per barrel (how about oil falling to $10 per barrel?).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KBWC, FINZ, KRS
Oct. 23, 2014, 2:42 AM
- The 2nd U.S. Circuit Court of Appeals in NY has dismissed Argentina's appeal of an order directing BNY Mellon (NYSE:BK) to hold onto the $539M it deposited for its restructured bondholders.
- The $539M interest payment played a key role in the country's default, after U.S. District Judge Thomas Griesa directed the bank to retain the funds until Argentina completed negotiations over its $1.33B plus interest owed to holdout creditors.
- ETFs: ARGT
Oct. 20, 2014, 7:41 AM
Oct. 17, 2014, 2:50 PM
- Among the lenders now charging clients who want to park euros with them are Bank of New York Mellon (BK +0.2%), Goldman Sachs (GS +1.8%), and JPMorgan (JPM +1.5%), reports the WSJ. The banks themselves must pay to deposit money with the ECB after it imposed a negative rate on deposits last summer (and then made it more negative last month).
- Next up is HSBC which reportedly will son begin charging customers who deposit more than about €10M, and Credit Suisse (CS +1.1%) is set to do the same.
- Clients most immediately affected are investment firms, but multinationals with sizable European operations may soon face these costs.
Oct. 17, 2014, 7:18 AM
- Q3 adjusted net income of $734M or $0.64 per share vs. $713M and $0.61 one year ago.
- AUM up 7% Y/Y to $1.65T. Assets under custody of $28.3T up 3%.
- Investment services fees up 5%, Investment management and performance fees up 7%. FX revenue flat, with a big volume gain helping to offset lower volatility.
- Net interest revenue down 7%. Adjusted noninterest expense flat, with staff expense down 3%.
- Repurchased 11M shares during quarter for $431M. Adjusted ROTCE of 18%.
- Conference call at 8 ET
- Previously: Bank of New York Mellon beats by $0.03, misses on revenue
- BK flat premarket
Oct. 17, 2014, 6:36 AM| Comment!
Oct. 16, 2014, 5:30 PM
Oct. 6, 2014, 12:59 PM| Comment!
BK vs. ETF Alternatives
Bank of New York Mellon Corporation is a global investment company. Its business segments are: Investment Management and Investment Services. Its other segments includes credit-related services, the leasing portfolio, corporate treasury activities.
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