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The Bank of New York Mellon Corporation (BK)

  • Oct. 20, 2014, 7:41 AM
    • Goldman pulls its Sell rating on BNY Mellon (NYSE:BK) as about a 10% decline in the stock over the past month has presented investors with a more balanced risk/reward scenario.
    • Shares +3.5% premarket
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  • 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.
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  • 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
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  • Oct. 17, 2014, 6:36 AM
    • Bank of New York Mellon (NYSE:BK): Q3 EPS of $0.64 beats by $0.03.
    • Revenue of $4.61B (+22% Y/Y) beats by $630M.
    • Press Release
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  • Oct. 16, 2014, 5:30 PM
  • Oct. 6, 2014, 12:59 PM
    • Based in Armonk, NY, Cutwater Asset Management - a subsidiary of MIBA (MBI +0.8%) - has about $23B in AUM. Terms of BNY Mellon's (BK -0.2%) agreement to purchase were not disclosed, and the deal is expected to close early next year.
    • Source: Press Release
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  • Sep. 30, 2014, 2:13 AM
    • Following Argentina's proposal to swap BNY Mellon (NYSE:BK) for a local bank as trustee on its restructured debt and plan to pay bonds under local law, U.S District Judge Thomas Griesa has declared Argentina in contempt of court.
    • Despite the ruling, the country's Foreign Minister Hector Timerman says Griesa's decision is a "violation of international law."
    • Argentina plans to deposit the next interest payment due on its restructured debt with a local bank today.
    • ETFs: ARGT
    | 1 Comment
  • Sep. 9, 2014, 12:24 PM
    • The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
    • Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
    • What's not yet clear is who would need to raise capital to meet the new, tougher standard.
    • Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
  • Sep. 4, 2014, 3:18 AM
    • U.S. regulators have approved of the proposed liquidity rules to safeguard banks in case of a financial crunch.
    • The rules are requiring large U.S. banks to load up on ultra-safe assets to ensure enough cash and securities to fund their operations for 30 days. Separate liquidity rules for foreign banks will be drawn up at a later date.
    • Big banks will need to hold a total of about $2.5T in easy-to-sell assets by 2017, which would result in a $100B shortfall if the threshold applied today.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    • Previously: Bank regulators to vote on new liquidity rules
  • Sep. 3, 2014, 2:39 AM
    • Bank regulators are expected to finalize rules today that would require banks to hold capital against every asset on their books, and approve of a "liquidity-coverage ratio", which would require large banks to load up on ultra-safe assets to fund their operations for 30 days.
    • The new rules have Wall Street concerned due to the likely harm to earnings and lending restrictions, although regulators say the policies will create a safer financial system.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
  • Aug. 26, 2014, 1:11 PM
    • It's Argentina's latest move against BNY Mellon (BK -0.4%) which blocked a $539M government bond payment in June under orders of a U.S. court (the court ruled Argentina first had to pay the "holdout" funds who refused bond swaps in wake of the country's 2002 default).
    • The bank is an intermediary between the government and its debt holders, and the Argentine congress is set to meet Wednesday to discuss passing a law replacing BNY will state-controlled Banco Nacion.
    • BNY Mellon is getting it from both sides - facing a lawsuit from hedge funds demanding their share of the blocked bond payment.
  • Aug. 13, 2014, 3:41 PM
    • In a 14-0 vote the Los Angeles City Council asked BNY Mellon (BK) and Dexia to return $65M in "unfair" profits and fees paid since 2008 on interest rate swaps, and threatened to stop doing business with the banks if they refuse.
    • Since things blew up in 2008, municipal borrowers have paid at least $4B to get out of swap contracts which had been sold as hedges, as hedging against higher rates gets costly when rates go to zero.
    • The city paid $26.1M in 2012 to terminate another interest-rate swap deal with the two banks.
  • Aug. 13, 2014, 3:14 AM
    • Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a delay of up to seven years regarding the rule that limits their investments in private-equity and venture-capital funds
    • The "Volcker rule," part of the Dodd-Frank legislation, restricts banks' ownership stake in hedge funds and private equity funds, and prohibits banks from making speculative bets with their own money.
    • Regulators finalized the rule in December but agreed not to enforce it until 2015.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
  • Aug. 13, 2014, 2:38 AM
    • The SEC has launched an investigation into examining alternative mutual funds, following their recent surge in popularity.
    • The funds in question typically employ investment strategies that imitate those of hedge funds, such as investing in private debt or shorting assets, and command higher fees.
    • Investigations will be conducted at large investment firms such as BlackRock (NYSE:BLK) and AQR Capital Management, as well as smaller firms that previously didn't offer mutual funds.
    • Related tickers: GS, BK
  • Aug. 7, 2014, 4:40 AM
    • U.S. District Judge Thomas Griesa has ordered that BNY Mellon (NYSE:BK) still hold on to the $539M of Argentine money designated to go to the holders of the country's restructured bonds.
    • Despite its default, Argentina has threatened BNY Mellon over not disbursing the funds stating that the bank is violating its duties as a trustee.
    • According to the U.N.'s body for Latin America, Argentina's GDP is expected to shrink this year, as fallout from the debt crisis keeps the region's No. 3 economy barred from foreign debt markets.
    • ETFs: ARGT
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  • Aug. 6, 2014, 8:48 AM
    • The Federal Reserve and the FDIC say the bankruptcy plans submitted by 11 of the largest banks make "unrealistic or inadequately supported" assumptions and "fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for" an orderly failure. Ouch!
    • Full feedback
    • The 11 dinged: BAC, BK, C, GS, JPM, MS, STT, and the U.S. units of BCS, CS, DB, and UBS.
    • To review: Dodd-Frank requires banks annually submit a "living will" detailing their operations and exposures and how they could be dismantled without the need of a bailout in the event they near failure. Pleasing the regulators is a must as they have the power to force tougher capital rules or restrictions on growth, or even mandate a breakup of the lenders. As for the current failures, the banks have about a year to address D.C.'s concerns.
    • "Despite the thousands of pages of material these firms submitted, the plans provide no credible or clear path through bankruptcy that doesn't require unrealistic assumptions and direct or indirect public support," says the FDIC's #2 official, Thomas Hoenig.
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Company Description
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.
Sector: Financial
Country: United States