Bank of New York

The Bank of New York Company, Inc.

Bank of New York logo
Company type	Subsidiary
Industry	Financial services
Founded	New York, New York in 1784
Founder	Alexander Hamilton Thomas Mellon
Headquarters	New York, New York
Key people	Tom Renyi, Chairman & CEO Gerald Hassell, President Alexander Hamilton, founder
Products	Financial services
Revenue	$8.312 Billion USD (2005)
Net income	$1.571 Billion USD (2005)
Owner	Bank of New York Mellon
Number of employees	23,451 (2005)
Website	www.bankofny.com

The Bank of New York, abbrieviated BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007. The bank now continues under the new name of The Bank of New York Mellon Corporation. The BNY operated in four primary business areas (which it still continues to do):

• Securities servicing
• Treasury management
• Investment management
• Private banking

History

Older Bank of New York logo

The Bank of New York was founded by Alexander Hamilton on 1784-06-09, making it the oldest bank in the United States. He wrote the new bank's constitution, and became the individual most actively involved in the organization of The Bank of New York, guiding it through its early stages. The bank opened for business at the Walton House in Lower Manhattan on June 9, 1784, only a few months after the departure of British troops from American soil. It opened with a capitalization of $500,000.00.

Events

The Walton Mansion housed the Bank of New York from 1784 to 1787.

In 1792, the Bank of New York was the first corporate stock to be traded on the New York Stock Exchange.

In 1922, the Bank merged with the New York Life Insurance & Trust Company.

In 1948, the Bank acquired The Fifth Avenue Bank.

In 1966, the Bank acquired the Empire Trust Company.

In 1968, the Bank formed its holding company, The Bank of New York Company, Inc.

In 1988, the Bank of New York acquired the Irving Bank Corporation and moved its headquarters to One Wall Street, now known as the Bank of New York Building.

In the 1990s, the Bank acquired the National Community Banks in New Jersey and the Putnam Trust Company.

In 2003, the Bank of New York acquired Pershing LLC [1], a provider of correspondent clearing and outsourcing services for broker dealers, asset managers. and financial intermediaries. That same year, the Bank integrated Lockwood Financial Services [2], Inc. into Pershing, creating one of the largest providers of managed account programs with client assets totaling nearly $18 billion.

The Bank has acquired over 80 other companies in the last 10 years.

In 2005, the Bank was appointed by Telecom Argentina as trustee, registrar, and paying and transfer agent for its $1.5 billion debt restructuring. "The transaction was Argentina's largest corporate debt restructuring to date," according to the Bank of New York November 3, 2005, press release. The restructure involved the exchange of $2.8 billion in outstanding debt for newly issued exchange notes and cash; "As the settlement agent in the transaction, The Bank of New York received and processed electronic and manual instructions from investors holding bonds in Euroclear, Clearstream, the Depository Trust Corporation (DTC), and from creditors holding debt in physical form." [3]

In late 2005, the Bank of New York settled with federal regulators for $38 million regarding a money laundering scandal that began in 1996. The illegal operation involved two Russian emigres - one who was a Vice President of the bank - moving over $7 billion via hundreds of wires, and ended in the prosecution of at least nine individuals.

On April 7, 2006, J.P. Morgan Chase & Co. announced they would swap their corporate trust unit for Bank of New York Co.'s retail and small business banking network. The swap values the Bank of New York business at $3.1 billion, and JPMorgan's trust unit at $2.8 billion and gives Chase access to 338 additional branches and 700,000 new customers in the New York, New Jersey, and Connecticut Tri-State area.

In May 2007, Russia has filed a $22.5 bln usd lawsuit against the bank for money laundering.[4]

Merger with Mellon

On December 4, 2006, Bank of New York and Mellon Financial Corporation announced that they would merge, creating 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 Bank of New York Mellon Corporation, is the world's leading asset servicer by a considerable margin, with $18 trillion in assets under custody (vaulting it over JPMorgan Chase, which has $13.9 trillion of assets under custody),[5] and corporate trustee with $8 trillion in assets under trusteeship. It ranks among the top 10 global asset managers with more than $1 trillion in assets under management. It also added Mellon's asset management and wealth management businesses to Bank of New York's corporate trust, depositary receipt, correspondent clearing, and government bond clearance activities. This combination of businesses endowed the new company with an extremely diverse business mix and leading positions in most businesses.

It ranks as a top-10 U.S. wealth manager with more than $160 billion in client assets, and is a leading U.S. cash management and global payments provider. The company has annual revenues of about $13 billion, and pro-forma market capitalization of about $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 $11 trillion in outstanding debt.

Thomas A. Renyi, former chairman and chief executive of Bank of New York, will serve 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.

Robert P. Kelly, former president, chairman, and chief executive of Mellon, serves as chief executive of the new company and succeeded Renyi as chairman of the board. Gerald L. Hassell, former president of Bank of New York, holds the same position in the new company.

The board of directors has 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.

The merger was finalized on the July 2, 2007.

External links

• Bank of New York