BNY Mellon to Book $100 Million Charge Because of Errors
Bank of New York Mellon Corp., the world’s largest custody bank, expects to record an after-tax charge of about $100 million in the second quarter linked to administrative errors in certain funds it manages.
The New York-based company said in a filing today that the errors, which it first disclosed in 2013, relate to questions about the resident status of certain funds, potentially exposing the firm to tax liability for the funds’ earnings.
BNY Mellon last week said it would take an $80 million to $100 million severance charge in the second quarter for unspecified cuts to its workforce. Also last week, the bank said it sold its 1 Wall St. headquarters to Harry Macklowe’s Macklowe Properties for $585 million, which BNY Mellon said today will result in an after-tax gain of about $200 million in the third quarter.
BNY Mellon shares have declined 0.8 percent this year.
To contact the editors responsible for this story: Christian Baumgaertel at email@example.com Josh Friedman, Pierre Paulden