bank of new york mellon corp (BK) Key Developments
The Bank of New York Mellon Corporation Reaches Settlement in Principle on Foreign Exchange-Related Putative Class Action Lawsuit
May 21 15
On May 21, 2015, The Bank of New York Mellon Corporation reached a settlement in principle on a previously disclosed pending foreign exchange-related putative class action lawsuit asserting securities law violations. Under the terms of the settlement, BNY Mellon will make a payment of $180 million, resulting in a pre-tax charge of $50 million in the second quarter of 2015, and will receive a full and complete release of all foreign exchange-related securities law claims brought against it or its affiliates by members of the alleged class. This settlement effectively resolves virtually all of the currently pending foreign exchange-related actions, with the exception of several lawsuits brought by individual customers. The settlement is subject to court approval.
BNY Mellon Announces Management Changes
May 21 15
BNY Mellon appointed Donald J. Heberle to be the new Chief Executive Officer of BNY Mellon Wealth Management, succeeding current CEO Lawrence Hughes. After 24 years with the company, Hughes has decided to retire from his role as of June 30, 2015, and will continue with BNY Mellon in an advisory role within BNY Mellon Investment Management. Heberle will be based in New York where he will continue to direct the long-term growth and expansion strategy that the Wealth Management leadership team has been driving for the past two years. In previous roles Heberle served as Executive Director for the Family Office and International Wealth Management businesses; was Director of Investment Strategy for Mellon's Private Wealth Management group; and developed and implemented the firm's tax-managed equity investment process.
BNY Mellon Expands Analytical Services for Treasury Services Clients
May 19 15
BNY Mellon has expanded its analytical support for treasury services clients with the launch of Payment Analytics. Designed for institutional clients with high levels of wire transfer utilisation, Payment Analytics provides real-time updates on straight-through processing success rates, information on the type and number of payment queries, and trend data that clients can use to improve the efficiency of payment processing. Available to select global clients on a pilot basis for the past several months, Payment Analytics complements BNY Mellon's Intraday Liquidity Analytics service. Provided via BNY Mellon's TreasuryEdge portal, the two analytical services are claimed to reflect BNY Mellon's commitment to providing 'big data'-based analytical insights, in addition to the usual processing and transaction support, that clients can use to better manage their treasury function.
William J. Perlstein Joins BNY Mellon as Senior Deputy General Counsel, Effective June 15, 2015
May 12 15
BNY Mellon announced that William J. Perlstein will be joining the company as Senior Deputy General Counsel, effective June 15, 2015. Reporting to J. Kevin McCarthy, BNY Mellon Senior Executive Vice President and General Counsel, Perlstein will lead the Legal Department practice groups focused on government affairs, public policy and regulatory affairs, and the corporate services legal functions supporting M&A, IT, real estate, procurement and sourcing support, and cyber security. Perlstein is a senior partner and former co-managing partner of WilmerHale, having spent nearly 40 years of his career there. He led the pre-merger law firm of Wilmer, Cutler & Pickering for six years prior to its transformative 2004 merger with Hale and Dorr, and following the merger served as the co-managing partner of the combined firm until 2012.
BNY Mellon Introduces its First One-Stop Process for Authorized Participants to Automate the Creation and Redemption of Exchange Traded Funds
May 5 15
BNY Mellon has introduced the one-stop process for authorized participants (APs) to automate the creation and redemption of exchange traded funds (ETF). The enhancements allow an AP to utilize the BNY Mellon ETF Center to propose and negotiate ETF baskets of underlying assets with a fund sponsor during the creation and redemption process. This is a significant improvement over the common industry practice, which required APs to utilize more than one venue to propose, negotiate and settle ETF baskets. APs are large financial institutions or market specialists that play a critical role in the ETF marketplace as they are chosen by an ETF sponsor to obtain the underlying assets needed to create or redeem an ETF. Once an AP has negotiated an ETF basket with a sponsor, the AP transfers the shares to a custodian bank.