Table: Rough Going

Initially heralded as a dream deal, the Mellon-Dreyfus merger has encountered 
      some troublesome snags
       The Mellon bean-counting culture is colliding head-on with Dreyfus' informal 
      management style. Some Dreyfus executives question Mellon's emphasis on expense 
      reduction rather than business promotion.
          In a departure from the original game plan, longtime Dreyfus President 
      Joseph DiMartino has resigned to head the Dreyfus fund boards. He is expected 
      to be replaced by Mellon Vice-Chairman Keith Smith.
          Dreyfus chief marketing strategist Jay DeMartine has quit to take the top 
      marketing job at Strong Funds. His departure follows the resignations of 
      numerous other key staffers.
          The Dreyfus funds' market share has declined significantly since the merger 
      announcement. That has caused fees to drop, forcing deeper cost-cutting and 
      slowing progress on certain key projects, sources say.
          Troubles at Mellon's Boston Co., notably a $130 million write-off on 
      derivatives holdings, has thrown an additional wrench into the deal, adding to 
      pressure on earnings and distracting Mellon executives.
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