The Bank of New York Mellon, a provider in asset management and securities servicing, has completed the process of consolidating and renaming its principal U.S. bank and trust company subsidiaries into two new principal banks. This consolidation effort, which follows last July’s merger of the holding companies of Mellon Financial and The Bank of New York, was an essential part of the Company’s overall integration process that required regulatory approvals and was completed on schedule.
“This is another important step in ensuring we meet or exceed the goalswe set for integration. The bank charter consolidation provides a moreeffective and cost-efficient structure to deliver our products and services to our global clients, as well as streamlines our own regulatory and related processes,” says Robert P. Kelly, CEO, BNY Mellon.
“These changes will ultimately make it easier for our company to conduct its business and for our customers to conduct their business with us. For most of our clients, the consolidation of these charters was largely transparent and operationally seamless, aside from different entity names appearing on their statements and reports going forward,” adds Kelly.
The two principal banks formed as a result of the consolidation of theentities, which mainly were U.S. banks and trust companies, are:
-BNY Mellon, a New York State chartered bank, which houses institutional businesses including Asset Servicing, Issuer Services, Treasury Services, Broker-Dealer & Advisor Services and the bank-advised businesses of Asset Management.-BNY Mellon, National Association, which houses Wealth Management, where a national charter is preferable given the scope of that business. Currently, this bank contains only the legacy Mellon private wealth business, as the legacy Bank of New York private wealth business is expected to be added in the first quarter of 2009.
As part of the consolidation, the number of U.S. trust companies wasreduced to two companies – The BNY Mellon Trust Company, NationalAssociation and BNY Mellon Trust Company of Illinois. These companies housetrust products and services across the U.S. Also concentrating on trustproducts and services will be BNY Mellon Trust of Delaware, a Delaware bank. Most asset management businesses, along with Pershing, will continue to be held outside of the banks, as they are today.