BNY

The Bank of New York Mellon Corporation
Company type	Public
Industry	Financial services
Predecessor	Bank of New York, Mellon Financial Corporation
Founded	July 1, 2007; 19 years ago
Headquarters	New York City, United States
Area served	Worldwide
Products	Asset management, custody and securities services, government finance, pension fund administration
Website	bnymellon.com

The Bank of New York Mellon Corporation, commonly referred to as BNY, is a leading American global financial services firm headquartered in New York City. Established in July 2007 through the union of the Bank of New York and Mellon Financial Corporation, BNY's roots date back to 1784, positioning it among the oldest banking institutions both in the United States and internationally. It holds the distinction of being the inaugural company listed on the New York Stock Exchange. In 2024, BNY secured the 130th spot on the Fortune 500 ranking by revenue and stands as the 13th-largest bank in the U.S. by asset size, while also ranking 83rd worldwide. The firm is recognized as a systemically important financial institution by the Financial Stability Board.

BNY provides an extensive range of financial offerings, including asset management, custody and securities services, government finance, and pension fund administration. Its clientele spans corporations, institutions, and individuals globally. Key subsidiaries encompass BNY Investments, BNY Pershing, and BNY Wealth. As the preeminent custodian bank and securities services provider globally, BNY oversees $2.1 trillion in assets under management and administers over $52 trillion in assets under custody as of September 2024—marking it as the first bank to surpass $50 trillion in custody. The corporation has earned recognition among Fortune magazine’s World's Most Admired Companies.

Bank of New York

The Bank of North America, established in 1781 with notable founders like Alexander Hamilton, was America's first bank. In 1784, Massachusetts Bank was chartered in Boston. Due to New York City’s thriving shipping sector lacking banking facilities, the Bank of New York was created in June 1784, operating without a formal charter for seven years. Originally intended to raise $750,000 capital, it launched with $500,000 in gold or silver coins by selling 723 shares to 192 investors, including figures such as Aaron Burr and Hamilton. Alexander McDougall was appointed its inaugural president. The bank’s initial offices were situated in the Walton Mansion before relocating in 1787 to Hanover Square.

In 1789, under Hamilton's facilitation, the bank extended the first loan to the U.S. government to cover Congressional and President Washington’s salaries. It became the first entity traded on the New York Stock Exchange at its inception in 1792. By 1796, operations moved to Wall and William Streets (later known as 48 Wall Street). The bank maintained a monopoly within New York until Aaron Burr established the Bank of the Manhattan Company in 1799.

Throughout the nineteenth century, it adhered to prudent lending practices while financing significant infrastructure ventures such as canals, steamboats, railroads, utilities, and New York City’s subway system. Additionally, it supported U.S. military campaigns during both the War of 1812 and Civil War.

In July 1922, it merged with New York Life Insurance and Trust Company; subsequent mergers included Fifth Avenue Bank in 1948 and Empire Trust Company in 1966. A holding company structure was formed in 1969.

Following a takeover attempt in 1988, Bank of New York merged with Irving Bank Corporation and moved its headquarters to One Wall Street. This merger facilitated business dealings with the Soviet Union and Russia after 1991. Notably, Vladimir Kirillovich Golitsyn ("Mickey" Galitzine) directed Eastern European operations until 1992, broadening correspondent banking ties across Russia and Eastern Europe.

Between 1993 and 1998, Bank of New York completed thirty-three acquisitions including JP Morgan’s Global Custody Business (1995) and Ivy Asset Management (2000). In October 2002, it partnered with ING to enhance its footprint in Eastern Europe.

In 2003, Bank of New York purchased Pershing LLC from Credit Suisse First Boston for $2 billion, becoming America’s largest stock clearing firm. It also incorporated Lockwood Financial Partners and EMAT into its securities division to better compete for private banking clients.

In 2005, the bank resolved a $14 million lawsuit brought by the Russian government concerning money laundering activities linked to rogue employees during the 1990s—an episode sometimes referred to as Russiagate. Investigations uncovered transfers involving Russian banks and offshore entities connected to organized crime figures.

By 2006, Bank of New York exited retail banking by exchanging its retail and regional middle-market operations for J.P. Morgan Chase’s corporate trust assets—marking a strategic pivot toward institutional services.

Mellon Financial

Originally established in 1869 in Pittsburgh, Pennsylvania, Mellon Financial began as T. Mellon & Sons' Bank, founded by retired judge Thomas Mellon alongside his sons Andrew W. Mellon and Richard B. Mellon. The bank made significant investments in leading industrial companies such as Alcoa, Westinghouse, Gulf Oil, General Motors, and Bethlehem Steel, with Gulf Oil and Alcoa standing out as particularly successful ventures.

In 1902, the institution adopted the name Mellon National Bank. A major consolidation occurred in 1946 when it merged with Union Trust Company and other financial entities to form Mellon National Bank and Trust Company, marking Pittsburgh’s first bank to surpass US$1 billion in assets.

Mellon pioneered the establishment of the United States’ first dedicated family office in 1971. Following a corporate restructuring in 1972, Mellon Bank, N.A., and the holding entity Mellon National Corporation were created.

Throughout the 1980s and 1990s, Mellon broadened its presence by acquiring various Pennsylvania-based banks and financial companies, including the Girard Company (1982), Commonwealth National Financial Corporation (1985), Boston Company, Inc. (1993), and Dreyfus Corporation (1994). In 1992, it expanded its retail footprint by purchasing 54 branches from the Philadelphia Savings Fund Society, recognized as America’s earliest savings bank.

The acquisition of The Boston Company from American Express and AFCO Credit Corporation from The Continental Corporation occurred in 1993. The following year’s merger with Dreyfus integrated mutual fund offerings into Mellon's services. By 1999, the entity transitioned from Mellon Bank Corporation to Mellon Financial Corporation. In 2001, it exited the retail banking sector by divesting assets and branches to Citizens Financial Group.

Merger

On December 4, 2006, a merger was announced between Bank of New York and Mellon Financial Corporation, resulting in the creation of the largest global securities servicing firm and a leading asset management organization. This combination merged Mellon's wealth management operations with Bank of New York's expertise in asset servicing and short-term lending. Valued at $16.5 billion, the transaction projected $700 million in cost reductions alongside approximately 3,900 job eliminations primarily through attrition. Shareholders of Bank of New York received 0.9434 shares in the new entity for each share held, while Mellon shareholders were granted one share per Mellon share owned. The merger was completed on July 1, 2007, establishing headquarters at One Wall Street under the name The Bank of New York Mellon Corp., commonly known as BNY Mellon.

Post-merger history

In October 2008, BNY Mellon was designated as master custodian for the U.S. Treasury's Troubled Asset Relief Program (TARP), overseeing accounting and record-keeping amid the financial crisis. Due to economic pressures, it reduced its workforce by approximately 1,800 employees (around 4%) in November 2008. Notably, BNY Mellon was among a select group of banks that passed federal stress tests in 2009 and repaid its $3 billion TARP funding by mid-2009.

The company pursued growth through acquisitions such as Insight Investment from Lloyds Banking Group in 2009, Global Investment Servicing Inc. from PNC Financial Services in 2010, and Talon Asset Management's wealth business in 2011. By 2013, it demonstrated strong capital recovery and performed well under Federal Reserve stress testing required by Dodd-Frank regulations.

A new marketing initiative was launched in 2013 featuring an updated slogan and logo while initiating development of NEXEN—an IT platform leveraging open source technology with a focus on APIs, data analytics, and cloud computing.

In May 2014, BNY Mellon relocated its global headquarters to Brookfield Place following the sale of One Wall Street. It consolidated global markets operations under BNY Markets Mellon and expanded its Hong Kong office to enhance wealth management services across Asia.

Between 2014 and 2016, innovation centers were established by BNY Mellon to target emerging technologies and digital transformation efforts, starting with a facility in Silicon Valley.

In September 2017, BNY Mellon agreed to divest CenterSquare Investment Management to its management team alongside private equity firm Lovell Minnick Partners. Later that year in November, it executed the U.S. banking sector’s inaugural real-time payment transaction utilizing The Clearing House system.

January 2018 saw another headquarters move to 240 Greenwich Street (previously known as 101 Barclay Street) located in Tribeca, New York City—a building owned by BNY Mellon for over three decades—which it purchased outright from the city for $352 million during that year.

In February 2020, Liontrust Asset Management was integrated onto Mellon's newly developed Investment Operations platform.

Early in 2023, BNY Mellon's Pershing division introduced real-time payment capabilities on its investor portal. By June of that year, Pershing X launched Wove—a wealth management platform. In July 2023, BNY Mellon became an early adopter of the Federal Reserve’s instant payment system FedNow. That same year marked a milestone when minority-, veteran-, and woman-owned firms were selected as bookrunners for a $500 million debt issuance. Additionally, BNY Mellon increased its U.S. minimum wage by 12.5% while broadening mental health support resources for employees.

In June 2024, BNY Mellon underwent a corporate rebranding to simply BNY, streamlining its brand architecture: BNY Mellon Investment Management was renamed BNY Investments; Wealth Management became BNY Wealth; and Pershing was shortened to BNY Pershing.

Operations

BNY delivers technology, expertise, and services through its platforms to assist clients worldwide in the creation, administration, management, transaction, distribution, and enhancement of assets. Its primary divisions consist of BNY Investments, BNY Wealth, and BNY Pershing.

With a presence in 35 countries spanning the Americas, EMEA, and Asia-Pacific regions, BNY employed 53,400 individuals as of December 2023. The company's American and global headquarters relocated from 1 Wall Street to 225 Liberty Street in 2015, followed by a move to 240 Greenwich Street in New York City in 2018. The EMEA headquarters are situated in London, while the Asia-Pacific regional office is located in Hong Kong.

Business

BNY stands as a prominent global financial services provider that assists clients in managing and protecting assets throughout their financial journey. It serves more than 90% of Fortune 100 firms and nearly all leading international banks. Additionally, the firm supports governmental entities and administers assets for over 90% of the largest pension funds.

By September 2023, BNY held $45.7 trillion in assets under custody and $1.8 trillion under management; these amounts increased to $49.5 trillion and $2.0 trillion respectively by June 2024. Its comprehensive financial services include asset servicing, alternative investment solutions, broker-dealer operations, corporate trust services, treasury management, global collateral oversight, foreign exchange transactions, securities lending, outsourcing of middle and back office functions, and depository receipt services.

The company’s clientele features a substantial segment of Fortune 500 firms, leading endowments, pension and employee benefit plans, insurance providers, and top-tier academic institutions.

In 2014, BNY launched the Markets Group—now known as BNY Markets—to provide collateral management, securities finance, foreign exchange, and capital markets capabilities.

BNY Investments

Managing close to $2 trillion in assets, BNY Investments operates through specialized affiliates such as ARX Investimentos, Dreyfus, Insight Investment, Mellon Investments Corporation, Newton Investment Management, Siguler Guff & Company, and Walter Scott & Partners. Each entity employs a unique investment philosophy across diverse asset categories.

BNY Pershing

BNY Pershing supplies clearing and custody services alongside trading and settlement solutions. It also offers investment products, middle and back office support functions, data analytics, and advisory services tailored to wealth management and institutional clientele.

BNY Wealth

Focused on private banking, estate planning, family office offerings, and investment management for affluent individuals, BNY Wealth has expanded since 2013 by opening additional offices, growing its workforce, and initiating marketing efforts. By 2014, it was ranked seventh among U.S. wealth management companies.

Leadership

Charles W. Scharf assumed the role of CEO in July 2017 and became Chairman following the retirement of former CEO Gerald Hassell at the close of that year. Hassell had been CEO since 2011 and served as president of the Bank of New York prior to its merger. Scharf departed in 2019 to lead Wells Fargo. From 2020 until 2022, Thomas "Todd" Gibbons held the CEO position. Robin A. Vince succeeded Gibbons as president and CEO in August 2022 and joined the board.

Karen Peetz, who served as BNY Mellon’s first female president from 2013 to 2016, retired without an appointed successor. Thomas Gibbons was CFO between 2008 and 2017 before Michael P. Santomassimo took over the role. Mitchell Harris oversees Investment Management; Brian Shea led Investment Services until his retirement in 2017. Hanneke Smits was named CEO of BNY Mellon Investment Management in 2020; she announced plans to retire at the end of 2024 with Jose Minaya designated as her replacement.

As of 2024, the board members include Linda Z. Cook, Joseph J. Echevarria, M. Amy Gilliland, Jeffrey A. Goldstein, K. Guru Gowrappan, Ralph Izzo, Sandie O’Connor, Elizabeth E. Robinson, Robin Vince, and Alfred W. “Al” Zollar.

Company culture

In 2008, BNY Mellon formed a corporate social responsibility committee within its Board of Directors to establish sustainability objectives. The firm's CSR efforts encompass philanthropic contributions, social finance initiatives within local communities, and measures aimed at safeguarding global financial markets.

Philanthropy at BNY Mellon includes both monetary gifts and volunteer engagement, with the company matching employee donations through its Giving at BNY initiative. From 2010 to 2012, combined donations from the company and its workforce reached nearly $100 million. In 2014, BNY Mellon collaborated with the Forbes Fund to facilitate partnerships between nonprofits and private sector organizations focused on social innovation.

The Carbon Disclosure Project (CDP) consistently awarded BNY Mellon A ratings for transparency in greenhouse gas emissions from 2013 through 2021. By 2014, the company had realized $48 million in savings through enhanced building efficiencies; five facilities earned LEED-EB certification while 23 featured LEED-certified interior designs.

Diversity and inclusion are promoted via several business resource groups, including the Women's Initiative Network (WIN), co-founded by Karen Peetz in 2009 and expanded to 50 chapters by 2013. Other groups include PRISM, supporting LGBT employees; IMPACT, for multicultural personnel; HEART, catering to employees with disabilities; GENEDGE, fostering intergenerational collaboration; and VETNET, which assists veterans and military families. The organization also offers resources to help veterans translate their military experience into corporate roles. In 2014, BNY Mellon was honored as Financial Services Diversity Corporation of the Year by the National Business Inclusion Consortium.

An innovation program introduced in 2009 motivates employees to propose ideas for major projects, generating approximately $165 million in pretax profits during its pilot stage. This initiative continues annually as the "ACE" contest where teams present their concepts.

In 2022, BNY Mellon released The Pathway to Inclusive Investment, a report examining the gender-investment disparity across sixteen markets managing $60 trillion in assets. The analysis identifies investment barriers and estimates that closing the female investment gap could unlock an additional $3.2 trillion in capital.

Meaghan Muldoon was appointed as BNY Mellon's inaugural Chief Sustainability Officer in 2023.

As of 2024, BNY Mellon is listed on the Dow Jones Sustainability Indices and recognized by the Human Rights Campaign Foundation’s Corporate Equality Index. It also features on the FTSE4Good Global Benchmark Index, Bloomberg’s Gender-Equality Index, and JUST Capital's JUST 100 list.

Foreign currency exchange issues

In October 2011, civil lawsuits were filed against Bank of New York by the U.S. Department of Justice and New York’s attorney general accusing the bank of foreign currency fraud. The complaints alleged that the bank manipulated foreign exchange transaction prices by selecting the lowest rates for sales and highest for purchases during each day, resulting in $2 billion in profits at the expense of pension fund clients over more than ten years. It was also claimed that secret pricing arrangements were made to avoid detection. BNY Mellon denied these allegations, highlighting its workforce of 8,700 employees in New York and potential consequences for the state.

By March 2015, BNY Mellon acknowledged misrepresentations related to foreign exchange pricing and agreed to a $714 million settlement of associated lawsuits while dismissing several senior executives. Subsequently, in May 2015, it resolved another foreign exchange lawsuit with a $180 million payment.

In May 2016, plaintiffs initiated a lawsuit accusing the bank of breaching fiduciary duties owed to ERISA plans by overcharging on foreign securities investments; this case was allowed to proceed as of March 2017. Later that year in December, the Sheet Metal Workers' National Pension Fund filed a similar claim alleging manipulation of foreign exchange rates. The bank reached a $12.5 million settlement for the 2016 lawsuit in December 2018.

Personal data compromise

In February 2008, BNY Mellon encountered a security incident involving the disappearance of backup tapes that contained sensitive information on 4.5 million individuals, including social security details and bank account data. This breach was publicly disclosed in May 2008, with affected parties notified on May 22. By August of the same year, the total number of individuals impacted had escalated to 12.5 million.

IT system disruptions

On August 22, 2015, BNY Mellon's SunGard accounting platform malfunctioned during a software upgrade, halting the automated net asset value (NAV) calculation for approximately 1,200 mutual funds. The institution resorted to manual computations until the system was fully operational again the following week. Subsequently, after an inquiry by the Massachusetts Securities Division into the incident and insufficient contingency measures, BNY Mellon agreed to pay a $3 million settlement.

In December 2016, a significant technology failure interrupted BNY Mellon's processing of SWIFT network payments, which typically handle around 160,000 transactions daily amounting to $1.6 trillion. This outage persisted for 19 hours, resulting in payment delays and extensions in Fedwire payment services.

Breach of privately owned public space agreement

A 2017 audit by New York City’s Comptroller revealed that BNY Mellon had violated the terms of a privately owned public space (POPS) agreement for more than 15 years. The company had obtained permits for its building at 101 Barclay Street in Lower Manhattan that mandated a publicly accessible lobby available around the clock as a condition for zoning variances. Despite this, both auditors and members of the public were frequently denied entry by BNY Mellon’s security personnel.

By September 2018, limited access to the lobby was permitted; however, compliance with the continuous 24-hour accessibility requirement was not achieved. City officials reported ongoing obstruction by company security as of early 2021 and initiated efforts to revoke the lobby’s public space designation.

Employment-related legal matters

In August 2015, BNY Mellon resolved allegations concerning violations of the Foreign Corrupt Practices Act by paying $14.8 million to the SEC. The claims involved offering internships to relatives of officials from Middle Eastern investment funds.

In March 2019, internal discontent arose after BNY Mellon prohibited remote work arrangements, prompting concerns about impacts on childcare responsibilities, mental wellbeing, and workforce diversity. The company subsequently rescinded this ban following employee opposition, demonstrating responsiveness to staff feedback.

Additional legal challenges

In September 2009, BNY Mellon settled a lawsuit initiated by the Russian government in 2007 that accused the firm of money laundering activities. While the original suit sought damages totaling $22.5 billion, the matter was resolved for $14 million.

South Carolina filed suit against BNY Mellon in 2011 for failing to comply with investment policies governing the state’s pension fund. This dispute concluded in June 2013 with a $34 million settlement.

In July 2012, BNY Mellon reached a $280 million settlement in a class action lawsuit related to losses from investments in medium-term notes following the collapse of Sigma Finance Corp.

In December 2018, BNY Mellon consented to pay nearly $54 million to settle SEC charges regarding improper management of American depositary receipts (ADRs). The settlement comprised over $29.3 million in disgorgement, $4.2 million in prejudgment interest, and a penalty of $20.5 million. The bank neither admitted nor denied the allegations as part of this agreement.

Recognition and rankings

By 2024, BNY Mellon holds the position as the largest custody bank worldwide, ranks sixth among global investment management firms, and stands as the seventh-largest wealth management company in the United States. It secured the 130th spot on the 2024 Fortune 500 list and was included in the Financial Times Global 500.

The institution earned accolades as one of the world's 50 Safest Banks by Global Finance in both 2013 and 2014, and was recognized among the 20 Most Valuable Banking Brands by The Banker in 2014. Its sustainability efforts were acknowledged through inclusion on the Dow Jones Sustainability North America Index from 2013 to 2015, as well as on the World Index until 2016. Additionally, BNY Mellon has been listed among Fortune's World's Most Admired Companies.

BNY Mellon asserts it is the longest-established bank in the United States, a claim occasionally challenged due to historical mergers involving rivals such as Wells Fargo and Bank of America. However, unlike those entities, BNY maintained its independence until merging with Mellon, positioning it among the three oldest banking institutions in the country.

Sponsorships

Since 2012, BNY Mellon has broadened its range of sponsorships. It served as the title sponsor for both the Oxford and Cambridge Boat Race from 2012 through 2015. The firm also supports the Head of the Charles Regatta held in Boston. In 2013, BNY Mellon committed to a decade-long sponsorship with the San Francisco 49ers and became a founding partner of Levi's Stadium. The company consistently backs cultural organizations such as the Royal Academy of Arts in London and the Pittsburgh Symphony Orchestra, and is a founding sponsor of the Perelman Performing Arts Center (PAC) located in Lower Manhattan.

Books

External links