Bank of New York


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The Bank of New York
Type Defunct (Merged with Mellon Financial 2007)
Founded New York City, NY
1784-06-09
Headquarters New York, New York
Key people Alexander Hamilton, founder
Isaac Roosevelt, cofounder, second president
Industry Banking
Products Financial Services
Website www.bnymellon.com
Bank of New York at 48 Wall St.

The Bank of New York, abbrieviated BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation.

Contents

History

The Bank of New York was founded on June 9, 1784[2], making it the oldest bank in the United States. Alexander Hamilton wrote the new bank's constitution, and became the individual most actively involved in the organization of The Bank of New York, guiding it through its early stages. The bank opened for business at the Walton House in Lower Manhattan only a few months after the departure of British troops from American soil. It opened with a capitalization of $500,000.[2]

Timeline

  • In 1792, the Bank of New York was the first corporate stock to be traded on the New York Stock Exchange.
  • In 1922, the Bank merged with the New York Life Insurance & Trust Company.
  • In 1948, the Bank acquired The Fifth Avenue Bank.
  • In 1966, the Bank acquired the Empire Trust Company.
  • In 1968, the Bank formed its holding company, The Bank of New York Company, Inc.
  • In 1988, the Bank of New York acquired the Irving Bank Corporation and moved its headquarters to One Wall Street, now known as the Bank of New York Building.
  • In the 1990s, the Bank acquired the National Community Banks in New Jersey and the Putnam Trust Company.
  • In 2003, the Bank of New York acquired Pershing LLC [1], a provider of correspondent clearing and outsourcing services for broker dealers, asset managers. and financial intermediaries. That same year, the Bank integrated Lockwood Financial Services [2], Inc. into Pershing, creating one of the largest providers of managed account programs with client assets totaling nearly US$18 billion. The Bank has acquired over 80 other companies in the last 10 years.
  • In 2005, the Bank was appointed by Telecom Argentina as trustee, registrar, and paying and transfer agent for its US$1.5 billion) debt restructuring. "The transaction was Argentina's largest corporate debt restructuring to date," according to the Bank of New York November 3, 2005, press release. The restructure involved the exchange of US$2.8 billion in outstanding debt for newly issued exchange notes and cash; "As the settlement agent in the transaction, The Bank of New York received and processed electronic and manual instructions from investors holding bonds in Euroclear, Clearstream, the Depository Trust Corporation (DTC), and from creditors holding debt in physical form." [3]
  • In late 2005, the Bank of New York settled with federal regulators for US$38 million regarding a money laundering scandal that began in 1996. The illegal operation involved two Russian emigres—one who was a Vice President of the bank—moving over US$7 billion via hundreds of wires, and ended in the prosecution of at least nine individuals.
  • On April 7, 2006, J.P. Morgan Chase & Co. announced they would swap their corporate trust unit for Bank of New York Co.'s retail and small business banking network. The swap values the Bank of New York business at US$3.1 billion, and JPMorgan's trust unit at US$2.8 billion and gives Chase access to 338 additional branches and 700,000 new customers in the New York, New Jersey, and Connecticut Tri-State area.
  • On December 4, 2006 The Bank of New York and Mellon Corporation announced a merger, in which the name would be changed to Bank of New York Mellon Corporation, and almost all key leadership positions would be assumed by Mellon Corporation personnel.
  • In May 2007, Russia has filed a US$22.5 billion lawsuit against the bank for money laundering.[4]
  • In July 2008, the bank refused to follow the order of a bankruptcy judge in Texas, requiring the bank to cooperate in the completion of a deal turning over the title for the property of the venerable but bankrupt Pacific Lumber Company in Humboldt County, California to the Mendocino Redwood Company. The judge has stated not doing so will lead to enforcement actions on his part. Following the judge's six page "Final Order" order, the bank again attempted to get an appellate court to intervene, despite the fact that it has refused to do so twice ( See Times Standard newspaper article).

Merger with Mellon

Talks of a merger began when Tom Renyi approached Robert Kelly about a possible amalgamation between the Bank of New York and Mellon Financial Corporation.[3] The $16.5 billion deal was finalized on the 1 July 2007, with Kelly as the Chief Executive Officer (CEO) of the new company, and Renyi as Executive Chairman.[3][4] Per the deal, the new Board of Directors is composed of ten directors appointed by the Bank of New York, and eight by Mellon.[5]. The Bank of New York Mellon launched its new brand identity on 1 October 2007.

External links

References

  1. ^ "The Bank of New York Mellon Profile". Google Finance. Retrieved on 2007-08-06.
  2. ^ a b Wolfe, Allis (1995). "Bank of New York". The Encyclopedia of New York City. Ed. Kenneth T. Jackson. New Haven, CT & London & New York: Yale University Press & The New-York Historical Society. 70-71. 
  3. ^ a b "Bank of New York and Mellon Will Merge". New York Times. Retrieved on 2007-08-08.
  4. ^ "InformationWeek 500: Magnificent Seven". Information Week. Retrieved on 2007-09-21.
  5. ^ "Bank Of New York To Merge With Mellon". CBS News. Retrieved on 2007-08-08.






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