Bank of New York
From Wikipedia, the free encyclopedia
| The Bank of New York Company, Inc. | |
 |
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| Type | Public (NYSE: BK) |
|---|---|
| Founded | New York, New York in 1784 |
| Headquarters | New York, New York |
| Key people | Tom Renyi, Chairman & CEO Gerald Hassell, President |
| Industry | Financial services |
| Products | Financial services |
| Revenue |  $8.312 Billion USD (2005) |
| Net income | $1.571 Billion USD (2005) |
| Employees | 23,451 (2005) |
| Website | www.bankofny.com |
The Bank of New York (NYSE: BK), sometimes BNY, is a global financial services company operating in four primary business areas:
- Securities servicing
- Treasury management
- Investment management
- Private banking
Bank of New York and Mellon Financial Corporation will merge. According to Mellon and Bank Of New York the merged corporation will be named The Bank of New York Mellon Corporation.
[edit] History
The Bank of New York was founded by Alexander Hamilton in 1784, making it the oldest bank in the United States. He 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 on June 9, 1784, only a few months after the departure of British troops from American soil.
[edit] Events
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 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.
The Bank has acquired over 80 other companies in the last ten years.
In 2005, the Bank was appointed by Telecom Argentina as trustee, registrar and paying and transfer agent for its $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 $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." [2]
In late 2005, the Bank of New York settled with federal regulators for $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 $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 be swapping 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 $3.1 billion, and JPMorgan's trust unit at $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 Bank of New York Co. and Mellon Financial Corp. said that they will merge, creating the world's largest securities servicing and asset management firm. Under terms of the deal, Bank of New York's shareholders will receive 0.9434 shares in the new company for each share of Bank of New York that they own, and Mellon shareholders (Taks) will receive one share in the new company for each Mellon share they own. Bank of New York and Mellon have entered into mutual stock option agreements for 19.9 percent of the issuer's outstanding common stock.
The new company, which will be called Bank of New York Mellon Corp., will be the world's leading asset servicer with $16.6 trillion in assets under custody and corporate trustee with $8 trillion in assets under trusteeship. It will rank among the top 10 global asset managers with more than $1.1 trillion in assets under management.
Thomas A. Renyi, chairman and chief executive of Bank of New York, will serve as executive chairman of Bank of New York Mellon for 18 months following the close of the deal with overall responsibility for the integration of the two companies. Robert P. Kelly, currently president, chairman and chief executive of Mellon, will serve as chief executive of the new company and will succeed Renyi as chairman of the board. Gerald L. Hassell, currently president of Bank of New York, will hold the same position in the new company. The board of directors will have 10 members designated by Bank of New York and eight members designated by Mellon. The new company's headquarters will be based in New York City. The deal is expected to be complete in the third quarter of 2007.
