On 1st July 2007 a merger between The Bank of New York and Mellon Financial Corporation resulted in the creation of a global financial services company called the Bank of New York Mellon Corporation. The Bank of New York Mellon is an asset management and securities services organization which has an estimated $23 trillion worth of assets under custody and around $1 trillion assets under management. BNYM has a presence in over 35 countries outside of the US employing around 40,000 staff globally.
History of the Bank of New York Mellon
The Bank of New York was first established in 1784 by a New York Attorney called Alexander Hamilton, who was enlisted to write the New York Bank’s constitution. It’s charter later came into effect in 1791. By 1792 it found itself the first company to be traded on the newly opened New York Stock Exchange. Throughout the early 20th century until today the bank has continued to expand as a result of the following mergers and acquisitions:
- 1922 - The Bank of New York merged with the New York Life Insurance and Trust Company.
- 1948 - The Bank of New York acquired The Fifth Avenue Bank.
- 1966 - The Empire Trust Company is acquired.
- 1968 - The holding company The Bank of New York Company, Inc. is formed.
- 1988 - The Irving Bank Corporation is acquired. Headquarters are relocated to One Wall Street (The Bank of New York Building).
During the 1990’s there were further acquisitions including:
- The Meridian Trust Co.
- The Municipal Bond administration operations of Hibernia National Bank
- Investor Bank and Trust Co.’s servicing operations
- America Corp’s securities processing business
- The National Community Banks in New Jersey
- Putnam Trust Company.
In the last decade the Bank of New York has made further acquisitions of more than 80 other companies. In 2003, Pershing, now a leading securities clearing firm, was acquired by BNYM and at the same time Lockwood Financial Services Inc. were incorporated into Pershing.
In 2005, the Bank of New York settled with federal regulators for US $38 million as the result of a money laundering scam, dating back to 1996. Nine people, including the bank’s Russian Vice President were prosecuted due to the illegal operation of $7 billion worth of transactions via hundreds of wires. In 2007, Russia filed for US$22.5 billion lawsuit against the bank for money laundering.
History of Mellon Financial Corporation
Originally known as T.Mellon Sons’ Bank, it was first established in 1869 by Thomas Mellon and his sons Andrew W.Mellon and Richard B.Mellon. It went on to become Mellon National Bank in 1902. Over the years Mellon Bank prospered, playing a major part in modern aluminum, oil, consumer electronics and financial industries. It found and developed well known companies such as U.S. Steel, Heinz, General Motors, Koppers and Exxon Mobile. After leaving the organization in 1920, Andrew W.Mellon went on to become the 49th US Treasury Secretary and the only one ever to serve three US Presidents.
In 1946 the Mellon Bank and Trust Company was formed as a result of a merger between Mellon National Bank, Mellbank Corporation (founded by Richard B.Mellon in 1929) and the Union Trust Company. Now the bank was able to compete with some of the nation’s larger banks. It later went on to become Mellon Bank N.A. in 1972 at the same time of which the holding company Mellon National Corporation was formed. Further mergers and acquisitions were to follow:
- 1983 - Acquisitions included the Girard Bank of Philadelphia and the Central Counties Bank of State College, Pennsylvania.
- 1984 - Northwest Pennsylvania Corporation of Oil City, Pennsylvania is acquired and Mellon National Corporation changed to Mellon Bank Corporation.
- 1986 - Mellon acquired Commonwealth National Financial of Harrisburg, Pennsylvania.
- 1991 - Mellon Bank acquired the United Penn Bank of Wilkes-Barre, Pennsylvania.
- 1992 - Mellon acquired 54 branches of Philadelphia based PSFS, one of the nation’s earliest savings banks.
- 1993 - Further acquisitions included The Boston Company and the AFCO Credit Corporation.
- 1994 - Mellon is merged with the Dreyfus Corporation.
- 1998 - Mellon bought United Bankshares, Inc., of Miami, 1st Business Bank of Los Angeles and Founders Asset Management.
- 1999 - Mellon Bank Corporation changed to Mellon Financial Corporation.
The Creation of BNYM
In 2006, plans of a merger between the Bank of New York and Mellon Financial Corporation were announced and in 2007 were finalized in a $16.5 billion deal. The Bank of New York Mellon Corporation was established, creating the largest global securities and asset management firm.
Today the Bank of New York Mellon operates in a range of financial industries including Asset Management, Asset Servicing, Wealth Management, Issuer Service, Treasury Services, Brokerdeal and Advisor Services and Insurance. BNYM is headquartered in New York.