Bank of New York

An Introduction to the History of the Bank of New York

The Bank of New York works as a company that provides global financial services. The Bank of New York is also known as the BNY. The Bank of New York was established by Alexander Hamilton way back in 1784. The Bank of New York is also the oldest bank in the United States of America. Alexander Hamilton is known to be the person who wrote the constitution of the Bank of New York and was the most involved person with the Bank of New York. Alexander Hamilton also helped the Bank of New York to move and develop as a bank in its early days.

Only a few days after the troops from Britain departed from the soil of America on 9th June in the year 1784, The Bank of New York opened for business.

Major Events in the History of Bank of New York

In the year 1792, the Bank of New York became only the first corporate stock that was traded in the New York Stock Exchange. The Bank of New York became an insurance company as well as a trust company by merging itself with companies like New York Life Insurance and and the Trust Company. In the year 1948, the Bank of New York in order to strengthen its stronghold in the Banking business took over a bank called the Fifth Avenue Bank. The Bank also took over the Empire Trust Company to enlarge itself in the field of Trust. The Bank of New York formed a holding company in the year 1968, named as The Bank of New York, Inc.

A major take over took place in the year 2003, as the Bank of New York bought the Pershing LLC which provides the brokers and the asset managers to correspond clearing and the services regarding outsourcing. In that very year the Bank of New York took over another company named the Lockwood Financial Services,Inc. This made the Bank of New York the largest providers of various managed account plans which includes the assets of clients which made the number a staggering $18 billion.

A recent statistic shows that the Bank of New York has taken over nearly eighty companies in the last ten years. In the year the Bank of New York was appointed as a member in the board of trustee, the registrar, and also its paying agent and transfer agent for a nearly $1.5 billion restructuring of debt. It was the biggest transaction ever happened in the history of Argentina according to the sources and the press release brought out by the Bank of New York itself. The restructuring of debt included an exchange of just under $3 billion in the debt that is outstanding for the notes and cash that are newly issued in the exchange. The Bank of New York acted as the agent of settlement during the transactions. The Bank of New York helped the people to receive and process the electronic as well as manual instructions from the investors who do have holding bounds in shares like Euroclear, the Depository Trust Corporation or DTC and Clearstream, and also other creditors who have debt in the physical form.

In the year 2006, Bank of New York and the Mellon Financial Corporation came to an agreement and declared their merger which made them the world’s largest asset management and securities servicing firm. Under terms and conditions of the deal the share holders of the Bank of New York got 0.9434 shares in the new company for each share they had had. On the other hand the share holders of the Mellon Financial corporation got one share each for every share that they had . The Mellon Financial Corporation and the Bank of New York made an entry into the mutual stock option with an agreement that made nearly 20 percent of the stocks as out standing common stock.

The Bank of New York was renamed after the merger as the Bank of New York Mellon Corporation which virtually became the world’s biggest service provider beating the JP Morgan Chase company by a considerable margin. If one looks at the statistics one would see that the JP Morgan has an asset of nearly $14 trillion where as the Bank of New York Mellon Corporation has a total amount of $18 trillion . This also includes a corporate trustee of nearly $8 trillion under trusteeship as assets.

The Bank of New York Mellon Corporation ranks among one of the top ten companies who are renowned as asset managers, including a trillion dollar asset that are under management. The Bank of New York Mellon Corporation also ranks among the top ten companies in the world in the field of the client assets which is nearly $160 billion. It is also United States of America ‘s largest global payer and cash management supplier. The Bank of New York Mellon Corporation has as many as forty thousand employees working all over the world. The Bank of New York Mellon Corporation presently operates in more than thirty five companies and operates in over one hundred markets around the world.

The Bank of New York primarily operates in four areas:

• Securities Services
• Investment Management
• Treasury Management
• Private Banking

Thomas A. Renyi, the chairman and also the Chief executive on the Bank of New York is scheduled to work as the chairman of the Bank of New York Mellon Corporation for one and a half years and would continue to do so until the deal closes and would have the responsibility of the two companies’ consolidation. The board has eighteen members as directors among which ten people are from the Bank of New York and the other are from Mellon Financial Corporation. The head quarter of the Bank of New York Mellon Corporation is situated in the city of New York.

To know more about the Bank of New York one can visit websites like bnymellon.com, bankofny.com,