New York Mellon Named Custodian for TARP
The Treasury Department announced Tuesday it has hired The Bank of New York Mellon Corp. (BK) to serve as custodian on the Troubled Asset Relief Program. The New York City-based firm will assist with custodial, accounting, auction management other administration duties regarding the complex portfolio of troubled assets that will be purchased with some of the $700 billion in funds provided through the Emergency Economic Stabilization Act. The bank will maintain the account of record for the portfolio, provide pricing and asset valuation services and track asset attributes required by the EESA, including executive compensation limits and warrants received from selling institutions. The Treasury said in a press statement that it had hired Bank of New York Mellon using its financial agent selection process. The Treasury publicly announced the solicitation Oct. 6 and said Tuesday it had received 70 submissions, 10 of which met the eligibility requirements and minimum qualifications. The Bank of New York Mellon contract, a copy of which was made available on the Treasury Web site with the bank's fees blacked out, will last three years. The bank's assets account for more than $23 trillion under custody and administration, with more than $1.1 trillion under management and $12 trillion of outstanding debt being serviced. The Bank of New York Mellon's Web site boasts a long history of partnership with the U.S. government dating back to the bank's founder, Alexander Hamilton, who served as the first Treasury secretary, and Andrew Mellon, who served as Treasury secretary during three presidential administrations. "Our market leadership and experience have given us a keen understanding of the challenges facing the U.S. Treasury in these extraordinary times," said the bank's CEO Robert P. Kelly in a statement Tuesday. "We will immediately deploy our resources and expertise, joining the team of public and private organizations that are working hard to earn the trust of the American taxpayers and to address the ongoing economic challenges." The Treasury also announced Monday the hire of Chicago-based consulting firm EnnisKnupp and Associates as investment adviser on the Troubled Asset Relief Program. HW publisher Paul Jackson has some questions surrounding EnnisKnupp's hiring, which can be read here. Editor’s Note: To contact the reporter on this story, email firstname.lastname@example.org.