Wednesday, October 15, 2008
BNY Mellon will not be making any decisions on how the funds will be spent and invested but it will hold all of the cash, assets and securities for the Treasury Department. The company will eventually run the auctions for the assets. BNY Mellon was one of 70 financial institutions to submit a bid to manage the fund. The three-year contract to administer the funds can be renewed on a year-by-year basis each of the 4 years following the initial contract. Also announced yesterday was the investment of $3Billion of the $700 Billion bailout fund in BNY Mellon preferred stock. It was one of 9 banks the feds invested in Tuesday. None were deemed to be in distress. BNY Mellon spokesperson Ron Gruendl says the purchase of the stock will not have any impact on the management of the company and it will also not dilute the dividends that will be announced Thursday. Gruendl says it is unclear how the contract will impact the Pittsburgh workforce.