trending Market Intelligence /marketintelligence/en/news-insights/trending/wz-ivpu4cpgkszegqmz67w2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In this list

BNY Mellon pivots to single-point-of-entry in living will

IoT and AI Aid Critical Event Management to Battle COVID-19, but Deployment could Raise Privacy Concerns


The Global Impact of COVID-19

COVID-19: The 451 Research Take

Australia And New Zealand Telcos Launch Special Packs Amidst COVID-19 Outbreak

BNY Mellon pivots to single-point-of-entry in living will

Bank of NewYork Mellon Corp. has transitioned its resolution plan towardsingle-point-of-entry as it hopes to avoid regulatory constraints such asincreased capital requirements.

The Federal Reserve and FDIC jointly found the bank'sresolution plan, or "living will," to be "not credible" inApril, requiring remediation by Oct. 1 or else regulators could imposerestrictions on the bank's activities or growth rate. Regulators released thepublic portions of the new living wills Oct. 4, but the agencies have not yetreviewed the new plans.

In failing Bank of New York Mellon's original submission,regulators found deficiencies in the bank's operational and legal entityrationalization strategies.

To address legal entities, the bank said it has establisheda new legal entity governance structure and was making progress on variousprojects. One of those projects includes the dissolution of low-activity anddormant entities, an initiative the bank said was "on track consistentwith its deadlines," but the company did not disclose how many legalentities have been eliminated as part of that effort. The bank did state thatit had liquidated or consolidated 19 leasing subsidiaries as part of itsproject analyzing its leasing entity structure.

Switching to a single-point-of-entry resolution plan,instead of a bridge bank, addresses many of the bank's operationaldeficiencies. Single-point-of-entry, which has been clearly favored byregulators, ensures subsidiaries remain functioning while the holding companyis placed into receivership. By switching to the strategy, Bank of New YorkMellon nixes some of the regulators' concerns, such as how custodial assetswould be transferred to a bridge bank.

Finally, the bank also addressed regulators' worries overthe remediation of shared services with an intensive mapping process of thebank's critical services and any interconnections.