The Bank of New York Completes Structured Finance and CDO Phases of Global Corporate Trust Conversion
NEW YORK, April 2, 2007 -- The Bank of New York has successfully completed the conversion of the structured finance and collateralized debt obligation (CDO) business segments as part of its acquisition of JPMorgan Chase's corporate trust business.
The conversion of the two business segments, which together process payments on average of more than $20 billion per month, involved nearly 20,000 client accounts with 60,000 securities and cash positions.
Karen Peetz, senior executive vice president and head of global corporate trust at The Bank of New York, said, "We are on schedule and on plan regarding our conversion process, which is welcome news for our clients and a positive development in the strengthening of our leadership position worldwide."
Since closing on the acquisition in October 2006, the Bank has been systematically transitioning accounts, assets, systems and staff across all parts of its Global Corporate Trust business. In addition to structured finance and CDOs, it has converted the corporate, municipal and global Americas business segments, which involved more than 40,000 client accounts with 90,000 securities and cash positions and the successful processing of more than $47 billion in principal and interest payments.
The next phases of the conversion, which will involve the international and loan agency business segments, are expected to be completed by the end of the second quarter of this year.
Through the acquisition, the Bank became the leading provider of corporate trust services worldwide. The acquisition enhanced the Bank's ability to capitalize on the faster growing international and structured finance debt markets, as well as to strengthen its leadership in the municipal and corporate debt markets. The acquisition also diversified the Bank's growing revenue base by both geography and product and expanded its global footprint with the addition of new offices in Europe, Asia and Latin America.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and private banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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