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Bank Of New York Been Busy .. August 2, 2006

Posted by newyorkscot in Markets.
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Looks like the Bank Of New York (BONY) has been busy this year re-inventing itself, trying to take advantage of  “..the growth of the hedge fund industry, the rise of high-speed electronic program and automated trading, and the increasingly large role of private equity in the overall economy.”

Their transformation (so far) includes:

  • Sells its Institutional Agency Brokerage Business to BNY Convergyx — a BONY spin-off that includes GTCR Golder Rauner, a private equity firm, and Eze Castle Software, a trade order management systems provider with a large hedge fund clientele. This results in BONY:
    • Keeping their FX/securities lending & payment, treasury management, asset management and private banking businesses
    • Gaining hedge fund flow from the Eze Castle Software entity
    • Expanding Hedge Fund Administration group
    • But, still does not have Prime Brokerage arm.
  • Sells retail-banking business to JPMorganChase (300 branches worth $3.1bn)
    • Bank of New York’s remaining processing business (could be worth $26 billion)
    • And then announces that it will acquire JPMorganChase’s corporate trust business (for 2.8bn), as part of the deal.
    • [When I was at JPMorgan in the early-mid ’90s I seem to remember pre-Chase JPM selling its Securities Trust & Information Systems (STIS) to BONY, so they have made some good business off the back of JPM/C’s cast-offs!!]

So, it looks like it is focusing on its set of securities servicing, asset management and private banking businesses. I wonder what the “Office Of Innovation, headed by CIO Kurt Woetzel, will do to further “drive product innovation across Global Markets” …I would also love to know what type of grid they run all this securities processing on …. 🙂

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Comments»

1. Richard Wilson - September 25, 2008

I haven’t heard much out of the BONY during the last few weeks – I wonder if they are facing a capital liquidity crunch right now as well. They seem like a much more conservative bank than some of the larger wall street players.

R

2. newyorkscot - September 25, 2008

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