WASHINGTON (AFP) — The US Treasury announced Tuesday that Bank of New York Mellon had been hired as its custodian for Troubled Asset Relief Program that will help get distressed assets off the books of financial firms.
Treasury hired the New York-based firm Monday "and work began immediately to help the Department with custodial, accounting, auction management and other infrastructure services needed to administer the complex portfolio of troubled assets the department will purchase," a statement from the agency said.
The bank will "provide the accounting of record for the portfolio, hold all cash and assets in the portfolio, provide for pricing and asset valuation services and assist with other related services. The financial agent will also track unique asset attributes as required by the act, such as linkages to executive compensation limits and to warrants received from selling institutions."
New York Mellon will also be the auction manager and conduct "reverse auctions" for distressed mortgage-backed securities.
The three-year contract came after Treasury announced October 6 it was taking bids. It received 70 submissions, of which 10 met the eligibility requirements.
"Our market leadership and experience have given us a keen understanding of the challenges facing the US Treasury in these extraordinary times," said Robert Kelly, chairman and chief executive officer of the bank.
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