Staff reductions coming at BNY Mellon
The Bank of New York Mellon Corp. is planning substantial layoffs through the end of June but is not saying how or if Pittsburgh, home to its biggest concentration of employees, will be affected.
BNY Mellon (NYSE:BK) anticipates a second-quarter charge of up to $100 million related to severance, the company said during its presentation Tuesday morning at the UBS Global Financial Services Conference in New York. The cuts are part of the expense managementstrategies the company stressed last month during both its first-quarter earnings call and annual meeting.
“We’re not disclosing locations, numbers or groups,” Ron Gruendl, a spokesman, said. He added that BNY Mellon is continuing to hire in Pittsburgh and currently has “a couple hundred” posts to fill.
BofA Error Confirmed by a Devil in the Detail
A change in wording on Federal Reserve forms earlier this year helped Bank of AmericaCorp. BAC +0.07% verify that it had made a $4 billion error in calculating its capital, according to a person familiar with the matter, jeopardizing its plans for a long-awaited stock buyback and dividend increase.
The Charlotte, N.C.-based bank disclosed the mistake late last month. BofA staffers began to suspect the bank had been miscalculating its regulatory capital when they prepared the bank’s first-quarter Securities and Exchange Commission filing in April, the person said.
After those suspicions arose, they learned of the Fed’s wording change—a revision to instructions on computing regulatory capital that clarified which kinds of losses on debt securities a bank shouldn’t exclude from its calculations.
That change confirmed for BofA that it had inadvertently been reporting an inflated amount of capital to regulators, the person said.
BofA isn’t blaming its error on the Fed’s wording, said the person, who added the wording change just helped confirm for the bank that it was in error.