Bank of New York Mellon Corp., beset by legal challenges and anunderperforming stock, said Chairman and Chief Executive OfficerRobert P. Kelly left after a dispute with directors over the way heran the company.

Kelly, 57, who had led the world's biggest custody bank since2007, left by “mutual agreement” with the board, the company saidyesterday in a statement. His successor is Gerald L. Hassell, 59,who has been president of New York-based BNY Mellon since 1998.

The company's stock has tumbled 32 percent this year and tradesat about the same level as in early 1997. Like other custody banks,it's struggled with low interest rates, which squeeze profits onlending cash and securities, and running money-market funds. BNYMellon has been sued for allegedly overcharging pension funds onforeign-exchange trades and has been accused by New York's attorneygeneral of violating state law in its role representing investorsin mortgage securities.

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