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.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.