BK Is Out Of BK: BNY Chairman And CEO Kelly Forced Out Due To Differences With The Board On Managing Company

Tyler Durden's picture

Some very out of left field late news from the only other tri-party repo in addition to JPM and key corrupt player in the Bank of America settlement litigation, BNY Mellon, whose Chairman and CEO Bob Kelly has just stepped down "because of differences with the board in the approach to managing the company." His replacement will be president Gerald Hassell, effective imediately. Uh, those never occur unexpectedly. Something big is happening behind the scenes, and alas we ave no idea what it is. Is this the first step to setting up the replacement for Brian Moynihan? Look for the kneejerk response in BAC stock for the answer. Or did the Bank of America settlement, already improbable, just get impossible?

Full release:

BNY Mellon, the global leader in investment management and investment services, today announced that Gerald L. Hassell, BNY Mellon's president and a board member since 1998, has been appointed chairman and chief executive officer of the company, effective immediately.  Hassell also continues as BNY Mellon's president.  Robert P. Kelly has stepped down as chairman, chief executive officer and director by mutual agreement with the board of directors, due to differences in approach to managing the company.

"Gerald is ideally positioned to guide BNY Mellon through the next phase of its growth and to bring it to its full potential," said Wesley W. von Schack, lead director of BNY Mellon.  "Over the course of his more than three-decade tenure with BNY Mellon and its predecessor company, The Bank of New York, Gerald has led nearly every major division of the company, has been a key decision maker on every major business action, executive hire and promotion in the merged company, and has served on its board of directors.  He brings a broad and deep knowledge of our operations, our clients, our industry and our culture to his new roles.  As the executive currently overseeing our investment services business and our global client management function, and given his extensive and long-standing relationships with investment management clients, Gerald is exceptionally well-suited to ensure BNY Mellon maintains and strengthens its role as a global market leader," von Schack continued.  

"I am pleased to accept these new roles and am excited about the strong growth prospects for our company," said Hassell. "When we help clients succeed, we drive value for our shareholders. I look forward to working with our outstanding management team and employees to capitalize on BNY Mellon's extensive opportunities."

"We are grateful to Bob Kelly for his leadership and the contributions he made to the company during his tenure as CEO," said von Schack.  "He played a key role in the integration of The Bank of New York and Mellon Financial following the merger and helped navigate the company through the financial crisis, securing its position as the world's leading provider of investment management and investment services. Bob Kelly is a person of the highest integrity and we wish him the best in his future pursuits."

"It has been an honor to serve BNY Mellon, its management team and its employees during the past four years," said Kelly.  "We have navigated tremendously difficult markets and built one of the world's premier financial institutions.  I am confident that under Gerald's leadership of the firm's strong management team, BNY Mellon will continue to flourish going forward."  

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tekhneek's picture

C'mon. My puts are getting raped. Lil' reality plz.

spiral_eyes's picture

burger king, bitchez?

(that's where he'll be working next) 

Leopold B. Scotch's picture

Could be as simple as a stock price issue. 

BK has pursued a strategy that has not enamored the investment community.  BK repeatedly considered the safest bank in the U.S., and that involves being comparatively conservative vs. peers whose stock prices make for far better rides.   BK's trading range has been comparatively mild, and never offers investors great opportunities to ride price up to a lofty bailout point.

Maybe the board wants the CEO to play the bailout game too?  Increase profits by jumping on the moral hazard bandwagon?

BTW, Kelly is from Canadiana.  First salvo in a "wag the dog" war against Canada?  Canadian Bacon, Bitchzes!

Irish66's picture

Oh yes, I'm expecting another one to resign at another institution shortly.

Humming the night away.

silverbullion's picture

I smell a dead rat.

Sequitur's picture

Right on time. CNBC right now: queue Dick Bove, says this resignation is a "buying opportunity" for BNY.

Mother fucking circus.

Earlier on CNBC: Abby Joseph Cohen, predicting S&P to 1400+ in a year. Pulling out all the stops for the dopes willing to put their hard-earned paper into this absolutely rigged market. HFTs licking their chops, lambs to the slaughter.

Problem Is's picture

If by "Mother fucking circus" you mean:

The stage chimps can throw darts at a board and make more profitable picks than the investment advice clowns...

While the fish net stocking, tits a poppin' out of their low cut top show girls... err... anchorettes introduce the acts...

And the sad clowns Bove and Lies-man come out in tears only to be humiliated by the meth-ed up mad man clown Cramer...

Then... yes.

Elooie's picture

Definately something rotten in the state of Denmark.

mfoste1's picture

what, kelly wanted to stop the fraud? I mean that's pretty much what he said....."because of differences with the board in the approach to managing the company."

NotApplicable's picture

To me it seems unlikely that Kelly, being BNY's CEO wanted to stop the fraud, so I'm left wondering if there are competing frauds.

I know nothing about him however, so it's just my distrust of banksters talking.

mfoste1's picture

no, no you gotta understand, ceos are just puppets or fronts, kinda like the POTUS. The biggest frauds are always at the top, hence the board. The board frauds take orders from even higher frauds that are very vague and discrete. This is precisely how regimes are continued. The lower their rung on the totem pole, the more subserviant they are in hopes of rising a few notches. The higher you get, they become more willing to do any and everything to be at the top.

buzzsaw99's picture

It sounds like Melon is going to do the Triple Lindy.


wang's picture
wang (not verified) Aug 31, 2011 5:04 PM

isn't BNY tied in with Countrywide and some side indemnification deal with BofA in the settlement?




"The genesis of the proposed settlement agreement appears to be an exclusive group of investors and their outside counsel, who without the participation of the other beneficiaries and with the blessing and cooperation of [BNY Mellon] as trustee, engaged in clandestine settlement negotiations with [BofA]," link

treemagnet's picture

I still want to know the reason for Blankfeins lawyer.....time will tell eh?

andybev01's picture

"I am pleased to accept these new roles and am excited about the strong growth prospects for our company," said Hassell. "When we help clients succeed, we drive value for our shareholders. I look forward to working with our outstanding management team and employees to capitalize on BNY Mellon's extensive opportunities."


Why is it that statements like this, from anyone in any head office, regarding any scenario, make me shiver?

Vagabond's picture

Because they are broad empty words that could apply to anything.

SwingForce's picture

He wouldn't play the fucking game, kudos BK!

Note to Gerald: There is NO NEXT PHASE OF GROWTH asshole. Suck it Trabeck.

mynhair's picture

You want a miracle?  I give you the next Secretary of the Treasury!

Rainman's picture

+ 1 for insightfulness !.....and even as predictable, the BNY replacement is a made wiseguy with 30 yrs in the gang.

Viva la ponzi ! 

SwingForce's picture

This website sucks, it went to hell. BUY GOLD BITCHEZ! You cunts, suck it. Bye bye.

mynhair's picture

FU, bad imposter for Heston!  Begone!

Go fling feces at yourself, and remember to vote OCIThead.


andybev01's picture

In the words of our esteemed former VP: "Go fuck yourself."

kito's picture

enough of these banks!!!!!!!!!! why cant the american public take a cue from rural indian farmers:

Cultural beliefs in the rural areas lead farmers to invest their money almost entirely in precious metals rather than hold it in a bank account. “They don’t trust banks, they trust their jeweler,” said Bhargava Vaidya, bullion expert and director of B.N. Vaidya & Associates, in a Wall Street Journal article earlier this year.

Xrated's picture

NY Melon is on the hook for ALL those 20% 2nd mortgages that Countrywide wrote.

When BOA writes them off, it transfers to Melon.

How sweet is that!


Xrated's picture

sorry, double post


RobotTrader's picture



It's about time heads started rolling.  Time to clean house so we can get these bank stocks rallying again.

The day Moynihan and Desoer are fired, BAC will be up 15% in one day.

I am a Man I am Forty's picture

they can take that slut sallie krawcheck with them too

Minyan Vince's picture

15% in one day, sweet...what are we talking a whopping $0.50

The Real Fake Economy's picture

yeah but if you own 100 shares, that's a...oh nevermind. whopping big deal. lil guy gets screwed again.

Curtis LeMay's picture




Whistleblower sets sights on BNY Mellon

August 30, 2011 8:23 pm

Financial Times

The whistleblower who tried unsuccessfully to expose Bernard Madoff’s Ponzi scheme claims large financial institutions are “above the law” as he seeks to expose allegedly deceptive foreign currency exchange practices at State Street and Bank of New York Mellon.

Harry Markopolos, now an independent fraud investigator, has helped build cases against the banks, which have resulted in probes in Ohio, California, Florida and Virginia. The investigations and lawsuits claim that the banks priced foreign exchange trades to the detriment of clients.

“I can afford to do this for a long time,” he said. “I know where skeletons are buried and I’m going to start digging them up one at a time.”

Mr Markopolos rose to fame in the wake of Mr Madoff’s 2008 confession, when it was revealed that the former head of the Nasdaq exchange was running the largest Ponzi scheme to date.


Leopold B. Scotch's picture

Right once does not translate into always right. 

My understanding is that these BK agreements pretty explicitly tell clients the range of prices they'd get during the duration of each trade, and the clients agreed and the trades fell in those range.   The clients were always out there shopping these ranges around, and thes trades were smaller trades not entitled to the discounts of much larger trades, and that its the industry norm.

Sounds like after the fact the clients want to sue for the large trade discount price.  At least that's BK's position.

Could be something more... We'll have to see.

traditionalfunds's picture

This story got me wondering what would a good Bank of America CEO look like? Since there is so much rancor for Moynihan.

If you sign on for that position you are essentially agreeing to obfuscate, lie, stonewall, misrepresent. Much of that so you don't cause a crisis/run and so you can raise capital at near-market prices rather than firesale/distressed prices.  



experimentals's picture

BofNY actually has large and legit asset management business. They were not involved in the Mortgage debacle and off balance sheet circus acts like a lot of other banks.  


Although they kinda play the bank of banks, they arent sitting on a lot of toxic shit like some of the other huge banks.  


Just an FYI, I'm all for hanging banksters but the facts are the facts.

Tsar Pointless's picture

Hi, Bob. Good to see you have a new job so soon after getting canned.


"Legit asset management business"? Perhaps when it was still under the Mellon brand, but certainly, not under the BNYMellon brand.

You talk about takeovers. What happened with BNY and Mellon was a takeunder, a takeout, if you will.

Mellon did not need BNY. It was the other way around.

From the inside, I know BNY wouldn't have lasted another year without Mellon's strong balance sheet.

Remember - Mellon got out of the retail banking and housing business right before the glory days of the housing bubble. BNY, however, was and is still knee-deep in counter-party smelly stuff.

This is the continuation of the beginning of the end of BNYMellon.

As Jake "The Snake" Roberts used to say, "Trust Me."

Bastiat's picture

I think of BNY as a Trustee/Custodial entity.  I believe they are the largest municipal bond trustee in the US.  I don't think they do much lending, letter-of-credit, derivative or other typical bank business, however as bond trustees, they are custodians/fiduciaries of a mountain of interest rate swaps, letter-of-credit backed floating rate bonds, etc.  Any "issues" would likely have to do with collateral held for other parties, or perhaps failures to perform on their fiduciary/custodial/trust obligations.   

[edit] from anonnns link below

In this case, Markopolos says BNY Mellon and State Street we're taking about "three tenths of a percent from every forex transaction for pension funds" by back-timing the trade to benefit banks at the detriment of their pension fund clients. "It's almost the exact same scheme as the market timing scandals of 2003," he claims.

FischerBlack's picture

This is big news. Paging Bruce Krasting! What's your read, Bruce? You always have a knack for reading betwen the lines.

davepowers's picture

Is Kelly the bank pres that Dick Bove was storming on about on CNBC today?

He was ranting and raving about some lousy bank president who had to go (this was before the above guy got the can). Even the other 'experts' on Fast Money were taken aback by his sudden and relentless bad mouthing.

Perhaps Bove was front running the news of the canning to put the Board in some kind of better light.


anonnn's picture

Quite related:

Markopolos expects all 50 States to file suit v. BofNYMellon and StateStreet for FX fraud and its impact on pension funds.



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