This page has been archived and commenting is disabled.

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."  

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 08/31/2011 - 17:46 | 1620715 tekhneek
tekhneek's picture

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

Wed, 08/31/2011 - 18:20 | 1620837 spiral_eyes
spiral_eyes's picture

burger king, bitchez?

(that's where he'll be working next) 

Thu, 09/01/2011 - 08:07 | 1622172 Leopold B. Scotch
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!

Wed, 08/31/2011 - 17:49 | 1620725 Irish66
Irish66's picture

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

Humming the night away.

Wed, 08/31/2011 - 17:56 | 1620748 silverbullion
silverbullion's picture

I smell a dead rat.

Wed, 08/31/2011 - 17:58 | 1620753 Sequitur
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.

Wed, 08/31/2011 - 21:41 | 1621328 Problem Is
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.

Wed, 08/31/2011 - 17:59 | 1620758 Elooie
Elooie's picture

Definately something rotten in the state of Denmark.

Wed, 08/31/2011 - 18:01 | 1620761 mfoste1
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."

Wed, 08/31/2011 - 19:04 | 1620958 NotApplicable
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.

Wed, 08/31/2011 - 20:07 | 1621103 mfoste1
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.

Wed, 08/31/2011 - 17:59 | 1620762 doomandbloom
doomandbloom's picture

Remain calm..

Wed, 08/31/2011 - 17:59 | 1620763 buzzsaw99
buzzsaw99's picture

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

http://www.youtube.com/watch?v=rDMMYT3vkTk

Wed, 08/31/2011 - 18:04 | 1620767 wang (not verified)
wang's picture

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

 

link

 

"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

Wed, 08/31/2011 - 18:21 | 1620848 treemagnet
treemagnet's picture

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

Wed, 08/31/2011 - 18:31 | 1620868 andybev01
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?

Wed, 08/31/2011 - 18:39 | 1620894 Vagabond
Vagabond's picture

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

Wed, 08/31/2011 - 18:34 | 1620872 SwingForce
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.

Wed, 08/31/2011 - 18:34 | 1620879 mynhair
mynhair's picture

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

Wed, 08/31/2011 - 18:45 | 1620909 Rainman
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 ! 

Wed, 08/31/2011 - 18:35 | 1620882 SwingForce
SwingForce's picture

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

Wed, 08/31/2011 - 18:42 | 1620898 mynhair
mynhair's picture

FU, bad imposter for Heston!  Begone!

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

Again.

Wed, 08/31/2011 - 19:15 | 1620989 andybev01
andybev01's picture

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

Wed, 08/31/2011 - 18:37 | 1620886 kito
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.

Wed, 08/31/2011 - 18:41 | 1620901 Xrated
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!

 

Wed, 08/31/2011 - 18:43 | 1620902 Xrated
Xrated's picture

sorry, double post

 

Wed, 08/31/2011 - 19:01 | 1620949 RobotTrader
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.

Wed, 08/31/2011 - 19:12 | 1620984 I am a Man I am...
I am a Man I am Forty's picture

they can take that slut sallie krawcheck with them too

Wed, 08/31/2011 - 20:39 | 1621166 Minyan Vince
Minyan Vince's picture

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

Thu, 09/01/2011 - 01:45 | 1621840 The Real Fake E...
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.

Wed, 08/31/2011 - 19:24 | 1621003 Curtis LeMay
Curtis LeMay's picture

 

 

Related?

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.

http://www.ft.com/cms/s/0/5a05a27e-d324-11e0-9ba8-00144feab49a.html#axzz...

Thu, 09/01/2011 - 08:02 | 1622166 Leopold B. Scotch
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.

Wed, 08/31/2011 - 19:36 | 1621028 traditionalfunds
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.  

 

 

Wed, 08/31/2011 - 20:01 | 1621095 experimentals
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.

Wed, 08/31/2011 - 23:54 | 1621640 Tsar Pointless
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."

Thu, 09/01/2011 - 11:08 | 1622687 Bastiat
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.

Wed, 08/31/2011 - 20:56 | 1621209 FischerBlack
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.

Wed, 08/31/2011 - 22:42 | 1621494 davepowers
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.

 

Thu, 09/01/2011 - 00:33 | 1621717 anonnn
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.

 

http://finance.yahoo.com/blogs/daily-ticker/madoff-whistleblower-big-banks-ripping-off-pension-funds-152836936.html 

Thu, 09/01/2011 - 02:22 | 1621885 seoerlin
seoerlin's picture

Ray Ban Sunglasses more of a mental rhythm, he said. I know what Im doing out there. If Ray Ban Sunglasses Outlet take 5 or 10 swings, Im ready to go. Yankees Manager Joe Girardi said that the Yankees would try to ensure Jordan Fusion that Rodriguez was fully recovered before he returned so that he does not aggravate it. We want it to heal, and we Air Max Jordan believe it will heal, Girardi said. It will take a few days, but Ray Ban Sale believe it will heal. The timing of this injury has been particularly irritating to Rodriguez. After missing 38 Nike Air Max games following arthroscopic knee surgery June 10, he had played in only four games before the thumb injury. And in Oakley Sunglasses addition to the thumb and the knee, Rodriguez has also dealt with a shoulder problem this year, and has played in Ray Ban only 84 games. We stand here today to just say no to slavery, to just say no to tar, sands, oil, and no to the Keystone Griffey Air Max 2011 pipeline, the Kill Bill star said before she was handcuffed, CNN reports. The protest was aimed at a massive Jordan 3 Air Max Fusion expansion of a pipeline carrying oil from Alberta, Canada, to the Gulf of Mexico. The State Department is Jordan 5 Air Max Fusion expected to give the project final approval by years end. Making Jordan 11 Air Max Fusion the decision to do Dancing with the Stars was a no-brainer, Artest told PEOPLE at Monday nights live, season 13 DWTS cast Jordan 13 Air Max Fusion announcement in L.A. At first it was not appealing, Artest Oakley Sale confesses. I did not want to do it. I dont dance and all of the dressing up and everything, but my daughter Diamond Ray Ban Online Store was like, Daddy, you should do it.

Mon, 09/05/2011 - 09:09 | 1633907 shacai
shacai's picture

Welcome to http://www.replicabagsell.com .Our company was founded in 2004 and was committed to internet marketing businesses in 2006. Replica Handbags are always in a great demand and sells well. Recently, we launched some new and updated them on our website. Here you can find some scarce Cheap Christian Louboutin shoes, which were difficult to find from other websites. sac à main are also always in hotsale.

We have gotten many great comments from our customers and earn a good NFL jerseys reputation in foreign makerts, more than 90% customers are satisfied with our products and service, till now our online members NFL jerseys are beyond 80,000. As of right now, we currently serve customers from over Christian Louboutin 18 countries, and we are still growing. We really hope to expand our business through cooperation with individuals and companies from around the world.

Do NOT follow this link or you will be banned from the site!