Bank of NY Mellon – $118M
April 9, 2008 – 11:19 am2008-04-09:
The Bank of New York Mellon Corporation slammed head on into the credit crunch in it’s 2007 fiscal fourth quarter, when profits fell 68%. The cliff dive
primarily reflects a $200 million loss on CDOs recorded in the
fourth quarter. Based on deteriorating conditions in
the U.S. housing market, we recognized a pre-tax loss
of $200 million ($118 million after-tax) for other than
temporary impairment related to these securities
Additionally, the bank recorded an extraordinary after-tax charge of $180 million,due to the company’s decision to restructure the assets of the bank-sponsored conduit, Three Rivers Funding Conduit.
We will recognize the CDO related write down and begin the count at $188 million.
