The Delaware-based unit provides back-office processing for financial advisers, fund managers and brokers.
BNY Mellon said that the acquisition fits with its strength as a custodial bank handling assets for other banks and endowments, mutual funds and pension plans. The acquisition is expected to add about $2 trillion in assets administered for mutual-fund clients and hedge funds to the $22.3 trillion BNY Mellon currently oversees.
PNC was told by the US regulators in May 2009 to raise $600m to bolster capital after the government’s stress test of the nation’s largest banks. Subsequently, PNC raised $633m in a share sale later that month.
PNC intends to complete the transaction to help raise money to pay down $7.6bn in government Troubled Asset Relief Program funds. Reportedly, James Rohr, CEO of PNC, has made TARP repayment a goal for 2010.
