In an attempt to rescue its investments affected by Lehman Brothers Holdings Inc.’s filing for bankruptcy protection, Bank of New York Mellon Corp. announced today that it will take a $425 million after-tax third-quarter charge.
The charge is aimed at enabling BNY Mellon’s four money market mutual funds and five commingled funds to continue to operate at a stable share price of $1 to protect investors from potential losses following the collapse of New York-based Lehman Brothers.
"These actions will provide support to our clients and, given our size and industry leadership, will hopefully contribute to greater stability in the overall market," Robert Kelly, BNY Mellon’s chairman and chief executive, said in a statement.
"While we are disappointed that the cost of these actions will impact our quarterly results, we feel this is an important investment in our client relationships."
BNY Mellon has more than $1.1 trillion in assets under management.
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