That’s the only product that has any scale. Accounting services, Transfer Agency, Outsourcing, and D&A are underwater for most clients. BNYM I don’t think will be acquired, but I would anticipate relinquishing a few products would affect thousands of jobs. Clients don’t save much money by having BNYM do these services because they still need to hire their own for oversight.
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Think that a “Notional” income is money that wealthy bankers set aside for wives. Kind of like a budget for notions, lotions, perfumes, necklaces and Bonbons. Things like that for Trophy wives.
Wow that really is bad. When the old connected money knows to avoid our funds the nails are really going into the coffins.
Asset management is the most cost heavy and depressing place. The only people that are buying are wealth management.
But now, even WM won’t buy BNY Mellon funds because the funds suck and we could get sued. Keep running that business into the ground but no ability to plow the profits into a growth area. Best chance to increase profits is to hire more junior people that don’t know why they are doing.
Yes, this will be a custody only bank in the next decade.
We’re so top heavy that the only cuts that can make a difference in our costs are massive cuts at the top. But our leaders think like renters, not owners, and none of them are going to take pay cuts or displace friends. We tried Digital, it failed and got nothing for the money. We tried making dozens of people “CEOs” and now we have expensive bumper to bumper CEO gridlock. Frank Cahouet could make a great decision without consultants, large teams of sycophants and endless debating societies. Now we don’t have even one actual leader.
What’s a notional income?
Dude Wut?
@1ktc the basic rule of Economics is when you distribute something for free even if it's a notional income , it loses its value. Same goes with Money when the Government says US will never be in debt as they can print unlimited amount of paper money , very little they know that money will lose its worth as this will enhance the purchasing power of any country , result in more imports and less supply , leading to scarcity , rising inflation and causing a chain reaction , while we fall like dominoes.
Because the difference in what my bonus could’ve been without these shares could’ve been used for a better investment, not towards stock of a mediocre company that will at best stay at the same price. And that investment would’ve had fewer stipulations.
BNYM copied the idea of distributing company shares to its Employees for all od the right reasons…. It lets employees participate in ownership, builds their financial knowledge and is a popular gift to employees at most companies. It was a wonderful thing that they did.
Unfortunately the Bank completely misjudged the intelligence of its employees on this one. To be honest they should have realized that 80% of the Bank are non degreed clerical workers. They should have just given everyone a free $50 Applebees gift card and a case of beer instead of $500 in shares. It would have been better received and the Bank would have spent a tenth of the money.
This should be a real eye opener to Senior Management on our hiring issues.
BNY Mellon is not the 1st Company to give away Shares to its Employee and it will not be the last . Any reason why BNY Copied this strategy ? This happened in the past when EDS was acquired by HP (Hewlett Packard). When EDS merged with Mphasis ( Parent Company : Blackstone group ) started giving away its shares to Employee , right before the acquisition by HP. The management encouraged all its Employee to sell the shares as it wasn't restricted. The moment that happened right after Mphasis turned out to be Mphasis and HP ( Hewlett Packard) Company as EDS was acquired soon. Do you notice a pattern here ? Maybe after 3 years this may happen or even sooner as our stocks are restricted cannot be sold at the moment. What do you forecast on the divesture ?
BNYM is a low cost provider so their best chance is to win as much business as they can and build scale that way. The problem is that they’ve gotten too top heavy and are now in a situation in which they have to increase fees a lot and possibly terminate unprofitable clients which end up subsidizing others’ fixed expenses. Management has been very inconsistent on this message, but if they keep going down this path, most businesses will be way underwater.
Lockbox and Private Label banking are strong businesses which are counter cyclical as well. We’re leaders in that business and very efficient.
You're right...everything listed will eventually go away as blockchain and other options become more advanced. However, custody isn't much better as the margins are razor thin. Without a retail presence (see Schwab and Fidelity) this business will ultimately be sold as well. The last leader with any vision at BNY was Alexander Hamilton.