Bank of New York Mellon is regarded the largest custody bank worldwide by "The New York Times." Northern Trust and State Street are the second and third largest custodian banks. In 2011, the custodian banks are guarding the United States economy and helping lead the country out of the recession. Custodian banks protect client investors' financial assets, equities and bonds.
Bank of New York Mellon
The Bank of New York Mellon, the world's largest custody bank, increased its revenue 12 per cent and reported a £1.8 billion increase in assets. Bank of New York benefited from acquisition and effective customer service. Most of the bank's earnings are from keeping records and performing accounting services for investment managers. Assets administered by the Bank of New York rose to £16.6 trillion in April 2011. The bank announced plans to buy back shares of stock from the Federal Reserve in April 2011.
Northern Trust Corporation
Northern Trust Corporation, with offices in Australia, China, Bangalore, London and Abu Dahbi, maintains clients and 25 per cent of its employees are located outside the United States. Northern Trust had offices in 16 locations in Asia, Europe, the Middle East and Africa in September 2010. It acquired Cleveland-based Lakepoint Investment Partners, an investment corporation in high-growth stocks and fixed-income securities. Together with Northern Trust, Lakepoint is investing in developing new businesses in the United States with affluent citizens. However, Northern Trust closed Lakepoint's exchange-traded fund, that opened in May 2010, which cut 3.5 per cent of its employees. Efficiency and effective management is a Northern Trust strategy to provide a safe haven for wary investors. In September 2010, Northern Trust managed £427.2 billion in assets.
State Street Corporation
In April 2011, revenue climbed 16 per cent to £1.1 billion at State Street Corporation. State Street Corporation, the third-largest United States custody bank, expects an £575 million tax refund in 2011. State Street realised a £1.0 billion profit in 2010. State Street's has a reputation as an asset manager for sophisticated investors providing investment solutions and strategies for a diverse range of investors. State Street's public and private retirement plans for large corporations, non-profit organisations, insurance companies and banks are in all regions of the world. Created in 2000, State Street's Official Institutions Group, OIG, oversees investments of sovereign clients, central banks, government agencies and supranational institutions.
J.P. Morgan Chase
J.P. Morgan Chase, the largest custodial bank, with custody of £8 trillion in assets, is a holding company diversified into six business segments: asset management, investment banking, financial services, credit card services, commercial banking, treasury and securities services. J.P. Morgan Chase reported first quarter 2011 net income of £3.6 billion, compared with net income of £2.1 billion in the first quarter of 2010. First quarter 2011 earnings per share were 80p, while first quarter 2010 earnings per share were $.74.
Citigroup reports £1.9 billion in the first quarter 2011 compared to £0.8 billion in the fourth quarter of 2010. Earnings per share of Citigroup stock in the first quarter of 2011 was $.10 up from $.04 in the fourth quarter 2010. Citigroup Holdings were £219 billion in assets in the first quarter of 2011. Citgroup's Asia Pacific webpage proclaims 200 million customer accounts and business in Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Macau, Malaysia, New Zealand, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.
- USLegal.com: Custodian Bank Law & Legal Definition
- Bailout Report: TARP Recipients
- Board of Governors of the Federal Reserve System; Trouble Asset Relief Program Information; April 2010
- Northern Trust; Notice of Proposed Rulemaking - Implementation of the Deposit Insurance Assessment Framework; January 2011
- The New York Times; Fee Revenue Grows at Top Custody Banks; April 2011
- J.P. Morgan Chase; JPMorgan Chase Reports First-Quarter 2011 Net Income of £3.6 Billion or £0.8 per Share, on Revenue1 of £16.8 Billion; April 2011