Treasury selects BNY Mellon custodian

The Department of the Treasury has hired The Bank of New York Mellon Corp. to be the custodian that will implement its $700 billion economic-stimulus package. The Treasury Department said in a statement: "Work began immediately to help the department with custodial, accounting, auction management and other infrastructure services needed to administer the complex portfolio of troubled assets the department will purchase." The New York bank was hired Monday, the Treasury Department said. Under the three-year contract, BNY Mellon will also be responsible for providing the accounting for the portfolio, hold the portfolio's cash and assets, provide for pricing and asset valuation services, and assist with other related services. Additionally, the bank will serve as the auction manager and conduct reverse auctions for the troubled assets. The Treasury Department began soliciting custodians Oct. 6 and received 70 submissions, of which 10 met the eligibility requirements and minimum qualifications. BNY Mellon has more than $23 trillion in assets under custody and administration, and more than $1.1 trillion in assets under management.