The U.S. Treasury Department has selected Bank of New York Mellon to serve as its custodian for the implementation of the Troubled Asset Relief Program authorized under the Emergency Economic Stabilization Act.
The Treasury hired the New York City-based firm Monday, and 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 Treasury will purchase.
The Treasury hired the Bank of New York Mellon to provide the accounting of record for the portfolio, hold all cash and assets in the portfolio, provide for pricing and asset valuation services, and assist with other related services. The financial agent will also track unique asset attributes as required by the act, such as linkages to executive compensation limits and to warrants received from selling institutions.
In addition, the Bank of New York Mellon will support the acquisition of securitized assets by serving as auction manager and conducting reverse auctions for the trouble assets.
SOURCE: U.S. Treasury Department