Bank of New York Mellon to Log $100 Million After-Tax Charge

By Saabira Chaudhuri 

Bank of New York Mellon Corp. said Tuesday, in a regulatory filing, it will log a $100 million after-tax charge in the current quarter, due to administrative errors the bank made regarding certain funds it manages.

The New York-based trust bank's disclosure followed a filing last year in which the bank said it could be liable to certain funds it manages due to errors tied to certain funds' offshore tax exempt status.

The status potentially exposes BNY Mellon to a tax liability related to the funds' profits, the bank said.

BNY Mellon declined to name the funds. Last year it had said it was possible that it could lose up to $175 million in connection with this issue.

Separately, on Tuesday, the bank also disclosed, in the regulatory filing, it will log an after-tax gain of $200 million from the sale of its downtown Manhattan headquarters.

The sale is expected to close in the third quarter, and the gain--which amounts to $345 million before tax--will be recorded in the same quarter.

BNY Mellon, last week, said it had agreed to sell its Art Deco headquarters tower on Wall Street for $585 million to a venture led by developer Harry Macklowe.

Write to Saabira Chaudhuri at [e-mail]

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