The Bank of New York Mellon Corporation (BK) Is a Pure Play on Global Finance

It’s important to understand that BNY Mellon hasn’t been able to stay completely insulated from the aftermath of the financial crisis. Perhaps the highest profile case recently involves a proposed $8.5 billion settlement from Bank of America Corp (NYSE:BAC) to settle investors’ claims over mortgage-backed securities issued by mortgage-unit Countrywide Financial. Insurance giant American International Group, Inc. (NYSE:AIG) has objected to the settlement, and with BNY Mellon acting as trustee of the hundreds of trusts that hold Countrywide mortgage-backed securities, AIG argues that Mellon’s relationship with B of A played a role in its willingness to accede to the settlement. Nevertheless, the liability belongs to B of A, and it’s hard to come up with a situation in which Mellon would be on the hook for damages.

Why BNY Mellon’s worth watching
In the end, what The Bank of New York Mellon Corporation (NYSE:BK) stock offers is a chance to participate in the health of the financial industry. With a whopping $28 trillion in assets under its control across its various business lines, BNY Mellon needs stability and reliability in the global financial system in order to thrive and succeed in the long run.

The article BNY Mellon Stock Is a Pure Play on Global Finance originally appeared on Fool.com.

Fool contributor Dan Caplinger owns warrants on Bank of America Corp (NYSE:BAC) and American International Group, Inc. (NYSE:AIG). The Motley Fool recommends AIG. The Motley Fool owns shares of AIG and Bank of America Corp (NYSE:BAC) and has the following options: Long Jan 2014 $25 Calls on American International Group, Inc. (NYSE:AIG).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.