It was late 2011 and I was fresh out of college working my first job in the ETF Services team. The stock was in the teens but years later seemed to stabilize in the mid 40s range. But now it’s really skyrocketed, yet everyone who came from this place will have a new story about how much it stunk here. BNY has always had a reputation of being cheap and underpaying most employees. A VP can easily make double at another bank as a VP there. So what’s the story? Is this just the EC team doubling down on making a big short term gain only to lose it all when someone else takes the helm next year?
8 replies (most recent on top)
I remember when Bob Kelly talked up the stock to $63, which when coupled with the change in control clause, allowed us to cash in all four Shared Success distributions.
We're the bank that d-mb money invests in, because our "so-called" leadership-in-charge are all complete village id--ts!
@4zql, Buffett totally ditched BK over a year ago.
@40yh
Bank of New York Mellon makes up 0.38% of Berkshire Hathaway’s portfolio. Buffett owns 25.07 million shares, which have an overall value of about $1.14 billion.
I do not know what it means to you but that is a large chunk of ownership that is not driven by S&P Index tracking funds. Overall your analysis is in line with the data that suggests approx 2T $is sitting on cash or cash like instruments which will flow into passive investments as the interest rates climb down
All money invested in TBills and CDs will move to stock as the yield goes down pumping up the market - BK will benefit with the rising tide
At the same time there are big individual investment like the above - there has to be some effect of the huge expenses trimming in terms of recurring layoffs. Slowly but steadily Bank has been trimming its workforce in US
Citi openly announced it but BK is doing it silently
It's called money printing. When you have too much money floating around in goes into buying assets. Since BNY Mellon is still one of the largest US banks (for now), it's in the S&P 500 index. This means BNY Mellon stock is getting purchased as part of mutual funds and ETF's that follow that index. These are what we call passive investments, which means NO ONE IS BUYING BNY MELLON STOCK BECAUSE OUR MANAGEMENT IS FILLED WITH GENIUSES! They are buying the stocks passively. No intelligent active investor in their right mind is investing on the merits of this organization's future growth prospects and how well its managed. Why? It has no long-term growth prospects, and its management team is filled with MO--NS and DEI degenerates!
BNYM VPs (J/K) rarely have the responsibilities of traditional VPs.
The sweet spot for bank stocks is after a significant interest rate increase peaks and goes down a little bit.
The higher rates help with interest rate margin which is the main income source, while the slightly lower rates reduce the tail risk inherent to all banking stocks.
So not really anything the banks has done, more so the macro environment.
I was shocked to see what Vice President and Senior Vice President roles made here. Associates and Senior Analysts had higher salaries at my previous employer. The titles are a joke at BNY and it shouldn’t be a surprise to anyone when you see how many employees have these titles. They are just glorified analysts which is why they are so quick to lay them off.