The Bank of New York Mellon Corporation (BK) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Share data in Thousands	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Securities servicing fees:
Asset servicing	$2,573		$3,370	[5]	$2,376	[5],[8]
Issuer services	1,463		1,685		1,560	[8]
Clearing services	962		1,065	[4]	1,187	[4],[8]
Total securities servicing fees	4,998		6,120		5,123	[8]
Asset and wealth management fees	2,639		3,218		2,153	[8]
Foreign exchange and other trading activities	1,036		1,462		786	[8]
Treasury services	519		514		346	[8]
Distribution and servicing	397		421		212	[8]
Financing-related fees	215		186		216	[8]
Investment income	226		207	[4]	207	[4],[8]
Other	111		214	[4]	211	[4],[8]
Total fee revenue	10,141		12,342		9,254	[8]
Net securities gains (losses) - including other-than-temporary impairment	(5,552)		(1,628)		(201)	[8]
Noncredit related losses on securities not expected to be sold (recognized in OCI)	183		0		0	[8]
Net securities gains (losses)	(5,369)		(1,628)		(201)	[8]
Total fee and other revenue	4,772		10,714		9,053	[8]
Net interest revenue
Interest revenue	3,507		5,524		5,670	[8]
Interest expense	592		2,665		3,425	[8]
Net interest revenue	2,915		2,859		2,245	[8]
Provision for credit losses	332		104		(11)	[8]
Net interest revenue after provision for credit losses	2,583		2,755		2,256	[8]
Noninterest expense
Staff	4,700		5,189	[3]	4,126	[3],[8]
Professional, legal and other purchased services	1,017		1,021	[3]	760	[3],[8]
Net occupancy	564		570		447	[8]
Distribution and servicing	426		517		268	[8]
Software	367		331		280	[8]
Sub-custodian and clearing	320		335	[5]	406	[5],[8]
Furniture and equipment	309		323		266	[8]
Business development	214		278		189	[8]
Other	837		1,822	[6]	634	[8]
Subtotal	8,754		10,386		7,376	[8]
Amortization of intangible assets	426		473		314	[8]
Restructuring charges	150		181		0	[8]
Merger and integration expenses:
The Bank of New York Mellon Corporation	233		471		355	[8]
Acquired Corporate Trust Business	0		12		49	[8]
Total noninterest expense	9,563		11,523		8,094	[8]
Income
Income (loss) from continuing operations before income taxes	(2,208)		1,946		3,215	[8]
Provision (benefit) for income taxes	(1,395)		491		987	[8]
Income (loss) from continuing operations	(813)		1,455		2,228	[8]
Discontinued operations:
Income (loss) from discontinued operations	(421)		28		13	[8]
Provision (benefit) for income taxes	(151)		14		3	[8]
Income (loss) from discontinued operations, net of tax	(270)		14		10	[8]
Extraordinary (loss) on consolidation of commercial paper conduits, net of tax	0		(26)		(180)	[8]
Net income (loss)	(1,083)		1,443		2,058	[8]
Net (income) loss attributable to noncontrolling interests, net of tax	(1)		(24)		(19)	[8]
Redemption charge and preferred dividends	(283)		(33)		0	[8]
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation	(1,367)		1,386		2,039	[8]
Basic:
Income (loss) from continuing operations	-0.93		1.21		2.37	[8]
Income (loss) from discontinued operations, net of tax	-0.23		0.01		0.01	[8]
Extraordinary (loss), net of tax	$0		-0.02		-0.19	[8]
Net income (loss) applicable to common stock	-1.16	[1]	1.2	[1]	2.19	[1],[8]
Diluted:
Income (loss) from continuing operations	-0.93	[2]	1.21	[2]	2.35	[2],[8]
Income (loss) from discontinued operations, net of tax	-0.23	[2]	0.01	[2]	0.01	[2],[8]
Extraordinary (loss), net of tax	$0	[2]	-0.02	[2]	-0.19	[2],[8]
Net income (loss) applicable to common stock	-1.16	[1],[2]	1.2	[1],[2]	2.17	[1],[2],[8]
Average common shares and equivalents outstanding (in thousands)
Basic	1,178,907		1,142,239		923,199	[8]
Common stock equivalents	0		10,383		11,505	[8]
Participating securities	0		(4,264)		(4,028)	[8]
Diluted	1,178,907	[2]	1,148,358		930,676	[8]
Anti-dilutive securities	98,112	[7]	83,763	[7]	67,171	[7],[8]
Reconciliation of net income (loss) from continuing operations applicable to the common shareholders' of The Bank of New York Mellon Corporation (in millions)
Income (loss) from continuing operations	(813)		1,455		2,228	[8]
Net (income) loss attributable to noncontrolling interests, net of tax	(1)		(24)		(19)	[8]
Income (loss) from continuing operations attributable to The Bank of New York Mellon Corporation	(814)		1,431		2,209	[8]
Redemption charge and preferred dividends	(283)		(33)		0	[8]
Income (loss) from continuing operations applicable to common shareholders of The Bank of New York Mellon Corporation, net of tax	(1,097)		1,398		2,209	[8]
Income (loss) from discontinued operations, net of tax	(270)		14		10	[8]
Extraordinary (loss), net of tax	0		(26)		(180)	[8]
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation	($1,367)		$1,386		$2,039	[8]
[1]Basic and diluted earnings per share under the two-class method were calculated after deducting earnings allocated to participating securities of $- million in 2009, $9.7 million in 2008 and $17.3 million in 2007.
[2]Diluted earnings per share for the year ended Dec. 31, 2009, was calculated using average basic shares. Adding back the dilutive shares would be anti-dilutive.
[3]In 2009, certain temporary/consulting expenses were reclassified from professional, legal and other purchased services to staff expense. This reclassification totaled $100 million in 2008 and $19 million in 2007.
[4]In 2009, fee revenue associated with equity investments was reclassified from clearing services revenue and other revenue to investment income. Fee revenue associated with an equity investment previously recorded in clearing services revenue was $22 million in 2008 and $5 million in 2007. Fee revenue associated with an equity investment previously recorded in other revenue was $32 million in 2008 and $53 million in 2007. Prior periods have been reclassified.
[5]In 2009, global sub-custodian out-of-pocket expense related to client reimbursements was reclassified from sub-custodian expense to asset servicing revenue. This reclassification totaled $22 million in 2008 and $23 million in 2007.
[6]Includes support agreement charges of $894 million in 2008.
[7]Represents stock options, restricted stock, restricted stock units, participating securities and warrants outstanding that are not included in the computation of diluted average common shares because their effect would be anti-dilutive.
[8]Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

1_Statement Of Income Interest

Statement Of Income Interest Based Revenue (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Global sub-custodian out-of-pocket expense, reclassification	$0	$22	$23	[1]
Fee revenue, reclassification from clearing services revenue	0	22	5	[1]
Fee revenue, reclassification from other revenue	0	32	53	[1]
Temporary/consulting expenses, reclassification	0	100	19	[1]
Noninterest expense Other, support agreement charges	0	894	0	[1]
Earnings allocated to participating securities	$0	9.7	17.3	[1]
[1]Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	Dec. 31, 2009		Dec. 31, 2008
Cash and due from:
Banks	$3,732		$4,889
Interest-bearing deposits with the Federal Reserve and other central banks	7,362		53,270
Other short-term investments - U.S. government-backed commercial paper, at fair value	0		5,629
Interest-bearing deposits with banks	56,302		39,126
Federal funds sold and securities purchased under resale agreements	3,535		2,000
Securities:
Held-to-maturity (fair value of $4,240 and $6,333)	4,417		7,371
Available-for-sale	51,632		32,064
Total securities	56,049		39,435
Trading assets	6,001		11,102
Loans	36,689		43,394
Allowance for loan losses	(503)		(415)
Net loans	36,186		42,979
Premises and equipment	1,602		1,686
Accrued interest receivable	639		619
Goodwill	16,249		15,898
Intangible assets	5,588		5,856
Other assets (includes $863 and $1,870 at fair value)	16,737		15,023
Assets of discontinued operations	2,242		0
Total assets	212,224		237,512
Deposits:
Noninterest-bearing (principally domestic offices)	33,477		55,816
Interest-bearing deposits in domestic offices	32,944		32,386
Interest-bearing deposits in foreign offices	68,629		71,471
Total deposits	135,050		159,673
Borrowing from Federal Reserve related to asset-backed commercial paper, at fair value	0		5,591
Federal funds purchased and securities sold under repurchase agreements	3,348		1,372
Trading liabilities	6,396		8,085
Payables to customers and broker-dealers	10,721		9,274
Commercial paper	12		138
Other borrowed funds	477		755
Accrued taxes and other expenses	4,484		4,052
Other liabilities (including allowance for lending related commitments of $125 and $114, also includes $610 and $721, at fair value)	3,891		4,618
Long-term debt	17,234		15,865
Liabilities of discontinued operations	1,608		0
Total liabilities	183,221		209,423
Equity
Preferred stock - par value $0.01 per share; authorized 100,000,000 shares; issued - shares and 3,000,000 shares	0		2,786
Common stock - par value $0.01 per common share; authorized 3,500,000,000 common shares; issued 1,208,861,641 and 1,148,507,561 common shares	12		11
Additional paid-in capital	21,917		20,432
Retained earnings	8,912		10,225
Accumulated other comprehensive loss, net of tax	(1,835)		(5,401)
Less: Treasury stock of 1,026,927 and 40,262 common shares, at cost	(29)		(3)
Total The Bank of New York Mellon Corporation shareholders' equity	28,977		28,050
Noncontrolling interests	26		39
Total equity	29,003	[1]	28,089	[1]
Total liabilities and equity	$212,224		$237,512
[1]Includes total common shareholders' equity of $11,429 million at Dec. 31, 2006, $29,403 million at Dec. 31, 2007, $25,264 million at Dec. 31, 2008 and $28,977 million at Dec. 31, 2009.

2_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Held-to-maturity, fair value	$4,240	$6,333
Other assets, fair value	863	1,870
Other liabilities, allowance for lending related commitments	125	114
Other liabilities, fair value	$610	$721
Preferred stock, par value	0.01	0.01
Preferred stock, authorized	100,000,000	100,000,000
Preferred stock, issued	0	3,000,000
Common stock, par value	0.01	0.01
Common stock, authorized	3,500,000,000	3,500,000,000
Common stock, issued	1,208,861,641	1,148,507,561
Treasury stock, common shares	1,026,927	40,262

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Operating activities
Net income (loss)	($1,083)	$1,443		$2,058	[1]
Net (income) loss attributable to noncontrolling interests, net of tax	(1)	(24)		(19)	[1]
Income (loss) from discontinued operations, net of tax	(270)	14		10	[1]
Extraordinary (loss), net of taxes	0	(26)		(180)	[1]
Income (loss) from continuing operations attributable to The Bank of New York Mellon Corporation	(814)	1,431		2,209	[1]
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Provision for credit losses	332	104		(11)	[1]
Depreciation and amortization	711	878		820	[1]
Deferred tax (benefit) expense	(1,970)	(1,257)		(146)	[1]
Securities losses and venture capital income	5,387	1,659		141	[1]
Change in trading activities	(636)	(368)		1,949	[1]
Pension plan contribution	(394)	(80)		(29)	[1]
Change in accruals and other, net	1,192	513		(927)	[1]
Net effect of discontinued operations	(27)	34		(36)	[1]
Net cash provided by operating activities	3,781	2,914		3,970	[1]
Investing activities
Change in interest-bearing deposits with banks	(9,635)	(13,973)		(10,625)	[1]
Change in interest-bearing deposits with the Federal Reserve and other central banks	45,908	(53,270)		0	[1]
Change in margin loans	(680)	1,233		(43)	[1]
Purchases of securities held-to-maturity	(114)	0		0	[1]
Paydowns of securities held-to-maturity	643	267		228	[1]
Maturities of securities held-to-maturity	280	238		233	[1]
Purchases of securities available-for-sale	(28,665)	(11,561)		(30,398)	[1]
Sales of securities available-for-sale	3,204	114		2,600	[1]
Paydowns of securities available-for-sale	6,361	4,950		4,862	[1]
Maturities of securities available-for-sale	2,001	5,468		16,023	[1]
Sale of Grantor Trust Series A senior tranche	771	0		0	[1]
Net principal received from (disbursed to) loans to customers	4,948	4,660		(2,201)	[1]
Sales of loans and other real estate	851	334		52	[1]
Change in federal funds sold and securities purchased under resale agreements	(1,545)	6,095		(2,603)	[1]
Change in seed capital investments	(8)	56		136	[1]
Purchases of premises and equipment/capitalized software	(318)	(303)		(313)	[1]
Acquisitions, net cash	(364)	(511)		1,431	[1]
Dispositions, net cash	0	310		0	[1]
Proceeds from the sale of premises and equipment	6	41		1	[1]
Other, net	(987)	(171)		1,234	[1]
Net effect of discontinued operations	431	48		(2,191)	[1]
Net cash provided by (used for) investing activities	23,088	(55,975)		(21,574)	[1]
Financing activities
Change in deposits	(24,774)	48,780		17,667	[1]
Change in federal funds purchased and securities sold under repurchase agreements	2,602	(660)		(711)	[1]
Change in payables to customers and broker-dealers	1,447	1,696		313	[1]
Change in other funds borrowed	(5,717)	5,596		(772)	[1]
Change in commercial paper	(126)	(3,941)		(295)	[1]
Net proceeds from the issuance of long-term debt	3,350	2,647		4,617	[1]
Repayments of long-term debt	(1,882)	(4,082)		(1,131)	[1]
Proceeds from the exercise of stock options	16	182		475	[1]
Issuance of common stock	1,371	40		20	[1]
Tax benefit realized on share-based payment awards	4	14		55	[1]
Treasury stock acquired	(28)	(308)		(113)	[1]
Common cash dividends paid	(599)	(1,107)		(884)	[1]
Series B preferred stock issued/(repurchased)	(3,000)	2,779		0	[1]
Common stock warrant issued/(repurchased)	(136)	221		0	[1]
Preferred dividends paid	(73)	(22)		0	[1]
Net effect of discontinued operations	(428)	(82)		2,227	[1]
Net cash provided by (used for) financing activities	(27,973)	51,753		21,468	[1]
Effect of exchange rate changes on cash	(53)	(438)		(69)	[1]
Change in cash and due from banks
Change in cash and due from banks	(1,157)	(1,746)		3,795	[1]
Cash and due from banks at beginning of period	4,889	6,635	[1]	2,840	[1]
Cash and due from banks at end of period	3,732	4,889		6,635	[1]
Supplemental disclosures
Interest paid	682	2,682		3,521	[1]
Income taxes paid	2,392	2,455		1,390	[1]
Income taxes refunded	$664	$65		$147	[1]
[1]Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Preferred stock	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss), net of tax	Treasury stock	ESOP loan	Non-controlling interests	Total
Beginning Balance at Dec. 31, 2006	$0	$10	$10,035	$9,255	($292)	($7,576)	($3)	$171	$11,600	[2]
Adjustments for the cumulative effect of applying ASC 320, net of taxes of $470 in 2009, ASC 715 and ASC 825, net of taxes of $24 in 2008 and ASC 740 and ASC 840, net of taxes of ($214) in 2007				(416)					(416)
Adjusted balance	0	10	10,035	8,839	(292)	(7,576)	(3)	171	11,184
Distributions paid to noncontrolling interest								(7)	(7)
Comprehensive income:
Net income				2,039				19	2,058	[3]
Other comprehensive income, net of tax					(231)			(1)	(232)
Reclassification adjustment					(26)				(26)
Total comprehensive income				2,039	(257)			18	1,800
Dividends on common stock at $0.51 in 2009, $0.96 in 2008 and $0.95 in 2007 per share				(884)					(884)
Repurchase of common stock						(113)			(113)
Common stock issued under employee benefit plans			25			2	3		30
Common stock issued in settlement of share repurchase agreements with broker-dealer counterparties			(35)			35			0
Stock awards and options exercised			644			69			713
Retirement of treasury stock		(3)	(7,541)			7,544			0
Merger with Mellon		4	16,846						16,850
Other			16	(4)					12
Ending Balance at Dec. 31, 2007	0	11	19,990	9,990	(549)	(39)	0	182	29,585	[2]
Adjustments for the cumulative effect of applying ASC 320, net of taxes of $470 in 2009, ASC 715 and ASC 825, net of taxes of $24 in 2008 and ASC 740 and ASC 840, net of taxes of ($214) in 2007				(57)					(57)
Adjusted balance	0	11	19,990	9,933	(549)	(39)	0	182	29,528
Purchase of subsidiary shares from non-controlling interest								(148)	(148)
Distributions paid to noncontrolling interest								(7)	(7)
Comprehensive income:
Net income				1,419				24	1,443
Other comprehensive income, net of tax					(5,824)			(12)	(5,836)
Reclassification adjustment					972				972
Total comprehensive income				1,419	(4,852)			12	(3,421)
Dividends on common stock at $0.51 in 2009, $0.96 in 2008 and $0.95 in 2007 per share				(1,107)					(1,107)
Dividends on preferred stock at $24.58 in 2009 and $8.75 in 2008 per share				(26)					(26)
Repurchase of common stock						(308)			(308)
Common stock issued under employee benefit plans			12	(3)		58			67
Common stock issued under direct stock purchase and dividend reinvestment plan				(1)		31			30
Series B preferred stock issued	2,779								2,779
Amortization of preferred stock discount	7			(7)					0
Stock awards and options exercised			200			249			449
Warrant issued in connection with TARP			221						221
Other			9	17		6			32
Ending Balance at Dec. 31, 2008	2,786	11	20,432	10,225	(5,401)	(3)	0	39	28,089	[2]
Adjustments for the cumulative effect of applying ASC 320, net of taxes of $470 in 2009, ASC 715 and ASC 825, net of taxes of $24 in 2008 and ASC 740 and ASC 840, net of taxes of ($214) in 2007				676	(676)				0
Adjusted balance	2,786	11	20,432	10,901	(6,077)	(3)	0	39	28,089
Purchase of subsidiary shares from non-controlling interest			(74)					(11)	(85)
Distributions paid to noncontrolling interest								(7)	(7)
Comprehensive income:
Net income				(1,084)				1	(1,083)
Other comprehensive income, net of tax					926			4	930
Reclassification adjustment					3,316				3,316	[1]
Total comprehensive income				(1,084)	4,242			5	3,163
Dividends on common stock at $0.51 in 2009, $0.96 in 2008 and $0.95 in 2007 per share				(599)					(599)
Dividends on preferred stock at $24.58 in 2009 and $8.75 in 2008 per share				(69)					(69)
Repurchase of common stock						(28)			(28)
Repurchase of Series B preferred stock	(3,000)								(3,000)
Repurchase of common stock warrant			(136)						(136)
Common stock issued in public offering		1	1,346						1,347
Common stock issued in connection with acquisitions and investments			85						85
Common stock issued under employee benefit plans			49			2			51
Common stock issued under direct stock purchase and dividend reinvestment plan			19						19
Amortization of preferred stock discount	214			(214)					0
Stock awards and options exercised			197						197
Other			(1)	(23)					(24)
Ending Balance at Dec. 31, 2009	$0	$12	$21,917	$8,912	($1,835)	($29)	$0	$26	$29,003	[2]
[1]Includes $3,348 million (after tax) related to OTTI which was reclassified to net securities gains (losses) on the income statement.
[2]Includes total common shareholders' equity of $11,429 million at Dec. 31, 2006, $29,403 million at Dec. 31, 2007, $25,264 million at Dec. 31, 2008 and $28,977 million at Dec. 31, 2009.
[3]Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

3_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	Dec. 31, 2006
Adjustments for the cumulative effect of applying ASC 320 in 2009, ASC 715 and ASC 825 in 2008 and ASC 740 and ASC 840 in 2007, taxes	$470	$24	($214)
Dividends on common stock, per share	0.51	0.96	0.95
Dividends on preferred stock, per share	24.58	8.75
Total common shareholders' equity	28,977	25,264	29,403	11,429
Reclassification adjustment, OTTI reclassified to net securities gains (losses) on the income statement	$3,348

Summary of significant accounti

Summary of significant accounting and reporting policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of significant accounting and reporting policies	1. Summary of significant accounting and reporting policies Basis of Presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (GAAP) and prevailing industry practices. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in the near term, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to significant estimates are items such as the allowance for loan losses and lending-related commitments, goodwill and intangible assets, pension accounting, the fair value of financial instruments and other-than-temporary impairments. Among other effects, such changes could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as increased pension and post-retirement expense. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the annual periods have been made. Certain other immaterial reclassifications in addition to discontinued operations (see Note 4 of the Notes to Consolidated Financial Statements) have been made to prior years to place them on a basis comparable with current period presentation. The consolidated financial statements include the accounts of BNY Mellon and its subsidiaries. Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as other assets. Earnings on these investments are reflected in fee and other revenue as securities servicing fees or investment income, as appropriate, in the period earned. Our most significant equity method investments are: Equity method investments at Dec. 31, 2009 (dollars in millions) PercentOwnership BookValue CIBC Mellon 50.0 % $ 586 Wing Hang 20.3 % $ 316 Siguler Guff 20.0 % $ 245 West LB Joint Venture 50.0 % $ 128 ConvergEx 33.8 % $ 82 The income statement and balance sheet include results of acquired businesses accounted for under the acquisition method of accounting pursuant to ASC 805Business Combinations and equity investments from the dates of acquisition. For acquisitions prior to Jan. 1, 2009, we recorded any contingent purchase payments when the amounts were resolved and became payable. For acquisitions occurring after Dec.31, 2008, contingent purchase consideration was measured at its fair value and recorded on the purchase date. The Parent financial statements in Note 22 of the Notes to Consolidated Financial Statements include the accounts of the Parent; thos

Accounting changes and new acco

Accounting changes and new accounting guidance
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting changes and new accounting guidance	2. Accounting changes and new accounting guidance Noncontrolling interests and selected implementation questions In December 2007, the FASB issued new guidance on noncontrolling interests included in ASC 810Consolidation. This amends previous guidance to establish accounting and reporting standards for the noncontrolling interest in a subsidiary (i.e., minority interest) and for the deconsolidation of a subsidiary. This guidance applies to all entities that prepare consolidated financial statements. This guidance clarifies that a noncontrolling interest in a subsidiary is part of the equity of the controlling group and is reported on the balance sheet within the equity section separately from BNY Mellons equity as a distinct item. The equity section of the balance sheet is required to present equity attributable to both controlling and noncontrolling interests. The carrying amount of the noncontrolling interest is adjusted to reflect the change in ownership interest, and any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity attributable to the noncontrolling interest (i.e., as additional paid in capital). Any transaction that results in the loss of control of a subsidiary is considered a remeasurement event with any retained interest remeasured at fair value. The gain or loss recognized in income includes both the realized gain or loss related to the portion of the ownership interest sold and the gain or loss on the remeasurement to fair value of the retained interest. We adopted this guidance on Jan. 1, 2009. This guidance required retrospective application. As a result, effective Jan. 1, 2009, we reclassified $39 million of minority interest from liabilities to equity on our balance sheet. Net income attributable to noncontrolling interests was $1 million in 2009, $24 million in 2008 and $19 million in 2007. Business combinations In December 2007, the FASB issued new guidance on business combinations included in ASC 805Business Combinations. This guidance requires all acquisitions of businesses to be measured at the fair value of the net assets acquired rather than the cost allocation process specified in previous guidance. The adoption of this guidance did not have a significant impact on our financial position or results of operations. However, any business combination entered into beginning in 2009 may significantly impact our financial position and results of operations compared with how it would have been recorded under prior GAAP. Earnings volatility could result, depending on the terms of the acquisition. This statement requires transaction costs, such as legal, investment banking, and due diligence costs, to be expensed as incurred and requires earn out contingencies to be measured at fair value. The accounting requirements of this guidance are applied on a prospective basis for all transactions completed subsequent to Dec. 31, 2008. Participating securities In June 2008, the FASB issued new guidance, included in ASC 260Earnings Per Share, on determining whether instruments granted in share-based

Acquisitions and dispositions

Acquisitions and dispositions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and dispositions	3. Acquisitions and dispositions We sometimes structure our acquisitions with both an initial payment and later contingent payments tied to post-closing revenue or income growth. For acquisitions completed prior to Jan. 1, 2009, we record the fair value of contingent payments as an additional cost of the entity acquired in the period that the payment becomes probable. For acquisitions completed after Jan. 1, 2009, subsequent changes in the fair value of a contingent consideration liability will be recorded through the income statement. Contingent payments totaled $36 million in 2009. At Dec. 31, 2009, we were potentially obligated to pay additional consideration which, using reasonable assumptions for the performance of the acquired companies and joint ventures based on contractual agreements, could range from approximately $80 million to $130 million over the next four years. Potential contingent additional consideration of $7 million was recorded as goodwill at Dec. 31, 2009. Acquisitions in 2009 In November 2009, we acquired Insight Investment Management Limited (Insight) for 235million ($377 million of cash and stock). Based in London, Insight specializes in liability-driven investment solutions, active fixed income and alternative investments. Its clients include some of the UKs largest pension schemes, corporates, insurance companies and local authorities. Insight had $138 billion in assets under management at acquisition. Goodwill related to this acquisition is non-tax deductible and totaled $202 million. Intangible assets (primarily customer contracts) related to the transaction, with a life up to 11 years, totaled $111 million. The impact of this acquisition is not expected to be material to earnings per share in 2010. In November 2009, BNY Mellon acquired a 20% minority interest in Siguler Guff Company, LLC (and certain related entities), a multi-strategy private equity firm with approximately $8 billion in assets under management and committed capital. The impact of this acquisition is not expected to be material to earnings per share. Divestitures in 2009 On Jan. 15, 2010, BNY Mellon sold MUNB, our national bank subsidiary located in Florida. The results for MUNB were classified as discontinued operations. See Note 4 for additional information on the MUNB transaction. Acquisitions in 2008 In January 2008, we acquired ARX Capital Management (ARX). ARX is a leading independent asset management business, headquartered in Rio de Janeiro, Brazil. The impact of this acquisition was not material to earnings per share. On Dec. 31, 2008, we acquired the Australian (Ankura Capital) and U.K. (Blackfriars Asset Management) businesses from our Asset Management joint venture with WestLB. The impact of this acquisition was not material to earnings per share. Dispositions in 2008 In February 2008, we sold our B-Trade and G-Trade execution businesses to BNY ConvergEx Group. These businesses were sold at book value. The execution businesses contributed approximately $215 million of revenue and $45 million of pre-tax income in 2007. In June 2008, we sold Mellon 1st Business Bank (M1BB), based in Los Angeles, Californi

Discontinued operations

Discontinued operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued operations	4. Discontinued operations On Jan. 15, 2010, BNY Mellon sold MUNB, our national bank subsidiary located in Florida. As a result, we applied discontinued operations accounting to this business and the income statements for all periods in this Annual Report have been restated. This business, which was previously reported in the Other segment, no longer fit our strategic focus on our asset management and securities servicing businesses. Results for discontinued operations in 2009 were a loss of $270 million largely related to write-downs for retained South Florida real estate loans and the elimination of $82 million of goodwill. Summarized financial information for discontinued operations is as follows: Discontinued operations assets and liabilities (a)(in millions) Dec.31, 2009 Cash and due from banks $ 446 Securities 488 Loans, net of allowance for loan losses 1,225 Premises and equipment 12 Other assets 71 Assets of discontinued operations $ 2,242 Deposits: Noninterest-bearing $ 539 Interest-bearing 958 Total deposits 1,497 Other liabilities 111 Liabilities of discontinued operations $ 1,608 (a) Prior period balance sheets, in accordance with GAAP, were not restated for discontinued operations. Discontinued operations (in millions) 2009 2008 2007(a) Fee and other revenue $ 7 $ 24 $ 20 Net interest revenue 59 93 55 Provision for loan losses 191 27 1 Net interest revenue after provision for loan losses (132 ) 66 54 Noninterest expense: Staff 37 26 28 Professional, legal and other purchased services 4 10 8 Net occupany 5 5 3 Other 16 21 22 Goodwill impairment 50 - - Total noninterest expense 112 62 61 Income (loss) from discontinued operations (237 ) 28 13 Loss on assets held for sale (184 ) - - Provision (benefit) for income taxes (151 ) 14 3 Income (loss) from discontinued operations, net of taxes $ (270 ) $ 14 $ 10 (a) Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

Securities

Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Securities	5. Securities The following tables set forth the amortized cost and the fair value of securities at the end of the last two years. Securities at Dec. 31, 2009 Amortized cost Gross unrealized Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 6,358 $ 30 $ 10 $ 6,378 U.S. Government agencies 1,235 25 - 1,260 State and political subdivisions 538 6 24 520 Agency MBS 18,247 303 95 18,455 Alt-A RMBS 588 12 63 537 Prime RMBS 1,743 3 234 1,512 Subprime RMBS 758 - 311 447 Other RMBS 2,199 1 430 1,770 Commercial MBS 2,762 31 203 2,590 Asset-backed CLOs 424 15 50 389 Other asset-backed securities 869 5 38 836 Other debt securities 11,419 86 48 11,457 (a) Equity securities 1,314 8 1 1,321 Grantor Trust Class B certificates (b) 4,049 111 - 4,160 Total securities available-for-sale 52,503 636 1,507 51,632 Held-to-maturity: State and political subdivisions 150 3 - 153 Agency MBS 531 30 - 561 Alt-A RMBS 304 - 62 242 Prime RMBS 189 - 17 172 Subprime RMBS 30 - 7 23 Other RMBS 3,195 39 162 3,072 Commercial MBS 11 - 1 10 Other debt securities 3 - - 3 Other securities 4 - - 4 Total securities held-to-maturity 4,417 72 249 4,240 Total securities $ 56,920 $ 708 $ 1,756 $ 55,872 (a) Includes $10.8 billion, at fair value, of government-sponsored and government-guaranteed entities. (b) The Grantor Trust contains Alt-A, prime and subprime RMBS. Securities at Dec. 31, 2008 Amortized cost Gross unrealized Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 746 $ 36 $ 1 $ 781 U.S. Government agencies 1,259 40 - 1,299 State and political subdivisions 896 8 21 883 Agency RMBS 10,862 211 174 10,899 Alt-A RMBS 5,164 21 2,223 2,962 Prime RMBS 6,437 - 1,733 4,704 Subprime RMBS 1,512 - 575 937 Other RMBS 2,997 - 596 2,401 Commercial MBS 3,275 - 803 2,472 Asset-backed CLOs 604 2 166 440 Other asset-backed securities 1,612 - 479 1,133 Other debt securities 1,884 36 130 1,790 Equity securities 1,392 - 29 1,363 Total securities available-for-sale 38,640 354 6,930 32,064 Held-to-maturity: State and political subdivisions 193 2 2 193 Agency RMBS 699 24 1 722 Alt-A RM

Loans

Loans
	12 Months Ended Dec. 31, 2009 USD / shares
Loans	6. Loans The table below provides the details of our loan distribution and industry concentrations of credit risk at Dec. 31, 2009 and 2008: Loans by product Dec. 31, (in millions) 2009 2008 Domestic: Commercial and industrial loans $ 3,280 $ 6,537 Real estate loans: Construction and land development 533 812 Other, principally commercial mortgages 721 1,197 Collateralized by residential properties 5,567 5,489 Banks and other financial institutions 1,517 3,376 Loans for purchasing or carrying securities 3,826 4,099 Lease financings 2,450 2,754 Less: Unearned income on lease financings (754 ) (902 ) Wealth loans 3,354 1,866 Margin loans 4,657 3,977 Other (primarily overdrafts) 3,780 4,152 Total domestic 28,931 33,357 Foreign: Commercial and industrial loans 517 668 Banks and other financial institutions 4,947 4,714 Lease financings 3,344 4,088 Less: Unearned income on lease financings (1,528 ) (1,934 ) Government and official institutions 64 1,437 Other (primarily overdrafts) 414 1,064 Total foreign 7,758 10,037 Less: Allowance for loan losses (503 ) (415 ) Net loans $ 36,186 $ 42,979 In the ordinary course of business, we and our banking subsidiaries have made loans at prevailing interest rates and terms to our directors and executive officers and to entities in which certain of our directors have an ownership interest or direct or indirect subsidiaries of such entities. The aggregate amount of these loans was $4 million, $12 million and $35 million at Dec. 31, 2009, 2008, and 2007 respectively. These loans are primarily extensions of credit under revolving lines of credit established for such entities. Transactions in the allowance for credit losses are summarized as follows: Allowance for credit losses (in millions) Allowance for loan losses Allowance for lending- related commitments Allowance for credit losses Balance at Dec. 31, 2006 (a) $ 287 $ 150 $ 437 Acquisition 43 87 130 Charge-offs: (b) Commercial (16 ) (6 ) (22 ) Leasing (36 ) - (36 ) Foreign (19 ) - (19 ) Other (1 ) - (1 ) Total charge-offs (72 ) (6 ) (78 ) Recoveries: (b) Commercial 1 - 1 Leasing 13 - 13 Foreign 1 - 1 Total recoveries 15 - 15 Net charge-offs (57 ) (6 ) (63 ) Provision for credit losses (b) 54 (65 ) (11 ) Transferred to discontinued operations - 1 1 Balance at Dec. 31, 2007 $ 327 $ 167 $ 494 (c) Charge-offs: Commercial (30 ) - (30 ) Commercial real estat

Goodwill and intangible assets

Goodwill and intangible assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and intangible assets	7. Goodwill and intangible assets Goodwill The level of goodwill increased in 2009 due to foreign exchange translation on non-U.S. dollar denominated goodwill and the Insight acquisition, partially offset by the transfer of goodwill to discontinued operations. Goodwill impairment testing is performed annually at the business segment level. The table below provides a breakdown of goodwill by business segment. Goodwill by segment (in millions) Asset Management Wealth Management Asset Servicing Issuer Services Clearing Services Treasury Services Other Total Balance at Dec. 31, 2007 $ 7,054 $ 2,362 $ 3,291 $ 2,413 $ 1,119 $ 92 $ - $ 16,331 Acquisitions/dispositions 184 - (11 ) 52 (50 ) - (178 ) (3 ) Transfer between segments (a) - (255 ) - - - - 255 - Foreign exchange translation (501 ) - (162 ) (4 ) (51 ) - - (718 ) Other (b) 481 (413 ) 242 2 (116 ) 31 61 288 Balance at Dec. 31, 2008 $ 7,218 $ 1,694 $ 3,360 $ 2,463 $ 902 $ 123 $ 138 $ 15,898 Acquisitions 202 - - - - - - 202 Foreign exchange translation 174 - 37 14 15 - - 240 Transferred to discontinued operations - - - - - - (128 )(c) (128 ) Other (b) 15 9 - 11 1 4 (3 ) 37 Balance at Dec. 31, 2009 $ 7,609 $ 1,703 $ 3,397 $ 2,488 $ 918 $ 127 $ 7 $ 16,249 (a) Transfer reflects the movements of M1BB and MUNB to the Other segment from the Wealth Management segment. (b) Other changes in goodwill include purchase price adjustments and certain other reclassifications. (c) Includes a $50 million goodwill impairment recorded in the first quarter of 2009. No goodwill impairment was recorded in 2008 or 2007. Intangible assets Intangible assets not subject to amortization are tested annually for impairment or more often if events or circumstances indicate they may be impaired. The decrease in intangible assets in 2009 compared with 2008 resulted from intangible amortization partially offset by the Insight acquisition and foreign exchange translation on non-U.S. dollar denominated intangible assets. Intangible amortization expense was $426 million, $473 million and $314 million in 2009, 2008 and 2007 respectively. No impairment losses were recorded on intangible assets in 2009 or 2008. The table below provides a breakdown of intangible assets by business segment. Intangible assetsnet carrying amount by segment (in millions) Asset Management Wealth Management Asset Servicing Issuer Services Clearing Services Treasury Services Other Total Net carrying amount at Dec. 31, 2007 $

Other assets

Other assets
	12 Months Ended Dec. 31, 2009 USD / shares
Other assets	8. Other assets Other assets Dec. 31, (in millions) 2009 2008 Corporate/bank owned life insurance $ 3,900 $ 3,781 Accounts receivable 3,528 3,715 Equity in joint ventures and other investments (a) 2,816 2,421 Income taxes receivable 1,867 342 Prepaid expenses 1,089 (b) 422 Fails to deliver 911 1,394 Prepaid pension assets 714 371 Software 595 607 Due from customers on acceptances 502 265 Margin deposits 459 1,275 Other 356 430 Total other assets $ 16,737 $ 15,023 (a) Includes Federal Reserve Bank stock of $397 million and $342 million, respectively, at cost. (b) Includes $295 million related to the prepayment of the quarterly fees to the FDIC. Seed capital and private equity investments valued using net asset value per share In our Asset Management segment, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors; as part of that activity we make seed capital investments in certain funds. Seed capital is included in trading assets, securities available-for-sale and other assets depending on the nature of the investment. BNY Mellon also holds private equity investments which consist of investments in private equity funds, mezzanine financings and direct equity investments. Private equity investments are included in other assets. Consistent with our policy to focus on our core activities, we continue to reduce our exposure to private equity investments. The fair value of these investments has been estimated using the net asset value (NAV) per share of BNY Mellons ownership interest in the funds. The table below presents information about BNY Mellons investments in seed capital and private equity investments. Seed capital and private equity investments valued using NAV Dec. 31, 2009 (dollar amounts in millions) Fairvalue Unfundedcommitments Redemptionfrequency Redemptionnoticeperiod Hedge funds (a) $ 172 $ - Monthly-quarterly 3-45days Private equity funds (b) 187 53 N/A N/A Other funds (c) 263 - Monthly-yearly (c ) Total $ 622 $ 53 (a) Hedge funds include multi-strategy funds that utilize a variety of investment strategies and equity long-short hedge funds that include various funds that invest over both long-term investment and short-term investment horizons. (b) Private equity funds primarily include numerous venture capital funds that invest in various sectors of the economy. Private equity funds do not have redemption rights. Distributions from such funds will be received as the underlying investments in the funds are liquidated. (c) Other funds primarily include: an absolute return unit trust investing in global currencies and interest rate strategies with a monthly redemption frequency and no notice period; a global special situations fund investing in distressed debt with a quarterly redemption

Deposits

Deposits
	12 Months Ended Dec. 31, 2009 USD / shares
Deposits	9. Deposits The aggregate amount of time deposits in denominations of $100,000 or greater was approximately $34.0 billion at Dec. 31, 2009 and $57.1 billion at Dec. 31, 2008. At Dec. 31, 2009, the scheduled maturities of all time deposits for the years 2010 through 2014 and 2015 and thereafter are as follows: $34.1 billion; $30 million; $15 million; $2 million; $21 million; and $7 million, respectively.

Other fee revenue

Other fee revenue
	12 Months Ended Dec. 31, 2009 USD / shares
Other fee revenue	10. Other fee revenue In 2009, other fee revenue included $76 million of asset related gains, and $31 million of expense reimbursement from joint ventures. Asset related gains in 2009 include the $39 million gain associated with the sale of VISA shares. In 2008, other fee revenue included $45 million of asset related gains and $29 million of expense reimbursement from joint ventures. Asset related gains in 2008 included a $42 million gain associated with the initial public offering by VISA. In 2007, other fee revenue included $58 million of expense reimbursements from joint ventures, $41 million of net economic value payments related to the Acquired Corporate Trust Business, and a $28 million settlement received for early termination of a contract with a clearing business.

Net interest revenue

Net interest revenue
	12 Months Ended Dec. 31, 2009 USD / shares
Net interest revenue	11. Net interest revenue Net interest revenue (in millions) 2009 2008 2007(a) Interest revenue Non-margin loans $ 874 $ 1,027 $ 1,826 Margin loans 69 183 332 Securities: Taxable 1,718 2,210 1,865 Exempt from federal income taxes 30 35 18 Total securities 1,748 2,245 1,883 Other short-term investmentsU.S. government-backed commercial paper 9 71 - Deposits in banks 683 1,753 1,242 Deposits with the Federal Reserve and other central banks 43 27 - Federal funds sold and securities purchased under resale agreements 31 149 289 Trading assets 50 69 98 Total interest revenue 3,507 5,524 5,670 Interest expense Deposits in domestic offices 54 328 566 Deposits in foreign offices 117 1,437 1,812 Borrowings from Federal Reserve related to ABCP 7 53 - Federal funds purchased and securities sold under repurchase agreements - 46 110 Other borrowed funds 42 90 91 Customer payables 6 69 177 Long-term debt 366 642 669 Total interest expense 592 2,665 3,425 Net interest revenue $ 2,915 $ 2,859 $ 2,245 (a) Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc.

Selected noninterest expense ca

Selected noninterest expense categories
	12 Months Ended Dec. 31, 2009 USD / shares
Selected noninterest expense categories	12. Selected noninterest expense categories The following table provides a breakdown of certain expense categories presented on the consolidated income statement. Selected noninterest expense categories (in millions) 2009 2008 2007(a) Sub-custodian $ 203 $ 255 (b) $ 223 (b) Clearing 117 80 183 Total sub-custodian and clearing $ 320 $ 335 (b) $ 406 (b) Communications $ 115 $ 127 $ 108 Support agreement charges (15 ) 894 3 Other 737 (c) 801 523 Total other $ 837 $ 1,822 $ 634 (a) Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc. (b) In 2009, global sub-custodian out-of-pocket expense related to client reimbursements was reclassified from sub-custodian expense to asset servicing revenue. This reclassification totaled $22 million in 2008 and $23 million in 2007. (c) Includes $61 million of FDIC special assessment recorded in 2009. In 2008, we recorded support agreement charges of $894 million. In response to market events in 2008, we voluntarily provided support to clients invested in money market mutual funds, cash sweep funds and similar collective funds managed by our affiliates impacted by the Lehman bankruptcy. In 2009, we recorded a credit to support agreement charges of $15 million. This credit reflects a reduction in the support agreement reserve primarily due to improved pricing of Lehman securities, primarily offset by the final support agreement charge for four Dreyfus money market funds entered into in 2008. The agreements supporting the Dreyfus money market funds expired and were completed in 2009. At Dec. 31, 2009, the value of Lehman securities increased to 19.5% from 9.75% at Dec. 31, 2008.

Restructuring charges

Restructuring charges
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring charges	13. Restructuring charges Global location strategy As part of an ongoing effort to improve efficiency and develop a global operating model that provides the highest quality of service to our clients, BNY Mellon continues to execute its global location strategy. This strategy includes migrating positions to our global growth centers and is expected to result in moving and/or eliminating over 2,300 positions in 2010. In the fourth quarter of 2009, we recorded a pre-tax restructuring charge of $139 million, or $0.08 per common share on a full-year basis. This charge was comprised of $102 million for severance costs and $37 million primarily for asset write-offs, and expense related to the closing of offices. Workforce reduction program In the fourth quarter of 2008, we announced that, due to weakness in the global economy, we would reduce our workforce by approximately 4%, or an estimated 1,800 positions, and as a result, recorded a pre-tax restructuring charge of $181 million. In 2009, we recorded additional charges of $11 million associated with this workforce reduction. As of Dec. 31, 2009, we have reduced our workforce by approximately 1,500 positions, and expect to complete the remainder of the program in the first half of 2010. Severance payments related to these positions are primarily paid over the salary continuance period in accordance with the separation plan. The restructuring charges are recorded as a separate line on the income statement. The following tables present the activity in the restructuring reserves through Dec. 31, 2009. Global location strategy restructuring charge reserve activity Severance Asset write-offs/other Total (in millions) Original restructuring charge $ 102 $ 37 $ 139 Utilization - (23 ) (23 ) Balance at Dec. 31, 2009 $ 102 $ 14 $ 116 Workforce reduction program restructuring charge reserve activity Severance Stock-based incentive acceleration Other compensation costs Other non-personnel expenses Total (in millions) Original restructuring charge $ 166 $ 9 $ 5 $ 1 $ 181 Additional charges/(recovery) 4 (2 ) (1 ) 10 11 Utilization (105 ) (7 ) (4 ) (11 ) (127 ) Balance at Dec. 31, 2009 $ 65 $ - $ - $ - $ 65 The restructuring charges for 2009 and 2008 are presented below by business segment. The charges were recorded in the Other segment as these restructurings were corporate initiatives and not directly related to the operating performance of these segments. Global location strategy 2009 restructuring charge by segment (in millions) 2009 Asset management $ 32 Asset servicing 34 Issuer services 18 Wealth management 8 Treasury services 8 Clearing services 8 Other (including shared services) 31 Total restructuring charge $ 139 Workforce reduction program 2008 restructuring charge by segme

Income taxes

Income taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income taxes	14. Income taxes Provision (benefit) for income taxes from continuing operations Year ended Dec. 31, (in millions) 2009 2008 2007(a) Current taxes: Federal $ 289 $ 840 $ 788 Foreign 185 488 237 State and local 101 420 108 Total current tax expense 575 1,748 1,133 Deferred taxes: Federal (1,676 ) (860 ) (97 ) Foreign - (1 ) (9 ) State and local (294 ) (396 ) (40 ) Total deferred tax expense (benefit) (1,970 ) (1,257 ) (146 ) Provision (benefit) for income taxes $ (1,395 ) $ 491 $ 987 (a) Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc. The components of income (loss) before taxes are as follows: Components of income (loss) before taxes Year ended Dec. 31, (in millions) 2009 2008 2007(a) Domestic $ (3,022 ) $ 217 $ 2,144 Foreign 814 1,729 1,071 Income (loss) before taxes $ (2,208 ) $ 1,946 $ 3,215 (a) Results for 2007 include six months of BNY Mellon and six months of legacy The Bank of New York Company, Inc. The components of our net deferred tax liability included in accrued taxes and other expenses are as follows: Net deferred tax liability Dec. 31, (in millions) 2009 2008 Depreciation and amortization $ 2,725 $ 2,666 Lease financings 1,197 1,411 Pension obligations 277 146 Securities valuation (2,112 ) (2,360 ) Reserves not deducted for tax (736 ) (1,351 ) Credit losses on loans (368 ) (224 ) Net operating loss carryover (163 ) (189 ) Other assets (838 ) (468 ) Other liabilities 738 433 Net deferred tax liability $ 720 $ 64 We have federal net operating loss carryovers of $466 million (for which we have recorded a $163 million tax benefit) related to a separate filing of a group of certain leasing subsidiaries which begin to expire in 2023. We have not recorded a valuation allowance because we expect to realize our deferred tax assets including these carryovers. As of Dec. 31, 2009, we had approximately $1.9 billion of earnings attributable to foreign subsidiaries that have been permanently reinvested abroad and for which no provision has been recorded for income tax that would occur if repatriated. It is not practicable at this time to determine the income tax liability that would result upon repatriation of these earnings. The following table presents a reconciliation of the statutory federal income tax rate to our effective income tax rate applicable to income from continuing operations. Effective tax rate Dec. 31, 2009 2008 2007 Federal rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal income tax benefit

Extraordinary

Extraordinary (loss) - consolidation of commercial paper conduits
	12 Months Ended Dec. 31, 2009 USD / shares
Extraordinary (loss) - consolidation of commercial paper conduits	15. Extraordinary (loss) consolidation of commercial paper conduits At the end of 2008 and 2007, we called the first loss notes of Old Slip and TRFC, respectively, making us the primary beneficiary and triggering the consolidation of these commercial paper conduits. The consolidation of these conduits resulted in the recognition of extraordinary losses (non-cash accounting charges) of $26 million after-tax, or $0.02 per common share in 2008, associated with Old Slip, and $180 million after-tax, or $0.19 per common share in 2007, associated with TRFC.

Long-term debt

Long-term debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-term debt	16. Long-term debt Long-term debt Dec. 31, 2009 Dec. 31, 2008 (in millions) Rate Maturity Amount Rate Amount Senior debt: Fixed rate 3.10-6.92 % 2011-2020 $ 7,949 3.25-6.38 % $ 5,605 Floating rate 0.05-0.69 % 2010-2038 2,869 1.27-3.26 % 2,704 Subordinated debt (a) 4.40-7.40 % 2010-2033 4,795 3.27-7.40 % 5,890 Junior subordinated debentures (a) 5.95-7.78 % 2026-2043 1,621 5.95-7.78 % 1,666 Total $ 17,234 $ 15,865 (a) Fixed rate. The aggregate amounts of notes and debentures that mature during the five years 2010 through 2014 for BNY Mellon are as follows: $1.85 billion, $1.31 billion, $3.45 billion, $1.51 billion and $2.29 billion. At Dec. 31, 2009, subordinated debt aggregating $1.61 billion was redeemable at our option as follows: $1.07 billion in 2010; $275 million in 2011; and $259 million after 2011. Junior subordinated debentures Wholly owned subsidiaries of BNY Mellon (the Trusts) have issued cumulative Company-Obligated Mandatory Redeemable Trust Preferred Securities of Subsidiary Trust Holding Solely Junior Subordinated Debentures (Trust Preferred Securities). The sole assets of each trust are our junior subordinated deferrable interest debentures of BNY Mellon whose maturities and interest rates match the Trust Preferred Securities. Our obligations under the agreements that relate to the Trust Preferred Securities, the Trusts and the debentures constitute a full and unconditional guarantee by us of the Trusts obligations under the Trust Preferred Securities. The assets for Mellon Capital IV are currently (i)our remarketable 6.044% junior subordinated notes due 2043, and (ii)interests in stock purchase contracts between Mellon Capital IV and us. On the stock purchase date, as defined in the prospectus supplement for the Trust Preferred Securities of Mellon Capital IV, the sole assets of the trust will be shares of a series of our non-cumulative perpetual preferred stock. The following table sets forth a summary of the Trust Preferred Securities issued by the Trusts as of Dec. 31, 2009: Trust Preferred Securities at Dec. 31, 2009 (dollar amounts in millions) Amount Interest rate Assets oftrust(a) Due date Call date Call price BNY Institutional Capital Trust A $ 300 7.78 % $ 309 2026 2006 102.72 %(b) BNY Capital IV 200 6.88 206 2028 2004 Par BNY Capital V 350 5.95 361 2033 2008 Par MEL Capital III (c) 323 6.37 309 2036 2016 Par MEL Capital IV 500 6.24 501 - 2012 Par Total $ 1,673 $ 1,686 (a) Junior subordinated debentures and interest in stock purchase contracts for Mellon Capital IV. (b) Call price decreases ratably to par in the year 2016. (c) Amount was translated from Sterling into U.S. dollars on a basis of U.S. $1.62 to 1, the rate of exchange on Dec. 31, 2009. We have the option to shorten the maturity of BNY C

Securitizations and variable in

Securitizations and variable interest entities
	12 Months Ended Dec. 31, 2009 USD / shares
Securitizations and variable interest entities	17. Securitizations and variable interest entities Investment securities portfolio securitization In 2009, we securitized approximately $5.0 billion, fair value, of our investment securities portfolio into a Grantor Trust. The Grantor Trust contains Alt-A, prime and subprime RMBS which were written down to fair value as part of the restructuring of the investment securities portfolio. As a result of this transaction, we received approximately $771 million (before expenses) in cash for ClassA Notes that were sold to third parties and retained Class B certificates with a fair value of approximately $4.2 billion. BNY Mellon did not securitize any assets during 2008. Other securitizations In 2000, we purchased Dreyfus Institutional Reserves Money Fund shares and sold the right to receive the principal value of the shares in 2021 in a securitization transaction and retained the rights to receive the ongoing dividends from the shares. In 2003, we securitized quarterly variable rate municipal bonds, which are Aa3/AAA insured bonds issued by borrowers rated no lower than A2/A+ by Moodys Investor Services and Standard Poors. No gain or loss was recognized on this transaction. Our retained interests in these securitizations at Dec. 31, 2009 and 2008, are approximately $153 million and $234 million, respectively, which represents our maximum exposure to the securitizations. Variable Interest Entities Guidance on Consolidation of Variable Interest Entities, included in ASC 810 applies to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The primary beneficiary of a Variable Interest Entity (VIE) is the party that absorbs a majority of the entitys expected losses, receives a majority of its expected residual returns or both, as a result of holding variable interests. BNY Mellon is required to consolidate entities for which it is the primary beneficiary. BNY Mellons VIEs generally include retail, institutional and alternative investment funds offered to its retail and institutional customers. BNY Mellon may provide start-up capital in its new funds and also earns fund management fees. Performance fees are also earned on certain funds. BNY Mellon is not contractually required to provide financial or any other support to its VIEs. In addition, we provide trust and custody services for a fee to entities sponsored by other corporations in which we have no other interest. Primary beneficiary calculations are prepared in accordance with ASC 810 Consolidation. This evaluation includes estimates of ranges and probabilities of losses and returns from the funds. The calculated expected gains and expected losses are allocated to the variable interest holders of the funds, which are generally the funds investors and which may include BNY Mellon, in order to determine which entity is required to consolidate the VIE, if any. The start up capital invested in our Asset Management VIEs as of Dec. 31, 2009 and 2008, has been included in ou

Shareholders' equity

Shareholders' equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' equity	18. Shareholders equity BNY Mellon has 3.5 billion authorized shares of common stock with a par value of $0.01 per share, 100million authorized shares of preferred stock with a par value of $0.01 per share, of which 3million were authorized shares of Series B preferred stock with a liquidation preference of $1,000 per share and a par value of $0.01 per share issued pursuant to our participation in the TARP Capital Purchase Program. At Dec. 31, 2009, 1,207,834,714 shares of common stock were outstanding. There were no shares of preferred stock outstanding at Dec. 31, 2009. Troubled Asset Relief Program In October 2008, the U.S. government announced the TARP CPP authorized under the EESA. The intention of this program is to encourage U.S. financial institutions to build capital, to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. As part of this program, BNY Mellon agreed to issue and sell to the U.S. Treasury preferred stock and a warrant to purchase shares of common stock in accordance with the terms of the CPP for an aggregate purchase price of $3 billion. As a result, on Oct. 28, 2008, we issued 3million shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B and a warrant for common stock to the U.S. Treasury. The $3 billion proceeds received from the U.S. Treasury were allocated between the Fixed Rate Cumulative Perpetual Preferred Stock, Series B and a warrant for common stock based on the relative fair values of the preferred stock and warrant at the time of issuance. In June 2009, BNY Mellon repurchased the 3million shares of its Series B preferred stock for its $3 billion liquidation value. BNY Mellon recorded an after-tax redemption charge of $196.5 million in 2009, representing the difference between the amortized cost of the Series B preferred stock and the repurchase price. On Aug. 5, 2009, BNY Mellon repurchased for $136 million the warrant for 14,516,129 shares of our common stock. Common stock repurchase program On Dec. 18, 2007, our Board of Directors authorized the repurchase of up to 35million shares of common stock. There were no shares repurchased under this program in 2009. At Dec. 31, 2009, 33.8million shares were available for repurchase under the December 2007 program. There is no expiration date on this repurchase program. Capital adequacy Regulators establish certain levels of capital for bank holding companies and banks, including BNY Mellon and our bank subsidiaries, in accordance with established quantitative measurements. For the Parent to maintain its status as a financial holding company, our bank subsidiaries must, among other things, qualify as well capitalized. In addition, major bank holding companies such as the Parent are expected by the regulators to be well capitalized. As of Dec. 31, 2009 and 2008, the Parent and our bank subsidiaries were considered well capitalized on the basis of the ratios (defined by regulation) of Total and Tier 1 capital to risk-weighted assets and leverage (Tier 1 capital to average assets). The following table presents the components of our Tier 1 and total risk-based capital, as well as ou

Comprehensive results

Comprehensive results
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive results	19. Comprehensive results Foreign currency translation ASC 820 Adjustments Unrealized gain (loss) on assets available for sale Unrealized gain (loss) oncashflow hedges (a) Total accumulated unrealized gain (loss) Pensions Otherpost- retirement benefits 2007 beginning balance, net of tax (expense) benefit $ (64 ) $ (194 ) $ (76 ) $ 16 $ 26 $ (292 ) Change in 2007, net of tax (expense) benefit of $(36), $(41), $(5), $218, $10 75 46 3 (339 ) (16 ) (231 ) Reclassification adjustment, net of tax (expense) benefit of $ -, $ -, $- $13, $4 - - - (19 ) (7 ) (26 ) 2007 total unrealized gain (loss) 75 46 3 (358 ) (23 ) (257 ) 2007 ending balance, net of tax (expense) benefit $ 11 $ (148 ) $ (73 ) $ (342 ) $ 3 $ (549 ) Change in 2008, net of tax (expense) benefit of $(113), $566, $(6), $3,359, $(1) (374 ) (808 ) 7 (4,694 ) 45 (5,824 ) Reclassification adjustment, net of tax (expense) benefit of $-,$ -, $ -, $(645), $1 - - - 983 (11 ) 972 2008 total unrealized gain (loss) (374 ) (808 ) 7 (3,711 ) 34 (4,852 ) 2008 ending balance, net of tax (expense) benefit $ (363 ) $ (956 ) $ (66 ) $ (4,053 ) $ 37 $ (5,401 ) Adjustments for the cumulative effect of applying ASC 320, net of taxes of $-, $-, $-, $470, $- - - - (676 ) - (676 ) Adjusted balance at Jan. 1, 2009 (363 ) (956 ) (66 ) (4,729 ) 37 (6,077 ) Change in 2009, net of tax (expense) benefit of $(82), $14, $(34), $(489), $(1) 227 (46 ) (1 ) 762 (16 ) 926 Reclassification adjustment, net of tax (expense) benefit $-, $-, $-, $(2,022), $- - - - 3,348 (32 ) 3,316 2009 total unrealized gain (loss) 227 (46 ) (1 ) 4,110 (48 ) 4,242 2009 ending balance, net of tax (expense) benefit $ (136 ) $ (1,002 ) $ (67 ) $ (619 ) $ (11 ) $ (1,835 ) (a) Includes unrealized gain (loss) on foreign currency cash flow hedges of $(1) million, $7 million and $4 million at Dec. 31, 2009, Dec. 31, 2008 and Dec. 31, 2007, respectively.

Stock-based compensation

Stock-based compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-based compensation	20. Stockbased compensation Our Long-Term Incentive Plans provide for the issuance of stock options, restricted stock, restricted stock units (RSUs) and other stock-based awards to employees of BNY Mellon. At Dec. 31, 2009, under the Long-Term Incentive Plan approved in April 2008, we may issue 49,558,147 new options. Of this amount, 23,365,162 shares may be issued as restricted stock or RSUs. Stock option expense related to retirement eligibility vesting totaled $16 million in 2009 and $32 million in 2008, respectively. Stock options Our Long-Term Incentive Plans provide for the issuance of stock options at fair market value at the date of grant to officers and employees of BNY Mellon. Generally, each option granted is exercisable between one and ten years from the date of grant. The compensation cost that has been charged against income was $86 million, $108 million and $66 million for 2009, 2008 and 2007, respectively. The total income tax benefit recognized in the income statement was $35 million, $44 million and $27 million for 2009, 2008 and 2007, respectively. We used a lattice-based binomial method to calculate the fair value on the date of grant. The fair value of each option award is estimated on the date of grant using the weighted-average assumptions noted in the following table: Assumptions 2009 2008 2007 Dividend yield 3.1 % 2.2 % 2.4 % Expected volatility 34 27 23 Risk-free interest rate 2.22 2.91 4.46 Expected option lives (in years) 6 6 6 For 2009 and 2008, assumptions were determined as follows: Expected volatilities are based on implied volatilities from traded options on our stock, historical volatility of our stock, and other factors. We use historical data to estimate option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. A summary of the status of our options as of Dec. 31, 2009, 2008, and 2007, and changes during the years ended on those dates, is presented below: Stock option activity Sharessubject to option Weighted-average exercise price Weighted- averageremaining contractual term (in years) Balance at Dec. 31, 2006 60,738,954 $ 38.79 Mellon Financial conversion, July1 31,649,426 35.97 Granted 8,028,880 41.61 Exercised (14,479,352 ) 33.13 Canceled (1,828,205 ) 45.98 Balance at Dec. 31, 2007 84,109,703 $ 38.82 Granted 13,767,590 43.90 Exercised (5,414,860 ) 33.89 Canceled (2,936,268 ) 44.25 Balance at Dec. 31, 2008 89,526,165 39.72 Granted 15,574,075 18.82 Exercised (671,342 ) 24.51 Canceled (9,341,743 ) 40.14 Balance at Dec. 31, 2009

Employee benefit plans

Employee benefit plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee benefit plans	21. Employee benefit plans BNY Mellon has defined benefit and defined contribution retirement plans covering substantially all full-time and eligible part-time employees and other post-retirement plans providing healthcare benefits for certain retired employees. Pension and post-retirement healthcare plans The following tables report the combined data for our domestic and foreign defined benefit pension and post retirement healthcare plans. Pension Benefits Healthcare Benefits Domestic Foreign Domestic Foreign (dollar amounts in millions) 2009 2008 2009 2008 2009 2008 2009 2008 Weighted-average assumptions used to determine benefit obligations Discount rate 6.21 % 6.38 % 5.74 % 6.18 % 6.21 % 6.38 % 5.85 % 6.25 % Rate of compensation increase 3.50 3.50 4.64 4.11 3.50 - - - Change in benefit obligation (a) Benefit obligation at beginning of period $ (2,559 ) $ (2,349 ) $ (365 ) $ (497 ) $ (269 ) $ (250 ) $ (2 ) $ (8 ) Service cost (96 ) (84 ) (20 ) (27 ) (2 ) (3 ) - - Interest cost (160 ) (142 ) (24 ) (26 ) (16 ) (17 ) - - Employee contributions - - (1 ) (1 ) - - - - Amendments - 34 - - - (23 ) - - Actuarial gain (loss) (185 ) (161 ) (121 ) 56 21 9 - 4 (Acquisitions) divestitures - 4 - - - - - - Benefits paid 165 139 10 9 24 15 - - Foreign exchange adjustment N/A N/A (34 ) 121 N/A N/A (1 ) 2 Benefit obligation at end of period (2,835 ) (2,559 ) (555 ) (365 ) (242 ) (269 ) (3 ) (2 ) Change in fair value of plan assets Fair value at beginning of period 2,673 3,742 387 545 56 72 - - Actual return on plan assets 479 (952 ) 74 (71 ) 10 (16 ) - - Employer contributions 344 22 50 58 24 15 - - Employee contributions - - 1 1 - - - - Benefit payments (165 ) (139 ) (10 ) (9 ) (24 ) (15 ) - - Foreign exchange adjustment N/A N/A 38 (137 ) N/A N/A - - Fair value at end of period 3,331 2,673 540 387 66 56 - - Funded status at end of period $ 496 $ 114 $ (15 ) $ 22 $ (176 ) $ (213 ) $ (3 ) $ (2 ) Amounts recognized in accumulated other comprehensive (income) loss consist of

Company financial information

Company financial information
	12 Months Ended Dec. 31, 2009 USD / shares
Company financial information	22. Company financial information Our bank subsidiaries are subject to dividend limitations under the Federal Reserve Act, as well as national and state banking laws. Under these statutes, prior regulatory consent is required for dividends in any year that would exceed the banks net profits for such year combined with retained net profits for the prior two years. Additionally, such bank subsidiaries may not declare dividends in excess of net profits on hand, as defined, after deducting the amount by which the principal amount of all loans, on which interest is past due for a period of six months or more, exceeds the allowance for credit losses. The Bank of New York Mellon, which is a New York state chartered bank, is also prohibited from paying dividends in excess of net profits. As a result of charges related to the restructuring of the investment securities portfolio in the third quarter of 2009, The Bank of New York Mellon and BNY Mellon, N.A. currently require regulatory consent prior to paying a dividend. Despite this limitation, management estimates that liquidity at the Parent will continue to be sufficient to meet BNY Mellons ongoing quarterly dividends at current rates. Under the first and more significant of these limitations, our bank subsidiaries could declare dividends of approximately $136 million in 2010 plus net profits earned in the remainder of 2010. The payment of dividends also is limited by minimum capital requirements imposed on banks. As of Dec. 31, 2009, BNY Mellons bank subsidiaries exceeded these minimum requirements. The bank subsidiaries declared dividends of $659 million in 2009, $575 million in 2008 and $627 million in 2007. The Federal Reserve Board and the OCC have issued additional guidelines that require bank holding companies and national banks to continually evaluate the level of cash dividends in relation to their respective operating income, capital needs, asset quality and overall financial condition. The Federal Reserve Board has issued a policy statement with respect to the payment of cash dividends by bank holding companies. The policy statement provides that as a matter of prudent banking, a bank holding company should not maintain a rate of cash dividends unless its net income available to common shareholders has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the holding companys capital needs, asset quality and overall financial condition. The Federal Reserve Board can also prohibit a dividend if payment would constitute an unsafe or unsound banking practice. The Federal Reserve Act limits and requires collateral for extensions of credit by our insured subsidiary banks to BNY Mellon and certain of its non-bank affiliates. Also, there are restrictions on the amounts of investments by such banks in stock and other securities of BNY Mellon and such affiliates, and restrictions on the acceptance of their securities as collateral for loans by such banks. Extensions of credit by the banks to each of our affiliates are limited to 10% of such banks regulatory capital, and in the aggregate for BNY Mellon and all such a

Fair value of financial instrum

Fair value of financial instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair value of financial instruments	23. Fair value of financial instruments The carrying amounts of our financial instruments (i.e., monetary assets and liabilities) are determined under different accounting methodssee Note 1 to the Consolidated Financial Statements. The following disclosure discusses these instruments on a uniform fair value basis. However, active markets do not exist for a significant portion of these instruments, principally loans and commitments. As a result, fair value determinations require significant subjective judgments regarding future cash flows. Other judgments would result in different fair values. Among the assumptions we used are discount rates ranging principally from 0.05% to 6.27% at Dec. 31, 2009 and 0.08% to 3.25% at Dec. 31, 2008. The fair value information supplements the basic financial statements and other traditional financial data presented throughout this report. Note 24, Fair value measurement presents assets and liabilities measured at fair value by the three level valuation hierarchy established under ASC 820, as well as a roll forward schedule of fair value measurements using significant unobservable inputs. Note 25, Fair value option presents the instruments for which fair value accounting was elected and the corresponding income statement impact of those instruments. A summary of the practices used for determining fair value is as follows. Interest-bearing deposits with banks The fair value of interest-bearing deposits with banks is based on discounted cash flows. Securities, trading activities, and derivatives used for ALM The fair value of securities and trading assets and liabilities is based on quoted market prices, dealer quotes, or pricing models. Fair value amounts for derivative instruments, such as options, futures and forward rate contracts, commitments to purchase and sell foreign exchange, and foreign currency swaps, are similarly determined. The fair value of over-the-counter interest rate swaps is the discounted value of projected future cash flows, adjusted for other factors including, but not limited to and if applicable, optionality and implied volatilities, as well as counterparty credit. Loans and commitments For residential mortgage loans, fair value is estimated using discounted cash flow analyses, adjusting where appropriate for prepayment estimates, using interest rates currently being offered for loans with similar terms and maturities to borrowers. To determine the fair value of other types of loans, BNY Mellon uses discounted future cash flows using current market rates. The fair value of commitments to extend credit, standby letters of credit, and commercial letters of credit is based upon the cost to settle the commitment. Other financial assets Fair value is assumed to equal carrying value for these assets due to their short maturity. Deposits, borrowings and long-term debt The fair value of noninterest-bearing deposits and payables to customers and broker-dealers is assumed to be their carrying amount. The fair value of interest-bearing deposits, borrowings, and long-term debt is based upon current rates for instruments of the same remaining maturity or quoted market pri

Fair value measurement

Fair value measurement
	12 Months Ended Dec. 31, 2009 USD / shares
Fair value measurement	24. Fair value measurement We adopted guidance related to Fair Value Measurement, included in ASC 820, effective Jan. 1, 2008. ASC 820 defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date and establishes a framework for measuring fair value. It establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and expands the disclosures about instruments measured at fair value. ASC 820 requires consideration of a companys own creditworthiness when valuing liabilities. Effective Jan. 1, 2009, we adopted guidance related to Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, included in ASC 820. This ASC provides guidance on how to determine the fair value when the volume and level of activity for the asset or liability have significantly decreased and reemphasizes that the objective of a fair value measurement remains an exit price notion. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value in accordance with ASC 820. This guidance also requires additional disclosures for instruments within the scope of ASC 820 to include inputs and valuation techniques used, change in valuation techniques and related inputs, if any, and more disaggregated information relating to debt and equity securities. The amended standard provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The objective is to determine from weighted indicators of fair value a reasonable point within the range that is most representative of fair value under current market conditions. We also adopted guidance related to the fair value option for financial assets and financial liabilities included in ASC 825, effective Jan. 1, 2008. ASC 825 provides an option to elect fair value as an alternative measurement basis for selected financial assets, financial liabilities, unrecognized firm commitments and written loan commitments which are not subject to fair value under other accounting standards. Determination of fair value Following is a description of our valuation methodologies for assets and liabilities measured at fair value. We have established processes for determining fair valu

Fair value option

Fair value option
	12 Months Ended Dec. 31, 2009 USD / shares
Fair value option	25. Fair value option ASC 825 provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value. Unfunded loan commitments are valued using quotes from dealers in the loan markets, and are included in Level 3 of the ASC 820 hierarchy. At Dec. 31, 2008, $5.6 billion of other short-term U.S. government-backed commercial paper and $5.6 billion of borrowings from the Federal Reserve related to asset-backed commercial paper were held at fair value. There were no balances outstanding for these instruments at Dec. 31, 2009. Changes in fair value under the fair value option election The following table presents the changes in fair value included in foreign exchange and other trading activities in the consolidated income statement for the years ended Dec. 31, 2009 and 2008. Foreign exchange and other trading activities (in millions) YearendedDec.31, 2009 2008 Loans $ 3 $ 70 Other liabilities - (1 ) The fair market value of unfunded lending-related commitments for which the fair value option was elected was a liability of less than $1 million at Dec. 31, 2009 and $3 million at Dec. 31, 2008 and is included in other liabilities. The contractual amount of such commitments was $110 million at both Dec. 31, 2009 and Dec. 31, 2008.

Commitments and contingent liab

Commitments and contingent liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and contingent liabilities	26. Commitments and contingent liabilities In the normal course of business, various commitments and contingent liabilities are outstanding which are not reflected in the accompanying consolidated balance sheets. Our significant trading and off-balance sheet risks are securities, foreign currency and interest rate risk management products, commercial lending commitments, letters of credit and securities lending indemnifications. We assume these risks to reduce interest rate and foreign currency risks, to provide customers with the ability to meet credit and liquidity needs, to hedge foreign currency and interest rate risks, and to trade for our own account. These items involve, to varying degrees, credit, foreign exchange, and interest rate risk not recognized in the balance sheet. Our off-balance sheet risks are managed and monitored in manners similar to those used for on-balance sheet risks. Significant industry concentrations related to credit exposure at Dec. 31, 2009 are disclosed in the Financial institutions portfolio exposure table and the Commercial portfolio exposure table below. Financialinstitutions portfolio exposure (in billions) Dec. 31, 2009 Loans Unfunded commitments Total exposure Insurance $ 0.4 $ 6.0 $ 6.4 Banks 3.3 2.9 6.2 Securities industry 3.6 2.1 5.7 Asset managers 1.0 2.8 3.8 Government 0.1 2.9 3.0 Other 0.6 1.8 2.4 Total $ 9.0 $ 18.5 $ 27.5 Commercialportfolio exposure (in billions) Dec. 31, 2009 Loans Unfunded commitments Total exposure Services and other $ 1.0 $ 7.7 $ 8.7 Manufacturing 0.9 6.4 7.3 Energy and utilities 0.6 6.3 6.9 Media and telecom 0.5 2.1 2.6 Total $ 3.0 $ 22.5 $ 25.5 Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash. Securities lending transactions are discussed below. A summary of our off-balance sheet credit risks, net of participations, at Dec. 31, 2009 and 2008 follows: Off-balance sheet credit risks Dec. 31 (in millions) 2009 2008 Lending commitments (a) $ 32,454 $ 38,822 Standby letters of credit (b) 11,359 13,084 Commercial letters of credit 789 705 Securities lending indemnifications 247,560 325,975 Support agreements 86 244 (a) Net of participations totaling $541 million and $986 million at Dec. 31, 2009 and Dec. 31, 2008, respectively. (b) Net of participations totaling $2.2 billion at Dec. 31, 2009 and $2.7 billion at Dec. 31, 2008. Included in lending commitments are facilities which provide liquidity for variable rate tax exempt securities wrapped by monoline insurers. The credit approval for these facilities is based on an assessment of the underlying tax exempt issuer and considers factors other than the financial strength of the monoline insurer. The total potential loss on undrawn lending commitments, standby and commercial

Derivative instruments

Derivative instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative instruments	27. Derivative instruments We use derivatives to manage exposure to market risk, interest rate risk, credit risk and foreign currency risk, to generate profits from proprietary trading and to assist customers with their risk management objectives. The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements to minimize the credit risk of foreign currency and interest rate risk management products. We enter into offsetting positions to reduce exposure to foreign exchange and interest rate risk. Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. In 2009 and 2008, counterparty default losses on both trading and hedging derivatives were $4 million and $20 million, respectively. Hedging derivatives We utilize interest rate swap agreements to manage our exposure to interest rate fluctuations. For hedges of fixed-rate loans, asset-backed securities, deposits and long-term debt, the hedge documentation specifies the terms of the hedged items and the interest rate swaps and indicates that the derivative is hedging a fixed-rate item and is a fair value hedge, that the hedge exposure is to the changes in the fair value of the hedged item due to changes in benchmark interest rates, and that the strategy is to eliminate fair value variability by converting fixed-rate interest payments to LIBOR. The fixed rate loans hedged generally have an original maturity of 10 to 11 years and are not callable. These loans are hedged with pay fixed rate, receive variable rate swaps with similar notional amounts, maturities, and fixed rate coupons. The swaps are not callable. At Dec. 31, 2009, $1 million of loans were hedged with interest rate swaps, which had notional values of $1 million. The securities hedged have an original weighted average life of 10 years or less and are generally callable six months prior to maturity. These securities are hedged with pay fixed rate, receive variable rate swaps of the same maturity, repricing and fixed rate coupon. At Dec. 31, 2009, $211 million of securities were hedged with interest rate swaps that had notional values of $211 million. The fixed rate deposits hedged generally have original maturities of 5 to 11 years and are not callable. These deposits are hedged with receive fixed rate, pay variable rate swaps of similar maturity, repricing and fixed rate coupon. The swaps are not callable. At Dec.31, 2009, $25 million of deposits were hedged with interest rate swaps that had notional values of $25 million. The fixed rate long-term debt hedged generally have original maturities of 5 to 30 years. We issue both callable and non-callable debt. The non-callable debt is hedged with simple interest rate swaps similar to those described for deposits. Callable debt is hedged with callable swaps where the call dates of the swaps exactly match the call dates of the debt. At Dec. 31, 2009, $12.1 billion of debt wa

Business segments

Business segments
	12 Months Ended Dec. 31, 2009 USD / shares
Business segments	28. Business segments We have an internal information system that produces performance data for our seven business segments along product and service lines. Business segments accounting principles Our segment data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. These measurement principles are designed so that reported results of the segments will track their economic performance. Segment results are subject to reclassification whenever improvements are made in the measurement principles or when organizational changes are made. The accounting policies of the business segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements. In 2009, the financial results MUNB were moved from the Other segment into discontinued operations. Historical results for the Other segment have been restated to reflect these changes. The operations of acquired businesses are integrated with the existing business segments soon after most acquisitions are completed. As a result of the integration of staff support functions, management of customer relationships, operating processes and the financial impact of funding acquisitions, we cannot precisely determine the impact of acquisitions on income before taxes and therefore do not report it. We provide segment data for seven segments, with certain segments combined into sector groupings as shown below: Sector/Segment Primary types of revenue Asset and Wealth Management sector Asset Management segment Asset and wealth management fees from: Mutual funds Institutional clients Private clients Performance fees Distribution and servicing fees Wealth Management segment Wealth management fees from high-net-worth individuals, families, endowments and foundations and related entities. Institutional Services sector Asset Servicing segment Asset servicing fees, including: Institutional trust and custody fees Broker-dealer services Securities lending Foreign exchange Issuer Services segment Issuer services fees, including: Corporate trust Depositary receipts Employee investment plan services Shareowner services Clearing Services segment Clearing services fees, including: Broker-dealer services Registered investment advisor services Treasury Services segment Treasury services fees, including: Global payment services Working capital solutions Financing-related fees Other segment Leasing operations Corporate treasury activities Global markets and institutional banking services Business exits MI expenses Business segment information is reported on a continuing operations basis for all periods presented. See Note4 of the Notes to Consolidated Financial Statements for a discussion of discontinued operations. The results of our business segments are presented and analyzed on an internal management reporting basis: Revenue amounts reflect fee and other revenue generated by each segment. Fe

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	BK
Entity Registrant Name	Bank of New York Mellon CORP
Entity Central Index Key	0001390777
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,208,199,541
Entity Public Float			$35,108,737,706