BNY Mellon has adequate reserves to cover $210M Madoff settlement

Wed Nov 14, 2012 8:59am EST

Nov 14 (Reuters) - BNY Mellon Corp will not take a hit to fourth-quarter earnings after agreeing to a $210 million settlement related to Ponzi schemer Bernard Madoff, the custody bank's top financial officer said on Wednesday.

BNY Mellon Chief Financial Officer Todd Gibbons said there will be no financial implications because the company has adequate reserves to cover the settlement. Gibbons made his remarks at a Bank of America Merrill Lynch investment conference in New York.

BNY Mellon, the world's largest custody bank, agreed to pay $210 million to settle lawsuits for advising clients to invest with Madoff, the New York attorney general said on Tuesday.