The Bank of New York Mellon (TBNY) has been selected by the U.S. Department of the Treasury to help implement the government's Troubled Asset Relief Program under the Emergency Economic Stabilization Act.

TBNY’s responsibilities under the program will include providing the accounting of record for the portfolio, holding all cash and assets in the portfolio, providing for pricing and asset valuation services and assisting with other related services. TBNY will also serve as auction manager and conduct reverse auctions for the troubled assets. These services will be provided through the bank’s securities servicing businesses.

Interestingly, the bank has a long history of involvement with the U.S. government. TBNY founder Alexander Hamilton was the first Secretary of the Treasury in the U.S. Another company leader, Andrew Mellon, served as Secretary of the Treasury during three presidential administrations.

The company made the first-ever loan to the U.S. government and provided financing for the construction of the Erie Canal. TBNY currently has $23 trillion in assets under custody and administration, over $1.1 trillion in assets under management and services $12 trillion in outstanding debt.

In related news, other firms are vying for doing business with the government through TARP. For instance, LandAmerica Financial Group is competing for the opportunity to serve as a contractor with the  Treasury to provide whole loan asset management services for portfolios of troubled mortgage-related assets.

According to a company release, whole loan asset management is one of three categories of specialized service providers the Treasury Department is currently seeking to facilitate the $700 billion rescue plan recently approved by the U.S. Congress. Through this plan, the government will buy, manage and sell financially distressed properties.

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