Securitizations and variable interest entities

BNY Mellon’s VIEs generally include retail, institutional and alternative investment funds offered to its retail and institutional customers in which it acts as the fund’s investment manager. BNY Mellon earns management fees on these funds as well as performance fees in certain funds. It may also provide start-up capital in its new funds. These VIEs are included in the scope of ASU 2010-10 and are reviewed for consolidation based on the guidance in ASC 810.

BNY Mellon has other VIEs, including securitization trusts, which are no longer considered qualifying special purpose entities, and CLOs, in which BNY Mellon serves as the investment manager. In addition, we provide trust and custody services for a fee to entities sponsored by other corporations in which we have no other interest. These VIEs are evaluated under the guidance included in ASU 2009-17. BNY Mellon has two securitizations and several CLOs, which are assessed for consolidation in accordance with ASU 2009-17.

The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2013 and Dec. 31, 2012, based on the assessments performed in accordance with ASC 810 and ASU 2009-17. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon.



Investments consolidated under ASC 810 and ASU 2009-17 at March 31, 2013
(in millions)	Investment Management funds		Securitizations		Total consolidated investments
Available-for-sale	$	—	$	500	$	500
Trading assets	10,400		—		10,400
Other assets	836		—		836
Total assets	$	11,236	$	500	$	11,736
Trading liabilities	9,908		—		9,908
Other liabilities	34		458		492
Total liabilities	$	9,942	$	458	$	10,400
Non-redeemable noncontrolling interests	$	806	$	—	$	806



Investments consolidated under ASC 810 and ASU 2009-17 at Dec. 31, 2012
(in millions)	Investment Management funds		Securitizations		Total consolidated investments
Available-for-sale	$	—	$	499	$	499
Trading assets	10,961		—		10,961
Other assets	520		—		520
Total assets	$	11,481	$	499	$	11,980
Trading liabilities	10,152		—		10,152
Other liabilities	29		461		490
Total liabilities	$	10,181	$	461	$	10,642
Non-redeemable noncontrolling interests	$	833	$	—	$	833

BNY Mellon is not contractually required to provide financial or any other support to any of our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY Mellon.

Non-consolidated VIEs

As of March 31, 2013 and Dec. 31, 2012, the following assets related to the VIEs, where BNY Mellon is not the primary beneficiary, are included in our consolidated financial statements.



Non-consolidated VIEs at March 31, 2013					Maximum loss exposure
(in millions)	Assets		Liabilities		Maximum loss exposure
Other	$	116	$	—	$	116



Non-consolidated VIEs at Dec. 31, 2012					Maximum loss exposure
(in millions)	Assets		Liabilities		Maximum loss exposure
Other	$	100	$	—	$	100

The maximum loss exposure indicated in the above tables relates solely to BNY Mellon’s seed capital or residual interests invested in the VIEs.