Securitizations and variable interest entities

BNY Mellon’s VIEs generally include certain 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, which defers the application of ASU 2009-17 for certain investment funds, and are reviewed for consolidation based on the guidance in ASC 810, Consolidation.

BNY Mellon has other VIEs, including securitization trusts 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 were assessed and consolidated 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 Sept. 30, 2014 and Dec. 31, 2013, 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 Sept. 30, 2014
(in millions)	Investment Management funds		Securitizations		Total consolidated investments
Available-for-sale	$	—	$	415	$	415
Trading assets	8,823		—		8,823
Other assets	739		—		739
Total assets	$	9,562	$	415	$	9,977
Trading liabilities	$	8,130	$	—	$	8,130
Other liabilities	10		354		364
Total liabilities	$	8,140	$	354	$	8,494
Nonredeemable noncontrolling interests	$	901	$	—	$	901



Investments consolidated under ASC 810 and ASU 2009-17 at Dec. 31, 2013
(in millions)	Investment Management funds		Securitizations		Total consolidated investments
Available-for-sale	$	—	$	487	$	487
Trading assets	10,397		—		10,397
Other assets	875		—		875
Total assets	$	11,272	$	487	$	11,759
Trading liabilities	$	10,085	$	—	$	10,085
Other liabilities	46		438		484
Total liabilities	$	10,131	$	438	$	10,569
Nonredeemable noncontrolling interests	$	783	$	—	$	783

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 Sept. 30, 2014 and Dec. 31, 2013, 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 Sept. 30, 2014					Maximum loss exposure
(in millions)	Assets		Liabilities		Maximum loss exposure
Other	$	183	$	—	$	183



Non-consolidated VIEs at Dec. 31, 2013					Maximum loss exposure
(in millions)	Assets		Liabilities		Maximum loss exposure
Other	$	134	$	—	$	134

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