China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
Bank of NY Mellon profit falls on big charge (Reuters)
2008.10.167 minutes ago
NEW YORK (Reuters) - Bank of New York Mellon Corp's (BK.N) third-quarter profit fell 53 percent, hurt by a big charge to bail out funds affected by Lehman Brothers Holdings Inc's (LEHMQ.PK) bankruptcy, the bank said on Thursday. if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['0uWuANG_fzI-']='&U=13fc1m4jm%2fN%3d0uWuANG_fzI-%2fC%3d702372.13039967.13252237.6227634%2fD%3dLREC%2fB%3d5522102%2fV%3d1';
Net income fell to $303 million, or 26 cents per share, from $640 million, or 56 cents, a year earlier. Excluding several items, profit was about 72 cents per share, the bank said.
Analysts on average expected profit of 69 cents per share, according to Reuters Estimates. It wasn't immediately clear on what basis that amount was computed.
Chief Executive Robert Kelly said operating results exceeded expectations despite "unprecedented market volatility," citing strength in the bank's securities servicing and asset management businesses.
This week, Bank of New York Mellon won a mandate to provide custodial services for a $700 billion financial industry bailout signed into law this month. It also got a $3 billion capital injection as part of Treasury Secretary Henry Paulson's plan to restore confidence to the financial system.
Quarterly results included charges of 6 cents per share of merger costs, and 3 cents per share related to an Internal Revenue Service settlement over structured lease transactions.
They also included a charge of $433 million, or 37 cents per share, tied to the bailout of 10 funds that invested in Lehman securities. The bank said it would support four Dreyfus money market funds, five commingled funds used mainly to hold overnight cash, and an institutional fund.
Some other fund companies have also stepped in to make investors whole after Lehman's Sept 15 bankruptcy.
Another major custody bank, State Street Corp (STT.N), on Wednesday posted a 33 percent increase in quarterly profit.
Bank of New York Mellon's Tier-1 capital ratio, which measures its ability to cover losses, ended Sept 30 at 9.33 percent, above the 6 percent regulatory minimum.
Shares of Bank of New York Mellon closed Wednesday at $29.25 on the New York Stock Exchange. Through Wednesday, they have fallen 40 percent this year, compared with a 35 percent drop in the 24-member KBW Bank Index (.BKX)
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