With the U.S. economy slowing down because of rate hikes, the financial sector worried about a looming recession in 2023. A recession will almost certainly increase credit losses, which will be a negative for the banks . In this sort of environment, banks that focus on fee income will have an easier time. Bank of New York Mellon (NYSE: BK) has an unusual business model that might make sense in this environment.
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Bank of New York Mellon was established by Alexander Hamilton in 1784 and was the first stock traded on the New York Stock Exchange . The company is known as a trust bank, which means it acts as a custodian for corporations and asset managers. Bank of New York Mellon has three business units: Securities Services, Market and Wealth Services, and Investment and Wealth Management.
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Here Is Why Bank of New York Mellon Is A Safer Bet In a Recession