The Treasury Department said Tuesday that it has hired Bank of New York Mellon Corp. as the prime custodian asset manager for the implementation of the $700 billion facility to purchase troubled assets from banks.

Bank of New York Mellon will assist the Treasury in custodial, accounting, auction management, and other infrastructure services to administer the purchase of the illiquid assets. The New York company will provide the accounting of record for the troubled asset portfolio, hold all its cash and assets, decide the pricing and asset value, and assist with other services.

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