Bank of New York Mellon Corp. became the sixth of the 10 big financial services companies to buy back warrants issued to the federal government as part of its capital infusion to the industry.
The custodial bank, which holds investments for others, announced Wednesday that it paid $136 million for the warrants to buy roughly 14.5 million shares.
In June, Bank of New York repaid the $3 billion it received as 10 companies were allowed then to pay back $68 billion of investments and negotiate the value of related warrants.
Robert Kelly, the company's chairman and chief executive, said the government generated a 12% annual return from its investment.
