Mellon Bank Corp. says its will move swiftly to quell concerns on Capital Hill about the bank's purchase of mutual fund giant Dreyfus Corp.
The Pittsburgh bank has little choice: Its plans to purchase the nation's sixth-largest mutual fund company come at a time when legislators and regulators have never been more concerned about bank's involvement with uninsured investment products. Mellon indicates it will work up a post-merger policy statement "designed to implement the spirit of recent congressional proposals."
Customer Protection Is Stressed
The congressional proposals are pending bills that legislators believe would put teeth into recent regulatory guidelines
The guidelines put greatest emphasis on protecting customers by making sure they know mutual funds do not carry FDIC insurance, fluctuate in value, and pose potential for losses.
Mellon is keeping mum on what the policy will be.