Wealth management

Bank of New York Mellon, Northern Trust and State Street have all pledged to cut costs as challenging global equity markets, low interest rates, a strengthening U.S dollar and heightened regulatory expectations continue to crimp revenue and profit margins.

American International Group announced $3.6 billion in new costs to fill a reserve shortfall and said it will hold an initial public offering for its mortgage insurer and sell an adviser network as Chief Executive Peter Hancock seeks to boost returns and protect his job after criticism from activist investor Carl Icahn.

Bank of New York Mellon has become a big believer in reverse mortgages, particularly home equity conversion mortgages insured by the Federal Housing Administration.

Anthony Weagley is combining a new emphasis on wealth management with Malvern's reputation as a small-town community bank to bolster the Pennsylvania company's financial performance.

CEO James Gorman says the firm can achieve higher profit margins for the wealth management unit through greater expense discipline, additional growth of its lending business and unspecified digital opportunities.

Unfavorable equity markets and lower transaction volumes led Northern Trust Corp. to report a 2% drop in fourth-quarter profit.

In 34 years at American Express Co., Ken Chenault has helped reinvent the credit-card company more than once. But his latest push into new frontiers is faltering behind the scenes.

The Government Accountability Office will examine the role of the Centers for Medicare and Medicaid Services in helping state health insurance exchanges transition from state-based information systems to the federal program.

The Minneapolis bank has promoted longtime executive Andrew Cecere to president, a title held by Chairman and CEO Richard Davis for more than a decade.

The opportunity for banks from the dramatic growth in deposits goes beyond just funding loans.