As reported by Traders last week, Bank of New York Mellon continues to struggle with an accounting system glitch that handles closing price reporting for their products. The failure occurred last Monday and more than 100 bank staffers worked over the weekend to solve the tech glitch.
In a conference call last night, CEO Gerald Hassell said that the fix – which has had an impact on the calculation of billions of dollars in assets – has taken longer than expected to resolve.
[Check out the top IT glitches on Wall Street with this Traders gallery.]
“We expect to complete Friday’s NAVs for all but one of the affected fund clients by tomorrow morning … Our goal is to provide fund clients with system-generated NAVs for Monday by tomorrow night,” Hassell said on Sunday night, according to Reuters.
As Traders reported, the technical issue is widespread, impacting a large number of providers and hundreds of mutual funds and ETFs. Prudential, for instance, says 40 of its more than 60 funds have been affected. BNY Mellon says the system came back online last Tuesday, and is catching up with trading activity.
BNY and SunGard, which supports the system experiencing the trouble, had planned to be ready for the opening bell.
One analyst put this technology meltdown in perspective, saying that this isnt life threatening but its a black eye, CLSA banking analyst Mike Mayo told the Wall Street Journal. The company is a plumber to the banking industry.
