Mr. Burke, president and CEO of Pinnacle, will continue to oversee the business of Pinnacle
Bank of New York Mellon has signed a definitive agreement to acquire Dallas-based Pinnacle Arbitrage Compliance, a privately held company that handles the various requirements associated with arbitrage regulation.
Reportedly, Pinnacle Arbitrage Compliance is dedicated solely to arbitrage compliance services for tax-exempt bonds. It has offices in Charlotte, Houston, Memphis, Phoenix and St. Louis. However, the transaction of the agreement is expected to close by the end of 2009. The terms of the agreement were not disclosed.
Additionally, Terence Burke, president and CEO of Pinnacle, will continue to oversee this business following the close of the transaction.
Scott Posner, CEO of BNY Mellon Corporate Trust, said: “The acquisition of Pinnacle will significantly enhance the comprehensive range of services and transparency tools we offer to the public finance market in the US. With this acquisition, we will incorporate arbitrage compliance services into our offerings, providing issuers with seamless rebate reporting and information to help maximize investment returns on bond funds. It will help further differentiate BNY Mellon from other corporate trust providers and extend our leadership position in the municipal finance sector.”
Mr. Burke, said: “By joining BNY Mellon Corporate Trust, we will be able to integrate the established compliance services provided by our highly experienced staff with a broad array of trust services already recognized in the marketplace for innovation. Their well-established distribution channels will help increase awareness of our different methodologies to approaching arbitrage regulations, which often reduce or eliminate a client’s arbitrage liability. We believe clients will benefit from a wider portfolio of easily accessible compliance services designed to simplify their entire arbitrage compliance process.”