BNY Mellon Faces $850M Charge Over Tax Scheme

Law360, New York (February 11, 2013, 10:43 PM EST) -- A U.S. tax judge ruled Monday that a transaction Bank of New York Mellon Corp. used to obtain a $1.5 billion loan was a scheme designed for tax purposes, putting the bank on the hook for an $850 million after-tax charge for tax benefits it had sought.

U.S. Tax Court Judge Diane L. Kroupa took issue with a "structured trust advantaged repackaged securities," or STARS, transaction that BNY Mellon used to receive lower-cost financing from a U.K. bank and to move certain income-producing assets to a...
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