Bank of New York Mellon Corp has hired Goldman Sachs Group to explore a sale of its corporate trust arm. The corporate trust business processes principal and interest payments for companies, municipal governments and others that issue debt and represents investors in defaults, among other functions. BNY Mellon acquired the business from J.P. Morgan Chase in 2006 by essentially swapping its retail banking business for it. According to BNY Mellon, the corporate trust business has a staff of 3,500 employees across 20 countries who service $12 trillion in outstanding debt. Profits in the business have shriveled in recent years as revenue from structured debt instruments constructed before the financial crisis has fallen.
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