Critics of the government's financial rescue plan are rightly concerned about taxpayers getting stuck with a $700 billion tab that benefits Wall Street bankers. In this paper, Ronald P. O'Hanley, Vice Chairman, The Bank of New York Mellon and Charles J. Jacklin, Ph.D., President and CEO, Mellon Capital Management Corporation, argue that a properly structured plan will strike the right balance between protecting taxpayers and encouraging participation by the financial industry. Ron and Charlie outline six principles that they believe can help the plan achieve its ultimate objective:

• The More Buyers, the Better
• The More Auctions, the Better
• Allow Smaller Bidders to Participate By Pooling Funds
• Disclose Total Treasury ‘Buy-in’ Prior to the Initial Auction
• Begin With the Larger, Widely-Held Issues
• Provide Transparency

For more information or a hard copy please contact, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular BNY Mellon Asset Management  product.