Bank of New York Will Oversee Bailout Fund

Financial Crisis
Financial Crisis

The Bank of New York is expected to be named the master custodian firm overseeing the Treasury Department’s bailout fund, the agency announced Tuesday.

Two other banks, Wells Fargo and State Street , had also been in the running.

All three firms declined to comment.

The master custodian bank will hold and track the distressed assets that the government will buy as well as run and report on the auctions used to buy the assets.

Government officials called it the “prime contractor of the purchase program.”

The agency received 70 applications, of which 10 met the requirements and minimum qualifications. The contract will last three years.