The Bank of New York Mellon has been chosen by the Treasury Department as the custodian to implement the Troubled Asset Relief Program (TARP)–or the $700 billion bailout fund. Treasury announced October 14 that New York-based Bank of New York will help Treasury with “custodial, accounting, auction management and other infrastructure services needed to administer the complex portfolio of troubled assets the Department will purchase.”

Treasury says it hired the Bank of New York Mellon “to provide the accounting of record for the portfolio, hold all cash and assets in the portfolio, provide for pricing and asset valuation services and assist with other related services.” Treasury says Bank of New York will also track unique asset attributes as required by the Emergency Economic Stabilization Act, “such as linkages to executive compensation limits and to warrants received from selling institutions. In addition, the financial agent will support the acquisition of securitized assets by serving as auction manager and conducting reverse auctions for the trouble assets. Bank of New York Mellon will provide all related infrastructure needs.”

Treasury says it hired Bank of New York Mellon using its Financial Agent selection authorities. The Department received 70 submissions, of which 10 met the eligibility requirements and minimum qualifications. The contract will last three years, according to Treasury.