During the mutual fund pricing crisis
last week, BNY Mellon
folk took turns sleeping on cots in the office, ordered Chinese, and eventually demanded that SunGard
folks trek over to join them.
Those tidbits and more are included in Kirsten Grind's latest Wall Street Journal article
following up on "NAVgate". In the article, the WSJ
attempts to piece things together "via interviews with more than a dozen executives and employees at mutual-fund firms, BNY Mellon and SunGard." (Most of those sources remained anonymous in the article.)
For fundsters still reeling from the shock of a week of NAV problems in the midst of some crazy market volatility, the piece is certainly worth a read. Yet big questions remain, most notably: what went wrong in the first place? As in previous coverage, this latest article refers to "a glitch affecting the system," i.e. affecting the InvestOne
platform from SunGard. The WSJ
reports that SunGard says it was "routine maintenance" of the platform that somehow corrupted both the system and its backup. Yet it sounds like SunGard is still trying to figure out the full details of what went wrong.
"Because of the unusual nature of the event, we are confident that this was an isolated incident," SunGard spokesman Michael Gormely tells the WSJ
. "A full, root-cause analysis is underway."
The upshot, the WSJ
reports, is that an unnamed source says that "BNY Mellon is reviewing its relationship with SunGard."
Neil Anderson, Managing Editor
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