BANKING & FINANCE - Nov. 29, 1994

Mellon Bank to Take $130-Million Charge: The bank said it expects to take a one-time, after-tax charge in the fourth quarter due to interest rate actions it will take on behalf of securities-lending clients. It said the charge is expected to reduce 1994 earnings by about 88 cents a share, although it still expects to report a profit in the fourth quarter. The charge is not expected to have any effect on 1995 earnings. “We have initiated this action unilaterally for the benefit of our clients because we determined that the interest-rate sensitivity of certain client portfolios is not appropriate under current conditions,” said Frank V. Cahouet, chairman, president and chief executive of Mellon Bank Corp.