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." 

Edited by: Neil Anderson, Managing Editor


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