BNY Mellon sued by U.S. and New York prosecutors

Lawsuits accuse bank of overcharging customers on foreign exchange transactions

Yesterday, the U.S. attorney in Manhattan and the New York attorney general filed separate lawsuits against Bank of New York Mellon Corp., alleging the bank cheated customers on foreign exchange transactions over the past decade. 

New York AG Eric Schneiderman and Manhattan U.S. attorney Preet Bharara say BNY Mellon, the largest custody bank in the U.S., overcharged customers for processing foreign currency transactions and defrauded customers in the foreign exchange markets.

Schneiderman is seeking more than $2 billion on behalf of state pension funds, and Bharara is seeking hundreds of millions of dollars in civil penalties on behalf of the U.S.

In August, Florida and Virginia also sued BNY Mellon for improperly charging pension funds.

BNY Mellon has vowed to fight overcharging claims.

Ashley Post

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