BNY Mellon Settles Outstanding FX-Related Actions
20 March 2015
Following the agreement between Bank of New York Mellon, the US Department of Justice and the New yorl Attorney General's office, New York-based BNY Mellon put out the following statement:
Fully Resolves 2011 DOJ and NYAG Lawsuits and Plaintiffs' Customer Class Actions; Settlements Covered by Existing Reserves
The Bank of New York Mellon Corporation (NYSE: BK) today announced that it has resolved substantially all of the foreign exchange (FX)-related actions currently pending against the company.
The company has reached a series of settlement agreements with the U.S. Department of Justice (DOJ), the New York Attorney General (NYAG), the U.S. Department of Labor, the U.S. Securities and Exchange Commission and private customer class actions. Collectively, these settlements fully resolve the lawsuits and enforcement matters pursued by these parties relating to certain of the standing instruction FX services that BNY Mellon provided to its custody clients prior to early 2012.
"We are pleased to put these legacy FX matters behind us, which is in the best interest of our company and our constituents. We continue to improve our product offerings to ensure they are meeting client demand and positioning clients to succeed in an increasingly complex financial environment," the company said.
The company has agreed to pay a total of $714 million to resolve these matters, subject to required approvals. The total settlement amount is fully covered by pre-existing legal reserves. The DOJ and NYAG will each receive $167.5 million. The Department of Labor will receive $14 million and the Securities and Exchange Commission, with which the company has reached a settlement in principle, will receive $30 million. The company has agreed to pay $335 million to settle the customer class action litigation.