Wed, May 18, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bank of New York settles with $714m for overcharging clients, defrauding pensions on currency transactions

Monday, March 23, 2015

Komfie Manalo, Opalesque Asia:

The Bank of New York Mellon has agreed to pay $714m and fire certain employees to settle charges it overcharged clients and defrauded pension funds on some currency transactions, according to a report by The Journal.

Under the deal, Manhattan U.S. Attorney Preet Bharara and New York Attorney General Eric Schneiderman will drop their charges against the Bank of New York over allegations that the bank provided some of its clients worse prices on foreign currency trades. The settlement also drops the investigations by the Securities and Exchange Commission and the U.S. Department of Labor as well as related lawsuits filed by the bank’s investors.

The Bank of New York has also agreed to terminate "certain employees involved in the conduct," including the 60-year-old managing director and head of products management David Nichols who was named in the federal lawsuit.

Bank gave clients prices at or near worst interbank rates

Bharara commented after the settlement was announced, "The Bank, after three years of litigation, has finally admitted what was always clear from the evidence – contrary to its various representations, including a claim of 'best rates,’ the bank in fact gave clients prices at or near the worst interbank rates reported during the trading day."

In a separ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  3. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  4. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  5. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year