BNY Mellon may settle as part of the Federal Forex suit
- After months of controversy surrounding issues over foreign exchange transactions, BNY Mellon, the world's largest custody bank, is continuing to work toward a settlement as part of a lawsuit filed by federal prosecutors.
It's a story we've been following very closely last year. In fact it made it into our 2011 free forex industry report.
BNY Mellon was accused by many clients for overcharging them in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term transactions. BNY Mellon was accused of over charging its pension fund clients for FX transactions resulting in over $2 billion of ‘excess’ fees paid by the pension funds.
Now it seems the bank may settle. aiCIO reports:
After months of controversy surrounding issues over foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term transactions, BNY Mellon, the world's largest custody bank, is continuing to work toward a settlement as part of a lawsuit filed by federal prosecutors.
The suit against the bank alleges that it fraudulently overcharged clients for currency trades, with the lawsuit aiming to resolve the way BNY Mellon discloses the pricing of those transactions. Following a request for a one-week extension in the federal case that was granted on January 9, judge told the US attorney and the bank in a note obtained by aiCIO that "parties should not expect another extension from the court."
As part of the suit, Manhattan US Attorney Preet Bharara, who filed the suit in October, is seeking damages of hundreds of millions of dollars. If a settlement is reached, sources say the suit may eventually offer a roadmap to better resolve other lawsuits over currency transactions.
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It's a story we've been following very closely last year. In fact it made it into our 2011 free forex industry report.
BNY Mellon was accused by many clients for overcharging them in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term transactions. BNY Mellon was accused of over charging its pension fund clients for FX transactions resulting in over $2 billion of ‘excess’ fees paid by the pension funds.
Now it seems the bank may settle. aiCIO reports:
After months of controversy surrounding issues over foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term transactions, BNY Mellon, the world's largest custody bank, is continuing to work toward a settlement as part of a lawsuit filed by federal prosecutors.
The suit against the bank alleges that it fraudulently overcharged clients for currency trades, with the lawsuit aiming to resolve the way BNY Mellon discloses the pricing of those transactions. Following a request for a one-week extension in the federal case that was granted on January 9, judge told the US attorney and the bank in a note obtained by aiCIO that "parties should not expect another extension from the court."
As part of the suit, Manhattan US Attorney Preet Bharara, who filed the suit in October, is seeking damages of hundreds of millions of dollars. If a settlement is reached, sources say the suit may eventually offer a roadmap to better resolve other lawsuits over currency transactions.