BNY Mellon is being sued left and right (and this was expected). Now it’s Ohio’s turn:
Ohio Attorney General Mike DeWine on Monday filed a lawsuit against the Bank of New York Mellon for allegedly making improper foreign exchange trades on behalf of the state’s two retirement funds.
The suit, filed in Franklin County Common Pleas Court, accuses the bank of breach of contract, fraud, violating the Ohio Deceptive Trade Practices Act and “unjust enrichment” on behalf of the Ohio Police and Fire Pension Fund and the School Employees Retirement System.
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The police and fire fund and SERS, both of which serve thousands of the state’s first responders, school employees and families, had entered into individual custodial agreements with BNY Mellon to perform foreign currency exchanges, or FX trades, on their behalf.
The two funds require these exchange services from their custodian to convert U.S. dollars into the applicable foreign currency when purchasing stock sold on a non-U.S. exchange.