Following an already busy week in the institutional FX realm, the Bank of New York (NYES:BK) Mellon Corp revealed that it is slated to pay $180 million in settlements of a FX-putative class action lawsuit, according to a recent Reuters report.
Earlier this week, six of the largest banks in the world were fined roughly $5.6 billion in settlements, leading to four of the major banks pleading guilty for attempting to manipulate global FX rates at the expense of their clients and all other market participants. In addition, the US Department of Justice doled out $3 billion in fines.
According to regulatory filing yesterday, BNY Mellon said the settlement would reconcile the bank from all FX-related securities law claims brought against it or its affiliates in the suit. Like many of its counterparts, these claims alleged FX manipulation charges.
The FBS CopyTrade Team Introduces New ‘Risk-free Investments’ FeatureGo to article >>
More specifically, both US Federal and New York state authorities, along with a number of others, had accused BNY Mellon of providing clients prices for their respective currency transactions at or near the worst interbank rates during a given trading day. Alternatively, BNY Mellon would routinely inform clients that it was instead providing the best possible execution.
BNY Mellon also agreed in March to pay $714 million in a settlement, following allegations that it also overcharged pension funds and other clients for FX-related services.
Despite a number of fines over the past two months that have nearly topped $900 million collectively, shares of the bank (NYSE:BK) have managed to edge higher over this period, achieving a 52-week high earlier this week at $43.84. Prior to the US opening, the stock is sitting at $43.64 in spite of the latest fine, which has done little to erode investor confidence.