Bank of New York Mellon has agreed to pay $114m to settle claims over its role as trustee for debt issued by Medical Capital Holdings Inc, a medical receivables financing company that collapsed in 2009 amid fraud allegations.
Reuters reports that investors accused Bank of New York Mellon, the world's largest custodial bank, of failing to properly review Medical Capital's dealings before letting the company use investors' money, breaching its fiduciary and contractual obligations to those investors.
The news agency also reports that commodities trader has registered as a swap dealer with the U.S. derivatives regulator, a sign that new financial-stability rules have started impacting firms well outside Wall Street.
Cargill is the first major non-financial company to acquire the status of 'swaps dealer' on the registry of the National Futures Association (NFA), which lists the biggest players in the $630 trillion market.
And Bloomberg reports Goldman Sachs doesn’t have 'direct access' to information about the beneficial owner behind transactions in an account in which the U.S. Securities and Exchange Commission said suspicious trading of H.J. Heinz Co occurred, the bank told the regulator.
The SEC on February 15th sued 'unknown' traders over suspicious trading of Heinz’s options through what the regulator said was an account at Goldman Sachs. The SEC will ask a federal judge in Manhattan at a hearing set for today to freeze the account’s assets until the case is resolved. The New York-based bank told the agency the account holder is a Zurich private-wealth client, the SEC said in a court filing.
The Financial Times reports that Reyl & Co, the Swiss private bank, has opened an office in London with a view to setting up a corporate advisory business, highlighting how a clutch of smaller banks are pushing into traditional investment banking activities.
The Geneva-headquartered bank has initially hired three bankers in London but is targeting to turn the London office into 'the second centre of gravity' for the group in the next five to 10 years, its chief executive François Reyl told the newspaper.
Swiss bank Reyl & Co opens London office (subscriber content)