Bank Of New York Mellon reached a settlement over fraudulent foreign exchange practices, agreeing to pay $714 million to resolve the cases.
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Bank Of New York Mellon reached several settlements with the U.S. Department of Justice, the New York Attorney General, the U.S. Department of Labor, the U.S. Securities and Exchange Commission and private customer class actions over fraudulent foreign exchange practices, agreeing to pay $714 million to resolve the cases.
The offices of New York Attorney General Eric Schneiderman and U.S.Attorney for the Southern District of New York Preet Bharara announced Thursday that the bank's payment would resolve "federal and state governments' cases, certain private cases that arose as a result of the same fraud, and investigations by the Securities and Exchange Commission and the U.S. Department of Labor."
BNY Mellon admitted that it had promised to give customers best price of the day on foreign exchange transactions, but instead gave them the worst price, according to a release from Schneiderman's office.
In addition to an admission of guilt and the monetary settlement, the bank said it would end the employment of executives involved in the fraud, and it would reform its practices "to improve and increase the information it provides to its customers," the release said.
"We are pleased to put these legacy FX matters behind us, which is in the best interest of our company and our constituents. We continue to improve our product offerings to ensure they are meeting client demand and positioning clients to succeed in an increasingly complex financial environment," BNY Mellon said in a Thursday afternoon release.
Among the settlements, the bank said the DOJ and New York Attorney General's office would each receive $167.5 million, and it had agreed to pay $335 million to settle the customer class action litigation.