NY Files Lawsuit Against BNY Mellon
The city and state of New York and the U.S. Department of Justice have filed separate lawsuits against Bank of New York Mellon.
The city and state of New York and the U.S. Department of Justice have filed separate lawsuits against Bank of New York Mellon (BNY Mellon), Financial Times reports. The custody bank has been accused of defrauding pension funds, U.S. banks and millions of investors on forex transactions for a decade.
The federal suit alleges that the company duped U.S. banks, whose deposits are protected by taxpayers. The New York suit, filed by attorney-general Eric Schneiderman under the state’s Martin Act, seeks more than $2 billion in damages. It is the third lawsuit this year filed by a state legal officer against BNY. Florida and Virginia had in August sued it on similar grounds.
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