The International Union of Operating Engineers, Stationary Engineers Local 39, has filed a lawsuit against BNY Mellon over currency trades, The Wall Street Journal reports. The bank has been accused of not following federal pension-fund guidelines while trading currencies for the union.
The bank’s procedures for the Employee Retirement Association Income Security Act pension plans require the bank to offer FX rates that are not less favorable than what it offered to other parties in an arm’s length transaction. The union, which represents some 17,000 members who maintain and operate government, industrial and petrochemical facilities, alleges it did not receive favorable rates as BNY Mellon profited by improperly pricing currency transactions.
Click here for the story from The Wall Street Journal.