BNY Mellon paid $714 million and admitted giving foreign-exchange clients worst rates despite promising best execution

Summary

Bank of New York Mellon agreed in March 2015 to a $714 million global settlement resolving federal, New York State, private customer and regulatory claims concerning fraudulent foreign-exchange practices. Federal prosecutors alleged that BNY Mellon represented that customers would receive competitive or best rates and best execution while actually assigning prices at or near the worst interbank rates available during the trading day or session. BNY Mellon admitted and accepted responsibility for conduct alleged in the civil fraud lawsuits, agreed to terminate employment relationships with responsible executives and reform its practices. Sources: https://www.justice.gov/archive/usao/nys/pressreleases/March15/BNYMSettlement2.php ; https://www.justice.gov/usao-sdny/pr/us-attorney-s-office-southern-district-new-york-recovers-nearly-12-billion-forfeitures