BNY Mellon is now being sued for $2 billion by the New York Attorney General over forex transaction prices. Trust the magic of Wall Street however to make wonders as the stock price has only dropped 2.3% amid these news.
BNY Mellon is being sued by just about everybody who traded with it over allegations of overcharging its clients in forex transactions. Below is the recap of just some of the publicly announced suits:
- 2009 – the California attorney general’s office has charged the State Street Corporation (company that owns Currenex) with fraud, accusing the company of cheating the state’s two largest pension funds of at least $56.6 million by overcharging them for a series of foreign exchange trades.
- Feb 2011 – the Arkansas Teacher Retirement System sued State Street Corp.over claims that the Boston-based bank engaged in unfair and deceptive practices regarding foreign exchange transactions.
- March 2011 – class action suit filed against Bank of New York Mellon (BNY Mellon) by Southeastern Pennsylvania Transportation Authority (SEPTA).
- October 2010 – The Washington State Investment Board reached an $11.7 million agreement with State Street, without filing a lawsuit. Other states such as California, Virginia and Florida are taking legal action against custodial banks on behalf of their retirement funds.
- May 2011 – SEC investigates State Street FX pricing.
- June 2011 – Massachusetts calculates that it was overcharged over $30 million by BNY Mellon.
Bankers are thieves, plain and simple.