Bank of New York Mellon in FOREX Settlement

Bank of New York (Mellon) management agreed to a number of settlements over deceptive FOREX practices and agreed to pay $714 million for resolution of these cases.

Offices of concerned New York Attorney Generals gave statements said bank will settle with the US Departments of Justice and Labor; New York Attorney General; US Securities and Exchange Commission as well as private class lawsuits.

BNY Mellon acknowledged it promised to provide clients with a very fair interbank price of the day on FOREX transactions. On the contrary, they were given the worst price, the attorney general’s office said.

BNY Mellon owned up the fraud and announced it would fire bank executives who were part of these transgressions. The bank also vowed to improve its practices and be transparent with information for clients.

For these settlements, bank officials stated the justice department and New York Attorney General's office would each be given $167.5 million. On the other hand, the amount of $335 million will go to customer class action litigation.

In addition, government prosecutors said market investors rely on banking institutions to be truthful as to how their investments are being handled. Yet, the bank misinformed customers and made trades to their detriment.

The settlement simply proves that banks and individuals liable for deceiving investors will have to accept severe consequences for their unlawful activity.