BNY Mellon Hit With New Foreign Exchange Lawsuit

Bank of New York Mellon breached its duties under the Employee Retirement Income Security Act (ERISA) by charging too-high rates and markups on foreign exchange transactions involving sponsored American depositary receipts (ADRs), pension plan participants alleged Jan. 5 (Carver v. Bank of N.Y. Mellon, S.D.N.Y., 1:15-cv-10180, complaint filed 12/31/15).

The bank has spent the past five years defending lawsuits and investigations concerning its standing order foreign exchange transactions. In general, the bank has been accused of setting fictitious rates for currency exchanges that allowed it to secretly pocket millions of dollars at the expense of its clients. ...