BNY Mellon Not Liable for Pension Investment Mishap

Bank of New York Mellon escaped liability for $1.7 million in losses to WellSpan Health System’s pension plan caused when the bank erroneously transferred $15 million in pension assets to cash equivalents (Harley v. Bank of N.Y. Mellon, S.D.N.Y., No. 1:15-cv-08898-GHW, 1/9/17).

A federal judge attributed the transfer to a miscommunication between the WellSpan plan and plan trustee BNY, noting that the customer service BNY provided to WellSpan declined markedly after a period of personnel turnover at the bank. Even ...