BNY Mellon settles overcharging case

New York

BANK of New York Mellon Corp (BNY Mellon) has agreed to pay US$714 million to settle allegations that the bank overcharged pension funds and other clients for foreign exchange services, US federal and state authorities said on Thursday.

Federal and New York state authorities, among others, had accused BNY Mellon of telling clients it would provide the best possible execution for their currency transactions, but instead giving them prices at or near the worst interbank rates during the trading day. In the meantime, authorities said, BNY Mellon obtained better spot prices for itself and profited on the spread.