US Government may sue BNY Mellon over FX trades

US federal Judge has ruled that the US Government can sue BNY Mellon over miss-pricing of FX transactions for some custody clients.

According to a Reuters report, while dismissing some of the fraud claims, U.S. District Judge Lewis Kaplan in Manhattan said..

the complaint “generally suffices” to let the government pursue its main claim, that the bank fraudulently misrepresented that it would provide “best execution” to various trading clients.

The case revolves around failure to provide ‘best execution’ , as the original transcript states:

“BNY Mellon consistently misrepresented to customers the rates it would give foreign currency transactions. Instead of providing the best interbank rates– as it promised – BNY Mellon gave the worst or nearly the worst rates of the trading day.” Full compliant transcript

We covered the original case here.

However, BNY has since done much to rectify this, by providing more transparent pricing, and introducing benchmark pricing for custody clients.

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