Seven months after NAVgate, BNY Mellon
has agreed to a $3-million state settlement.
| William F. Galvin|
The Boston Globe
, and the Reuters
all report that today Bill Galvin
, longtime Secretary of the Commonwealth of Massachusetts, unveiled a settlement with the custodial giant over the mutual fund pricing scandal from last summer. The settlement states that 66 institutional clients and about 1,200 mutual funds were affected by the pricing problems.
Galvin attacks BNY Mellon for lacking a backup plan for when a SunGard InvestOne
software upgrade went wrong.
"Bank of New York Mellon, one of the largest financial institutions in the world, failed to have a plan in place to address immediately its sub-contractor's inability to calculate net asset values for the funds," Galvin states.
The pricing pain began
on August 24, 2015, and by September 4 Galvin had opened an investigation
into the scandal
Neil Anderson, Managing Editor
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