MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, June 25, 2012 SEC Claims BNY Mellon "Gouged" Fido, Others on FOREX Trades A recent filing by the U.S. Justice Department alleges that financial firms paid millions to a unit of Bank of New York Mellon that defrauded clients on FOREX trades, reports the Boston Herald. Fidelity Investments, Manulife/John Hancock [profile], Raytheon, and Natixis [profile] are some of the companies that paid BNYM. The Justice Department's filing states that "[t]he Bank of New York Mellon (engaged) from at least 2000 through 2011 ... in a scheme to defraud custodial clients who used BNYM’s standing-instruction foreign-exchange service." The BNYM unit generated around $1.5 billion of FOREX fees from 200 clients between 2007 and 2010, regulators said. Fidelity was one of BNYM's top customers, spending over $55 million on trades in that time. A separate lawsuit was filed by Massachusetts officials claiming that around $29 million was spent on "questionable foreign-exchange fees." Kevin Heine, a BNY Mellon spokesperson, said these accusations stemmed from "a fundamental misunderstanding of the foreign-exchange market." Printed from: MFWire.com/story.asp?s=40422 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |