Two Ohio Pension Funds on Receiving End of BNY Mellon Settlement

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The Bank of New York Mellon on Thursday reached a $714 million settlement with investors who claimed the bank defrauded them by intentionally assigning them high rates on Forex transactions.

[Read the official court document here.]

A handful of pension funds will be receiving a chunk of that settlement, including two of Ohio’s largest.

From the Columbus Dispatch:

Two Ohio pension funds — the Ohio Police & Fire Pension Fund and the School Employees Retirement System of Ohio — were among the four pension funds that led the class litigation, said the office of Ohio Attorney General Mike DeWine.

Together, the two pensions stand to recover about $5 million as a result of the resolution.

The bank was accused of executing currency trades at a rate that was less favorable than the “ best possible” rate they promised their clients, enabling the bank to make extra cash.

Bank of New York Mellon — one of the world’s largest so-called custodial banks, which holds and safeguards financial assets for other banks and investors — said in a statement that it was pleased to put the matter behind it.

The two other pension funds who were lead plaintiffs: the Stationary Engineers Local 39 Trust Funds and the Southeastern Pennsylvania Transportation Authority (SEPTA).

 

Photo by Sarath Kuchi via Flickr CC License

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