8-KOther EventsExhibits & Filings

Bank of New York Mellon Corp 8-K Report, Corporate Update (Mar 19, 2015)

Filed March 19, 2015For Securities:BKBK-PKBNYBNY-PK

Summary

The Bank of New York Mellon Corporation (BNY Mellon) filed an 8-K on March 19, 2015, to report on the substantial resolution of foreign exchange (FX)-related legal actions. The company announced settlements totaling $714 million, which are fully covered by previously established reserves, indicating no immediate impact on its financial position from these specific resolutions. These settlements address a range of actions, including those initiated by the U.S. Department of Justice (DOJ) and the New York Attorney General (NYAG) concerning FX transactions related to custody services provided prior to early 2012. Additionally, resolutions were reached with plaintiffs in class action lawsuits and the U.S. Department of Labor (DOL). A settlement in principle was also agreed upon with the Securities and Exchange Commission (SEC) staff. The company also committed to providing enhanced FX pricing transparency for its custody clients as part of these resolutions.

Key Highlights

  • 1BNY Mellon has resolved substantially all pending foreign exchange (FX)-related legal actions.
  • 2Total settlement payments amount to $714 million.
  • 3The full amount of the settlements is covered by previously established reserves.
  • 4Settlements reached with the U.S. Department of Justice (DOJ) and New York Attorney General (NYAG) for $167.5 million each.
  • 5A settlement of $335 million was agreed upon for customer class action lawsuits, subject to court approval.
  • 6An additional $14 million settlement was reached with the U.S. Department of Labor (DOL).
  • 7A settlement in principle of $30 million was reached with the SEC staff, pending Commission approval.

Frequently Asked Questions

The total settlement payments amount to $714 million. However, BNY Mellon stated that these payments are fully covered by preexisting reserves, meaning there should be no additional financial burden beyond what was already provisioned for.

BNY Mellon has settled with the U.S. Department of Justice (DOJ), the New York Attorney General (NYAG), plaintiffs in customer class action lawsuits, the U.S. Department of Labor (DOL), and has reached a settlement in principle with the Securities and Exchange Commission (SEC) staff.

The disputes primarily relate to 'standing instruction' foreign exchange (FX) transactions in connection with certain custody services that BNY Mellon provided to its custody clients prior to early 2012.

Yes, as part of the settlements with the DOJ and NYAG, BNY Mellon has committed to providing functionality that allows customers to compare pricing for the Company’s 'defined spread' and 'session range' standing instruction FX products, enhancing transparency.