8-KOther EventsExhibits & Filings

Bank of New York Mellon Corp 8-K Report, Corporate Update (Feb 9, 2016)

Filed February 9, 2016For Securities:BKBK-PKBNYBNY-PK

Summary

This Current Report on Form 8-K filed by The Bank of New York Mellon Corporation (BK) on February 8, 2016, primarily serves to re-file its Fourth Quarter 2015 Earnings Release (Exhibit 99.1) which was originally furnished on January 21, 2016. The filing also provides crucial updates on ongoing legal proceedings. Investors should pay close attention to the details of these litigations, as they represent potential financial and reputational risks for the company. The company is facing significant legal challenges in Brazil related to its subsidiary DTVM acting as administrator for investment funds associated with the Brazilian postal workers' pension fund, Postalis. Multiple lawsuits allege failures in due diligence, oversight of fund managers, and improper contributions to investment losses. Additionally, BNY Mellon is facing class action lawsuits in the U.S. concerning its foreign exchange pricing practices in its role as a depositary bank for foreign companies.

Key Highlights

  • 1BNY Mellon re-filed its Q4 2015 Earnings Release (Exhibit 99.1), originally issued January 21, 2016.
  • 2The company is involved in multiple lawsuits in Brazil concerning its subsidiary DTVM's role as administrator for Postalis pension funds.
  • 3Allegations in the Brazilian litigation include failure to perform duties, improper due diligence, and contributing to investment losses.
  • 4BNY Mellon is facing new putative class action lawsuits in the U.S. filed in late December 2015 and January 2016.
  • 5The U.S. lawsuits relate to BNY Mellon's foreign exchange pricing for dividend and distribution conversions in its depositary receipt services.
  • 6Key claims in the U.S. litigation include breach of contract and violations of ERISA.
  • 7The legal proceedings are in their early stages, with outcomes and potential financial impact yet to be determined.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally include BNY Mellon's Fourth Quarter 2015 Earnings Release as an exhibit and to provide updates on significant ongoing legal proceedings.

BNY Mellon is facing two main sets of legal issues: 1) Multiple lawsuits in Brazil concerning its subsidiary's alleged failures in administering pension funds for Postalis, and 2) Class action lawsuits in the U.S. related to its foreign exchange pricing practices for depositary receipts.

The potential financial impact of these lawsuits is currently unknown as they are in their early stages. However, significant adverse judgments could lead to substantial financial liabilities for BNY Mellon.

This specific 8-K filing does not provide new financial performance data. It re-files the earnings release from January 21, 2016, which contained the Q4 2015 financial results. For detailed financial performance, investors should refer to that original earnings release.