DOL Reaches $84 Million Settlement with BNY Mellon

The banked is guilty of deceiving retirement plans about foreign currency exchange rates.

The Bank of New York Mellon will repay $84 million to employee benefit plan customers who were victimized through the bank's "standing instruction" foreign exchange trading program, according to the DOL. The agreement was reached as part of a larger settlement that resolves private lawsuits against the bank.

"This case is a reminder that financial institutions charged with safeguarding retirement plan assets, sometimes put the institution's interests ahead of those of the investors they represent," said Secretary of Labor Thomas E. Perez. "Today's settlement offers more proof that when they do so, we at the department along with our colleagues at federal and state agencies will hold them accountable."

According to the agency's news release, the bank assigned nearly the worst prices at which currencies had traded in the market during all or part of a day. While this was happening, the bank was leading its clients to believe it was pricing their transactions in at a better price.

The department determined that the bank's failure to work prudently and solely in the interest of the plans, its dealings with plan assets to benefit itself, and its misrepresentations and failures to disclose its activities were all breaches of the bank's fiduciary duties to the plans and violated the Employee Retirement Income Security Act.

Download Center

  • EHS Buyer's Guide

    Download this buyer's guide to make more informed decisions as you're looking for an EHS management software system for your organization.

  • Online Safety Training Buyer's Guide

    Use this handy buyer's guide to learn the basics of selecting online safety training and how to use it at your workplace.

  • COVID Return-to-Work Checklist, Fall 2021

    Use this checklist as an aid to help your organization return to work during the COVID-19 pandemic in a safe and healthy manner.

  • SDS Buyer's Guide

    Learn to make informed decisions while searching for SDS Management Software.

  • Risk Matrix Guide

    Risk matrices come in many different shapes and sizes. Understanding the components of a risk matrix will allow you and your organization to manage risk effectively.

  • Industry Safe

Featured Whitepapers

OH&S Digital Edition

  • OHS Magazine Digital Edition - September 2021

    September 2021

    Featuring:

    • COMBUSTIBLE DUST
      Managing Combustible Dust and Risk Mitigation
    • PPE: CONSTRUCTION
      The Rising Popularity of Safety Helmets on the Jobsite
    • PPE: ELECTRICAL SAFETY
      Five Tips for a Successful Wear Trial
    • SAFETY & HEALTH
      Medical Surveillance Versus Medical Screening
    View This Issue