Bank of New York Mellon expects to resolve “substantially all” of the foreign exchange-related lawsuits against it, the custody bank said in announcing adjusted fourth-quarter earnings.
BNY Mellon is accused in a federal class-action lawsuit of charging improper prices for standing instruction foreign-exchange transactions, for which the timing and pricing of trades is left to the bank. The lawsuit was filed in U.S. District Court in New York by U.S. Attorney Preet Bharara. Other federal lawsuits against BNY Mellon were filed by the Department of Justice and the Ohio attorney general’s office on behalf of the $14.3 billion Ohio Police & Fire Pension Fund and the $12.5 billion Ohio School Employees Retirement System, both of Columbus.
Fourth-quarter net income at BNY Mellon was adjusted to $209 million from $855 million reported Jan. 23, mostly to account for $598 million in legal expenses related to the FX lawsuits and other legal actions against the firm, the company said in an 8-K filing Tuesday with the Securities and Exchange Commission.
BNY Mellon’s adjusted fourth-quarter net income compared to the $1.07 billion in the third quarter and $513 million in the fourth quarter 2013.
BNY Mellon would not comment further, and officials at the U.S. Attorney’s Office in New York would not comment. Spokesmen for the Justice Department and Michael DeWine, Ohio attorney general, could not be immediately reached for comment.