Search

The article reports that attorneys general in Florida and Virginia have separately sued banking company Bank of New York Mellon Corp. for alleged improper pricing of currency transactions Mellon processed for pension funds in those states. A 2008 internal document at the bank said volatility in currency prices helped Mellon achieve greater profits when trading on behalf of institutional customers.

The article reports that some banks are believed to have charged large U.S. investment companies excessive amounts for foreign-currency trades. Bank of New York Mellon Corp. is among banks suspected by investment firm BlackRock Inc. of overcharging on trades. Attorneys general in Florida, Virginia, and California have sued custody banks for taking improper profits on currency trades for their clients.

The article discusses litigation filed against several custody banks in the U.S. alleging they overcharged state pension funds on foreign-currency trades. Special attention is paid to charges by Delaware shell company FX Analytics that Bank of New York Mellon Corp. used false trades to cheat Virginia state pension funds out of $20 million or more.

The article reports that attorneys general in California and Virginia are receiving help from whistle-blowers in an investigation into whether public pension funds were overcharged by banks for foreign-exchange transactions. Assisting the whistle-blowers is investor Harry Markowitz, who was early to detect a Ponzi scheme perpetrated by convicted swindler Bernard Madoff.

The article reports that Virginia filed a lawsuit against Bank of New York Mellon Corp. for poor prices when its exchanged currencies.