New York and federal authorities have reached a $714 million settlement with Bank of New York Mellon in lawsuits alleging it fraudulently represented rates for currency transactions on behalf of clients for a decade.
The civil suits filed in 2011 said BNY Mellon misrepresented rates it would give currency exchanges, providing clients nearly the worst rates of the trading day while promising the best, obtaining the best rates for itself, and keeping the difference.
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The investigation began with a 2009 whistle-blower complaint. Clients included public pension funds.
New York Attorney General Eric Schneiderman and U.S. Attorney Preet Bharara (buh-RAH'-ruh) say the settlement also resolves some related private cases and investigations by the Securities and Exchange Commission and U.S. Labor Department.
The bank didn't initially reply to requests for comment.