BNY Mellon Finagled Forex Rates, Suit Says

Law360, New York (March 9, 2011, 3:54 PM EST) -- A Pennsylvania public transportation authority launched a class action Monday accusing Bank of New York Mellon Corp. of manipulating foreign currency exchange transactions in order to maximize its profits at the expense of its clients.

Since at least 2000, BNY Mellon has charged its clients inflated foreign exchange rates when buying foreign currency and deflated foreign exchange rates when selling foreign currency, the Southeastern Pennsylvania Transportation Authority alleges in a complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.

The rate BNY...
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