BNY Mellon Must Face $22M Salvation Army Suit, Judge Says

Law360, New York (January 28, 2013, 3:19 PM EST) -- The Bank of New York Mellon Corp. must face allegations that it cost The Salvation Army $22 million by stuffing its ostensibly conservative securities lending program with subprime mortgage-backed securities and other risky investments, a New York state judge ruled Friday.

Judge Barbara R. Kapnick said that most of the Salvation Army's allegations must survive for now because the bank was relying on factual arguments that don't come into play yet because the Salvation Army "need only state a claim at this juncture, not prove it."...
To view the full article, register now.