BNY Mellon Escapes Baker's $41.2M Bid Over ARS Fraud

Law360, New York (August 2, 2011, 10:14 PM EDT) -- BNY Mellon Capital Markets LLC on Monday won the dismissal of a $41.2 million arbitration dispute before the Financial Industry Regulatory Authority over allegedly false statements it made to Baker Hughes Inc. in pitching auction rate securities to the oil field services provider.

A three-member FINRA panel dismissed all claims against BNY and Pershing LLC, which the authority dropped from the case Feb. 22. Baker Hughes alleged that it was induced into purchasing complex and exotic auction rate securities that had failed in 2007 and 2008....
To view the full article, register now.