BNY Mellon Shells Out $1.3M To Stave Off Bid-Rigging Probe

Law360, New York (December 22, 2011, 6:18 PM EST) -- The Bank of New York Mellon Corp. has agreed to pay $1.3 million to settle an investigation of bank employees who allegedly rigged bids for auction rate securities while acting as brokers for an insurance company, the New York attorney general announced Thursday.

BNY Mellon traders were accused of acting as brokers for employees of Florida-based Citizens Property Insurance Corp. to purchase large quantities of Citizens' own ARS by placing bids at Citizens auctions as though they were the bids of an independent, third-party buyer, attorney...
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