BNY Mellon Racks Up $6M Fine Over Breached Fed Loan Deal

Law360, New York (April 16, 2012, 6:02 PM EDT) -- The Federal Reserve fined Bank of New York Mellon Corp. $6 million Monday for posting faulty collateral that allowed the bank to borrow more than it was contractually obligated under a Fed program that helped money market mutual funds survive the 2008 financial crisis.

BNY Mellon borrowed from the Federal Reserve Bank of Boston in September 2008 under the Fed's Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, in which borrowing was supported by asset-backed commercial paper collateral that BNY Mellon pledged to the Boston...
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