BNY Mellon Judge Says FIRREA Suits Can Target Banks

Law360, New York (March 28, 2013, 8:57 PM EDT) -- Bank of New York Mellon may have to face a federal civil prosecution for allegedly defrauding its forex customers, a federal judge indicated Thursday, saying that a federal law meant to help prosecutors fight fraud against banks can also be used to bring fraud suits against banks themselves.

U.S. District Judge Lewis Kaplan said that he will likely rule that the Financial Institutions Reform Recovery and Enforcement Act can be used to sue Bank of New York Mellon for allegedly lying about the rates it offered...
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