As the New York Times reported earlier this month,
The Bank of New York Mellon will pay $714 million to settle accusations that it cheated government pension funds and other investors for more than a decade, federal and state authorities announced on Thursday. It is part of a deal requiring the bank to dismiss some employees and make fuller public disclosures of its foreign exchange operation.
Lawsuits were filed in 2011 by both the New York Attorney General and the U.S. Attorney for the Southern District of New York.
More details about who was harmed and how:
The authorities accused the bank of assuring clients that they would receive the best possible rate when executing a currency trade. In reality, the authorities said, the bank did just the opposite: It provided clients “prices that were at or near the worst interbank rates,” enabling the bank to make extra cash during the 2008 financial crisis.
The victims included New York City pension funds and prominent private investors, the authorities said. City investors included teachers and police officers, while the private investment funds belonged to the likes of Duke University and the Walt Disney Company.
The full story is here.