BNY TO PAY OVER $14 MILL TO PRUDENTIAL FOR FOREIGN EXCHANGE TRADES

The Bank of New York Mellon Corporation will pay Prudential Financial Inc. over $14 Million or half the revenue it generated from PRudential currency foreign exchange transactions. BNY has been facing claims from the Justice Department and customers over the past year that it was charging customers improperly for foreign currency trading. The Justice Department sued BNY in October saying the bank defrauded federally insured banks in handling foreign exchange. Justice said that clients were given the worst rates of the trading day.The payment to Prudential is seen by some as BNY’s willingness to pay some customers in order to put the issue behind the bank.