Bank of NY Mellon: We’ve Reached a Partial Settlement on Price Gouging
The Bank of New York Mellon Corp (NYSE:BK) and prosecutors have agreed to a partial settlement in the civil fraud action brought against the bank last year by the government, according to court documents filed on Tuesday. The government claimed the bank was charging clients excessively for trading currencies,
Both parties said that under the settlement the bank will disclose its methods for deciding prices for certain transactions. A monetary settlement was not mentioned, but according to the court documents, the discussions are still in progress.
The government was seeking hundreds of millions of dollars in civil penalties.
In a statement, the office of Manhattan U.S. Attorney Preet Bharara said, “The parties intend to continue litigating the Government’s claim for civil penalties. Accordingly, nothing in the settlement releases claims of the United States, and BNYM likewise denies liability.”
Here’s how shares of BK are reacting to the settlement:
The Bank of New York Mellon Corporation (NYSE:BK): BK shares recently traded at $20.39, down $0.88, or 4.14%. They have traded in a 52-week range of $17.10 to $32.44. Volume today was 7,975,334 shares versus a 3-month average volume of 9,599,910 shares. The company’s trailing P/E is 9.44, while trailing earnings are $2.16 per share.