(Reuters) – Bank of New York Mellon Corp has agreed to pay $3 million in settling a state investigation into problems it faced in calculating net asset values on some 1,200 mutual funds last August, Massachusetts’ top securities regulator said on Monday.
Massachusetts Secretary of the Commonwealth William Galvin said the New York trust bank had subcontracted the calculations to a third party and lacked a backup plan when the sub-contractor was unable to calculate net asset values for the funds. The lack of the plan “represents a departure from high standards of commercial honor,” the settlement agreement states, according to Galvin’s office.
The glitch unsettled broad parts of the fund industry last summer and highlighted how reliant BNY Mellon remained on a patchwork of technology platforms.
NEW YORK (Reuters) – Commerzbank AG has sued four banks in the United States, claiming that they failed to properly monitor billions of dollars in toxic mortgage-backed securities acquired by the German lender before the 2008 financial crisis.
Bank of New York Mellon Corp and units of Deutsche Bank AG, Wells Fargo & Co and HSBC Holdings Plc were named in the lawsuits filed on Wednesday in Manhattan federal court.
BNY Mellon was the trustee for over $1 billion in mortgage-backed securities bought by Commerzbank and $1.3 billion of investments tied to a collateralized debt obligation, Millstone II CDO, court documents showed.
A Hammond couple claim in a federal lawsuit that they were victims of “robosigning” and other predatory mortgage practices that left them facing foreclosure.
According to the lawsuit, which was filed in Lake County Superior Court a month ago and was moved to U.S. District Court in Hammond on Tuesday, Pedro and Elisa Rico bought their Hammond house in 1996.
The couple were up to date on their payments, but their lender, Green Tree Servicing, LLC, approached them about refinancing in 1999.
The lawsuit says Green Tree used their son, who was a minor at the time, to translate the terms of the new loan for them, which they thought included a fixed rate over 15 years.
The Ricos say they didn’t learn until a year ago when they received a notice that it actually included a balloon payment of $40,000 due in August 2014.
The Ricos are claiming Green Tree and Bank One used other deceptive practices, such as having documents signed by a notary when they weren’t there and providing false information for Elisa Rico to join the deed on the house so the couple would qualify.
And here is information on the Rico’s lawsuit. Case number 2:2015cv00089:
Rico et al v. Green Tree Servicing, LLC et al
||Pedro F. Rico and Elisa F. Rico
||Green Tree Servicing, LLC, J.P. Morgan Chase Bank, N.A., Bank of New York Mellon and OCWEN Loan Servicing, LLC
||March 10, 2015
||Indiana Northern District Court
||John E Martin
||Joseph S Van Bokkelen
|Nature of Suit:
||Truth in Lending
|Cause of Action:
||28:1441 Petition for Removal
|Jury Demanded By:
Dec 23 (Reuters) – A U.S. appeals court on Tuesday threw out most of the claims in an investor lawsuit against Bank of New York Mellon Corp as trustee for subpar mortgage-backed securities involved in an $8.5 billion settlement by Bank ofAmerica Corp.
The 2nd U.S. Circuit Court of Appeals in New York said Bank of New York Mellon did not have to face claims stemming from 25 of 26 trusts alleged to have contained risky mortgage loans from Countrywide Financial Corp, which was acquired by Bank of America in 2008.
The decision partially reversed a 2012 lower court ruling from U.S. District Judge William Pauley, who had thrown out a variety of other investor claims but had allowed claims related to the 26 trusts to proceed.
Law360, Los Angeles (October 14, 2014, 10:01 PM ET) — The Bank of New York Mellon Corp., acting as a trustee for a pool of home loans, has hit JPMorgan Chase Bank NA and others with a New York suit seeking $475 million over alleged misrepresentations made in the sale of $959 million in residential mortgage loans.
Suing as the trustee of JP Morgan Mortgage Acquisition Trust Series 2006-WMC3, BNY Mellon seeks redress from WMC Mortgage LLC as successor-by-merger to WMC Mortgage Corp., JP Mortgage Acquisition Corp. and JPMorgan Chase Bank, for alleged breaches of contractual…
(Reuters) – Bank of New York Mellon Corp will exit the derivatives sales and trading business that operates as part of the company’s global markets group.
“Global Markets will offer a modified version of its cash rates offering to support BNY Mellon’s investment services clients,” company spokesman Ron Summer said in an email.
The decision affects about 50 people, almost all in New York, Bloomberg said, citing a person familiar with the matter.
Argentina said on Tuesday it has stripped Bank of New York Mellon’s authorization to operate in the country, its latest move against the bank, which blocked an Argentine government debt payment on the orders of a U.S. court.
BNY Mellon, a financial intermediary between the Argentine government and its bondholders, has been caught up in a bitter legal battle between U.S. investment funds and the South American country, which in July defaulted for the second time in 12 years.
Argentina’s Congress is due on Wednesday to discuss a law that would replace BNY Mellon as intermediary for payments on foreign law bonds with state-controlled bank Banco Nacion, as part of a new debt restructuring plan.
The central bank “has revoked BNY’s authorization for representation in Argentina,” Cabinet Chief Jorge Capitanich said in his daily briefing. The authorization applied specifically to two BNY Mellon officials.
A group of hedge funds holding EUR1.3 billion ($1.71 billion) of Argentine government bonds has filed suit against the U.S. bank charged with overseeing payments to the nation’s bond investors, seeking to gain access to interest payments they are owed.
The suit, filed in London’s Chancery Court, names as defendant Bank of New York Mellon Corp. The suit opens up a new front in the decadelong war between Argentina and investors including so-called holdout creditors that are seeking payment on bonds the country defaulted on in 2001.
The plaintiffs include Knighthead Master Fund LP, RGY International LLC, which is a unit of Perry Capital, as well as Kyle Bass’s Hayman Capital Master Fund LP and George Soros’s Quantum Partners LP, according to a copy of the suit.
,a href=”http://www.4-traders.com/THE-BANK-OF-NEW-YORK-MELL-11848/news/Bank-of-New-York-Mellon–UK-Suit-Against-BNY-Mellon-on-Argentine-Debt-18949645/”>Read on.
Judge OKs Salvation Army lawsuit vs BNY Mellon
NEW YORK, Jan 28 (Reuters) – A judge refused to throw out a lawsuit accusing Bank of New York Mellon of mismanaging The Salvation Army assets by investing nearly $22 million of the charity’s funds in mortgage-backed securities and other risky investments.
The Salvation Army, one of the largest U.S. charities, claims in its lawsuit that the bank didn’t abide by its obligation to invest in conservative assets and failed to take steps to protect the charity as market conditions deteriorated.
The charity, which filed the lawsuit in 2011 in New York State Supreme Court, is seeking damages for breach of fiduciary duty and other claims.
The Salvation Army must only “state a claim at this juncture, not prove it,” Justice Barbara Kapnick wrote in her Jan. 25 decision denying the bank’s motion to dismiss the breach of fiduciary duty claim.
Kapnick also let stand breach of contract and gross negligence claims. She dismissed a claim for negligent misrepresentation.
The judge noted the Salvation Army’s claim that the bank invested the charities’ funds in high-risk securities despite reducing its own exposure to such investments.
The bank said it abided by its securities lending agreement with The Salvation Army, according to the judge’s ruling. It urged the court to consider the entire investment portfolio which, the bank said, did well.