Currency Trading Lawsuit
In October, 2011, the Justice Department and New York's attorney general filed civil lawsuits against the Bank of New York, alleging foreign currency fraud. The suits hold that the bank deceived pension-fund clients by manipulating the prices assigned to them for foreign currency transactions. Allegedly, the bank selected the day's lowest rates for currency sales and highest rates for purchases, appropriating the difference as corporate profit. The scheme is said to have generated $2 billion for the bank, at the expense of millions of Americans' retirement funds, and to have transpired over more than a decade. Purportedly, the bank would offer secret pricing deals to clients who raised concerns, in order to avoid discovery. Bank of New York has defended itself vigorously, maintaining the fraud accusations are "flat out wrong" and warning that as the bank employs 8,700 employees in New York, any damage to the bank would have negative repercussions for the state of New York.
Read more about this topic: Bank Of New York
Famous quotes containing the words currency and/or trading:
“There is no legislation—I care not what it is—tariff, railroads, corporations, or of a general political character, that all equals in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan.”
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His house among the local sheds and shanties
Rose like a factor’s at a trading station.”
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