Bank of New York Mellon of allegedly executing trades in a such a way that the bank was able to line its own pockets at the direct cost of the funds.
Specifically, BONY is said to have executed unnecessary trades, when it could saved clients money in a processing called matching. For example, rather than taking two orders and executing two separate trades, BONY could have taken those two orders and execute them in a single trade.
BONY, of course, denies any wrongdoing.
The Wall Street Journal took it upon itself to do some do some investigating and crunch some numbers.
Here’s what they found.
- Fund Client: Massachusetts Pension Reserves Investment Management
- Time Period: January 2007 to May 2011
- No. of Questionable Trades: 10,288
- Total Est. Overcharge: $3,200,000
- Fund Client: Los Angeles County Employees Retirement Association
- Time Period: May 2000 and September 2010
- No. of Questionable Trades: 446
- Total Est. Overcharge: $171,000
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