Press Release

June 27, 2017 Federal Reserve Board announces $3 million fine against Bank of New York Mellon Corporation (BNY Mellon) for unsafe and unsound practices For release at 10:00 a.m. EDT Share The Federal Reserve Board on Tuesday announced a $3 million fine against Bank of New York Mellon Corporation (BNY Mellon) for unsafe and unsound practices after the firm improperly assigned a lower risk weighting to a portfolio of assets, reducing the firm's risk-based capital ratios. In 2010, following a change in the relevant accounting rules, BNY Mellon consolidated a portfolio of collateralized loan obligations onto its balance sheet. BNY Mellon incorrectly assigned the assets a zero-risk weighting, which was improper under the rules in place at the time. As a result of its improper treatment of the portfolio BNY Mellon understated its reported risk-weighted assets and overstated its risk-based capital ratios for nearly 14 quarters. BNY Mellon took action to correct its risk-weighting and risk-based capital ratios when the errors were identified, and BNY Mellon is now in compliance. For media inquiries, call 202-452-2955. Attachment (PDF) Related Content Board Votes

Federal Reserve (2017, June 26). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20170627_ricardo_a_aguilera_appointed_new_director_of

@misc{wtfs_press_release_20170627_ricardo_a_aguilera_appointed_new_director_of,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2017},
  month = {Jun},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20170627_ricardo_a_aguilera_appointed_new_director_of},
  note = {Retrieved via When the Fed Speaks corpus}
}