BNY Mellon Sued By Detroit Pensions Over Securities Lending Losses

BNY Mellon has been sued by Detroit, Michigan-based pension funds that lost more than $1 billion in a securities lending program that was devastated by the collapse of Lehman Brothers, Bloomberg reports.
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BNY Mellon has been sued by Detroit, Michigan-based pension funds that lost more than $1 billion in a securities lending program that was devastated by the collapse of Lehman Brothers, Bloomberg reports.

The pensions claim BNY Mellon continued to invest in Lehman notes in 2006 even as the stability of the firm became increasingly questionable. They say BNY Mellon marketed the securities lending program as conservative, according to Bloomberg.

The suit is similar to the one filed last week against Wells Fargo, in which a group of pensions and endowments sued the bank with claims its securities lending program was much riskier than the bank led them to believe.

BNY Mellon has also been sued by the attorney general of South Carolina, who has similar claims. AP1, a Swedish pension manager, is also suing .

(CG)

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