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JPMorgan Chase & Co. (JPM) - free report >>
Citigroup Inc. (C) - free report >>
The Bank of New York Mellon Corporation (BK) - free report >>
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BNY Mellon to Pay $5M Civil Penalty to CFTC for Swap Reporting Lapses
An order has been issued by the Commodity Futures Trading Commission (“CFTC”) for The Bank of New York Mellon Corporation (BK - Free Report) to pay a civil penalty of $5 million for failing to report millions of swap transactions to a registered swap data repository in violation of a prior CFTC order.
BNY Mellon also failed to supervise its swap dealer business as required by the Commodity Exchange Act and CFTC regulations.
In addition to the monetary penalty, BNY Mellon has agreed to retain an independent compliance consultant to review and provide advice regarding its compliance program.
Per the CFTC, between 2018 and 2023, BK repeatedly failed to correctly report at least five million swap transactions and supervise its swap dealer business.
The reporting failures also violated a previous 2019 order against BNY Mellon, which required it to cease and desist from violating some of the same sections of the Commodity Exchange Act and CFTC regulations that are the subject of the current action.
BNY Mellon’s Price Performance & Zacks Rank
Over the past six months, BNY Mellon shares have gained 20.4%, outperforming the industry’s 15.8% growth.
Currently, BK sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The CFTC’s Actions on Other Banks Related to Swaps
The CFTC has joined the Securities and Exchange Commission in increasing oversight in areas related to swap transactions and is levying fines against companies that do not comply.
Recently, the CFTC asked banks like JPMorgan (JPM - Free Report) and Citigroup (C - Free Report) for non-disclosure agreements in their swaps and clearing businesses. Also, the financial regulator has sought employment and customer agreements from JPM and C in those businesses.