The Bank of New York Mellon Corporation agreed to a settlement with the Board of Governors of the Federal Reserve System ("FRB") in response to deficiencies in its capital treatment of certain assets.
The FRB alleged that the Bank of New York Mellon Corporation ("BNY Mellon") consolidated a portfolio of collateralized loan obligations on its balance sheet and incorrectly assigned a zero-risk weighting to the assets in its risk-based capital ratios. As a result, between 2010 and 2014, FRB alleged that BNY Mellon understated its risk-weighted assets and overstated its risk-based capital ratios, in violation of Regulation Y.
In a Consent Order, BNY Mellon agreed to pay a $3 million fine.
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