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NY attorney general, BNY Mellon settle probe into manipulative trading by subsidiary for $1.3M
ALBANY, N.Y. (AP) ' The New York attorney general's office and the Bank of New York Mellon Corp. have agreed on a $1.3 million settlement of an investigation into manipulative trading of auction rate securities facilitated by employees at one of the company's subsidiaries.
Under the agreement, BNY Mellon says it will cease any further violations of New York's Martin Act, which prohibits deception in offering securities. The deal ends a joint investigation with the Texas State Securities Board and the Florida Office of Financial Regulation.
The $1.3 million is for penalties, fees and costs to the three states.
A BNY spokesman says Thursday the company is pleased to resolve the matter, which centered on the isolated conduct of three individuals who are no longer with Mellon Financial Markets LLC.