WASHINGTON (MNI) – The following was issued by the Federal Reserve
Monday:
The Federal Reserve Board on Monday issued a consent cease and
desist order and assessed a $6 million civil money penalty against the
Bank of New York Mellon (BNYM), New York, New York, a state-chartered
bank that is a member of the Federal Reserve System. The order addresses
allegations that BNYM breached certain representations and warranties
made to Federal Reserve Bank of Boston in connection with BNYM’s
participation in the Asset-Backed Commercial Paper Money Market Mutual
Fund Liquidity Facility (AMLF).
The Board announced the creation of the AMLF in 2008 to assist
money market mutual funds in meeting the demand for redemptions by
investors and to foster liquidity in the asset-backed commercial paper
market and money markets more generally. The AMLF was closed on February
1, 2010.
The Federal Reserve Board alleged that BNYM breached certain
representations and warranties in its Letter of Agreement with respect
to the collateral BNYM pledged to the AMLF. BNYM timely repaid all
amounts borrowed under the AMLF.
** MNI Washington Bureau: 202-371-2121 **
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