Bank of New York Mellon has agreed to pay $6.6 million to settle an investigation into miscalculations of its capital ratios and assets.
The company excluded about $14 billion in collateralized-loan-obligation assets from calculations for its risk-based capital and risk-weighted assets, the Securities and Exchange Commission claimed in a Thursday press release. The understatement was included in BNY Mellon's quarterly and annual reports from the third quarter of 2010 to the first quarter of 2014.
BNY Mellon did not obtain required permission from the Federal Reserve Board to exclude the assets from its calculations, the SEC said. BNY Mellon, which did not admit or deny the charges, agreed to an SEC order that it violated internal controls and recordkeeping provisions required by federal law.
BNY Mellon could not be reached for comment. Davis Polk & Wardwell was the company's legal counsel.
