The New York Post so eloquently illustrated in this headline what Institutional Analytics' Chris Whalen told the publication this weekend: "It’s going to get ugly for Bank of New York."
BNY Mellow is facing a slew of lawsuits from investors who lost billions in mortgage-backed securities, claiming the bank failed to oversee the investments. The bank ousted its chief Bob Kelly last month. BNY Mellon's reaction (via the NY Post):
Allegations of fraud “are simply untrue,” says BNY Mellon spokesman Kevin Heine. “We will defend our actions and are confident that the facts and law are on our side. We believe that as trustee we’ve acted at all times in the best interests of investors.”
The real question is: How will all the controversy affect Pershing, its custody subsidiary? It can't be good.
(On a completely separate note, my favorite reporter moment for the week goes out to HBO's Larry Merchant, who was able to ask Mayweather the tough questions following Saturday's fight. Thankfully, no one got hurt...)