2012-09-11americanbanker.com

``he plaintiffs, including the General Retirement System of the City of Detroit and the Police & Fire Retirement System of the City of Detroit, filed class-action, or group, complaints last year. They allege that BNY Mellon encouraged them to join its securities lending program, under which the bank would lend securities owned by the funds to creditworthy borrowers.

The funds and other members of the class said the bank invested in Lehman notes in 2006 on behalf of the funds and continued to maintain the investments as uncertainty surrounding Lehman grew. The plaintiffs said they lost more than $1 billion in the notes.''


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