BNY Mellon Sued Over Lehman Losses by Detroit City Pension Funds
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Bank of New York Mellon Corp. was accused in a lawsuit by Detroit pension funds of mishandling their money invested in Lehman Brothers Holdings Inc.
The pension funds allege in their complaint 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 viewed the program as “akin to a conservative money market account,” according to the complaint filed yesterday in federal court in New York.