L.A. City Council Seeks Exit From Dexia, BNY Mellon Swaps

The Los Angeles City Council is threatening to stop doing business with Bank of New York Mellon Corp. and Dexia SA if they refuse to renegotiate money-losing interest-rate swaps.

In a 14-0 vote yesterday, the council asked BNY Mellon, the world’s largest custody bank, and Dexia to return $65 million in what the lawmakers called unfair profits and fees paid since 2008 on debt for sewer work. The companies would also risk losing out on future business under the union-backed measure.