Judge Kaplan today largely denied the Bank of New York’s motion to dismiss a DOJ civil lawsuit alleging that the bank promised its customers “best execution” of foreign exchange transactions but, in fact, maximized its own profit by giving customers the worst (or near worst) prices of the day.  A key question of first impression was whether the DOJ could sue a under statute covering frauds that affect a federally-insured institution, when the effects are alleged to be upon the defendant institution itself:
Continue Reading Judge Kaplan Largely Denies Motion to Dismiss DOJ Suit Relating to Bank of New York’s Foreign Exchange “Best Execution” Practices