A statement entitled, "Federal Reserve Board issues a consent cease and desist order and civil money penalty against the Bank of New York Mellon (BNYM)" says, "The Federal Reserve Board on Monday issued a consent cease and desist order and assessed a $6 million civil money penalty against the Bank of New York Mellon (BNYM), New York, New York, a state-chartered bank that is a member of the Federal Reserve System. The order addresses allegations that BNYM breached certain representations and warranties made to Federal Reserve Bank of Boston in connection with BNYM's participation in the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF). The Board announced the creation of the AMLF in 2008 to assist money market mutual funds in meeting the demand for redemptions by investors and to foster liquidity in the asset-backed commercial paper market and money markets more generally. The AMLF was closed on February 1, 2010. The Federal Reserve Board alleged that BNYM breached certain representations and warranties in its Letter of Agreement with respect to the collateral BNYM pledged to the AMLF. BNYM timely repaid all amounts borrowed under the AMLF."
