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Judge Doubts the Bank
of New York can Investigate Itself NEW
YORK, NOVEMBER 13 (MT-WIRE) – Today federal judge Denny Chin denied BoNY request to stay
the lawsuit brought by BoNY shareholders against its management to give BoNY’s directors
time to investigate allegations of wrongdoing by BoNY’s management on their own. Noting
that there is a “substantial question” whether BoNY’s newly formed “special
litigation committee (SLC)”, commissioned to investigate shareholders’ allegations, is
truly independent and disinterested, judge Chin wrote in his decision: “it is difficult
to imagine that the SLC will reach any conclusion other than that the [shareholders’]
complaint lacks merit...”
Judge Chin’s stern decision clears the way for
BoNY’s shareholders’ suit against its senior management to proceed and permits the
shareholders’ counsel, the New York law firm of Milberg Weiss Bershad Hynes &
Lerach, LLP, to conduct wide discovery into alleged corruption and money laundering
reaching BoNY’s highest echelon, including its CEO, Thomas Renyi.
In February of this year, BoNY’s former senior
vice president, Lucy Edwards pled guilty to a variety of federal charges, including money
laundering and fraud. BoNY itself has not yet been charged with wrongdoing and is reported
to be cooperating with ongoing investigations by the FBI and the Federal Reserve Bank of
New York. END |
BUSINESS 