Bank of New York Mellon: Financial Loser

NEW YORK ( TheStreet) -- Bank of New York Mellon ( BK) was the loser among large U.S. financial names on Wednesday, with shares sliding 3% to close at $18.28.

After the market close on Tuesday, New York State Attorney General Eric Scheiderman announced a $2 billion lawsuit against Bank of New York Mellon, "for defrauding clients in foreign currency exchange transactions," saying that "victims include both public and private pension funds, including those of the New York City Employee Retirement System (NYCERS) and the State University of New York."

So far, the bank has declined to comment about the lawsuit.

The broad indexes all showed strong gains, after Automatic Data Processing ( ADP) said U.S. companies added 91,000 jobs in September, rising from a revised 89,000 in August and beating the 75,000 new jobs that economists polled by Thomson Reuters had estimated.

The KBW Bank Index ( I:BKX) rose 1% to close at 35.54, with all 24 index components up for the session, except for Bank of New York, Fifth Third Bancorp ( FITB), which was down slightly to close at $10.62 and BB&T ( BBT), which was down two cents, closing at $21.00.

Shares of Bank of America ( BAC) were up a penny to close at $5.77, as the fallout continued over the bank's plan to begin charging a $5 monthly fee to customers who use their debit cards for purchases.

Wednesday's winner among large U.S. banks was Regions Financial ( RG), with shares rising over 4% to close at $3.33.

Shares of Morgan Stanley ( MS) rose over 3% to close at $14.48.

First Niagara Financial Group ( FNFG) was up 4% to close at $8.99.

Large U.S. banks seeing shares rise 2% included Capital One ( COF), which closed at $39.42; JPMorgan Chase ( JPM), closing at $30.84; KeyCorp ( KEY), at $6.09; and New York Community Bancorp ( NYB), which closed at $12.17.


-- Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.