Pershing Wins Arbitration Ruling Over Stanford Ponzi-Scheme Losses

Pershing LLC isn’t liable for $80 million in investor losses stemming from Allen Stanford’s $7 billion Ponzi scheme, an arbitration panel has ruled. The 85 mostly older investors had invested their retirement savings in certificates of deposits offered through Stanford’s firm, but lost their investments when the Ponzi scheme—one of the largest in U.S. history—collapsed in 2009. The investors charged that Pershing, a unit of the Bank of New York Mellon Corp. which administers more than $1 trillion in assets, should have known Stanford’s business was a fraud, according to the arbitration claim filed with the Financial Industry Regulatory Authority. More in the Wall Street Journal here.