The Bank of New York Mellon Corporation agreed to pay a fine of US $6.6 million to resolve charges brought by the Securities and Exchange Commission that it overstated its regulatory capital in each of its quarterly and annual reports filed with the SEC from the third quarter of 2010 through the second quarter of 2014. The SEC alleged that this overstatement occurred because of BONY’s failure to properly reflect approximately US $14 billion of collateralized loan obligations as assets on its balance sheet during the relevant time. The SEC claimed that BONY should have subjected these CLOs to a 100 percent risk-weighting but instead subjected these variable interest obligations to a zero risk-weighting. Any reduction in weighting could only have been done with the advance approval of the Federal Reserve Bank of New York, claimed the SEC, which BONY did not obtain. As a result, charged the SEC, BONY misreported its risk capital ratios and risk-weighted assets and failed to create and retain accurate records during the relevant time. BONY corrected its reporting of its CLOs for the first time in a July 18, 2014 filing with the SEC. The SEC noted BONY’s remedial acts and cooperation in accepting the firm’s offer of settlement.