Will a $2 trillion Scandal destroy BNY Mellon (NYSE: BK)? — Market Mad House

A $2 trillion banking scandal could destroy Buffett’s favorite BNY Mellon (NYSE: BK).

The Bank of New York (BK) is one of four big banks accused of moving and laundering money for suspected criminals by BuzzFeed News. BuzzFeed News alleges U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) ignored $2 trillion worth of suspicious financial transactions.

BNY Mellon (BK) is one bank named in the BuzzFeed News article. BuzzFeed claims its journalists based the article on leaked FinCEN documents. BuzzFeed alleges FinCEN is not enforcing laws against money laundering. FinCEN is a US intelligence agency that tracks and controls suspicious transactions.

The Guardian claims the leak exposes $2 trillion worth of suspicious financial transactions. The BuzzFeed article does not identify any suspicious BNY Mellon transactions, but it claims the Bank of New Mellon takes part in the traffic.

Does Mr. Market Undervalue BNY Mellon?

Berkshire Hathaway (NYSE: BRK.B) held 72.4 million shares of BNY Mellon on 17 August 2020, Investors; Business Daily estimates. Investors’ Business Daily estimates BNY Mellon is Berkshire’s ninth-largest stock holding.