BNY Mellon buys $21.7M in ARS of three funds

Bank of New York Mellon Corp. will buy $21.7 million in auction rate securities held by three funds, according to a spokeswoman. The ARS had been bought by three of New York-based BNY Mellon’s funds prior to mid-February, when the market for these debt instruments dried up. The three mutual funds were the BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon National Short-Term Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund. In late October, BNY Mellon reached a settlement with the Washington- and New York-based Financial Industry Regulatory Authority Inc. to pay a $250,000 fine for its role in the selling and marketing of ARS (InvestmentNews, Oct. 23). Calls to the Securities and Exchange Commission and BNY Mellon press offices were not immediately returned.