Bank of N.Y. Discloses Regulatory Probes

Bank of New York Co. said Tuesday that regulators were examining whether its Pershing unit cleared improper stock trades.

The New York-based company said government and self-regulatory agencies were examining possible “market-timing” transactions cleared by Pershing, which Bank of New York bought from Credit Suisse Group for $2 billion in May 2003.

Market timing involves the rapid trading of shares at the expense of ordinary investors and is widely considered improper although not necessarily illegal.

Bank of New York also said government agencies had requested documents in connection with probes of the issuer services industry. The document requests have focused mainly on the bank’s roles as a transfer agent for equity issuers and as a debt auction agent.

In addition, Bank of New York said government and self-regulatory agencies were looking into its BNY Hamilton Funds Inc. asset management unit’s relationship with the company and the funds’ administrator.

Bank of New York discussed the various examinations in its quarterly report filed with the Securities and Exchange Commission. Spokesman Jeep Bryant declined to elaborate.