New York Attorney General Eric Schneiderman last month said that BNY Mellon violated state law in its role representing investors in mortgage securities created by Bank of America's Countrywide Financial unit.
BNY Mellon should pay penalties and restitution to investors, Schneiderman said in an Aug. 4 court filing involving Bank of America's proposed $8.5 billion mortgage-bond settlement.
BNY Mellon, along with State Street, has been accused in lawsuits of inflating the price of some foreign-exchange transactions and acting to conceal those markups. BNY Mellon is facing lawsuits from Virginia, Florida and Pennsylvania.
The bank has denied wrongdoing in all the cases, saying customers were informed about its pricing policy and had the option of using other vendors for their trades.
On the July conference call, Kelly blamed some of the rise in expenses on escalating legal costs.
"Frankly, these are the unpleasant realities of a post- crisis environment," he said.