BNY Mellon has agreed to pay a $6.6 million penalty to settle charges stemming from miscalculations of its risk-based capital ratios and risk-weighted assets that it was reporting to investors.

An investigation by the Securities and Exchange Commission found that the bank deviated from regulatory capital rules by excluding from its calculations approximately $14 billion in collateralized loan obligation assets that it consolidated onto its balance sheet in 2010. BNY Mellon never obtained Federal Reserve Board approval (as required by regulatory capital rules) to do so. Due to the miscalculations and the firm’s lack of internal accounting controls to ensure its financial statements were being prepared properly, BNY Mellon understated its risk-weighted assets and overstated certain risk-based capital ratios in quarterly and annual reports between the third quarter of 2010 and the first quarter of 2014.

The bank has neither admitted nor denied the charges, but has consented to an SEC order that states that it abrogated internal control and recordkeeping provisions in the federal securities laws, specifically ss13(b)(2)(A) and 13(b)(2)(B) Securities Exchange Act 1934.