No surprise here. Don't admit to anything, just cut a big check!!
Talks in Currency Suit --- BNY Mellon Is Negotiating With U.S. to Settle Claims... Bank of New York Mellon Corp. is in preliminary talks with federal prosecutors to resolve a high-profile civil lawsuit that accused the bank of fraudulently overcharging clients in trading currencies, according to people familiar with the matter. A settlement, in a case filed in October by the Manhattan U.S. Attorney's office, would be an important step for the New York bank. BNY Mellon is facing a number of other lawsuits, seeking a total of more than $2 billion in damages, which are challenging the business model used for one of its most profitable services.
I agree that the damage from reputation risk will be costly. As for settling for "a couple million", that's a pipedream. Legal expenses alone will far exceed that amount. I think the bank will drag this out as long as possible and eventually settle for hundreds of millions. And I think you can forget about further dividend increases while these lawsuits are pending. Even if management wanted to increase the dividend now, I doubt that the regulators would give approval at this point.