U.S. federal and state authorities announced on Thursday that the Bank of New York Mellon Corp is agreeable to the payment of $714 million settlement for alleged overcharging on pension funds and other clients for foreign exchange services.

With the agreement, it would end the lawsuits filed by the Manhattan U.S. Attorney, New York Attorney General and a class action suit filed by bank customers. According to the bank's clients, BNY reneged on its promise to provide best execution for their currency transactions, reports Reuters.

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The clients claim they were given the worst rate for the day, while the bank got better spot prices and earned profit on the spread.

Besides accepting responsibility for its conduct, BNY, under the agreement, also agreed to dismiss Products Management head David Nichols and other unidentified executives, said Manhattan U.S. Attorney Preet Bharara.

The $714 million payment would be broken down to $335 as civil penalty that would go to the U.S. and New York state governments, and be used to set up a fund to pay customers of BNY victimized by the bank's misconduct.

The remaining $335 will settle the private class action lawsuit filed by bank customers, reported Forbes.

Authorities said BNY top officials were aware that its representations on forex pricing were false.

To resolve the litigation, BNY said in February that it would take a $598 million charge. In a statement, the bank, one of the largest custodial banks in the world, said, "We are pleased to put these legacy FX matters behind us."

The bank added, "We continue to improve our product offerings to ensure they are meeting client demand and positioning clients to succeed in an increasingly complex financial environment."

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