[ by Melanie Gretchen ] Bank of New York Mellon will pay for its attempt to help money market funds at the height of the financial crisis.  Due to a "failure" of its internal procedures, the bank in September 2008 pleaded ineligible collateral as part of a program to help money, the Federal Reserve said earlier this week. Federal Reserve Findings and Allegations. During the financial crisis, the bank failed to report problems of a portion of the collateral it was pledging to receive government loans through a lending facility.  While the bank successfully repaid the Fed on time for the loans it received through the program, the bank was able to secure more loan proceeds than it otherwise would have received because of the ineligible collateral, the Fed said. Fed Sanctions. To the bank's credit, the penalty and enforcement order between the Bank of New York and the Fed notes that the bank did not have to admit to the allegations raised by the central bank.  Nevertheless, the bank will pay a $6 million penalty, and provide within 60 days to federal regulators a written plan to address the allegations made by the Fed, including steps to improve communication with regulators about potential violations. [Fox Business, 4/16/12]