Connecticut's attorney general plans to hire an outside consultant to look into foreign exchange trades State Street (STT) made as the custodian of the state's $25 billion pension fund.

Concerned that the Boston-based custody bank may have been overcharging the state on foreign exchange trades, Attorney General George Jepsen is seeking a consultant who could also provide expert testimony in the event that the state sues State Street, Reuters reported late Tuesday.

State Street and rival Bank of New York Mellon (BK) have been accused by several states of overcharging pension funds on foreign exchange trades. The state of Ohio recently severed ties with both banks and is one of a number of states that has filed lawsuits against BNY Mellon. Both banks have denied the allegations.

Connecticut has put out a request for proposal for a consultant and says bids are due by May 11. The consultant would review trades State Street made on behalf of the Connecticut Retirement Plans and Trust Fund.

"The purpose of this analysis is to determine whether these costs incurred by (the pension fund) were fair, reasonable and appropriate," according to the state's request for proposal.

Reuters said that State Street had no comment on its relationship with the state of Connecticut.

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