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Connecticut's attorney general plans to hire an outside consultant to look into foreign exchange trades State Street made as the custodian of the state's $25 billion pension fund.
April 11 -
The Ohio treasurer's office intends to fire Bank of New York Mellon Corp. and State Street Corp. as the custodians of state-run pension funds because it suspects the banks have been overcharging two of the funds on foreign-currency transactions.
March 19
A federal judge has ordered State Street Corporation (STT) to try to reach an out-of-court settlement with an Arkansas pension fund that has accused the Boston custody bank of overcharging it on foreign-exchange currency trades.
Reuters reported Tuesday that U.S. District Court Chief Judge Mark Wolf has given State Street and the Arkansas Teacher Retirement System until July 13 to meet at least once to discuss a possible settlement.
State Street had sought to have the case dismissed, but Wolf denied that motion at a hearing in U.S. District Court in Boston in May, Reuters reported.
The Arkansas suit is one of several filed by state pension funds that accuse State Street and rival Bank of New York Mellon (BK) of allegedly marking up rates on indirect currency trades. State Street has also disclosed that its trading practices are under investigation by the departments of Justice and Labor as well as the Securities and Exchange Commission.
State Street has denied any wrongdoing, though some observers have speculated that it could opt to settle some of the cases rather than face costly and time-consuming litigation.
