Some of the nation's largest investment firms have been overcharged by banks for currency trades, bank insiders and others claim, broadening the scope of alleged abuses in pockets of the $4 trillion foreign-exchange market.
BlackRock Inc., the world's largest fund manager, became concerned at the rates it and its clients were charged for some currency trades by custody banks including Bank of New York Mellon Corp. according to an internal BlackRock investigation about a year ago and people familiar with the firm.
BlackRock recently altered the way it trades currencies, either doing the trading itself or demanding evidence from custody banks that it is receiving prevailing market rates, said people familiar with the firm. Read the full article
at the WSJ.