Ronald Logue, CEO of State Street Global MarketsEarlier today we reported how BlackRock Inc., in its own internal investigation, suspected the Bank of New York Mellon of spread widening. Now Reuters India reports that the scrutiny of foreign currency trading in the United States is shifting to whether private investment firms, not just public pension funds, were overcharged by the banks that handle these lucrative transactions.
Today, the Arkansas Teacher Retirement System brought suit against State Street, the latest pension fund to accuse trust banks of failing to give clients the best prices on foreign exchange trades.
The suit, which was filed today in federal court in Massachusetts and which seeks class-action status, alleges that Boston-based State Street for more than a decade violated state law by overcharging many customers for currency trades.
Read the full Reuters India article...
These things usually come in threes. Wonder who's next?