Massachusetts and Illinois sought Forex documents
SAN FRANCISCO: Attorneys general in Massachusetts and Illinois have investigated State Street Corp’s currency trading dealings with state retirement systems, public records show, a sign that foreign exchange probes have expanded to more states.
Yet unlike some other states, officials in those two states have yet to bring any public legal action against the custody bank.
State Street and Bank of New York Mellon Corp face lawsuits in California, Florida and Virginia over foreign exchange rates they charge state pension plans for buying and selling currencies. Would-be whistle-blowers brought the cases on behalf of the funds, and attorneys general in the three states have now stepped in to lead the lawsuits.
The cases are being closely watched because if the plaintiffs were successful, banks could be forced to pay millions of dollars in damages or settlements. The states claim they were overcharged for currency transactions, such as swapping dollars for euros or yen, to buy and sell international securities in their fund portfolios.
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