STT State Street Corporation

Massachusetts authorities are investigating State Street Corp. (STT) in connection with foreign exchange transactions, Reuters reported Friday, citing a spokesman for the secretary of state.

A few other states have joined lawsuits against State Street and rival Bank of New York Mellon Corp. (BK) over their forex services. The banks allegedly inflated their profits by charging customers artificially higher prices than what foreign exchange trades actually cost, Reuters said, adding that the banks have denied wrongdoing.

The spokesman said the state was conducting an "inquiry" related to State State's foreign exchange transactions and pension funds.

A State Street spokeswoman declined to comment.

Full story at http://www.reuters.com/article/2011/04/29/statestreet-forex-idUSN2929620120110429

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