State Street Agrees to Settle Foreign-Currency Allegations
July 26 2016 - 9:50PM
Dow Jones News
State Street Corp. agreed to pay about $530 million to clear a
thicket of lawsuits alleging the custody bank had overcharged
clients on foreign-currency transactions.
State Street said Tuesday it reached agreements with U.S.
officials, Massachusetts' attorney general as well a group of
customers to resolve "all pending litigation and regulatory matters
in the U.S. related to its indirect foreign-exchange business."
"Matters of this nature can drain both time and resources; so
where possible and appropriate we feel it is in State Street's and
our clients' best interests to pursue settlements," Mike Rogers,
the bank's president and chief operating officer, said in a
statement.
The lawsuits had accused State Street of promising to executive
foreign-exchange trades at market price. In reality, they alleged,
the bank instead used rates that included hidden markups.
State Street set aside $585 million to cover all FX claims, and
in November reached a settlement with California's attorney
general.
Aruna Viswanatha contributed to this article.
Write to Justin Baer at justin.baer@wsj.com
(END) Dow Jones Newswires
July 26, 2016 21:35 ET (01:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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