State Street Bank to pay $530 million to end probe of its overcharge of foreign exchange trades

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The State Street Corporation of Boston has agreed to pay the government $530 million to end an investigation which charged that it overcharged pension funds, mutual funds and hundreds of other clients concerning the cost of currency on foreign trades.  State Street admitted to the US attorney that, despite promising to get customers the best possible currency trades, it had hidden mark-ups, which boosted its profits. Bank of New York Mellon paid $714 million last year to settle the government’s foreign exchange investigations and private lawsuits.

Jeffrey Newman represents whistleblowers but not those in this case.