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.