Case Details for "State Street Bank & Trust Company "

Investigation of State Street Bank & Trust Company's Foreign Currency Trading System

Lawyers are investigating the investment activities of State Street Bank & Trust Company ("State Street") with respect to potential illegal and fraudulent pricing of foreign currency trades executed for State Street's custodial clients, including pension funds, and for two of State Street's mutual funds -- SSgA Emerging Markets Fund (SSEMX) and SSgA International Stock Selection Fund (SSAIX).

The investigation focuses on allegations made in a Complaint by California Attorney General Edmund G. Brown Jr., on behalf of the CalPERS, and CalSTRS Pension Funds, that over the course of a number of years, State Street created fictitious, inflated exchange rates by marking up or down the prices it used internally to execute foreign currency trades by up to 144 basis points over then current Interbank exchange rates. These overcharges and underpayments were then passed through to Pension Fund participants through automatic debit of these clients' accounts. State Street purportedly concealed these potentially fraudulent pricing practices from the Pension Funds by setting up a group of internal "risk traders" who entered false exchange rates into its electronic trading databases, which automatically entered the debits or credits, and by reporting the false exchange rates in numerous documents, account statements, and on line reporting databases accessed by clients.

The investigation focuses on whether State Street engaged in this same scheme with other custodial clients such as pension funds, or mutual funds.

Lawyers seek to speak with pension fund fiduciaries, custodial clients of State Street, or investors in SSEMX or SSAIX who believe their accounts may have suffered losses as a result of the State Street's foreign currency exchange practices

Posted on:10/27/2009
Company: State Street Bank & Trust Company
Affected Class: pension fund fiduciaries, custodial clients of State Street, or investors in SSEMX or SSAIX who believe their accounts may have suffered losses as a result of the State Street's foreign currency exchange practices
Scope: Nationwide

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