Nov. 10 (Bloomberg) — State Street Corp., the third-largest custody bank, said the government is seeking information about how it solicited asset-service business from public retirement plans.

State Street is responding to subpoenas from the Department of Justice and the Securities and Exchange Commission for information, the Boston-based firm disclosed today in a regulatory filing.

The firm said it has retained counsel to conduct a review, including the use of consultants and lobbyists to solicit business from pension plans, and that an adverse regulatory outcome could have a "material effect" on its business and reputation.

Regulators in recent years have scrutinized the role of money managers and intermediaries who use connections with public officials to gain access to U.S. public pension systems. In one of the largest "pay-to-play" scandals, former New York State Comptroller Alan Hevesi spent 20 months in prison after pleading guilty to directing $250 million in pension funds to an investment firm in exchange for travel, gifts and more than $500,000 in donations. Private-equity firms including Carlyle Group, Quadrangle Group LLC and Odyssey Investment Partners LLC agreed to pay fines to regulators to settle such claims.

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