Boston-based State Street Bank and Trust Co. has agreed topay $382.4 million, of which $60 million will go to ERISA planclients, to settle allegations that it deceived some of its custodyclients when providing them with indirect foreign currency exchangeservices.
The settlement, in which State Street will pay $155 million tothe U.S. Department of Justice, $167.4 million in disgorgement andpenalties to the Securities and ExchangeCommission and at least $60 million to EmployeeRetirement Income Security Act plan clients in an agreementwith the U.S. Department of Labor, was reached after State Streetadmitted that its State Street Global Markets division generallydid not price foreign exchange transactions at prevailing interbankmarket rates — which was contrary to how State Street presented thepricing to certain custody clients.
Related: DOL files suits, wins judgments
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