State Street to pay $530 million to resolve forex fraud claims

Custody bank State Street Corp (STT.N) said it has agreed to resolve all pending litigation and regulatory matters in the United States related to its indirect foreign exchange business.

State Street said it expects to pay a total $530 million for the settlements, which would be fully covered by a previously established reserve, according to a statement on Tuesday.

The U.S. Justice Department said in a statement that under the settlement, State Street “admitted that contrary to its representations to certain custody clients, its State Street Global Markets division (SSGM) generally did not price FX transactions at prevailing interbank market rates.” For full article see link below.

http://www.reuters.com/article/us-state-str-settlement-idUSKCN10706B?il=0