State Street to Pay $382 Million on Hidden Currency Markups
- Company misled clients that it guaranteed the best FX rates
- Custody bank admitted to some of SEC’s claims in settling case
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State Street Corp. agreed to pay $382.4 million to settle U.S. authorities’ allegations that it applied hidden markups to clients’ currency trades.
State Street made “substantial” revenues by telling customers it guaranteed the most competitive rates on FX trades, the U.S. Securities and Exchange Commission said in a statement Tuesday. State Street made no effort to obtain the best price and instead applied a “predetermined, uniform mark-up” to the transactions, according to another statement from the Justice Department.