July 27, 2016 7:32 PM ET

Capital Markets

Company Overview of State Street Bank and Trust Company (Boston, MA)

Company Overview

State Street Bank and Trust Company serves as the custodian for an investment company. It also provides the basic portfolio recordkeeping required by the investment company for regulatory and financial reporting purposes. State Street Bank and Trust Company serves mutual funds and other collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments and other investment pools, and investment managers worldwide. The company was formerly known as Second Bank-State Street Trust Company and changed its name to State Street Bank & Trust Company in April 1960. The company was founded in 1792 and is based in Boston, Massachusetts. State Street Bank a...

Copley Place

100 Huntington Avenue

Boston, MA 02116

United States

Founded in 1792

Phone:

617-786-3000

Key Executives for State Street Bank and Trust Company (Boston, MA)

Executive Officer
Compensation as of Fiscal Year 2016.

State Street Bank and Trust Company (Boston, MA) Key Developments

State Street Bank and Trust Company Agrees to Pay $382.4 Million in a Global Settlement for Misleading Mutual Funds and Other Custody Clients

The Securities and Exchange Commission announced that State Street Bank and Trust Company has agreed to pay $382.4 million in a global settlement for misleading mutual funds and other custody clients by applying hidden markups to foreign currency exchange trades. As part of its custody bank line of business, State Street safeguards clients' financial assets and offers such services as indirect foreign currency exchange trading (Indirect FX) for clients to buy and sell foreign currencies as needed to settle their transactions involving foreign securities. An SEC investigation found that State Street realized substantial revenues by misleading custody clients about Indirect FX, telling some clients that it guaranteed the most competitive rates available on their foreign currency exchange trades, provided "best execution," or charged "market rates" on the transactions. State Street instead set prices largely driven by predetermined, uniform markups and made no effort to obtain the best possible prices for these clients. State Street has agreed to pay $167.4 million in disgorgement and penalties to the SEC, a $155 million penalty to the Department of Justice, and at least $60 million to ERISA plan clients in an agreement with the Department of Labor. Under the terms of the agreement, the SEC will issue its order instituting the settled administrative proceeding only after a federal court approves State Street's proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its pricing of foreign currency exchange trades. State Street has agreed to admit certain findings in the SEC's order. The SEC's order will find that State Street willfully violated Section 34(b) of the Investment Company Act of 1940 and caused violations of Section 31(a) of the Investment Company Act and Rule 31a-1(b) by providing its registered investment company custody clients with trade confirmations and monthly transaction reports that were materially misleading in light of the representations it made about how it priced foreign currency exchange transactions. State Street will be required to pay $75 million in disgorgement plus $17.4 million in interest to harmed clients as well as a $75 million penalty.

State Street Bank & Trust Presents at FX Invest North America, Apr-12-2016 10:10 AM

State Street Bank & Trust Presents at FX Invest North America, Apr-12-2016 10:10 AM. Venue: The Langham Boston Hotel, 250 Franklin Street, Boston, MA 02110, United States. Speakers: Hu Liang, Senior Managing Director, Emerging Technologies Center.

Securities and Exchange Commission Announces State Street Bank and Trust Company Agree to Pay $12 Million to Settle Charges for Pay-to-Play Scheme

The Securities and Exchange Commission announced that State Street Bank and Trust Company agreed to pay $12 million to settle charges that it conducted a pay-to-play scheme through its then-senior vice president and a hired lobbyist to win contracts to service Ohio pension funds. An SEC investigation found that Vincent DeBaggis, who headed State Street's public funds group responsible for serving as custodians or sub-custodians to public retirement funds, entered into an agreement with Ohio's then-deputy treasurer to make illicit cash payments and political campaign contributions. In exchange, State Street received three lucrative sub-custodian contracts to safeguard certain funds' investment assets and effect the settlement of their securities transactions. DeBaggis agreed to settle the SEC's charges by paying $174,202.81 in disgorgement and prejudgment interest and a $100,000 penalty. The SEC further alleges that Robert Crowe, a law firm partner who worked as a fundraiser and lobbyist for State Street, participated in the scheme and entered into undisclosed arrangements with the then-deputy treasurer to make secret illegal campaign contributions to obtain and retain business awarded to State Street. The SEC filed a complaint against Crowe in U.S. District Court for the Southern District of Ohio.

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