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State Street Rehired by Calpers After Being Likened to ‘Thugs’

California Governor Jerry Brown sued State Street Corp. in 2009, when he was attorney general, for “unconscionable fraud” against pension funds over foreign-exchange pricing. That didn’t stop the largest of the funds from striking a new three-year deal with the firm.

The $232 billion California Public Employees’ Retirement System last week signed a contract for Boston-based State Street to continue handling all its custody work, said Wayne Davis, a pension spokesman. Calpers, as the Sacramento-based fund is known, passed over competing bids from New York’s JPMorgan Chase & Co. and Bank of New York Mellon Corp.