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.
