State Street Will Pay $64.6 Million, Name Monitor After Fraud
- U.S. attorney says State Street charged secret commissions
- Bank boosts spending on compliance, audit and risk management
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State Street Corp. agreed to pay $64.6 million and cooperate in the U.S. prosecution of former executives, while admitting it overcharged six clients in Europe, Africa and the Middle East. The Boston-based bank also agreed to appoint a compliance monitor.
The U.S. charged the firm on Wednesday with conspiracy to commit wire fraud and securities fraud but will defer the case and drop it after three years if the company makes promised reforms. The bank agreed to pay a criminal penalty of $32.3 million and to pay the same amount to settle a U.S. Securities and Exchange Commission civil case.