BOSTON (Reuters) - Connecticut’s attorney general plans to review foreign exchange trades State Street Corp (STT.N) made on behalf of the state’s $25 billion pension fund.
The office of Attorney General George Jepsen plans to hire a forex consultant who also is willing to provide expert testimony in potential litigation, according to a contract proposal made public. Proposals for the contract are due May 11.
State Street and Bank of New York Mellon Corp (BK.N), two of the world’s leading custody banks, have been accused by several states of overcharging public pension funds on their forex trades. Both banks have denied any wrongdoing.
In Connecticut, the consultant would review forex trades State Street made on behalf of the Connecticut Retirement Plans and Trust Fund, which counts about 190,000 participants, including teachers and state and municipal workers.
“The purpose of this analysis is to determine whether these costs incurred by (the pension fund) were fair, reasonable and appropriate,” according to the AG’s request for proposals. The contract’s maximum amount for the consulting work will be $300,000.
A State Street spokeswoman said, “The state of Connecticut remains a valuable client of State Street, and we will not otherwise comment on our relationship with the state.”
Reporting By Tim McLaughlin, editing by M.D. Golan