California Attorney General accuses State Street bank in pension fraud
Oct. 20, 2009 |
Julie Small |
KPCC
California’s Attorney General Jerry Brown today accused Boston-based State Street bank of committing “unconscionable fraud” against California’s two largest pension funds, CalPERS and CalSTRS, the retirement funds for public employees and teachers.
Brown announced he’s filed a lawsuit in Sacramento Superior Court that alleges State Street overcharged CalPERS and CalSTRS for foreign currency trades.
CA/Local News
State Street and other institutional investment banks commonly buy and sell foreign currency and pay an interbank rate when they do.
Brown says State Street instead charged the highest rate of the day, or close to it, and covered up the deed by failing to include a time stamp on trade records.
Brown estimates that over eight years, State Street pocketed nearly $57 million in overcharges.
The lawsuit seeks $200 million in damages and penalties.
A spokeswoman for State Street says the firm "categorically" denies any wrong-doing.
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4 weeks, 1 day ago
Hey Jerry Brown, California State A.G. "Don't get all bent out of shape about the time stamp. You should have said something before. The kid in the back room probably just forgot to re-ink the stamp pad, thats all. We can take care of that, no problem. Just drop off the statements you don't like and we will stamp 'em up for ya. Just tell us whatever time you need stamped so all the paperwork flies with your people out there in Cali. You want it back-dated?
You need it post-dated? Just tell us Jerry, its no problem. We are all friends, and i wouldn't let a silly little time-stamp come between friendship.
We were thinkin maybe the lobster we sent for christmas sat off the ice a little too long. Geez, you really had us worried there,Jer. Look, don't eat yet and tell
CALPERS don't leave for lunch. I'm flying a crate a crabcakes out to you this second. You ain't never had crab like this Jerry. You will swear you've died and gone to heaven. We just want you to know how much we really appreciate your business. We are not like Wall Street, Jerry.
This is State Street where(....its all about us, its all about us!)