BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) announced today that State Street Bank and Trust Company has negotiated a series of agreements, which it expects, subject to final approval, to resolve all pending litigation and regulatory matters in the United States related to its indirect foreign exchange business.
“Matters of this nature can drain both time and resources; so where possible and appropriate we feel it is in State Street’s and our clients’ best interests to pursue settlements,” said Mike Rogers, president and chief operating officer of State Street.
“In 2009, we significantly strengthened our disclosures around indirect foreign exchange, including publishing the spread relative to indicative interbank market rates at the time of pricing, and today believe we provide our clients with the most comprehensive disclosures in the industry.”
State Street reached agreements with the Department of Justice, Department of Labor and the Massachusetts Attorney General and, subject to court approval, a class of State Street’s custody customers. State Street has also negotiated an agreement in principle with the Securities and Exchange Commission staff that is subject to approval by the SEC. Each agreement depends upon certification, for settlement purposes, of a class of State Street’s custody customers that executed indirect foreign exchange transactions with State Street between 1998 and 2009, and final approval by the United States District Court for the District of Massachusetts of the settlement agreement between State Street and the class. In total, State Street expects to pay $530 million to settle claims that had been asserted in the United States with respect to its indirect foreign exchange business, which will be fully covered by the previously established reserve.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $27 trillion in assets under custody and administration and $2 trillion* in assets under management as of March 31, 2016, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
