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Article: Forex fees facing scrutiny; Suit against State Street puts all custodians' currency trading in spotlight.(NEWS)
- Article from:
- Pensions & Investments
- Article date:
- November 2, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Douglas Appell
A lawsuit alleging State Street Corp. overcharged high-profile custody clients for currency trading services could prompt institutional investors to focus more on how much money they're leaving on the table as the non-U.S. portion of their portfolios continues to climb.
While unlikely to prove a major headache for State Street, the suit could shine a spotlight on foreign-exchange trading costs, with potential long-term ripple effects for custodial banks in general, investment consultants say.
The suit was filed Oct. 20 by California Attorney General Edmund G. Brown on behalf of the country's two biggest pension funds: the ...