State Street Bank to Pay $382 Million to Settle Allegations of Fraudulent Foreign Currency Exchange Practices

This document is about State Street Bank agreeing to pay $382 million to settle allegations that it deceived some of its custody clients when providing them with indirect foreign currency exchange services. The bank admitted that it generally did not price the FX transactions at prevailing interbank market rates, but instead applied hidden mark-ups or mark-downs to maximize its own profits.