$35 million paid by State Street to settle U.S. SEC charges on secret markups, disclosure failures – 8th September 2017

State Street Corp will pay more than $35 million to settle U.S. charges that it fraudulently charged secret mark-ups for transition management services and hid details from clients about the trading of U.S. Treasury securities, the U.S. Securities and Exchange Commission said on Thursday. The figure includes $32.3 million that State Street had previously agreed to pay to the SEC to settle fraud charges for the secret mark-ups. State Street also entered into a deferred prosecution agreement with U.S. Justice Department officials over the matter in January, and agreed to pay the agency an equal amount. State Street has since shuttered some offices in its transition management business, which helps international customers move investments between asset managers or liquidate large portfolios.



Thomson Reuters, Reporting Team