Forex trading

Authorities in Massachusetts are investigating Forex trading transactions by the State Street Corp after a large number of financial irregularities were discovered, said a source connected to the Secretary of State last Friday. 

Meanwhile, several states are reported to have taken even stronger steps against the State Street bank, and their rivals – the Bank of New York Mellon Corp, joining forces to initiate lawsuits against them in connection with the Forex trading services they offer.  

Forex trading is traditionally a highly profitable area for these banks, yet their Forex transactions have now come under scrutiny after complaints were made by whistleblowers. According to the lawsuits initiated by several states, it is alleged that the banks were charging artificially high prices to customers in order to inflate their profits from the Forex trade. Customers complained that the bans were charging way over the odds for what Forex trading should really cost. 

Predictably, both banks have rejected the charges, and insisted they are not guilty of any wrongdoing. 

William Galvin, Secretary of State for Massachusetts, told reporters through his spokesperson that the state was carrying out an investigation into the bank, related to Forex trading and pension funds that were carried out by the state itself. He refused to give any further details. 

Late last night, a spokeswoman for State Street declined to make any comment about the investigation. 

Last Monday, the treasurer’s office in North Carolina did make an announcement, saying that it was going to review Forex transactions made by a number of custodians, which includes both the State Street bank and the BNY Mellon bank.

Altogether, the two banks are facing four lawsuits against them, as well as the Massachusetts and North Carolina investigations. Florida, Virginia, California and the Public Pension Fund have all initiated court action.